How Computer Vision is Revolutionizing Retail

The retail industry is in the midst of a significant transformation. Thanks to technological advances, shoppers now have more options regarding where they buy their goods. To stay competitive, retailers must find new ways to attract and engage customers. Computer vision provides a promising solution.

The pandemic considerably shifted how customers make purchases. E-commerce saw a massive boom, and brick-and-mortar businesses struggled to keep up. In 2021, however, brick-and-mortar businesses saw an 8.2% uptick in in-store sales. The resilience of brick-and-mortar businesses combined with a desire to return to in-person shopping saw a resurgence of the in-store shopping experience after the pandemic.

Brick-and-mortar businesses must constantly look for ways to improve the customer experience and add value to shoppers. Computer vision is one of the key ways in which retailers can set themselves apart and create a competitive edge. Computer vision is still in the early adoption phase and stands as a massive opportunity for retailers worldwide.

What is Computer Vision?

Computer vision is a field of artificial intelligence wherein computers interpret input from cameras in the form of photos and videos. The computers then analyze, interpret, and respond to these inputs through machine learning algorithms. Computer vision enables computers to “see” their environment. They can then use sophisticated algorithms to take action based on what they see and interpret.

Computer vision technology is already present in several different industries, including retail. In the retail setting, computer vision can be used for things like product recognition and pricing and tracking customer behavior. Additionally, retailers can use computer vision for security purposes, such as monitoring suspicious activity.

The potential applications for computer vision are nearly limitless. As technology continues to develop, it will likely find its way into more and more industries. For now, though, computer vision is already making a significant impact in many different fields, retail being one of them.

The Benefits of Computer Vision

There are many potential benefits of using computer vision in retail. For one thing, it can help store employees become more efficient by automating tasks currently done manually. For example, inventory management will be a breeze if a convenience store uses computer vision for shelf stocking. Additionally, brick-and-mortar businesses can use computer vision to enhance the customer experience by providing interactive features such as product recommendations and virtual assistants. Finally, retailers can also use computer vision for security purposes, such as detecting shoplifting or unauthorized entrances into the store after hours.

More and more retail organizations are beginning to adopt computer vision. 95% of retailers believe that computer vision could be pivotal in increasing revenue, cutting costs, and improving efficiency. At this point, many retailers are in the early adoption stage of computer vision. According to a study by Insight, 10% of organizations are currently using computer vision. 81% of organizations state that they are presently adopting computer vision technologies.

What are some use cases for computer vision in a retail setting?

Computer vision has many applications in the retail setting. Some of these applications include:

Customer Tracking

Customer tracking includes identifying the most popular areas in the store, queue times, or routes taken through the store by customers. Computer vision can provide better insights to retailers by providing detailed insights into customer behavior. These could include:

Which areas of the store are the busiest?
How long do customers spend in the store before they make a purchase?
Which product is purchased the most at a particular time of the day?
Which products are most likely to be returned to the shelf?

Customer Volume

Computer vision can also play a role in determining how many people come in and out of a store. A retailer can quickly identify the busiest times of the day through deep learning and in-store cameras. By recognizing the busiest times, stores can ensure staff is available and inventory is stocked adequately in anticipation.

Theft Detection

Computer vision can help identify shoplifting threats that employees may not be aware of. For example, sophisticated computer vision can recognize suspicious behavior and alert employees before a situation escalates. Stores may also use cameras and computer vision to determine whether items in a cart or basket were paid for.

Queue Times

Computer vision can track customer analytics that can help stores improve their processes and facilities. For example, they are making highly desirable products more easily accessible or making more staff available.

Computer vision can help retailers determine the answers to some customer experience-based questions, such as:

How long are customers spending in line?
Why are customers spending more time in queues?

Better Advertising

Computer vision can provide ample opportunity for retailers to serve their customers through targeted advertising. By analyzing shoppers’ behavior, retailers can target the ads that are more likely to result in a purchase.

The Future of Retail

Computer vision will play a significant role in the future of retail. This technology has the potential to revolutionize the way stores operate and the way customers shop. Since computer vision is still in the early adoption phase, retailers that put computer vision into production are more likely to expect ROI within one year.

Experience is vital in staying competitive in the shifting retail environment. 48% of respondents to a Raydiant study stated that they would prefer to shop at a physical store when given a choice. Furthermore, 82% of respondents are highly likely to return to a brick-and-mortar store when they have a good experience. Computer vision can be the solution to improve customer experiences.