IoT in Retail; See how it is Revamping the Industry
The year 2020 will observe the widespread adoption of fourth industrial revolution technologies across various industry verticals. With an evolving technological environment, brick and mortar retail industry are no more alien to technological transformation.
Many disruptive technologies, such as big data, artificial intelligence, and machine learning, are playing a significant role in enhancing the business operations of the retail industry.
Also, widespread internet use has enabled brick and mortar retailers to have their presence on online platforms to keep a hold on their potential customers among the growing competition of retailers.
More investments are expected in the retail industry to build technology-based infrastructure.
One such technology, the Internet of things, is currently dominating the retail industry with its potential benefits. This technology can connect people to every technology out there. Internet of Things plays an essential role in the retail sector to improving customer experience, which ultimately raises revenue of the business.
Internet of Things (IoT) is a network of interrelated physical objects, i.e., .things embedded with software, sensors, and other technologies intended to connect and exchange data with other systems and devices over the internet. The retail industry is now experimenting with IoT technology to refine customer experience and to develop a digital ecosystem.
How IoT works in Retail Industry
- Improves Customers Insights and in-store experience
The connected IoT devices in retail stores can help to track the customer habits, choices, and preferences that help to provide them better services. IoT enables retailers to prosper an improved ecosystem to enhance the customer experience.
The beacon technology assists retailers to interact with buyers in their stores; the sensor allows the store manager to maintain customer data so that they can modify services accordingly.
Retailers are using beacon technology to notify customers with discounts and real-time offers to increase the probability of the customer to enter their shop.
Beacons are devices that send push notifications to the shopper’s smartphones via Bluetooth connection once they are in the coverage area.
- Smart Shelves for Supply Chain and Logistics
Traditional retail stores are reforming their operation and inventory management that help retailers with distinct data for smooth flow of goods in supply chain and logistics right from the warehouse to checkout.
Technology helps to track inventory efficiently. The smart shelves in the store provide store managers with the notifications of the stock and its sales.
Walmart is the first retailer to use IoT based inventory management system that tracks the supply chain and logistics process, i.e., production, warehousing, and store stocking.
- Automated Checkouts
IoT is also helpful when it comes to checkout of the purchased items. Long queues at the billing counter are a hindrance to better customer experience.
IoT enabled system can be set up to trace the label of the product as customer leaves and then the amount for the same can be deduced from the customers’ payment application.
The deployment of IoT based systems allow retailers to access business operations in real-time that will help to estimate sales. Also, the technology will help the retailers to gauge recurring revenue patterns from potential customers.
Many retailers are looking forward to implementing the Internet of Things to boost their business. The amalgamation of the Internet of Things will help retailers to build robust marketing campaigns by delivering high-quality services to the customers.