There are numerous IoT-related benefits to the retail industry. In addition to reducing inventory error, IoT can optimize your supply chain management and decrease labour costs, ultimately helping your traditional brick-and-mortar shop compete with today’s online-first shopping world. Here are some of the most important ways IoT is changing retail in 2018.
Long lines are a nightmare for the customers and prevent them from purchasing products. It can feel unprofitable to pay multiple employees to work during busier shopping times. IoT helps you to set up a system that can read tags on each item when a customer leaves the store. A checkout system would then tally the items up and deduce that cost from the customers’ mobile payment app automatically. This will make customers happier and more willing to enter your store, especially if they are on a time crunch. As per McKinsey’s estimate, automated checkout can reduce cashier staff requirements by up to 75%, resulting in savings of $150 billion to $380 billion a year in 2025.
You’d definitely like to reward frequently returning customers for their loyalty. If those customers sign up for a loyalty program in advance, IoT can help you set up sensors around the store that send loyalty discounts to certain customers when they stand near products with their smartphones. IoT can also be used to track items a customer has been looking at online and then send them a personalized discount when he/she is in-store. Although finding ways to incorporate IoT devices into your day-to-day business requires creativity and foresight but it can help your business discover innovative solutions to attract more valuable and loyal long-term customers.