AVSystem Blog on Information and Communication Technology

What Is a Smart Venue? And How It’s Changing Retail and Events Forever

Written by AVSystem | 27/11/2024

Imagine this: A customer steps into your grocery store, and their phone instantly connects to the free WiFi. A notification appears - "Buy 2 bananas, get 1 free!" - just in time for their morning smoothie run. Across town, an event attendee uses WiFi to seamlessly locate their seat in a sprawling arena and order snacks without leaving the queue. Meanwhile, you’re reviewing a dashboard that shows real-time customer flow and sales performance.

This is the power of a smart venue—whether it’s a shopping mall, a chain of grocery stores, or a bustling event arena.

What Is a Smart Venue?

A smart venue is a physical space equipped with digital tools to elevate customer experiences and optimize operations.

Smart venues are much more than just physical spaces - they are dynamic, adaptive environments designed to enhance customer experiences and streamline operations. At the heart of this transformation is WiFi, but not in the traditional sense of just providing connectivity. Today, WiFi is the backbone of context-aware venues powered by advanced technologies like AI and IoT.

To better understand this shift, Łukasz Kwiatkowski, the Business Unit Director - Linkyfi, explains how WiFi is paving the way for intelligent, human-centered venues. As he puts it:

 

“The role of WiFi in venues is evolving far beyond just providing connectivity. We’re entering an era of context-aware smart venues, where WiFi serves as the foundation for AI-powered solutions. However, this isn’t about replacing human intelligence with artificial intelligence. Instead, it’s about externalizing intelligence - embedding it into the spaces around us to make life better and easier.

Take a shopping mall, for example. Imagine walking into the mall and having the space itself respond to your needs, without you needing to wear special glasses, a smartwatch, or even open an app. WiFi, powered by AI and IoT, can provide a seamless experience by adjusting the lighting in less crowded areas to draw people in, dynamically changing promotional offers displayed on digital signage, or guiding visitors to available parking spots - all automatically.

This isn’t just about technology for technology’s sake. It’s about creating an environment that understands its visitors and helps them navigate their day more smoothly, intuitively, and efficiently. WiFi will be the key to making malls and other venues not just smarter, but more human-centered.”

Smart Shopping Malls: Creating Experiences, Not Just Retail


A smart shopping mall is no longer just a place to shop—it’s about creating engaging experiences for visitors. By leveraging guest WiFi and advanced analytics, malls can transform their operations and interactions to meet the evolving expectations of their customers.

Here's how:

Engage Visitors Through Personalized WiFi Captive Portals
Shoppers can log into customized WiFi portals that greet them with personalized offers, event updates, or store recommendations tailored to their preferences. This enhances the customer journey while providing value from the moment they connect.



Analyze Shopping Patterns with Heatmaps and Foot Traffic Insights
Advanced location-based services allow malls to track how customers move through the space. Heatmaps and foot traffic insights highlight popular zones and identify underperforming areas, enabling operators to refine layouts and optimize the flow of visitors.



Boost Tenant Sales with Targeted Promotions and Real-Time Offers
Using real-time analytics, mall operators can push relevant promotions directly to shoppers’ devices. For example, a customer lingering near a fashion store might receive a discount notification for the latest collection, encouraging spontaneous purchases.

A Perfect Example: WiFi-Powered Location-Based Services in Action

Imagine a large shopping mall implementing WiFi location-based services:

Enhanced Navigation
Upon connecting to the mall’s guest WiFi, visitors can access an interactive map that guides them to specific stores, parking spaces, or restrooms. This ensures a smoother shopping experience and reduces frustration.

Dynamic Promotions
A customer walking near the electronics section receives a real-time notification: “Exclusive offer! 20% off all headphones at Store X for the next 2 hours.” This creates a sense of urgency and drives immediate action.



Crowd Management
Heatmaps generated by WiFi analytics highlight overcrowded areas. Mall operators use this data to redirect traffic by promoting less busy sections through digital signage or app notifications, ensuring a comfortable experience for all shoppers.

Event Optimization
A weekend promotional event is scheduled in an area of the mall with historically low foot traffic. Thanks to WiFi insights, operators track its effectiveness in real time, adjusting signage or advertising as needed to maximize attendance.

Is It Only Imagination?

Think this sounds futuristic? Think again! Many of these innovations have been in place for years, transforming malls and other venues into smart, customer-centric intelligent spaces.

See it in action below! Real Enhancing Customer Experiences with WiFi Location-Based Services:

 

 

Smart Chains of Grocery Stores: Small Spaces, Big Opportunities


Smart technology isn’t just for massive shopping malls or sprawling arenas - it’s also revolutionizing smaller venues like grocery store chains. By using WiFi-powered tools and advanced analytics, grocery stores can enhance customer engagement, optimize operations, and increase overall revenue. What’s more, when multiple store locations are connected under a unified platform, the collective data creates powerful insights that benefit the entire chain.


How It Works


Personalized WiFi Portals
Customers are greeted with tailored offers as they connect to the store’s WiFi. For instance, a regular shopper might receive a loyalty coupon based on their frequency of visits: “Welcome back! Enjoy 10% off your next purchase.”

Smart Analytics for Inventory and Layout Optimization
By analyzing peak shopping times and customer movement patterns, stores can ensure shelves are stocked precisely when and where products are needed. If one region experiences higher demand for specific products, insights from aggregated data can help redistribute inventory across locations.

Targeted Promotions
WiFi portals can promote seasonal products or offer location-specific deals. For example, “Fresh strawberries are 20% off today!” can be pushed to customers near the produce aisle, encouraging immediate purchases.



Leveraging Synergy Across Multiple Locations
When a grocery chain uses WiFi across multiple smart locations, the combined data becomes a game-changer. Here’s how:

  • Regional Comparison of Key Performance Indicators (KPIs) - By aggregating data from all stores, managers can compare KPIs like foot traffic, average basket value, or promotional effectiveness across regions. For example, if one region outperforms others in basket value, successful strategies from that location can be replicated across the chain.
  • Boosting General Revenue - Unified analytics allow chains to identify trends that improve overall profitability. If stores in urban areas show a high demand for pre-packaged meals, rural locations can be encouraged to stock similar items and run targeted campaigns to boost sales.
  • Increasing Average Basket Value - WiFi-enabled heatmaps reveal customer movement patterns, helping stores position complementary products strategically. For example, if analytics show that customers who purchase fresh bread often buy cheese, these items can be placed closer together with targeted promotions: “Buy 2 loaves of bread and get 1 pack of cheese at 50% off.”
  • Dynamic Regional Promotions - Seasonal offers or campaigns can be tailored to regional preferences. For example, stores in one area might push summer BBQ kits, while others focus on back-to-school deals. WiFi-enabled insights ensure the right campaigns are deployed in the right locations.

 

Smart Event Arenas: Elevating the Fan Experience

Large event venues are no longer just about hosting events - they’re about creating immersive, unforgettable experiences for fans. By leveraging smart technology and advanced WiFi solutions, arenas can seamlessly integrate convenience, engagement, and business optimization. Here’s how:

WiFi Portal Ads for Merchandise, Refreshments, and Surveys
By using captive WiFi portals, venues can engage attendees directly. Fans connecting to the guest WiFi can see personalized advertisements for exclusive merchandise, food, or drinks. Additionally, arenas can deploy quick surveys to gather real-time feedback on the event, enabling immediate improvements or promotions for future events.

Guest WiFi That Keeps Attendees Connected While Generating Valuable Data
Offering high-quality WiFi not only meets fan expectations but also provides venues with actionable insights. Analyzing data such as peak connection times, traffic flow, and survey responses helps optimize services and improve future events.

Real-Time Surveys for Event Feedback
Through WiFi portals or post-event email links, venues can deploy surveys to gather attendee insights. These surveys can cover everything from satisfaction with concessions to suggestions for future events, offering actionable data to improve the fan experience.

How to Build a Smart Venue

Plan for High-Density Usage
Large venues like stadiums, malls, and arenas host thousands of users simultaneously, requiring networks designed to handle high-density traffic. Proper access point placement and capacity planning are essential to ensure uninterrupted connectivity during peak usage, such as during events or promotions.

Prioritize Seamless Connectivity
Visitors expect a seamless, frustration-free Wi-Fi experience. Implement features like fast onboarding through captive portals, automatic reconnection, and support for multiple device types to keep users engaged and connected.

Leverage Advanced Analytics
Scalable Wi-Fi networks provide more than just connectivity—they offer valuable insights. By using Wi-Fi analytics, venues can monitor foot traffic, identify congestion points, and gather behavioral data to enhance customer experiences and operational efficiency.

Prepare for Future Scalability
Technology evolves rapidly, and venues must ensure their Wi-Fi infrastructure can adapt to future demands. This includes supporting IoT devices, integrating with AI for context-aware services, and upgrading hardware to meet new wireless standards like Wi-Fi 6 or 6E.

For details read Key Considerations for Designing Scalable Guest Wi-Fi Networks in Large Venues

 

Numbers That Prove the Power of Smart Venues


The potential for smart venues is immense, with impressive numbers showcasing the impact of WiFi-enabled solutions:

  • A typical 100,000 m² GLA shopping mall sees over 10,000 unique WiFi users each week, highlighting strong engagement and connectivity demand.
  • At stadiums, 10% to 30% of attendees actively use the provided WiFi, demonstrating the value of offering seamless connectivity during events.
Each login represents a powerful opportunity for venues to display targeted ad space and gather valuable personal or contact data, enabling tailored marketing campaigns and building lasting customer relationships. These figures emphasize how WiFi can transform venues into dynamic, customer-centric spaces that enhance experiences while driving revenue and actionable insights.

Key takeaways


  • Shopping malls use WiFi to deliver targeted promotions, analyze foot traffic, and enhance customer journeys with personalized offers.
  • Event arenas leverage location data and WiFi portals to guide attendees, promote merchandise, and gather real-time feedback through online surveys.
  • Grocery chains benefit from loyalty programs, heatmaps, and location-driven promotions to drive foot traffic and boost sales.