Benefits of Face Recognition in Retail (Updated 2022)

Daten & Wissen / Nov. 7, 2022

Retail Businesses have existed for a very long time and are here to stay for at least the next century. Newer technologies are being developed to make retail operations much easier and more efficient. One of the recently popular technologies of AI i.e. Facial Recognition is already been used by the retail industry.

Today, technology has advanced so much that it serves multiple functions in any retail business such as customer service, security, safety, and access and authentication. All Face recognition solutions work on a simple principle i.e. uses a scan of human facial features (eyes, nose, lips, and chin) to recognize human faces. Then, to find a match, face data is put in comparison with the data in the database.

Benefits of Using Face Recognition

Face Recognition works on the applications of Computer Vision and some of its benefits are given below:

Detection of safety masks

Retail chains are integrating face recognition systems with a mask-detecting feature. This update was due to the outbreak of COVID-19, since then mask detection ensures an ideal way to keep workers safe and to prevent the spread of any unwanted diseases.

Facial recognition software with mask detection recognizes whether or not the employee is wearing his/her mask. If the employee violates rules and doesn’t wear their mask, the management is informed by the software. To ensure that customers are following the govt. official covid rules, a face recognition solution can be applied at the entrance and exit gate.

Enhancing Customer Experience using AI in Retail

Shop owners and retailers are in a stalemate situation: Either they have to accept their current market position or… They can integrate smarter technologies such as AI & Machine Learning into their current operations.

The question now is… How can one completely rely on technology? Well, current technology is made under the umbrella of Artificial Intelligence. AI works on a simple concept and that is the imitation of human intelligence, it performs the same work that humans perform but with better efficiency and accuracy. AI technology currently appears to be the best strategy to disrupt the retail industry.

Digital transformation will play a huge role in the future of retail businesses. No customer returns to a store if he/she gets mediocre or bad service. A study carried out by Customer Experience/Unified Commerce shows that only 7% of businesses offer an overall optimal customer experience. The survey also showed that the majority of respondents (about 51%) said they would never purchase from a store where they had a disappointing in-store shopping experience once or twice.

There’s an old proverb “Customer is king”... If you can’t attend to their needs then you won’t be able to retain them.

Finance Experts estimate that any business can earn up to 0.45 times its net value in 5 years if they recurringly invest in building a better customer experience.

Some customers are even willing to pay a higher price (approximately 13-18%) for premium customer services.

Here’s how technology helps businesses improve customer service:

By properly utilizing technology, Retailers can transform their business around and provide outstanding customer experiences that draw customers back. Face recognition in retail can gather information about customer visits (their responses to particular goods and services) and make inferences about how to tailor the customer experience. This solution would offer customers personalized product recommendations depending on purchase history and other insights.

Customer personalization can help your store follow your product niche and provide a unique experience. Face recognition can improve revenue by allowing you to get to know your customers better and make their shopping experience much more memorable and seamless.

Premium Customer Identification

Retail Businesses have lately adopted face recognition technology and have generated quite a revenue from it. The technology has introduced a tonne of new ways to improve consumer loyalty programs. In particular, face recognition technology has made it possible to quickly and precisely identify premium customers.

This may be crucial for retaining a high-profile client. You can recognize them at the store entrance and give them good service and treatment. Additionally, discounts and merchandise can be offered to customers in return for good reviews on your website.

By implementing facial recognition in a retail store, you can give your premium customers top-notch service. Once the customers are content, they'll praise your store on social media or refer to their mutual friends. People in general prefer peer recommendations as compared to advertisements.

Therefore, integrating technology might be a wise long-term investment!

Enhanced Safety in Retail

Theft and shoplifting have long been major problems for the retail industry. Below given are some of the stats of such misdemeanors:

Face recognition might be the solution if you've been a victim of shoplifting and are now looking for a reliable way to stop it in your store. It works well in identifying and apprehending shoplifters and other criminals when used properly. Here's how a retail face recognition app operates:

The program looks for faces in the footage and compares them to a database of shoplifters in an effort to determine who is who. The system promptly alerts the security personnel and managers to take action to stop shoplifting in the store once a resemblance is detected.

49% of Americans, according to Stats, concur that technology should be employed in retail shops to capture shoplifters. Although the technology is still developing and has potential for improvement, many are already implementing it. Try facial recognition will make the workplace safer for employees and protect businesses from any unwanted loss.

Biometric Employee Authentication

The retail sector is seeing growth in biometric authentication. Will fingerprint readers be replaced by biometrics? It's difficult to say. However, the market is currently seeing an increase in demand for it. Since contactless biometric systems help stop the spread of the fatal coronavirus, many establishments switched to them during the pandemic.

Companies can also regulate employee access to restricted locations using facial biometrics at work. The highest level of security in a store is provided by biometrics combined with pin verification.

Let’s Wrap it Up

Face recognition has recently made some changes for companies to scale their business. The innovation has covered everything, including face authentication, quarantine tracking, safety solutions, and user experience improvement. Today, every retailer may benefit from the technology in some way. Daten & Wissen team is here to fulfill your technological needs by providing the latest in-line solutions. We make customized AI solutions for our clients and would be happy to help you…


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Daten & wissen

Daten & Wissen is the team of expert AI engineers to help your business to embark on a transformational journey with the adoption of this futuristic technology.

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