In retail, the Internet of Things (IoT) is regarded as one of the most significant game-changing elements in the way business is conducted today.
As a matter of fact, the global IoT market in retail is expected to reach $35.5 billion by 2025.
The way things are connected is only expected to become more important in the future of business.
Lower operational costs, increased efficiency, a more personalized shopping experience, and changing customer tastes are all driving more retailers to incorporate an IoT ecosystem into their business models.
In this article, we will look at IoT applications in the retail industry.
IoT Applications in Retail
1. Predictive equipment maintenance
Predictive maintenance has the advantage of servicing equipment before it reaches a critical state, resulting in less downtime.
When damage occurs, it can be contained by early detection and remediation.
2. Automated checkouts
According to McKinsey, automated checkout can reduce the need for cashier staff by up to 75%, resulting in annual savings of $150 billion to $380 billion by 2025.
Supermarkets can invest in automated checkouts where the shoppers would log into their online accounts and then walk through the store. Each item picked off the shelf would then be added to the shoppers’ virtual cart via sensors embedded on the smart shelves and capable of transmitting signals to user applications — and vice versa.
Using IoT devices to create an automated checkout system would make your customers happier and more willing to enter your store.
3. In-store experiences innovation
The use of IoT in shopping malls and stores provides retailers with the data they require to optimize the design of their facilities.
Use in-store experience data to improve store layout, optimize time spent in fitting rooms, develop an intelligent suggestion system, and go so far as to replace human staff with automated technology where possible.
Amazon Go is the most well-known and successful example of large-scale IoT implementation for revolutionizing the in-store experience.
4. Targeted Marketing
IoT is being used to promote products and services to a targeted audience, through the use of AI and IoT cameras attached to digital displays that can identify your sex, particular articles of clothing or accessories, even estimate your age, and measure the time someone is looking at the advertisement.
All of this information can be used to present a customer with a tailored shopping experience, with metrics to enable stores to make better advertising decisions.
5. Optimizing supply chain management
IoT can be used to obtain more precise data using RFID and GPS sensors.
You can use that data to improve transportation quality in the future, and even better, you can act in real-time if a product is kept at temperatures that are too low or too high, avoiding a significant loss.
6. Better inventory traceability
Retail supply chains are becoming more complex and lengthier that’s why better management is needed.
Retailers must now track their inventory from the time it leaves the manufacturing plant until it is delivered. Traceability is now required for the time after the product has been sold.
Companies will be able to perform recalls of sold products more efficiently with IoT, which is something that occurs frequently.
Final thoughts…
More and more retailers are looking to implement the Internet of Things. As stated above, these IoT applications will grow and grow in the future and will help retailers improve the quality of consumer connections, improve vendor communications, reduce operation costs and routine documentation, and attract new and retain existing customers.
Finally, if you believe that an IoT solution or device will benefit your business, contact us for a FREE consultation! And we will help you every step of the way.
