Forecast Accuracy - Why it Matters and How to Improve It?

June 24, 2020

In retail, demand forecasts should underpin every major business decision. Forecast accuracy matters because it drives return on capital, store, and customer service metrics.

AI and computer vision specifically can significantly improve demand forecasting. Accuracy matters because it drives many key retail metrics that directly impact return on capital and store performance. It achieves this along with two complementary mechanisms: one that influences capital and another that influences operations.

Green and Gold Box Border Geometric Floral Wedding RSVP Postcard.png

It makes financial sense

black-calculator-near-ballpoint-pen-on-white-printed-paper-53621.jpg

Improving forecast accuracy will encourage an agile approach to retail operations, store operations, and supply chains. By improving demand forecasting retailers can reduce the working capital requirements to operate the business. We help retailers supercharge their demand forecasting using the wealth of video data captured by their security cameras. Aura Vision integrates with existing security cameras to count footfall in brick-and-mortar stores, this approach allows us to provide highly accurate footfall counts with in-depth demographic analysis.

It makes operational sense

Accurate demand forecasts help ensure customer service levels are healthy, store layout is optimized, and protects against lost sales due to operational inefficiencies. Using your existing cameras to enhance demand forecasting lowers operational costs by finding the path to higher sales and lower costs.

Where to start?

Retailers should consider how computer vision retail analytics can improve forecast accuracy because simple footfall counting is ineffective in today’s fast-moving markets. Unlike traditional forecasting methods, Aura Vision uses current footfall, demographic analysis, product engagement metrics, sales data, and occupancy data to create an accurate forecast of demand. Using current information allows companies to cut forecast error by 40% and remove.

By integrating power Ai with your existing cameras Aura Vision can help retailers:

• Increase forecast accuracy • Cut unproductive inventory • Improve customer service • Reduce working capital • Raise earnings • Drive shareholder value

If you would like to learn more please get in touch via hello@auravision.ai