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2 ACTIONABLE RETAIL INSIGHTS SUMMARY Retailers in brick and mortar stores need deep insight into consumer behavior and foot traffic patterns to better engage shoppers and increase same-store sales. With growing popularity of smartphones and the concurrent development of Wi-Fi client location monitoring, smartphone users offer an excellent statistical sample for analyzing and predicting the behavior of retail shopper s stores, malls, and other public venues. Storesense builds on the basic location analytics capabilities offered by Wi-Fi hardware vendors. Our advanced algorithms process the data inputs and turn them into meaningful retail-specific metrics. By analyzing trends and patterns in the metrics Storesense provides insight into visitors behavior and actionable advice that can be directly used by a store manager or corporate store operations to significantly grow same-store sales. Storesense is a Microsoft Azure cloud based solution that runs on any mobile, desktop or tablet device.

3 PURCHASE AND BEHAVIOUR PATTERN DETECTION Storesense s unique capability to analyze visitor s actual paths allows us to differentiate visitors according to key events. Storesense can detect if a visitor made a purchase (buyer) or left without purchasing anything (non buyer), what departments and in what sequence were visited, the direction the visitor was walking in a particular corridor etc. This knowledge allows Storesense to give retailers unparalleled insight in visitor s behavior and increase the number of shoppers who buy by analyzing and reducing the reasons for shoppers leaving without purchase. INSIGHTS Based on the weather forecast you will have more visitors that will stay there longer. We project more retail staff ill be needed. Insight into non buyers is unique to Storesense, as this is information that cannot be analyzed using classic retail analytics like loyalty programs. Example of Storesense insight Traffic flows for buyers vs. non buyers Departments visited by buyers vs. no -buyers Dwell time for buyers vs. non buyers Flows Buyers Departments by visits Buyers Dwell time in departments Buyers The Insight module is the heart of Storesense and unique in the retail location analytics market. It translates the mountains of data, statistics and trends into clear, actionable advice for the store manager or corporate store operations to significantly grow same-store sales. Flows Non Buyers Departments by visits Non Buyers Dwell time in departments Non Buyers Insights module also includes external data in analytics and projections. For now, we support weather, with other external data connectors being developed. We are constantly adding to the Insights module and growing the power of our machine learning algorithms.

4 CUSTOMER FLOW Advanced customer traffic flow visualizations give retailers a simple overview of customer traffic flows and immediate insight into the effects of marketing, sales or floorplan optimization initiatives. Purchase detection enable. immediate comparison of buyers vs. non buyers traffic flows. This enables the retailers to easily see what departments are most often visited without a purchase - often an indication of product visibility or stock problems. Storesense does not only display traffic flow; we also display average shopper speed and prevalent movement direction, which enables the retailer to improve store layout for better traffic flow, shelf visibility and correct orientation of the signage. CHECK-OUT MONITORING WITH TIMED SECTIONS Check-out monitoring Queue time analytics Check-out monitoring Queue time analytics zoom on a day Retailers want to increase shopper satisfaction and optimize workforce requirements by reducing time in queues. Storesense provides intelligent check-out monitoring for any zones where customers wait like the delicatessen or main check-out counters.

5 TECHNICAL OVERVIEW KEY BENEFITS Storesense uses Wi-Fi Access Points to determine the approximate (<5m radius) location of a Wi-Fi client in a retail context we are detecting the location of a shopper s smartphone. By monitoring the smartphone s location during the shopper s entire visit, Storesense is able to compose the visitor s path through your venue. As real world location detection is far from perfect, we use retail floor plan specifics like defined entrances, obstacles, displays, shelves, check-outs and exits as the foundation for our machine learning algorithms that examine, optimize and fit the detected coordinates to actual paths with improved accuracy (1-2m radius). Storesense runs on Microsoft Azure cloud and works in any browser, on smartphones and tablets. Increase revenue per square meter of the store with optimizing the store layout Make informed decisions about stocking and ad placement by analyzing popular paths and directions Increase same-store sales by adapting to and influencing visitor behavior Track visited departments and visit time to optimize store layout Optimize shopping experience by reducing crossed or opposing shopper flows and check-out time LARGE STORES Analyzing sales results records your victories; analyzing shopper behavior with Storesense helps you understand where you are losing. In order to leverage the full potential of the Wi-Fi technology, we suggest that the store size exceeds 2000 m 2. Track store engagement Identify prime locations within the mall Identify visitor patterns what kind of stores do they usually visit and in what order? Optimize traffic flows for complete mall coverage Track the effect of weather on shopper patterns MALLS Identify traffic patterns, keep an eye out for potential problems and bring value to your tenants with Storesense for malls.

6 ADDITIONAL METRICS Engagement example on specific day and time Visit duration history example on specific day and time ENGAGEMENT Passers-by: People who walk by or visit Visitors: People that walk into your location Engaged Visitors: People that spend more than a defined amount of time at your location Buyers: People that make a purchase VISIT DURATION See how many visitors leave quickly (bounces) or stay longer (engaged visitors). By looking at this metric s trend through time a retailer can see the effect of related initiatives are they succeeding in keeping the visitors longer (and purchasing more)? Departments by visits VISITED DEPARTMENTS Quickly see and compare the popularity of store departments. Are visits to a certain department too low? A retailer can change the signage and observe the effects in real time! Dwell time in departments DWELL TIME IN DEPARTMENTS Indicates problematic areas and helps retailers focus their activities to optimize store layouts improve the signage and calls to action in the case of low dwell time and improving product visibility in the case of high dwell times.

7 COMPARED TO OTHER RETAIL ANALYTICS SOLUTIONS FEATURE STORESENSE AIR- TIGHT CISCO CMX MERAKI CMX SWARM PURPLE WIFI EUCLID ANALY- TICS RETAIL- NEXT Departments Aggregate visitor tracking Department dwell time analytics Department visitor analytics Purchases and groups Purchase detection Custom visitor group detection Visitor cohort tracking Engagement analytics Movement and flows Movement heatmap Customer flow aggregation Flow direction display Flow alert display Check-outs Check-out time monitoring Check-out time prediction Data intelligence Smart path data correction Self-improving actionable insights Machine learning algorithms to detect patterns Technical Platform independence Legal EU privacy compliance

8 NIL Ltd. Tivolska cesta Ljubljana Slovenia T: nil.com I storesense.info

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