Revolutionizing Retail: FACE-SYSTEM Launches F-POS for Enhanced Customer Insights

Introduction to F-POS

In a significant step towards transforming retail, FACE-SYSTEM, a Tokyo-based company specializing in facial recognition AI, has launched a groundbreaking service called "F-POS". This new service connects facial recognition technology with point-of-sale (POS) transaction data, enabling businesses to identify customers with remarkable accuracy and record their purchasing behavior. The pilot test at the unmanned store "min・naka Odakyu Sagamihara" has demonstrated an impressive success rate of 98.8% in identifying purchasers, showcasing the potential of this innovative solution.

The Challenge of Self-Service Checkout

As the retail and food service industries progressively adopt self-service kiosks, the personal interaction between store staff and customers has diminished. This shift, while streamlining operations, has resulted in a loss of opportunities for businesses to connect with their clientele. Traditional POS systems track what was sold but lack insights into who made these purchases. Efforts to encourage the use of membership cards or app registrations often face resistance from customers, leaving a wealth of transaction data as anonymous statistics. This situation has made it challenging for businesses to recognize loyal customers or accurately measure the effectiveness of their promotions.

F-POS: Transforming Anonymity into Insight

Enter F-POS, a solution designed to convert anonymous purchasing data into actionable customer information. By utilizing a smartphone camera installed at checkout points, F-POS detects visitors and correlates their presence with POS transaction timestamps. Here are some highlights of the service:

- Zero Customer Effort: No need for membership cards or app downloads, as customers are automatically identified simply by passing in front of the camera.
- Zero Staff Workload: The data reconciliation occurs automatically overnight, without any alterations to the existing checkout processes.
- No Installation Hassles: The system can be set up with a single off-the-shelf smartphone, allowing shops to start measuring transactions quickly, often on the same day.

For stores utilizing Smaregi's services, F-POS automatically manages the entire process—from data acquisition to customer registration and linking purchases to individual accounts—streamlining operations significantly.

Pilot Results from min・naka Odakyu Sagamihara

The implementation of F-POS at the unmanned store has yielded impressive results:

- Identification Rate: 98.8% (of the 267 transactions recorded, 264 customers were successfully identified).
- Repeat Visitor Rate: 19.4% (out of 248 unique visitors, 48 returned for a second visit).
- Error-Free Automatic Linking: All 180 targeted transactions were processed with zero errors.

What’s remarkable is that these accomplishments have been achieved without the need for specialized installations or customized systems. The facial recognition technology, developed in-house, allows for continuous adjustments and enhancements based on the retail environment.

Commitment to Privacy

The operational framework of F-POS respects the privacy of customers. The cameras operate similarly to standard security cameras within the store and do not distribute collected data to any third parties. The data remains solely the property of the store, with all information erased upon contract termination. Moreover, FACE-SYSTEM offers free templates for signage to inform customers about the camera's presence, supporting stores in ensuring transparency.

Affordable Pricing Plans

The Smaregi App Marketplace offers various subscription plans:

- Standard Plan: ¥41,800 monthly (tax included) for facial recognition-based repeat visitor analysis and automatic linking of customers (includes one smartphone).
- Business Plan: ¥74,800 monthly for stores with over 10,000 monthly visitors.
- Additional Options: For a second or third smartphone, the cost is ¥8,800 each month.

For businesses utilizing other POS systems, compatibility is available through CSV integration, with pricing tailored to the specific store environment.

How to Get Started

Interested parties can apply for F-POS through the Smaregi App Marketplace at this link.

Future Directions

FACE-SYSTEM plans to continue expanding its offerings beyond F-POS. With a suite of solutions including "F-DOOR" for entry control, "F-DATA" for visitor analytics, and "F-SERVICE" for enhancing repeated customer interactions, the company aims to build a comprehensive customer data platform that connects the journey from entry to purchase seamlessly. By integrating these systems, businesses can obtain a unified view of each customer, significantly enhancing the retail experience.