I'm working to validate a retail software/hardware idea. We think that facial recognition technology and AI could help with customer loyalty and operations, but want to understand the pain points better. Any feedback would be appreciated.
It seems you're asking two different questions:
1. What is the importance of demographics?
2. What are the pain points in building facial recognition into a retail transaction?
To answer the first, demographics inform what products are being sold, who gets what promotion, what to start and stop carrying, and more in retail. The degree to which a retail shop pays attention to its clientele is directly related to those decisions and thus to its success.
To answer the second, you will need to deal with the legal ramifications of facial recognition technology, and once you've handled that, you'll need to deal with the range of reactions you'll get from customers who will need to know they're being recognized--not by humans but by robots. I'd say the second issue is the most important one to consider as you shape the technology and how it will be used.
Understanding demographics is key. It's the only way to build personas and profiles.
Adding to Shakirah's answer:
And to build your client demographics, start with the problem you are solving. What is the problem, who experiences it and why. That will start to dictate who your client is, and from there you can determine your client demographics.
As an African-American myself I would tell you that demographics has always been an issue for business. If were honest with ourselves the focus of many retail operators still tends to be white America. Most retail companies don't even think about demographics until they have an issue of demographics slapping them in the face. This tends to lead to short-sighted and poorly thought-out solutions to appease for he moment. Which when critically dissected a little further generally exposes offensive actions to whatever demo you are trying to reach. I would advise that you address your needs and tailor them to ever demographic possible.