The Internet of Things has spread its tentacles into the deepest corners of the business industry. IoT based applications have brought many innovative ideas and solutions which have helped increase the efficiency of businesses. It has also generated a vast range of new opportunities for the industries. The retail industry, too, stands to be an important part of this transformation. Estimation says IoT in retail can reach a $94 bn market by 2025. 96% of the retailers are ready to make necessary changes to implement IoT solutions in their stores. We are, hence, entering the era of smart retail. The future of iot in retail is going to undergo a huge growth.
How IOT Is Transforming The Retail Industry:
Creating New Revenue Opportunities-
Marketing with the use of GPS and beacon technology is creating opportunities for a retailer to convert a visitor into a potential customer. Reports say that personalized coupons make 39% of customers spend more on shopping. Hence, IoT with analytics helps the retailers to increase the sales not only through physical stores but also through other channels. E-Commerce dominators like Amazon are already analyzing customer consumption patterns. Therefore, they can provide the best possible services to customers through Amazon dash.
Increasing Operational Efficiency-
IoT is causing a potential transformation in the retail supply chain industry, which is better managed through RFID. The ability to visualize data facilitates real-time inventory visibility. The installation of sensors on stock keeping units of perishable goods preserves the quality of the products. RFID tags generate alerts for automatic replenishment of shelves. RFID increases inventory accuracy of up to 95% and reduces stock-outs by 52%. Retailers are trying to enable delivery options to try and provide the best shopping experience for their customers.
Enhancing Customer Experience-
Customer experience is essential for generating and also maintaining profits in the retail industry. So, retailers take to a variety of tools and devices for attracting and retaining the customers. Point of purchase digital signage accompanied by proper content gives retailers to reach out to one more customer. They can promote their products and expand their engagement with their customers. Research reveals that nearly 68% of the buyers change their purchasing decisions based on in-store messaging. 29% of the buyers buy the products unplanned based on POP displays.
Data analytics on purchase history, customer preferences and store visitors provide customized suggestions and best quality services. IoT devices integrated into BLE and Wi-Fi enables in-store navigation and help customers in locating the products as per their needs. Integrated lighting controls conserve energy and allow managers to keep track of the movement of customers in the stores over various periods of time. Heat maps optimize the shop layouts for keeping the store lit corresponding to requirements.
The Above Benefits Of IoT In Retail Have Led To The Following Applications of IoT in Retail Industry:
Smart Shelves, with help from IoT, are becoming popular with time. It is a directory system that automatically tracks the products. You can keep track of the supplies and send orders sitting at home.
Smart Cashier Systems:
Everyone tries to avoid the long queues at mall checkouts and also shops. In the case of the automated cashier system, as the user passes the billing area, the systems transact the bill using sensors and RFID installed on the products. We have not applied this technology has not yet. However, a potential plan of action is being undertaken to get this idea into amainstream application. McKinsey Global Institute has estimated that by 2025, almost all the companies worldwide will enjoy cost savings ranging from $150 billion to $380 billion a year.
Operations And Equipment Management:
The application of IoT in the retail industry does not only benefit the customers but also helps the companies to function better. IoT sensors help companies get accurate and useful data on their overall efficiency and productivity. This data gathered can be analyzed to optimize the machinery towards more efficient working.
Smart notifications are a great way to capture customers’ attention and initiate purchase interest. The moment you enter a mall, your phone will receive notifications. It will inform you of the latest available deals and discounts at that particular mall. Through constant communication between sensors, consumers derive satisfaction by remaining updated.
Any customer is happy to receive discounts on any products at any time. Especially, when they use that product on a regular basis. But on the same page, it is difficult for retailers to know who is using which product and how often. The solution to this an IoT enabled tracking system. Through this system, sellers can keep a track of who is buying what and how often. So he can provide a personalized discount offer for individual and regular customers. This enables customer retention.
Customer Experience Optimization:
Customer experience optimization is a combined result of all the above-mentioned points. IoT builds a close relationship between retailers and customers. It brings a positive transformation in the customers’ perception. The perk of IoT implementation in the retail industry is that it keeps on enhancing the customer experience. It lets the retailer know what their customers want. Hence, he can generate convenient discounts and specials prices on those products, for various customers.
Smart Displays or Signage:
We often find shelves inside shops holding a variety of products. It sometimes becomes hard to choose since the customer is not aware of the key differences between them. So now, sellers are looking forward to using smart displays and digital signage on these shelves. These will introduce and explain the details about any product when the customer picks it up from the shelf. It will inform the customer about a product. The company can create awareness about new products, fast and swift. The system will use IoT sensors like RFID and proximity sensors to enable such a facility.
FMCG companies need to be able to give quick responses to supply requests and demands to sell out larger volume of products. To maintain the company’s efficiency, it needs to optimze every. Inventory and supply chain function side by side. With the help of IoT, the retailers can manage real-time stock. Even if the retailer fails to order new batches of products, they can be notified of low stock and hence, send stock accordingly.
IoT can be implemented in the entire store. In case there is a long queue in the billing area, you can be notified of a comparatively less crowded billing counter. IoT can monitor traffic, crowds and even help customers to make more precise choices. Many companies have started shifting towards the application of IoT.
In this era, people are inclined towards the latest trends in terms of innovation that hold the capability to ease the tasks that were once held to be trivial. The emergence of IoT has facilitated the ability to transform ordinary devices into smart devices.
HIPL is an emerging tech startup in Kolkata, privileged to be working with a talented panel of electronic engineers skilled in providing best IoT solutions. At HIPL, our aim is to help you grow your business through our advance IoT solutions. In the retail sector, we offer IoT solutions for asset tracking and eliminating human intervention in cash counters that can make your business process faster and more efficient.Tags: Applications of IoT in retail, benefits of IoT in retail, internet of things, Internet of things in retail industry, IoT, IoT in retail, IoT in retail industry
Categorised in: Internet Of Things
This post was written by HIPL