How Doews IoT help in Retail? Continuous and seamless communication is now a reality between people, processes and things. IoT has been enabling retailers to connect with people and businesses and gain useful insight about product performance and engagement of people with such products.
Importance of IoT in Retail
- It helps improve customer experience in new ways and helps brick and mortar shops compete with their online counterparts by engaging customers in different ways.
- IoT can track customer preferences, analyze their habits and share relevant information with the marketing teams and help improve the product or brand features and design and keep the customer updated on new products, delivery status etc.
- Using IoT retailers can increase efficiency and profitability in various ways for their benefit.
- IoT can significantly improve the overall customer experience, like automated checkouts and integration with messaging platforms and order systems.
- It helps increase efficiency in transportation and logistics by reducing the time to deliver goods to market or store. It helps in vehicle management, and tracking deliveries. This helps in reducing costs, improving the bottom line and increasing customer satisfaction.
- Inventory management becomes easier with IoT. Tracking inventory is much easier and simpler from the stocking of goods to initiating a purchase.
- It helps increase operational efficiency in warehouses, by optimizing temperature controls, improving maintenance, and managing the warehouse.
Use Cases of IoT in Retail
- IoT is used in Facility management to ensure day-to-day areas are clean and can be used to monitor consumable supplies levels. It can be used to monitor store environments like temperature, lighting, ventilation and refrigeration. IoT can identify key areas that can provide a complete 360 degrees view of facility management.
- It can help in tracking the number of persons entering a facility. This is especially useful because of the pandemic situation, to ensure that no overcrowding takes place.
Occupancy sensors provide vital data on store traffic patterns and also on the time spent in any particular area. This helps retailers with better planning and product placement strategies. This helps in guided selling with more effective display setups, layouts, and space management.
- IoT helps in a big way for Supply chain and logistics, by providing information on the stock levels.
- IoT helps in asset tracking in items like shopping carts and baskets. Sensors can ensure that location data is available for all carts making retrieval easy. It can help lock carts if they are taken out of location.
- IoT devices can and are being used to personalize user experience. Bluetooth beacons are used to send personalized real-time alerts to phones when the customer is near an aisle or a store. This can prompt a customer to enter the store or look at the aisle area and take advantage of offers etc. IoT-based beacons, helps Target, collect user data and also send hyper-personalized content to customers.
- Smart shelves are another example of innovative IoT ideas. Maintaining shelves to refill products or ensure correct items are placed on the right shelves is a time-consuming task. Smart shelves automate these tasks easily. They can help save time and resolve manual errors.
Businesses should utilize new technologies to revolutionize the retail sector in a better way. Digitalization or digital transformation of brick and mortar stores is not a new concept. With every industry wanting to improve its services and facilities and trying to stay ahead of the competition, digitalization in retail industry is playing a big role in this transformation. To summarize, digitalization helps in enhanced data collection, helps data-driven customer insights, gives a better customer experience, and increases profits and productivity. It encourages a digital culture.