Is Retail Ready for Facial-Recognition Technologies?


Albeit too fast for privacy advocates, face recognition technologies appear to be advancing far enough to finally offer a real solution for retailers.
NEC just launched a facial recognition system in Japan that lets retailers profile customers to estimate not only gender and age but whether the shopper has been at the store before and how frequently she shops there. Using only a security camera and an internet browser connected to NEC’s cloud computing technology, the service, NeoFace, also apparently comes at a budget-friendly $800 U.S. per month.
NeoFace is intended for retailers with multiple stores, enabling them to detect repeat customers across locations. Individuals are recognized regardless of changing facial expressions, facial hair or eyeglasses.
"Retailers can find out how many customers visit their stores at each time of day, and what customer’s attributes are," said an NEC spokesperson in an interview with Japan’s DigInfo.
Online, Facebook is employing facial-recognition technology to assist in photo tagging.
PC Magazine likened the technology’s potential at retail to the scene in the movie, "Minority Report," in which Tom Cruise walks into a Gap store and is "instantly recognized, prompting the system to suggest new purchases based on that customer’s purchase history." Knowing the general makeup of customer traffic can also help stores maximize window displays, layouts, personal and promotions by time of day.
But most facial recognition articles ultimately bring up security and privacy concerns. Encrypting the biometric data and not storing the images may address some of these issues.
While Almax claims a "few dozen" retailers in Europe and the U.S. are using its EyeSee mannequins since its launch last December, Nordstrom is at least one believing facial recognition crosses the privacy line. Nordstrom spokesman Colin Johnson told Bloomberg News, "It’s a changing landscape but we’re always going to be sensitive about respecting the customer’s boundaries."
- Marketing service uses facial recognition tech to estimate gender, age, and visiting frequency – DigInfo TV
- NEC Unveils Facial-Recognition System to Identify Shoppers – PC Magazine
- Bionic Mannequins Spy on Shoppers to Boost Luxury Sales – Bloomberg News
- Benetton’s Mannequins Spy on You While You Shop – Mashable
- Almax EyeSee Manneqin
- Facing Facts – Federal Trade Commission
- Opinion: Is facial recognition tech cool or creepy? Consider the issues – Future of Media Events
Will the trepidation facing the rollout of facial recognition technologies for retailers outweigh the promised benefits? What value do you think stores will ultimately realize from such technologies?
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32 Comments on "Is Retail Ready for Facial-Recognition Technologies?"
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Retailers may love it, but unless they are willing to provide significant benefits to customers, I don’t see this technology being well received. There is something too “big-brotherish” about facial recognition technology for most consumers. If my opinion is correct, I see more benefit to retailers like Nordstrom that publicly repudiate the technology.
In a word, yes. But the traction that this and other similar technologies get depends less on what retailers get out of it and more what consumers experience. Imagine being in a store that is literally changing its assortment, promotions and merchandising in real time, based on the precise cross-section of customers in the store at a given moment. Imagine being sent a note the instant you enter a store that tells you what your friends “like” there. This is where we’re headed. Getting there is always a little awkward at first.
To me, the privacy issue isn’t the biggest concern. Here’s the problem: few retailers are extracting even 10% of the potential value that is hidden in their existing customer databases. So they need to walk before they can run. They should first take advantage of what they already have before they take on an initiative like this (and the costs/risks that come with it).
If retailers are going to use facial recognition technology, they need to roll it out with a well-planned and executed educational program for shoppers. Is the technology just guessing my age and sex or is it identifying me as a specific individual? There’s a big difference there and that could determine whether or not shoppers will buy in.
Although the industry had anxiety over capturing shopper data with the original retailer loyalty programs, the vast majority of shoppers willingly gave their personal information in order to receive discounts. I believe this is the next step in the evolution of the savvy consumer.
The movie “Minority Report” was a glimpse into what may actually happen soon. I see no long-term issues with it. Retailers and CPGs will gain better insights to target shoppers even more effectively.
I’d expect serious consumer backlash, as we’re starting to see with people worried about things like Facebook photos and information. Identity theft is one of the fastest growing industries in the country, and people, even tell-all me, are becoming increasingly cautious. And, like Peter says, retailers are using only a small amount of the data they have already.
Sure, the technology is sexy, but I don’t expect many retailers will be disciplined enough to make much real use of this.
It all depends on whether or not retailers can deliver perceived value to the customer.
There are cameras at ATMs, but nobody notices them. On the other hand, a significant number of people are still concerned about the anonymous body scans at airports.
