Face Recognition Technology in Retail Industry

Facial Recognition Technology has been around for a couple of years now. It is playing an essential role in the retailing industry to enhance the customer shopping experience. As per Marketing Research Report, the worldwide face recognition market is predicted to succeed in $8.93 billion by 2022, growing at a CGPR of 19.68%. This research gives us the insight that this technology is going to shape the retail industry beyond our imaginations.

However, advancements in AI (Artificial Intelligence) and ML (Machine Learning) algorithms have introduced new revolutions during this technology. Recent developments in technology aren’t limited to unlocking your phone – though people are loving the thought of password-less authentication.

1. Understand Your Customers Better

Face Recognition Software helps you collect more information about your customers, their experiences, and purchasing behaviors. Specifically, it can analyze visit history, purchasing history. Hence, you can remind them of those items or display them on a personalized cloud-based digital signage screen.

2. Personalized In-Store Experiences for Customers

You can integrate this technology with the loyalty Software, CRM, and Point of Sale Systems to increase your sales. As soon as a customer walks into a retail store, installed cameras recognize the customer’s face and alert the sales associates with that particular customer’s preferences based on their purchase history and demographic details.

A Notable Restaurant Chain in California based had rolled out AI-enabled self-ordering kiosks that leverage facial recognition to help registered customers complete their ordering transaction within seconds. The system also displays the favorite historical meal combos of each customer, thus allowing them to make a rapid choice.

3. Prevent Retail Crimes and other Shoplifting

Thanks to its AI technology, it can recognize faces of theft and shoplifter in the video or camera. When a matched face is found, the recognition system will alert security officers before the theft takes action and leave.

With face recognition technology, retail stores can prevent theft and shoplifters and it leads to reduce losses. For example, many supermarkets in the UK employ face recognition to determine whether customers are old enough to buy the products or not.

4. Self-Checkout with Facial Recognition based Payments

Shoppers from retail stores can easily pay by presenting their faces on tablet-like devices or kiosks. It is easier, faster, accurate, and most significantly secure. According to a Leading Global Customer Service study, states that customers on average have to wait for 15 minutes before they get served.

The study also states that customers are more loyal & happier where they experience faster checkout and less waiting time. Payment through various payment methods like cash, card, or QR code requires different POS terminal setup and more staff involvement. Face recognition may be a more convenient payment method because it eliminates various hardware.