IoT Applications in Retail
IoT Applications in Retail
With new technologies like IoT, the concept of the smart kitchen could restock itself. We’re not far away from that. Grocery retailers match smart kitchens with smart aisles. In addition, IoT connected devices such as beacons, video cameras, digital signage, and smart shelves provide access to huge amounts of new data on customer activity and present more opportunities. Hence, includes sophisticated insights and immersive customer engagement. For instance, data is only useful if you use it in an efficient and useful way.
Okay, now just imagine you enter in a retail shop and your phone pings. When you open your phone you can see the map of the shop. By following the map you can easily shop whatever you want. After your shopping, the total bill will be generated and you will be notified via smartphone. After that, you can pay it online via payment apps after an automatic discount. Isn’t it be cool?
Well, this kind of experience is closer than you think. Thanks to the growth of IoT technology. So, what IoT can do for making smart connected retail. The answer is here:
1. Automated Checkout
We all face the problem of long lines when we come to purchase products. As a manager, he/she can feel unprofitable to pay during busier shopping time. But, IoT make it easier. Whenever a customer leaves the store a system would tally the items up and automatically deduce the cost for a discount in the customer’s mobile payment app. Basically, it will make customers happier and will visit again. Moreover, it can save money and effort.
2. Personalized Discount
Basically, IoT sensors can monitor the customers in the store. Monitored data can store the customers’ loyalty and based on their loyalty it will reward them with automatic discounts. For instance, the customers should sign up for the loyalty program via their smartphones. In addition, IoT sensors can track items a customer has been looking at online, and send a personalized discount when he/she is in-store. Rather than offering general discounts on a wide variety of products, you can tailor each discount using IoT to maximize conversion rates. As a result, using IoT devices can attract more valuable and loyal long-term customers.
Basically, Beacons are nothing but are small Bluetooth devices that send alerts to smartphones based on location proximity. As this app can recognize your location- so if you’ve entered the food section, the app will remind you of the restaurants you liked online. It was first innovated by Apple. However, using this, customers can receive discounts, special events, or other reminders when they’re near a shop and have previously downloaded the store’s app. Apart from helping customers in-store, beacons also send alerts to passersby. This will effectively promote the store. Besides Apple,
- Urban Outfitters
- CVS Pharmacies
- Neiman Marcus
- Lavi’s Stadium Concessions
- Universal display
- Hillshire Farms
- Alex and Ani
etc are also using Beacon Technology.
4. Smart Shelves
As we know that it is very tough work for employees to keep tracking of items to ensure they’re never out-of-stock. Also checking that the item is not misplaced on various shelves. A smart shelve can automate both of these tasks. In addition, it can detect potential theft. They use weight sensors and RFID tags that allow scanning the products on both display and stock shelves. For instance, RFID tags are connected to each reader. Moreover, it will inform the status of the items whether running low or incorrectly placed. Smart shelves are able to detect in-store theft. As a result, this can save money for security personnel and cameras.
5. Layout Optimization
The retail holder can realize that his/her retail layout is beyond customers’ satisfaction. This may be due to the least popular products are in the front, or least space around the couches in the back. To improve the retail layout aisle-analytics software with infrared sensors can be used. Most preferable items should be placed in the front rather than keep those in the back.
6. Robots in Work
When trust is an issue robot employees can be the best option to be the customers representative in-store instead of human-employees. Robots can help customers find specific products and provide information on promotions and inventory. Similarly, robots can speak and answer the questions of the customers. Likewise, they can roam the store and take note of the misplaced items, or running status of items. Some robots employees of retail shops are:
7. Optimization of Supply Chain Management
Basically, the main purpose of retail is to track items at the time of transport. With the help of RFID and GPS sensors, IoT can obtain more precise data like the optimal temperature of a particular product. That data also can be used at the time of transportation. Moreover, one can take preventive actions in real-time if a product is being kept at temperatures too low or too high, avoiding a substantial loss in the time of transportation.
8. The Growth of IoT in Retail
The rapid growth of online shopping is encouraging retailers to bring the frictionless customer experience of online shopping into the store wherever they can. They want access to the same type of rich data and high-performance analytics. Hence, retailers use to drive websites and mobile shopping trips. The lack of knowledge and retailers is a factor limiting the industry growth. In addition, countries’ technical enhancement in network platforms, devices, and professional services. This kind of store management efficiency supports market growth. IoT in retail-market-based companies resorts to provide premium-quality products at reasonable prices with low price differentiation from their competitors. To fulfil the requirement of digitized supply chains, many retailers are turning to IoT in combination with other digital technologies. In conclusion, this add manage inventory in real-time, secure, and end-to-end supply in the retail industry.
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