Why? Because people like the convenience of instant access to cash and getting scanned takes time and forces them to completely empty their pockets. Now, if TSA could figure out a compelling enough value proposition, people might strip down to go through security.
Okay, Okay, I was kidding, but the fact remains that people are willing to trade “freedoms” for “benefits,” but only if those benefits work for them and not a second or third party.
These concerns over privacy and security are reminiscent of those voiced when e-commerce was young. (Remember the resistance to entering credit card numbers online?) Yes, we all are a little creeped out by the thought of being tracked online, but how many of us have ratcheted up the privacy settings in our browsers? Doing so would greatly limit the benefits we get from the good e-retailers and social platforms.
Ultimately, shoppers will visit stores that use this technology if it results in better experiences. As with the web, I see these concerns falling by the wayside because we love convenience and great service that much.
There is a big difference between using this technology for profiling a retailer’s customer base and using it to recognize and track individual customers. The former is certainly worthwhile and relatively easy to do, while the latter requires a high level of accuracy and raises serious privacy concerns.
As usual, technology is running well ahead of social acceptance. Facial recognition will have to demonstrate significant value to the customer before it gains acceptance. Just because the technology is available doesn’t make it a benefit.
Technology is going to allow this to happen. How soon it becomes a factor is yet to be determined. There are still some people who think a cell phone is something only to be used in emergencies. Believe it or not I have a friend, not a doctor, who still has a pager.
Every year a new technology is touted as the next big thing in retail. I’d guess that customers would prefer better in-stock positions and improved customer service instead.
For a retailer, crossing the line isn’t the question. The question is how can a retailer use this information to improve their service? Retailers, especially the poor ones, will jump at any gimmick that promises something for nothing. If retailers would stick to working for a living (real focused work, not make work) they would be okay, but they don’t seem capable of focusing on hiring right, training right and pricing right.
The idea of being watched is creepy. However, there are lots of cameras installed in many places already—we just don’t think about them. In the US consumers trade privacy for benefits in social media, cameras to detect thieves, convenience for stronger security, etc. If surveillance cameras can offer the needed clarity for facial recognition then it can already happen.
Peter’s comment about utilizing information is very appropriate. Right now companies are being bombarded with a huge amount of social media data. Facial recognition is one more thing being added to the fire hose of information. Pick a form of data, pick an analytical tool and start. Anywhere. Knowing something is better than drowning.
Some years ago, ARTS created a standard for video analytics. Frankly there has been very limited implementation. VA used for improved shopper tracking, by simply recognizing men, women and children it is great; to identify individuals, privacy issues and really no longer required.
Mobile technology with opt-in can tell retailers when specific customers are in their stores, to ensure they are greeted and provided appropriate service.
I saw the NEC demo 5+ years ago in Japan and just last month in Chile. Does anyone know a major retailer that has implemented? If not, you’ve found the answer.
It’s really important to acknowledge the distinction between technologies that actually recognize individuals and those that just recognize and long the machine-learned patterns of faces.
The former needs a database of stored faces to actually scour, and is invading privacy.
The latter just counts how many face patterns that come into view of a camera, and logs and parses them by gender, age range and time.
To me, the most interesting aspect of this tech is understanding how many people look at messages, digital or static, and for how long.
I agree with earlier comments that retailers already have no end of data that they don’t really mine for insights. This just adds to that pile.
Trepidation will limit the implementation of facial recognition software for now … but trepidation won’t make it extinct.
When smartphone, television, laptop and tablet interfaces “recognize” the user, then it will be only natural to extend that into the bricks-and-mortar space. That may sound creepy to Baby Boomers, but in 20 years, it’ll be the norm.
There are so many forms of data available these days—hence the term Big Data—that retailers need to investigate them and determine what will work best for their customers. It IS all about bringing value and experience to the customer first and to the retailer second, IMHO!
Promised benefits? That sounds overly generous…maybe “hyped” or “hoped for” would better describe them. Anyway, far be it from me to criticize something that makes it easier to “estimate gender,” but as I see it, retailers have long had technologically sophisticated data-gathering devices in stores (frequently so well hidden that they go unnoticed). I’m referring, of course, to sales associates. As Peter notes, stores make little use of what info they already have…I don’t think (even) more will help.
Considering that many retailers are still struggling to get their traffic counting systems to work, I would be skeptical that the facial recognition systems can be successfully deployed and deliver the advertised features and benefits. We’re probably super-early in the adoption cycle for this one.