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Customer Insights From Your Smart Building Infrastructure: Digitising the Physical
Danny Holmes, Principal Consultant • Apr 20, 2023

Deriving value from smart buildings by putting the data to work 

According to Fortune Business Insights, the global Smart Building market is projected to reach $328.62 billion by 2029, an annual growth rate of over 20 per cent for the next seven years. This equates to an estimated 45 million smart buildings this year to over 250 million by 2029 as demand grows for secure, energy-efficient developments. Currently around 90 per cent of smart building spending goes to non-residential properties. There is of course consumer demand for this technology as well, driven by rising environmental concerns and energy costs, along with increased time spent at home. But the lion’s share of smart infrastructure investment comes from the corporate world; particularly those with large estates and property portfolios. 


The argument for smart building investment is clear: 


  •  A smart building reduces energy costs by optimising when heating and cooling occurs across the estate. In most cases the costs savings pay for the investment, making it a no-brainer.  
  • A smart building enhances the health and well-being of employees by making buildings more comfortable, this in turn boosts productivity also resulting in a financial benefit for the organisation.  
  • And finally, smart infrastructure helps businesses demonstrate their commitment to their Scope 1 emissions, which is important in the supply chain in terms of helping others with their Scope 3 emissions. 


However, there is another key benefit; one which few organisations are currently exploiting. This is using the resulting data more strategically – outside of energy saving and optimising the employee experience. Ultimately using store movement data to better understand customers and their behaviour to inform decision making and deliver tangible insights that result in new revenue streams or incremental revenue. 


Conversion rate optimisation (CRO) is one of the most effective marketing channels, but often confined to online due to data availability and thus capability for experimentation. By applying the principles of CRO to physical stores, retailers can improve the customer experience, increase sales and gain valuable customer insights.


For instance, in a retail environment, it is possible for organisations to use their smart infrastructure, with camera and beacon technology, to: 


  • Measure customer engagement (count and dwell) in store 
  • Compare engagement between different products  
  • Provide heat maps of popular/unpopular locations
  • Understand flow and direction of traffic
  • Measure footfall overall or in specific areas


Once decisions are made as to what activities should be monitored, it is possible to structure and map all the data sources to build models that define relationships such as correlating engagement data with conversion data. This can be enriched with additional organisational data, demographics and market share information, amongst others, to further identify relationships and data points. And finally, dashboards can be developed to enable ongoing consumption and implementation of the insight. 


Employing your smart infrastructure to drive insight fills a significant gap. Industry is great at understanding customers before and after they enter stores, but knowing what they do on-premise has, until now, been more challenging. However, with the smart infrastructure (which can be funded by energy savings) it is now possible to answer questions such as:  


  • Which products are my customers most engaged with?  
  • What impact did my recent marketing campaign have on product engagement?  
  • How effective is our signage?  
  • Where is best to launch a new product?  
  • How long do customers spend in store?  
  • What impacts conversion?


And suddenly your smart infrastructure is delivering more value than its original purpose. Win-win! 



As Principal Consultant at Beyond ESG, Danny Holmes is our data strategy expert, helping clients solve business problems with data, technology and pragmatic thinking. 


By Danny Holmes, Principal Consultant 28 Feb, 2023
Beyond ESG use data, technology and industry expertise to define, manage and run energy saving programs. Where it makes sense, we transform buildings using smart technology to automate energy saving programs and enable new data driven opportunities.
By Nick Robinson, Managing Partner 14 Feb, 2023
Beyond ESG use data, technology and industry expertise to define, manage and run energy saving programs. Where it makes sense, we transform buildings using smart technology to automate energy saving programs and enable new data driven opportunities. 28% contribution to greenhouse gases, this was the latest figure published by the World Green Building Council who claimed this is the contribution of operational emissions from buildings. That’s not including the construction and material downstream which also adds a significant amount of carbon (11% of global emissions, resulting in 39% total). It’s no surprise then that this big problem has received a lot of attention. Thankfully we’re in the 4 th industrial revolution, one of AI and smart technology which opens up new realms of opportunity. Enter digitized buildings. Connected by IoT and supported by data science, this enables unparalleled levels of control and monitoring, allowing for the optimisation of buildings across an array of metrics. Reverting to the problem identified (i.e. 28% contribution of GHG), one use case of connected buildings is improved energy efficiency. With the right infrastructure feeding the right data with the right level of control, we can optimise the use of lighting, heating and even improve air quality to provide the best working or shopping environments for our occupants. Two simple examples of this are: 1. The optimisation of indoor temperature based on data from the outdoor environment and the occupancy levels of the building. i.e. if it’s 30 degrees outside and people are working from home on a Monday, adjust the HVAC to run low and conserve energy. 2. The monitoring of rooms across an estate to measure occupancy and switch off or dim lighting based on usage, most obviously this helps to switch of lights at night (where you’d be surprised at how much energy is wasted). These are two examples, but they range in complexity. At the heart of this capability is the building management system (BMS), with this in place the opportunities are aplenty. Every property and its usage is unique, it’s for experienced engineers and data scientists to assess the data and provide insight into where the best energy saving programs can be had. While energy saving is important and a timely problem, we shouldn’t forget the wider benefits that connected buildings bring. Using the same level of control, we can optimise lighting to reduce problems like eye strain and air quality improve comfort and productivity. Stuffy humid office environments create frustration and distraction among staff, by taking control centrally this can be avoided. Chris Whitty, our chief medical officer, said "monitoring indoor air quality should become standard practice in public spaces and urgent investment is needed". Benefits stretch even further, with CAFM (computer aided facilities management), owners can take advantage of improved efficiencies in asset management, reducing optional costs and empowering internal teams to take control. For example, streamlining facilities management, with data from sites on asset performance we can distribute, track and complete work to be done in way that previously required significant internal headcount or external suppliers. In another example, we can use IoT technology such as vibration sensors to feedback data on when an asset is showing unusual signs of operation. Say hello to predictive maintenance. Downtime on major assets can often result in significant costs per day, if operators can get even a 24 hours heads up, this can avoid major costs to the business. In summary, the benefits are vast from connected buildings and they will only grow as we see continued innovation in technology and processes. There’s an immediate need to cut energy bills, so the commercial benefits are there for the taking. But the long-term requirement of decarbonisation should be equally considered. The SBTi (Science Based Targets Initiative) has their framework for building decarbonisation out in July 2023, so keep a close eye on that. Aside from energy, our people are important assets, their requirements are increasing and the data on the effect of internal environments on their productivity is continuing to reinforce the importance of this focus. Haven’t taken the first steps on this major change program? Don’t worry, Beyond ESG can help start and steer on this journey. Our next article will talk about why these endeavours fail, so keep an eye out for that. Nick Robinson is an experienced Founder and Co-Founder who has been in the IT industry for 25 years. Nick talks about the adoption of New Technologies, IOT, Energy Savings and ESG. He is a 2023 Honoree for ESG Programming (ALM Consulting Awards) and 2022 Winner of the Energy Saving Project of the Year (BCIA). His purpose is to enable our clients to execute of their Net Zero Strategies.
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