Retail technology has become increasingly advanced. At the same time, customers have become more accustomed to using digital channels and devices in their interactions with retailers. For brick-and-mortar stores to continue to compete with online channels, they have to leverage technology in their daily operations to both increase sales and improve the shopping experience for their customers.
While there are plenty of new technologies on the market, the combination of advanced point of sale (POS) solutions, digital signage, and RFID tracking are poised to revolutionize the way retailers and customers interact in the store.
POS — More than Payment
POS systems are a retail technology that has evolved beyond the cash register. Advanced systems now provide payment management and data analytics capabilities that can help your store run better.
The analytics from a POS solution will provide data that can help you track sales and inventory, identify slow-moving merchandise, and help you make better decisions about what should (or shouldn’t) be on the shelf. That same data can also clue you in to when you are making sales, so you can adjust staffing levels for peak and slow sales periods.
Loss Prevention (LP) technology associated with the POS also makes it more difficult for employees to commit theft or fraud. By carefully tracking which employees were working at each station, and by monitoring both inventory and purchase data, you can more quickly be alerted to potential fraud and access detailed purchase records that will make it easier to find out exactly what happened and who was responsible.
A modern POS system also makes it possible for you to meet PCI security requirements, while taking new forms of payment (like PIN and chip cards, or phone payments), issuing gift and loyalty cards, and accepting coupons. All of these features can help bring in and retain new customers.
RFID Improves Inventory Visibility
Major retailers like Marks & Spencer, Saks, Bloomingdale’s, and Macy’s now use RFID at the store and shelf-level to track inventory. American Apparel claims it reduced internal shrinkage by an average of 55 percent across its RFID-enabled stores while increasing sales.
This retail technology provides real-time visibility across the supply chain, right down to the retail shelf. With tagged merchandise and handheld RFID scanners (or shelf-based systems) the time it takes to conduct in-store inventories can be slashed by as much as 80 percent to 85 percent. Real-time inventory information also makes it easier to avoid out-of-stocks by alerting staff when its time to restock based on preset shelf parameters. That can help avoid lost sales by making sure the items your customers want are always on the shelf.
In addition, real-time inventory visibility makes it possible to fulfill buy-online, pick-up-in-store (BOPIS) orders, which can further boost revenues.
RFID retail technology can also augment shrink-control efforts by providing a way to combine POS tracking with electronic article surveillance. Advanced systems can even tell you when something is taken from the shelf but doesn’t make its way to the check-out. For heavily shoplifted, high-value items, this type of advanced monitoring can quickly pay for itself via reduced theft.
Digital Signage in Action
A third retail technology, digital signage, can enhance internal marketing and advertising efforts. The signage is placed at the POS, at service points, at the shelf, and other high traffic areas. The signs can convey advertising and marketing messages, provide information about promotions or special pricing, and in some cases, even create customer-specific marketing messages based on shopper behavior.
Digital signage can reduce or eliminate the cost of printing in-store signage and advertising. It also provides upsell opportunities. Digital signage can encourage the purchase of specific premium brands when placed next to competitive items, for example.
A 2010 Nielson study of digital signage in grocery stores found that four out of five brands experienced increases of up to 33 percent in additional sales compared to the use of printed signage alone.
Integrated Customer Experience
By combining retail technology like POS systems, RFID, and digital signage, stores can also enable new ways to increase revenues and customer loyalty, while improving efficiency. Digital signage that is integrated with a shelf-level RFID solution can present shoppers with promotions or other complementary purchase suggestions based on the items they have removed from the shelf.
Using customer loyalty data and current purchase information at the POS, the solution could also generate additional promotions or incentives to get the customer to return to the store. This type of personalized shopping experience not only improves the image of the store, but also encourages additional purchases.
Shoppers use advanced technology every day, at work, at home, and even in their cars. Digital technology plays a larger role than ever in how customers research and purchase the goods they need. By integrating digital signage, POS solutions, and RFID, stores can leverage advanced retail technology to increase sales and improve the shopping experience for their customers.