By optimizing a smart in-store experience, customers are likely to spend more money on products and show greater willingness to re-visit their stores of choice – helping retailers retain business and increase revenues. Here are five reasons why IoT is re-shaping the future of retail.
1. Customized Discounts
The ultimate incentive for most shoppers, is knowing that their loyalty will be rewarded by the brand/store they are buying from. What better way to retain business than for retailers to offer personalized discounts to those customers who purchase items frequently; presenting discounts that have been smartly designed from individual consumer records.
Retailers can use IoT to create tailor-made discounts based on a customer’s online shopping history. One example includes, tracking items that have been looked at and stored into the ‘wish-list’ category.
2. Automated Checkout
What is the one thing most of us dread when out shopping? Yes, you’ve guessed it! Most of us are put off by the exceedingly long ques at the check-out counter, which may deter any potential shopper during the festivities. An automated checkout system would enable customers to scan the items they are purchasing in-store and have that amount deducted from their mobile payment app.
A fast, efficient service would increase the levels of customer satisfaction and encourage more consumer activity for better business throughout the year.
3. In-store Layout Optimization
The layout of products in-store, is an important aspect of the shopping experience and will determine whether customers extend or shorten the duration of their shopping time. If they find it difficult to access products based on the layout of a store, retailers might be discouraging many potential buyers from searching the floor further, to reach their desired products.
The products considered the least desirable by your customers, might be taking up the best location in your shop. IoT technology has provided the solution to utilize customer shopping behavior to help design the shop floor layout – creating a space that allows customers to access the most desired products first. Technology using infrared sensors will determine which isles are visited most and which products are brought more frequently. As such, those products are put at the front of the store for optimal customer experience.
4. Robotic Assistance
While being greeted by a robot sales rep might not be everyone’s cup of tea, it might help retailers create a more efficient work force system. Some menial jobs may prevent employees from spending more time on other important tasks either on the shop floor or in the stock room.
Some robots have been designed to respond to customer questions and complaints whilst others have the capability of searching for requested items on the shop floor and presenting it to the customer. Other jobs may include stacking shelves, checking that items have been arranged correctly and are not misplaced. This innovative solution, may drive more traffic in-store and revive the desire to enjoy the physical shopping experience with improved organization and customer service.
5. Improving Supply Chain Management
IoT is helping to improve quality control in all aspects of retail. It is imperative to be able to track and monitor the way your products are being handled when items are being transported from one location to another. This allows for a more efficient, hassle-free service that will provide clear indication of the management of products throughout the process of delivery.
Using IoT technology for tracking goods and to monitor the speed of delivery, will help retailers improve their services based on the valuable information that will show how products are moving through the supply chain.