The Internet of Things (IoT) is no longer just a buzzword – it’s a living, breathing technology that’s making a splash in retail stores around the world. By 2020, it’s estimated that there will be over 30 billion IoT devices!
IoT offers great benefits to the retail industry. In fact, 77% of retailers believe it improves the customer experience, 89% report that it provides increased insights into customer preferences, and 77% say that it helps them work with partners to deliver quality products and services.
How will IoT devices impact stores’ bottom lines? By reducing inventory error, optimizing supply chain management, and decreasing labor costs, it’s estimated that the potential economic impact of IoT in retail environments will range from $410 billion to $1.2 trillion per year by 2025!
So, how can you take advantage of IoT? Below are five ways to incorporate this new wave into your store.
1. Personalized Discounts
Did you know that nearly half of consumers are willing to share their personal data in exchange for exclusive benefits? One of the biggest benefits shoppers are looking to receive is personalized promotions. By installing connected sensors around your store, you can send loyalty discounts to customers when they stand near certain products.
You can also use IoT to track what items a customer has looked at online, and then give them a personalized discount on that specific item when they visit your physical store. Another great way to use customer data to promote sales is through Star Micronics PromoPRNT, a value-add program that works with your existing receipt printer to deliver promotions directly on printed receipts.
2. Smart Shelves
Soon retail shelves as we know it will be completely different, thanks to smart shelves. This next-generation shelving includes electronic labels, personalized advertisements, RFID technology, and IoT sensors. One popular use case for smart shelves is supermarkets – grocery retailers are expected to increasingly use smart shelves to quickly update product prices, as well as display promotions, nutritional data, coupons, videos, and more.
Smart shelves can also interact with apps on a customer’s phone and do things like show shoppers where to find all the items on their grocery list, and enable each item to be scanned by a robotic checkout.
Beacons – or small wireless sensors that can be attached virtually anywhere – work with customers’ smartphones to collect locational and contextual data (if they have downloaded your app). These sensors can be used to track shoppers when they’re in your store and send them personalized content, coupons, and more. In the age of online shopping, this level of exclusive, tailored content is just what stores need to keep drawing customers into their brick and mortar establishment.
The truth of beacon success is in the numbers: approximately 75% of shoppers provided with beacon content say it increased their chances of making a purchase, and over 60% said they’re willing to spend more money on holiday shopping at brick-and-mortar stores if they’re sent special offers.
4. Digital Signage
Any way you cut it, digital signage is huge in both helping boost a store’s attractiveness, as well as pushing data-driven content to strategically targeted customers. Digital signage can truly unify your IoT efforts by collecting customer data from beacons, sensors, and smart devices, and then display commercials, product information, and personalized promotions – at just the right time.
Curious how big of a market digital signage is? Hint: huge. The global market value for digital signage is expecting to grow to $32.84 billion by 2023! If you’re looking to make the most of your digital signage, consider using a tool such as Sales Receipt Viewer & Analytics. The tool provides web-based receipt data and allows you to download digital receipts, analyze sales trends, discover sales anomalies, and more.
5. Supply Chain Management
Simply put, IoT is redefining supply chain management across the globe. Here are three examples:
- Asset Tracking: RFID and GPS sensors can track products from factory to store. This not only makes asset tracking much easier, but it can also provide important information such as what temperature a product was kept at and how long it took to sell.
- Inventory: Using IoT sensors, retailers can instantly check inventory levels and proactively receive alerts when a product’s inventory is low. The sensors are also very helpful in tracking purchasing trends, making inventory management a more efficient process.
- Maintenance: IoT sensors can also be placed on manufacturing equipment to keep on top of scheduled maintenance, preventing expensive and untimely break-downs.