Retail image recognition: Top applications that could work for you
Salesforce management tools often incorporate elements of AI, and image recognition is one of the top trends for retail software - here's how it works. The world of retail is changing fast, as high-street stores try to keep up with the unprecedented rise of online shopping. Today, the vast majority of customer interactions in the retail sector are managed by artificial intelligence (AI) and automation. Recent advances in technology have transformed the customer experience to deliver greater efficiency, while giving retailers the opportunity to optimize their supply chains and product portfolios. Here’s how retail image recognition is making it happen:
How does retail image recognition work?
Retail image recognition is the process of using cameras to take images of things like products on store shelves and using AI to predict what they are and categorize them accordingly. This technology can be used to detect things like empty shelves due to items being out of stock or items that are out of place. Image recognition algorithms have come a long way in recent years. Inspector Cloud uses a range of advanced object-detection methods to automatically draw bounding boxes around each item on a store shelf and output them as unique SKUs. This automates the vast majority of auditing work and turns the status of your store shelves into actionable data.
1.) Optimize product placement
Traditionally, retailers relied on assumptions and extensive market research to ensure the optimal placement of products on the store shelves – dairy products would go in the dairy section, and bread would go in the bakery aisle, and so forth. But sometimes, apparently obvious decisions are not the right ones. Retail image recognition can identify opportunities for improvement by using data to determine what customers are looking for and where. Thus, it might reveal how, for example, it’s better to place condiments near the basic food supplies they complement.
2.) Improve customer experience
Customers often shop out of necessity, at least when it comes to essential goods. As such, they enter the store looking for something specific. It’s your job to make it as easy as possible for them to find what they’re looking for. Sometimes, however, there might be certain things that aren’t on their shopping lists, yet purchasing them would lead to a better experience. For example, if someone is shopping for salad items, they might also want dressings and other condiments. Retail image recognition helps map out the customer experience to reveal those various opportunities for improving it.
3.) Ease supply chain management
No one wants to walk into a store to find rows of empty shelves. Not only is this bad from the customer experience perspective – it also represents lost revenue for retailers and potential issues with the supply chain. Particularly given the disruption to supply chains caused during the coronavirus pandemic, it’s essential to take a proactive approach to mitigating such issues. Moreover, limited shelf space and constant new product introductions have made it even more difficult to keep up with demand. Retail image recognition uses cameras and AI to detect those empty shelves and dwindling stocks, often long before human auditors can get around to it.
4.) React to opportunities faster
Facing enormous and growing competition from online retailers, including grocery stores, the retail sector is under constant pressure to adapt quickly. Retail image recognition helps turn the reality of your store shelves into actionable data, such as which products are in the highest demand and which brands your customers prefer. This allows you to evaluate the real status of your store shelves against predefined scorecards to strategically react to new opportunities and continuously optimize product placement.
5.) Align with planogram compliance
In the traditional retail environment, customers often make their purchase decisions in front of the store shelves. CPG retailers invest a lot of money and effort into tools to create planograms of how they want their store shelves to look and develop rules and policies around them. But the reality often ends up being somewhat different. By leveraging retail image recognition, it’s possible to check for planogram compliance in real time. For example, if an SKU is misplaced or running low on stock, store managers and sales representatives will know about it immediately.
Inspector Cloud is changing the CPG sector with its award-winning image recognition solution. Our powerful, AI-driven software slashes retail audit times, eliminates human error, and offers a detailed analysis of store efficiency. Get in touch today to find out more.