Image recognition is a computer technology that serves to recognize people, but also animals and objects by means of algorithms and machine learning concepts. IR is always associated to computer vision which is a major label for the process training of computers to make them work or see like humans, and the image processing. In a nutshell, this term is applied for all computers that perform intense work on image data. But what does it have to do with retail business, would you say? In fact, image recognition can play a key role in catching physical information from the shelves in order to convert them into actionable data. And that is crucial to find the right way to spot the in-store execution.
Choose the Right Solution of Image Recognition for Retail Execution
Image recognition for retail execution can help you achieve your key business objectives quickly and efficiently. It notably can reduce costs or uplift sales. You just have to define your real goal in terms of retail execution first. Then, you will have a framework to evaluate its effectiveness. You will able to know where and how your company gets value for the money if you assess the total costs and benefits. It is important to choose the best solution in order to avoid any stress and risks of counterproductive attitude. In other words, your image recognition solution has to be relevant and fit the needs of your retail business properly.
You can start by identifying the business case for the solution before using it as a reference point while developing the project. So, if you want to reduce costs to attract more customers, you are advised to list all the associated retail execution costs and define the way you will mitigate it with lower auditing costs or a limited need for third-party data.
The Greatest Advantages of Image Recognition for Retail Execution
If a retailer or CPG (Consumer Packaged Goods) company selects the perfect and the most accurate IR solution, it can take more logical business decisions on time. On the other hand, manual shelf measurements often contain error because after all, the workers are just human. Most of the time, they think with their feet and only take the current environment into account. And that can dangerously damage all the related operations. For instance, if the sales reps find that the shelf management has become relatively problematic, they will tend to change it even if it is not the best solution in the long run. And according to researches, this kind of error causes about 30% sales losses every year.
On the other hand, image recognition projects can be complex and more expensive but the return on investment is way more advantageous. They are part of a change dynamic in the overall shelf organization. That is the reason why your IR solution must be assessed against the vendor’s expertise and the value gained from the business case driving the investment. And to make the image recognition solution fruitful, ask your sales reps to always find quick corrective actions.