Video-Based Business Intelligence: What You Don’t Know CAN Hurt You

Envysion, a leading provider of cloud-based, video-driven business intelligence, shared a recent article to touch on the 2014-2015 increase in shrinkage in the retail industry.

Let’s look at some facts and contributing factors outlined by the article:

  • A challenging retail environment forced retailers to cut budgets, reducing the size and scope of loss prevention efforts.
  • Budget cuts resulted in limited tools for monitoring internal theft and inventory mishaps.
  • 45% of shrinkage is due to employee theft.
  • 36% of shrinkage is due to consumer theft.

Isn’t it striking? The individuals you trust to sell your products and run your stores are the ones most responsible for theft. It happens right under your nose, and perhaps, right under your current surveillance system.

Theft does not necessarily have to look like those televised hold-ups starring a masked villain. It often occurs in moments of opportunity in the quietness of a store when few employees and customers are present. Indeed, much of the loss you must take the greatest steps to prevent occurs in the least obvious corners of your business.

Most retailers have no idea how incredibly powerful and valuable video-based business intelligence systems are.

Video-based business intelligence is designed to expose the subtleties you may miss if you are simply installing cameras and auditing clips at certain intervals, if at all. Yet, most retailers have no idea how incredibly powerful and valuable video-based business intelligence systems are.

iQmetrix and Envysion share a partnership to provide comprehensive surveillance and auditing. The intelligence system reinforces the video system with algorithmic auditing based on common transaction flags. Additionally, the coupling of audio and video in the recording of store activities provides auditing power for verification and opportunity identification purposes.

Let’s look at a couple examples:


Shady Business

With a drawer full of cash, an employee waits for a nearly-empty store to tender a cash refund. However, instead of the cash going to a customer, it goes straight into the employee’s pocket. The iQmetrix-Envysion integration intelligently reports instances of cash refunds where there are no customers present. Suddenly, you are able to review footage with pin-point accuracy to audit situations warranting a second look.


Customer Complaints

A customer calls to complain about their treatment during their visit to a store. They are asking for a hefty discount. A quick look-up of their invoice points you to the exact time they were in your store and you review the footage to find they were treated with utmost professionalism during their entire visit.


Shinning Star

The immediate benefit you see in loss prevention with the integrated system is only the beginning. The opportunity to prevent loss also presents the opportunity to increase gains.

For example, reported transactions in iQmetrix POS are married to the surveillance system so instances where sales lack average upselling expectations can be reviewed to identify training opportunities.

The possibilities are truly endless and when you begin using the system as an active part of your business, those with ill-intentions are more likely to think twice and those striving to do their best will keep up the good work.

When funds are tight, it can be difficult to decide where to allocate resources to see the greatest return. Before you cut your loss prevention funding, consider the true cost of creating blind spots in your business.