Benefits of Artificial Intelligence
The power of artificial intelligence technologies lies in the fact that they give users the ability to see both the big picture and small details: AI can understand big data and business analytics, so that companies are able to predict and plan with regards to consumer behavior, supply chain or human resources.
The grocery retail sector is increasingly leveraging artificial intelligence options: large grocery store chains are introducing technology to achieve business goals, such as improving or expanding customer service, reducing food waste and inventory insurance. AI applications for grocery stores are diverse, and the ecosystem of solutions is growing rapidly: one network even implements robots to check inventory, collect orders for products and deliver them to customers. For most of the benefits of artificial intelligence and data-based approaches, access to information is more important, which allows you to more accurately predict inventory and consumer demand. It is also important to understand when you need to change the price of a product and even which products are considered in demand.
Video analytics software is another example of how grocery stores can improve infrastructure using artificial intelligence technology for data-driven decision making. Some grocery stores have already deployed video surveillance systems for security purposes: such as monitoring all kinds of areas of the store or warehouse, as well as personnel checks and investigations after the incident. Such surveillance software, based on Deep learning technology, enables grocery stores to maximize their investment in surveillance cameras, making recording searches efficient and quantitative. Using video analytics, grocery stores will be able to productively prevent the loss of inventory, improve store layout, optimize the purchase and storage of products and, ultimately, improve the quality of customer service in the store.
Lack of stockpiles
Experts found that only 1% of video surveillance records are checked by a person: people simply do not have enough time to view all the collected frames, and human observations are subject to errors. Video analytics software solves this problem by processing video resources to detect and identify emerging objects, classifying them, and then indexing metadata to ensure accurate search and filtering of videos based on extensive combinations of classes and attributes – so that the footage can be easily and quickly understood and analyzed .
An accelerated video review is needed to expedite investigations and identify gaps in inventory records. Grocery stores can use video analytics to search and filter entries to find suspects after theft. By identifying criminals who have ever stolen in stores, retailers can set up alerts in the current time mode about suspicious behavior – for example, about activities in specific areas of the store or in a warehouse after hours. In other words, a better understanding of archived data or actions can help advance loss prevention strategies.
Improving store layout and traffic flows
Video data can be used not only to increase physical security, but also to obtain the necessary business intelligence. By collecting and aggregating video data over time and visualizing metadata in dashboards and reports, managers can understand trends and patterns of actions based on specific information and make informed, data-based business decisions. Thus, video analytics turns video surveillance kits into a powerful resource for obtaining operational intelligence.
For example, video analytics helps retail stores track interactions with objects by displaying “background changes” in the scene as a heat map. It also helps to understand the time that consumers spend in specific areas of the store and illustrate the ways in which customers often move. Based on these heatmaps and navigation data, product managers can track customer activity trends and optimize store layout. Based on the reports of delays and setting alerts about the number of people, managers can also predict and manage queues and crowds in advance, developing long-term solutions for these tasks, as well as plans based on data for expected traffic peaks and interference in the current time mode.
This functionality also helps retailers pinpoint obstacles and underutilized spaces by evaluating store navigation trends. Improving traffic flows, optimizing the layout and placement of storefronts are critical to improving overall customer service in the store. For example, based on these data points, retailers can optimize the strategic distribution of personnel across the store based on traffic hot spots where consumers interact with goods. By comparing traffic trends from video to POS or accounts, stores can even determine the correlation between latency and purchases for future planning and smart decision making.
Product Optimization and Inventory Management
Outdated methods of buying products depend too much on experience, assumptions and instinct, and not on quantitative data: due to access to quantitative data about which products attract significant attention in the store or are popular among customers, grocery stores can understand which products to buy and make smarter decisions. Artificial Intelligence based video analytics complements other inventory management solutions by providing measurable and actionable data for decision making.
Understanding the customer and improving experience
It is important for retail grocery stores to know their audience. Video analytics software offers detailed demographic data, so retailers can understand who visits and makes purchases at the store and get quantitative information about customers and their buying habits. Understanding who their customers are, managers can direct their efforts to this audience, as well as determine which advertising, promotions and products other target groups might like.
Among the many artificial intelligence technologies that offer retailers new ways to improve the quality of customer service, video analytics uses installed IP video surveillance cameras to provide users with quantitative and qualitative data to increase productivity in a particular industry. With the help of video data that provides the necessary information for making decisions about marketing, merchandising, advertising and placement strategies, grocery stores will be able to optimize their efforts so that customers not only make purchases, but also come back again.