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LDC1314: Bezel Rotation Detection - Similar to Nest Thermostat 3rd Gen

Part Number: LDC1314
Other Parts Discussed in Thread: TMAG5273

Tool/software:

Hello,

I am working on a product which requires the code to detect the bezel rotation (by hand) at 1 Degree Accuracy. The device will have a similar edge like Nest Learning Thermostat 3rd Generation. 

While going through magnetic solution seems straight forward, I am wondering if there is any cost effective option to achieve this purpose.

Can you please recommend a part/way forward for me to detect the rotation angle of the bezel?

Thanks