How the Internet of Things Can Help Grow Your Retail Business
Retailers can enhance sales conversion in stores, while at the same time growing their online business through direct shipping from in-store stock. All they need is one simple thing: comprehensive item-level visibility in real time! Today, this can be achieved with METRICS, an analytics solution based on SMART COSMOS, our state-of-the-art Internet of Things Cloud Services platform.
A famous clothing brand and retailer with a chain of outlet stores and an e-commerce site was all too familiar with two core challenges. In retail stores with manual inventory counts, the level of accuracy could be as low as 60-70 percent. That inevitably leads to missed sales and disappointed shoppers due to out-of-stock situations in stores as well as online. On top of that, the conversion of on-shelf apparel to the point of sale wasn’t very transparent. They knew what customers would buy, of course, but typically didn’t have much visibility into how often items were considered or tried on in a fitting room before being bought.
Significant Sales Lift and Gross Margin Increase
With the help of SMARTRAC and its RFID solution-building expertise, that famous apparel maker addressed those challenges. In mid-January, a live demonstration of the proof of concept was presented to the public at Retail’s Big Show in New York: the innovative in-store analytics solution METRICS, which leverages the Internet of Things on retail premises. Based on the IoT platform SMART COSMOS, RAIN RFID tags and network-connected RFID sensors, METRICS empowers retailers and brand owners with end-to-end supply-chain visibility and real-time analytics. These analytics provide comprehensive reports to optimize store and shelf availability of merchandise, increasing customer satisfaction. In the long run, the deployment of METRICS in stores can lead to significant sales lifts, labor savings and strong improvements in gross margin.
The METRICS solution utilizes real-time location data provided by SMARTRAC’s RAIN RFID inlays embedded in price tags, gathered via network-connected location sensors, to increase sales and thus improve gross margin in three different ways. First of all, stock-outs are drastically reduced. Second, by triggering automated replenishment actions, the effectiveness of the sales force is enhanced, freeing up more time for serving customers. Last but not least, sales at regular prices are increased by the optimization of in-store placement through consideration and conversion analytics.
Benefits for Store Operators and Product Designers
Significantly, METRICS also provides store operators with insight into in-store product consideration and conversion, empowering merchandizers to optimize product placement, and giving them unprecedented visibility into shopper engagement. By clearly understanding consideration versus conversion at the item level, smarter decisions can be made. In addition, the hands-free system gives 100% inventory visibility, helping to increase sales and decrease shrinkage, while fashion designers get faster and more precise feedback on the performance of their designs and patterns.
“By utilizing METRICS, retailers and brand owners can now maintain the highest level of inventory visibility needed to meet shoppers’ demands, lift their sales and improve their gross margin at the same time. Those benefits can only be achieved by analyzing real-time item location and data, and then displaying the results in tailored views that meet the needs of different departments and roles across a retailer’s organization,” says Leonard Nelson, Director Business Development Retail Intelligent Things Business Division, SMARTRAC TECHNOLOGY Group.
For further information about METRICS and what it has done for a famous apparel company, please contact our sales and customer service.