How the “Internet of Things” Will Reinvent Retail

By Natalie Bruins

Technology doesn’t wait for retailers to catch up. Consumers embrace new technology and aren’t impressed by retailers who don’t. This year, smart retailers are creating ‘smarter’ stores with the Internet of Things (IoT) reinventing the way they think about retail.

With IoT, a huge number of devices can be connected – with everything from Point of Sale systems to dressing rooms doors, able to connect. Microsoft have already tried to add a human touch to this phrase – describing it as ‘the internet of your things’ – and it’s this personalised approach which sums up how IoT should be for consumers.

Plus, for retailers, it’s about how your ‘things’, or in other words, technology, can connect to provide a better experience for your customers.

One example of how IoT is already providing a better experience for customers and better data for a brand is Disney. The park has RFID-enabled MagicBand wristbands that provide theme park access, entry to hotel rooms, and cash and card-free payment for food and any merchandise. Disney is able to track this activity to build an accurate picture of how each guest uses their services.

From Disneyland to high-tech highstreets, here’s how this new technology will reinvent retail.
 

1. RFID (Radio-frequency identification) tagging

RFID is probably the most well-known example of IoT and according to Bill Hardgrave of Auburn University, the technology can have huge benefits for retailers. RFID involves tracking and counting products automatically and can give retailers 99% inventory accuracy, a 50% reduction in out-of-stocks, a 70% reduction in shrinkage, and sales lifts from 2% to 7%.
 

2. Connecting home automation to ecommerce sites

There are certain products, which we all need to buy – from fridge essentials such as butter and milk to bathroom basics such as toilet roll and shower gel. IoT could allow consumers to press a button in their home to automatically order the product they need from their favourite store, delivered to their door. This innovation would connect ecommerce to the way we interact with our homes, and has the potential to allow brands to develop a more meaningful connection with consumers.
 

3. Wearable technology – for retailers and consumers

From giving shop assistants the information they need on-the-go, to giving shoppers a more personalised experience, wearable technology is a branch of IoT, which could transform retail.
In store, both shop assistants and consumers will have the information they need. Shop assistants could have access to further product information, stock levels, as well as customer data. Shoppers, on the other hand, could have an enriched in-store browsing experience, with extra information, navigation and promotional offers.
 

4. In-store sensors

Whether you want to attract shoppers through your doors or tempt people to browse your new collection when in-store, sensors, such as Bluetooth beacons, are an IoT technology which can help you do just that.
Picture the scene – an existing shoppers walks past your store, your in-store sensors would allow you to send that customer a personalised message about a promotional offer you are running in store. Once inside the shop, you can target shoppers based on their shopping and browsing history. This could not only enhance the customer’s experience and boost a retailer’s marketing efforts, but provide a wealth of path-to-purchase data, which can be used to optimise store layouts.

5. Smart mirrors in fashion retail

As an extension on RFID tagging, various parts of the store could connect with the products themselves. For instance ‘smart’ mirrors could recognise which products a shoppers was wearing and then suggest other items which could be paired with that garment – allowing the shopping to visualise some fashion pairings in the mirror.

Overall, IoT looks set to begin a new, more data-driven age for retail. With connected devices, retailers can analyse shopper behaviour, as well as their own performance with greater accuracy and offer a more responsive and personalised service. Find out how we can help you prepare for a world of connected shoppers and devices on our omnichannel page.

To View Original Article: http://k3retail.com/blog/smarter-stores-how-the-internet-of-things-will-reinvent-retail/

Top 5 Mistakes Brick-And-Mortar Retailers Make That Hurt Their Business

By: Donna Knight, Business Analyst

By now, most retailers know that an increasing number of shoppers are buying online. Does this mean that offline businesses should be afraid? Of course not. There are places where you can still see shopping malls with full parking lots and lines of people at the register waiting to check out. The prevalence of online shopping simply means that brick-and-mortar businesses cannot afford to continue running their business the same way they did 10+ years ago.

As a point of sale consultant, I have worked with retail businesses for 15 years, and I still see old and new businesses making the same mistakes other businesses did over a decade ago. Some of these mistakes include:

1. No Internet Presence: I am always surprised when I come across a well-established business that does not have a web site. Even if you don't want to sell products online, you should at least have a web site that touts your address and phone number, what products and services you offer, and pictures of your store. Many people, like myself, research brick-and-mortar stores online before they actually travel there. And if you don’t want to sell online, you might want to consider whether there are people in other states who are looking for what you sell. They may not have products like yours anywhere near them. You could be leaving money on the table by not selling online. No matter what you decide, you should at least have a simple web site to let potential customers know you’re right there in their neighborhood. 
   
2. Using Outdated Cash Registers: The fact is cashiers can make more sales in a shorter period of time with a computerized point of sale system than they can with a traditional cash register. In addition, the reporting functionality of cash registers, if they have any, are no match for those of even the most basic point of sale system. 
   
3. Little Or No Security Measures In Place: I’m sure your employees appreciate the fact that you put complete trust in them, but no one knows who is dishonest until merchandise starts disappearing without sales receipts to justify their absence. There are multiple security measures you could be using, including:
   
   
   1. Installing security camera systems that not only show you what a salesperson was doing behind the counter, but also what receipt the salesperson was working on at a specific moment in time.
      
   2. Assigning an individual username and password to each employee so you can track their sales or other activity when using a computer.
      
   3. Exercising strict control over what employees can do in your business software.
       
4. Not Collecting Customer Information: One of the things that successful companies do is follow up with their customers. I recently bought a new car. I got a survey from the sales person who sold the car to me and from the car manufacturer. This company clearly cares about the quality of their service since they follow up after your purchase in multiple ways. The best source of future sales is not new customers, but existing customers. You might consider offering a coupon in exchange for your customer’s contact information. If you don't collect any customer information, you have no way to encourage them to come check out your newest merchandise or your latest sale. If the customer didn’t find everything they wanted and doesn’t plan to return, you’ll never know why if you don’t follow up. Building customer relationships should be an important part of your business. It will help increase your bottom line.
   
5. Waiting Years In Between Physical Inventory Counts: How can you be sure you’re not overstocking poorly performing merchandise or underselling due to shortage if you don’t have an accurate count of your merchandise? You should perform an inventory count at least once a year. The largest companies do cycle counts of certain departments more frequently. For example, you might want to keep better track of your best-selling departments so that you can order more merchandise before you run out.

The good news is that all of these mistakes can be corrected. Even if you start by just correcting a few areas, you may see a measurable increase in your sales or decrease in shrinkage. Once you start making small improvements, there’s no limit to how many new insights you can gain into what factors are hurting your business.


Donna Knight has worked for One Step Retail Solutions for 15 years and has been doing training and consulting for 13 years. She is certified in Retail Pro, CounterPoint, QuickBooks Point of Sale, LightSpeed Point of Sale and Retail Teamwork. She has been troubleshooting computer problems for over 20 years, starting out by building her first computer in the 1990s. Donna manages One Step Retail Solutions Knowledgebase. Since she began managing it, the Knowledge Base has gone from 250 articles to 3,071 articles.

To view the original article visit: http://www.retailtouchpoints.com/features/executive-viewpoints/top-5-mistakes-brick-and-mortar-retailers-make-that-hurt-their-business