IoT And Digital Transformation – The Upcoming Convergence in Retail
Posted On: April 16, 2019
In this era of increased digitization, to enthrall and captivate the interests of customers, businesses need to offer something more than just a product. This is the reason why more and more retail stores have started leveraging newer technologies like IoT to serve connected retail services and superior customer experience to the customers.
As per a report by Juniper Research, revenue generated by IoT retail platforms worldwide will rise to at least $4.3 billion by 2023, up from 2018 estimates of $890 million.
The possibilities to retail have extremely widened with the coming of IoT. It has helped retailers unravel newer and efficient avenues to cater to customers’ needs, streamline operational processes and improve bottom lines.
Below are the 5 avenues in which IoT aids retail industry in its digital transformation journey –
- Smart Shelves –A lot of time is wasted while keeping track of items and checking that they don’t get misplaced, but IoT aided smart shelves can easily prevent out of stock situations by notifying retailers whenever the items on the shelves are running low. Smart shelves are equipped with numerous sensors and also use RFID tags which scan the items and alert you when the stock level gets low or when products are wrongly placed on the shelf. In this way, IoT technology helps businesses in making inventory process more cost-effective.
- Energy Management –One of the most cost consuming factor in retail is energy consumption. However, IoT aids retailers in predicting maintenance issues that may impact power consumption for savings with the help of integrated sensors in the equipment. Data accumulated by sensors can help to regulate air-conditioning and lighting level in real time, thereby decreasing energy consumption and increasing ROI.
- Health and Hygiene Management –Store Hygiene plays an important role in influencing customer experience. IoT backed video surveillance system helps to identify unkempt sections in the store and areas that need attention. Also, with it, you can keep a check on your employees and make sure that they don’t appear in a shabby or disheveled manner.
- Improved Customer Service –People counters backed by IoT platform yield significant data about retail store traffic which helps retailers in allocating the store staff accordingly so that no customer goes unattended during peak hours. This improves customer service and C-SAT rate.
- Customer Journey Mapping –IoT aided retail analytics provides retailers with significant insights into customer behavior by mapping their journey throughout the time they spend in store. With the help of this data, retailers can optimize product arrangement according to the needs of their customers. Also, the data reveals significant information about best-selling products of the store and the most popular sections of the store, where people spend most of their time shopping. This, in turn, enables retailers in strategically placing targeted discounts and promotions in order to gain profit and increase sales.
Consequently, IoT solution for retail industry helps stakeholders to serve customers in a better way, create value and improve the overall performance of the business.
KocharTech is one of the largest enablers of connected device eco-system which aims to drive digital transformation using people, processes and technology. We aid enterprises to grow with technology in the digital age, help them streamline business processes and deliver superior customer experience.
To accelerate your business growth with the help of technology, get in touch with us.