Why Retailers Should Adopt More Strategic Use of Video Analytics
ECR Retail Loss Group reports retailers should rethink their spend on video as an integrated business tool rather than just a security blanket.
MONTREAL — A new ECR report, authored by Professor Emeritus Adrian Beck of the University of Leicester, calls for retailers to leverage video analytics more strategically, to control costs, improve operations and increase profitability.
Commissioned by the ECR Retail Loss Group and supported by an independent research grant from Genetec, a leading technology provider of unified security, public safety, operations and business intelligence solutions, the report offers practical advice for retailers on extracting maximum value from their video surveillance systems.
The report, “Reviewing the Use Of Video Technologies in Retail,” is drawn from in-depth interviews and site visits with representatives from 22 retailers based in the United States and Europe. These include some of the largest retailers in the world, with collective sales of over $1 trillion — equivalent to approximately 12% of the total U.S. and European retail market.
The report summarizes the ways in which video systems in general, and video analytics in particular, are being deployed across retail businesses, including their use by legal teams for health and safety compliance, and monitoring slip, trip and fall incidents. It also covers business intelligence applications, such as improving customer service through better staff response times and product availability; generating heat maps and customer dwell times; people counting and queue monitoring; delivery alerts; and improving pick accuracy.
Given the need to extract value from across the organization, a key recommendation of the research is the appointment of a video czar with overall responsibility for the strategic oversight of video systems deployed across the business.
“While video technologies have been used in some form or other in retailing for over 40 years, the research found few examples of retailers where its role, purpose, and capability to contribute to business success was clearly articulated,” says Beck. “Video analytics is a technology with a broad-ranging and rapidly evolving capability, but what seems clear from this research is the need for explicit leadership, greater application across retail functions, improved integration of video technologies with existing systems, and better alignment of video system design with organizational objectives.”
The report provides an essential guide to asset protection and loss prevention leaders on how to proactively manage video and the data it creates, comments Scott Draher, vice president, asset protection and safety at Lowes.
“It not only promotes ways of applying critical thinking to the use of video analytics, but most importantly clears the path on ways they can start to shape a company-wide approach that enshrines video as more than just a tool for security, but an asset for the whole company,” he says.
“With multiple, disconnected retail buying units and departments all voicing different data needs, technology providers have historically responded with siloed, custom solutions that add cost and effort, while reducing ROI and scalability,” says Rob Borsch, practice leader for banking and retail at Genetec. “But by taking a more holistic approach, driven by a centralized vision and direction, all stakeholders can become aware of available solution capabilities, like tailored dashboards for each department, to help drive better engagement and ROI – a key focus for retail moving forward.”
To download the report, go here.
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