Retail’s Future Lies in the Internet of Things
The latest technology that is sparking the interest of major retailers is the Internet of Things (IoT). While it may seem like a trendy buzzword, IoT is, as a matter of fact, very present in our daily lives. Several electronic devices around us are connected, and they are having very valuable conversations without us even knowing. Put simply, these devices are embedded with sensors that allow them to communicate, analyze and share data via different networks. For instance, in the automotive industry, sensors displayed in cars are able to warn the user about the mechanical problems they’re having via applications on the dashboard. This kind of information will prompt drivers to take action and help keep the roads safe. But how is IoT relevant to the retail world?
How IoT Works
In a Zebra 2017 Retail Vision Study, 78% of retailers said that it is business-critical to deliver an omnichannel experience to each customer. They also ranked ‘‘enhancing in-store customers experience’’ as the top reason to implement IoT in their business. In the retail world, more specifically, the ‘‘things’’ include tracking chips, beacons, video cameras, digital signage, digital assistants, and so on. Retailers are using smart cameras to analyze shopper traffic, or beacons to provide their customers with perfectly curated and geolocated promotions on their smartphones.
There are many ways that the Internet of things can help businesses increase their performance. One way being the ability to recognize shoppers when they enter the store, so they can experience the perfect seamless experience. With this intuitive way of shopping, customers and retailers both save time and money. Retailers are able to eliminate the checkout process by automatically charging the client’s preferred method, thus, reducing the losses attributed to fraud and theft.
Make Your Business Smarter
Implementing IoT in your business provides a clear understanding of the store itself. From a backend perspective, smart shelves are a great way for managers to have an accurate picture of what’s happening in their store in real time. Companies like Panasonic offer both hardware and software that can tie the shelf itself to the backstore. By combining data from shelf sensors, digital price tags and cameras, IoT helps retailers gain more efficiency by spending less time on inventory, and focus on other major objectives.
From a frontend perspective, IoT can maintain a high level of customer service quality throughout the whole shopping experience. For example, via beacons and cellular network, Turkish company Turkcell uses devices to provide customers with access to in-store promotions when they are near certain brick and mortar retailers. Companies like Zebra Technologies also allow brick and mortar stores to send curated content via the customers’ smartphones while they’re in the store, resulting in increased sales.
In 2018, IoT need to be a part of your business strategy in order to thrive. It is now time to take advantage of these new technologies that are here to help businesses evolve and reach new heights. Refusing to face the facts is simply no longer an option, no matter how intimidating it may seem.
