Image Recognition in Retail: The Basics

Image recognition is a hot topic in the world of retail execution, and for good reason. This game-changing technology is transforming how Consumer Packaged Goods (CPGs) approach audits, track KPIs, and improve in-store execution. But what exactly is image recognition, and how does it apply to retail? Here’s everything you need to know.

What is Image Recognition?

At its core, image recognition is a technology that uses algorithms and machine learning to identify objects, patterns, or correlations within images. According to Techopedia:

“Image recognition is a term for computer technologies that can recognize certain people, animals, objects or other targeted subjects through the use of algorithms and machine learning concepts. The term ‘image recognition’ is connected to ‘computer vision,’ which is an overarching label for the process of training computers to ‘see’ like humans, and ‘image processing,’ which is a catch-all term for computers doing intensive work on image data.”

In simpler terms, image recognition allows computers to analyze an image and identify specific patterns or details based on its purpose.

How Does Image Recognition Apply to Retail?

In retail, image recognition is a powerful productivity tool for CPGs. It enables faster audits, higher accuracy, and greater efficiency for field reps.

Retail execution has always been a challenge for consumer brands. Variables like store size, shelf space, and planogram inconsistencies often lead to poor execution, with some CPGs losing up to 25% of sales as a result.

With image recognition, tracking in-store KPIs is now more accessible, efficient, and actionable than ever before.

How Does It Work?

Using image recognition for store audits is simple and foolproof. Here’s how it works:

1. Take Pictures: A user stands in front of the desired category in-store and takes a few pictures. Visual AI cues guide the process, so no prior training is needed.

2. AI Analysis: The images are processed by a neural network, which identifies and tracks relevant KPIs in the background.

3. Actionable Data: The results are delivered in real time, allowing CPGs to take immediate action.

This seamless process enables users to focus on other in-store tasks, such as inventory checks or speaking with store managers, while the technology works in the background.

What KPIs Can Image Recognition Track?

Image recognition tools can track virtually any visible KPI in a retail setting. For CPGs aiming for perfect store execution, here are some of the most common KPIs:

• On-Shelf Availability

• SKU Presence

• Out-of-Stock Rates

• Stock Levels by Threshold

• On-Shelf Visibility

• Number of Facings

• Share of Shelf

• Planogram Compliance

• Assortment Compliance

• Promotion Compliance

• Number of Displays

With over 1,000 possible in-store KPIs, image recognition offers flexibility to track what matters most to your business.

Who Can Use Image Recognition?

One of the biggest advantages of image recognition is its simplicity. Thanks to visual AI cues, anyone with a smartphone can use the tool without extensive training. This allows CPGs to rethink their KPI monitoring strategy and decide who should handle audits:

1. Sales Reps:
   Internal sales reps can use image recognition during store visits. The tool saves time, allowing them to focus on other tasks while collecting accurate data.

2. Independent Auditors:
   Freelancers or crowd members can carry out audits on behalf of the CPG. Since no training is required, the accuracy of their audits remains high.

3. External Field Agencies:
   Field agencies, while independent, often operate without much oversight. Image recognition provides manufacturers with visibility into their actions, creating a more reliable and accountable system.

Is Image Recognition Right for Your Business?

The beauty of image recognition lies in its flexibility. Whether you’re a small CPG focusing on a few key KPIs or a global brand monitoring a wide spectrum of metrics, this technology can adapt to your needs.

Here’s why image recognition is worth considering:

• Efficiency: Faster audits and real-time insights save time and reduce costs.

• Accuracy: Eliminate human error and subjective reporting.

• Scalability: Monitor thousands of SKUs across multiple regions.

• Revenue Growth: Boost revenue by up to 5% in the first year.

If you’re looking to monitor visible in-store KPIs in an efficient, accurate, and actionable way, image recognition is a must-have tool for your retail execution strategy.

Ready to Transform Your Retail Execution?

At BeMyEye, we specialize in AI-powered image recognition solutions designed to help CPGs track, analyze, and optimize their retail execution.

Want to see how it works? Book a demo or contact us directly to learn more about how BeMyEye can help you achieve perfect store execution.