A computer implemented method, apparatus, and computer usable program product for optimizing loss leader merchandizing. The process parses event data to identify physical patterns of customer behavior, wherein the event data is derived from a continuous video stream captured at a retail facility, and associates the physical patterns of customer behavior with customer profile data to form dynamic customer profiles. The process then analyzes the dynamic customer profiles to identify types of customers and presents marketing incentives for a set of loss leader items to customers of a selected customer type, wherein the set of loss leader items are selected based on the dynamic profiles.
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