Face recognition technology is used in retail trade in various ways. One common application is customer identification and registration in loyalty programs. For example, a retail company may use facial recognition to identify the buyer when it enters the store and then automatically enroll it in the company’s loyalty program or apply to it discounts or rewards to which it may be entitled.
Another application of face recognition in retail is personalized marketing and advertising. Retailers can use facial recognition to collect information about the age, sex, and other demographic characteristics of the buyer, and then use this information to adapt marketing messages or advertisements to a specific buyer.
Facial recognition technology can also be used in retailers for security purposes, for example, to identify known shoplifters or to prohibit prohibited shoplifters from entering the store.
Market analysis
World practice now shows that facial recognition functions at a minimum level relative to its potential. The world’s largest supermarket chain, Walmart, has integrated a facial recognition system to combat theft and reduce losses from loss and theft. Russian retailers such as X5 Retail Group, «Dixy» and «VkusVill» are at the stage of testing similar technology.
According to the research company MarketsandMarkets, quoted by Bloomberg, in 2022 the global face recognition market reached $7.76 billion. In 2016, it was more than half that, $3.35 billion.
Sales growth
RFM-analysis of the US fashion retail market for the period from January 2021 to December 2021 shows at least a 2x increase in sales from those companies that have started to apply face recognition system for a more custom approach to the client.
This analysis takes into account not only the amount of revenue, but also the frequency of purchases, as well as the date of last purchase. Thus, clients are segmented according to loyalty.
Customer experience
Use cases
Personalized marketing and advertising
Retailers can use facial recognition to collect information about the age, sex, and other demographic characteristics of the buyer, and then use this information to adapt marketing messages or advertisements to a specific buyer.
Customer identification and registration in loyalty programs
A retail company may use facial recognition to identify the buyer when it enters the store and then automatically enroll it in the company’s loyalty program or apply to it discounts or rewards to which it may be entitled.
Fraud prevention
Instant identification of visitors, comparison with database of intruders and timely notification of SB. The system reduces the risk of theft by 87%. According to a study conducted by KPMG in Russia, various ways of stealing goods in retail stores incur losses of 2-2.5% of retail turnover.
Access control to staff quarters
LUMIFACE limits the risks of counterfeiting RFID-cards of employees, their loss, transfer to third parties, access of several people on one card.