What can retail stores learn from the eCommerce revolution?

 

What can retailers do to gain visibility?

The first way that retailers can gain information and visibility into what is happening on the store floor is by collecting data from objects in the store. This notion helps move decision making from intuition and anecdotal to data-based.

 

 

The traditional method to collect and control inventory data is through RFID tags on clothes. While RFID provides data to the store, it includes manual, heavy installation that takes time, and relies on the workers in the store to continuously scan the items (otherwise no new information is available). Beyond the manual challenge is the that RFID is primarily focused on inventory management and not customer journey optimization.

 

 

Today’s technological revolution has introduced new, more effective methods. Nano BT (bluetooth) IoT-based solutions allow retailers to get full insights into their sales floor without lifting a finger (besides on the computer or tablet where the insights are located). 

 

These solutions are based on chips integrated into items that send live data to retailers, allowing them to move beyond just inventory management to merchandise performance optimization in real-time.

 

This data can also help to improve sales funnel data. 

 

Today, most retailers have no access to information about engagement, abandonment, or conversion. They simply know what customers are buying and what they aren’t. By integrating this data (which has become the basis of eCommerce analytics), stores can become more efficient and in turn, more profitable.

 

 

Why is having access to real-time data so important?

Real-time data allows retailers to integrate the following into their sales funnel and practices:

 

 

• Data-based decision-making – Retailers no longer have to guess what is successful and what isn’t on the sales floor. Understanding merchandise engagement prior to conversion helps merchandisers plan, buy and allocate with greater certainty and on a more localized level. This information is revolutionary when it comes to in-store shopping, as up until now, it simply didn’t exist.

• In-store display optimization – How do stores decide where to display different items on the floor? Without Nano BT tech, it’s all a guessing game. With real-time data, stores can optimize their display according to the customer journey. If an item is performing well, it can be moved to a high traffic, high converting spot. Another item not doing so well? Maybe it simply isn’t being seen? That can be solved as well by moving to a better spot within the store. Sale items that are flying off the shelves regardless of their spot? A store manager may decide to put them in a less desirable location. The best part of this strategy is that it can be changed at any time, and according to what is happening at any moment in the store.

• Store performance optimization based on other store insights – One of the main advantages to a chain store, is that branches can learn from one another. With real-time data, a store with lagging sales can learn from a more successful store, what’s working and what isn’t. While different factors such as weather or demographic data can come into play, these insights can be valuable and allow managers to make smart decisions.

• Contactless commerce – Imagine this: a customer sees an item online, walks into her local store, picks it off the rack and walks out. Or maybe, she loves an item when she picks it up in-store, goes on her phone, checks out, and then walks out. This is all part of contactless eCommerce, made possible with Nano BT technology.

• Merchandise visibility – One of the biggest pain points for many retailers is inventory. Not only do they need to know how many of each item they have in stock, but they also need to understand where the items are located. Nano BT technology gives retailers full visibility into exactly where each item is located. This information is critical, saving hours of time for store workers searching for merchandise and giving brands insights into where their items travel around the store throughout the day.

• Omnichannel fulfillment – The eCommerce revolution has forced brands to reinvent the way they do business, specifically in the way that they supply items to their customers. By having better insights into what is happening in-store, brands are able to provide their customers with more shopping options (pick-up in-store, etc.).

• Intelligent buying decisions – Can brands predict future trends? Real-time data gives retailers insights into which items people are engaging with but not buying in the end, potentially giving insights into something that is high-interest and a future trend.