Evolution of Smart Retail Through IoT
Posted On: March 19, 2019
With IoT technology taking a center stage, businesses are experiencing an exemplary growth by harnessing its potential to the maximum. From providing you actionable business insights to delivering a hospitable retail environment for your customers, it has accomplished all through driving utmost advantages from the world of AI.
Bridging and connecting your business with digital signage, IoT technology is becoming successful in delighting customers with a personalized experience.
According to a report by Global Market Insights, “IoT in the retail market is predicted to reach over $30 billion by 2024.”
Following are the ways how IoT is taking retail industry towards digital transformation –
1.Increase Conversion Rate
In-store temperature plays an important role when it comes to providing a great experience to customers and increases conversions. IoT systems conduct in-store hygiene audits as well as send you real-time alerts when store temperature exceeds. It also measures indoor air quality and treats your customers with a clean and hygienic environment. With IoT systems, you can monitor staff hygiene and check if they turn up to work in an unkempt manner.
2.Customer Insights
Retail IoT solution aids businesses to track customer journey for getting insights into their behavior and preferences. With this data in hand, retailers can easily get to know about products that are more popular amongst customers and store sections where people like to spend most of their time shopping. Therefore, it helps in optimizing product placement according to the needs of customers and enables retailers in strategically placing advertisements and targeted discounts to attract more customers and increase sales.
3.Staff Management
According to a Forrester report , “The checkout experience and length of the checkout line are very important to shoppers and can influence shopping decisions of almost 40% of shoppers.” Footfall data provide relevant information to retailers about peak hours of the store. Therefore with the help of this data, retailers mobilize store staff accordingly so as to reduce the waiting time of customers as well as provide them with a great CX.
4.Optimize Business Operations
IoT aided video cloud surveillance systems to enable stakeholders to track every employee activity and check if they adhere to obligatory SOPs while dealing with customers or not. By providing 24/7 visibility into business operations, video surveillance systems help retailers in identifying gaps as well as eliminating unwanted procedures to enhance employee productivity and business optimization. Retail analytics provides relevant data to businesses about the products that are star performers so that their best selling products do not go out of stock.
5.People Counting
IoT backed people counting solution aids businesses in discovering peak hours of store thereby helping them to prepare rosters on the basis of store traffic rather than employee availability. Also, foot traffic analytics enable retailers to track the success of promotional campaigns by comparing footfall and sales data during that period of time. Consequently, this data helps them in targeting the campaigns that bring more profit and eliminating the other ones to increase ROI.
6. Improved Safety and Security
Video cloud surveillance systems powered by IoT keeps your enterprise area 24/7 safeguarded and provides you with real-time alerts and notifications about any intrusions or unexpected activity. As soon as IoT systems detect any smoke or fire within your facility, they alarm you to take necessary remedial actions.
Levi’s, an American clothing company used IoT technology with advanced analytics to determine when items are no longer in their correct places. The solution integrated RFID tags which were woven into items to monitor their location. Levi’s witnessed great results by using IoT solution in their stores. The inventory accuracy increased to 95% and stock outs decreased up to 50%. Their employees spent less time in monitoring inventory and more time in dealing with customers. This increased conversions and reduced chances of missed opportunities.
A report concluded by research firm Aberdeen found that companies homing in on customer needs and wants through predictive analytics increased their organic revenue by 21% year-on-year. Consequently, IoT systems help you create a hospitable retail environment to increase conversions and boost your business growth.
KocharTech is one of the leading connected consumer solutions company with a significant 12 years of experience in delivering comprehensive services to a number of retail clients. Assisting brands in delivering effective customer experience through technology and empower them by discovering new opportunities to accelerate business growth and drive profits. To enhance your brand value, get in touch with us.
