Leveraging technology in the retail industry has become essential to enabling improved operations and high-quality customer experiences. Retailers are using innovative technologies such as radio frequency identification (RFID) solutions to streamline their inventory management, gain real-time visibility and improve customer satisfaction. However, while the use case for RFID is becoming clearer to a number of retailers, many remain unsure of the technology’s ability to deliver a significant return on investment (ROI).
For retailers to be able to invest confidently in the technology, they must be able to see its value. Deployed correctly, item-level RFID technology can drive significant ROI for retailers in many ways, particularly on the shop floor, from saving operational costs to enabling retailers to increase sales through improved product availability.
Streamlining Inventory Management using Item-Level RFID
When calculating ROI on their RFID deployment, retailers need to evaluate not only the increased revenue but also the cost savings derived from RFID implementation. Retailers must understand the financial losses tied to waste, unaccounted-for stock, and missed sales opportunities due to stockouts and needless markdowns.By integrating item-level RFID solutions with existing enterprise systems and maintaining inventory accuracy above 98%, brands can streamline their operations. As a result, they can significantly drive cost savings and increased sales opportunities.
Item-level RFID enables retailers to manage individual items across their entire supply chain providing enhanced visibility and control. With real-time insights, retailers can track what’s in stock, identify fast-selling products and items with low demand, and trace where each item is located. This empowers retailers to make informed decisions and replenish stock effectively, ensuring their stores are always stocked with the right inventory.
Retailers can also use RFID solutions to automate their inventory replenishment, with RFID tags providing continuous updates on in-store inventory levels. When stock levels drop below a predefined threshold, systems can automatically trigger replenishment of inventory from the back of the store to the front of the store, ensuring optimal stock levels are maintained without manual intervention. This can minimise the need for time-consuming manual inventory checks, enabling staff to dedicate more time to customer service and other tasks.
Maximising ROI with Optimised In-store Operations
Being able to run in-store operations efficiently allows retailers to significantly drive more value and save their resources. With item-level RFID deployed in brick-and-mortar stores, staff can complete rapid and accurate inventory counts within minutes. This not only reduces the manual labour required but also ensures greater precision in stock levels. This ultimately frees up employees’ time, allowing them to deliver high value for in-store customers. It also will save retailers thousands of dollars per store by eliminating expensive manual annual stock counts.
Meanwhile, RFID’s ability to provide real-time inventory insights and detailed item tracking also enables staff to swiftly and confidently process omnichannel offerings such as Buy Online, Pickup In-Store (BOPIS), and Buy Online, Ship from Store (BOSFS). Associates can quickly find and pick items using applications on RFID scanners. This allows retailers to increase sales within an omnichannel model and significantly boost customer satisfaction during their e-commerce experience. All this results in increased consumer loyalty and sales, leading to substantial ROIs.
Why RFID is Critical to Enhance the In-Store Customer Experience
Customer experience is a crucial factor when it comes to calculating the ROI of technology. In-store RFID deployment can directly impact the customer shopping experience, enabling shoppers to experience a higher level of convenience and speed. Store associates equipped with RFID technology can respond to customer inquiries more efficiently and accurately, helping them locate items quickly, recommend alternatives, and share product information. This can notably improve the customer experience as 50% of surveyed customers worldwide value knowledgeable and helpful staff as a key aspect of their in-store experience.
There is no denying that high-quality customer experiences can positively impact sales opportunities for retailers, driving repeat business and increasing purchase value. According to a Statista survey, 94% of shoppers stated that positive customer service experience made them more likely to purchase again, with 82% of customers recommending a company solely based on excellent customer service. Ultimately, retailers can derive a significant increase in sales as a result of RFID implementation.
The brick-and-mortar landscape has been constantly evolving, with the rise of omnichannel offerings and changing consumer demands. Brands must have the right technology that drives improved inventory accuracy to be able to facilitate smooth operations and thrive in the quickly evolving retail market. RFID solutions prove to be an innovative technology that retailers can rely on to transform their in-store operations and the customer experience.