The ability of headquarters (HQ) to ensure proper execution of a planogram has been the missing piece. Without knowing exactly what stores are doing with planogram instructions, leaders only have partial visibility—and when stores fail to be compliant and aren’t merchandised correctly, brands can lose money and due to ineffective campaigns.
However, armed with visibility into planogram compliance, HQ can be sure campaigns are executed as they should be and customers are experiencing a store as intended. Automated Photo Compliance (APC) helps make that happen. Let’s discuss how:
Thanks to advancements in retail software, brick-and-mortar retailers no longer have to cross their fingers and hope for the best when sending planograms to stores. Artificial intelligence (A.I.) alone is expected to have a $9.2 trillion impact on the retail industry by 2029, and we’re already seeing the benefits firsthand.
Optimum Retailing (OR) is revolutionizing the way stores oversee planogram execution with its machine learning (ML) and A.I.-powered Automated Photo Compliance feature. OR’s platform uses A.I. to filter photos as they’re taken, instantly confirming whether a fixture matches the planogram provided by HQ. Stores no longer need to manually confirm planogram accuracy and submit photos for approval.
Instead, an employee simply holds their smartphone to a fixture, and the OR platform scans and marks images as compliant or non-compliant. The system uses deep learning to recognize if a store has placed the correct products and signage on the correct fixture. If not, the system automatically rejects the store’s execution and provides employees instant feedback on exactly what’s missing or misplaced.
The APC feature can scan and assess compliance for 15,000 or more images for one campaign alone, which was recently done for OR’s client Verizon across 1,600 stores. After the company’s first experience with APC, they reported an improvement in recognition of all graphics and minimal instances where a retry was needed, with 98% of the images captured on the first attempt, and a reduction of 98.5% in time to review images.
APC is redefining compliance and successful planogram execution, presenting multiple benefits for HQ and store staff alike.
• Automated peace of mind: With APC, brick-and-mortar management teams gain insight into what has been executed correctly or needs to be reviewed and changed to align with visual guidelines and planograms.• Compliance by element: Rather than simply looking at holistic configurations, APC goes a step further and looks at the sequence of elements to ensure compliance at a more granular level, increasing the accuracy of campaign execution.• Time and cost savings: With APC, HQ receives real-time updates when a fixture is executed, and has an efficient and automated compliance process that doesn’t require a manual review of thousands of pictures. This results in a 50% reduction in the level of effort required by HQ, as they can confirm compliance instantly, at a lower overall cost.
• Store execution made simple: APC makes it easy for stores to execute a fixture, confirm its level of compliance, or report an issue in real time by directing their phone at a display. With APC, planogram execution accuracy increases by 80%.• Smart use of employees’ time: The APC feature frees employees’ time up, allowing them to focus on engaging consumers in-store instead of manually taking photos of fixtures and displays for HQ.• Empowered store staff: APC empowers stores with the ability to override. Once the system scans the sequence of elements, it flags anything identified as non-compliant. Stores can accept or reject the notice of non-compliance, and send a message to HQ stating that an override has occurred—ensuring those on the front lines who know their store best are always engaged and empowered.
The ability to find operational efficiencies and improve visibility will continue to impact store execution performance. To keep up with consumer preferences and changes at the store level, retail leaders need visibility and confidence in their stores.
OR is leading the charge, empowering brick-and-mortar retailers with the visibility, control, and time needed to succeed post-pandemic while giving stores an easy way to increase compliance rates and performance. The future of planograms and realgrams is automated, and OR can help you elevate and optimize your retail operations.
Put OR to work for your brand today, and let us help you simplify and streamline your retail planning and execution.