The Value of RFID Smart Labels and Tags in the New Era of Retail – Part 2: Integrating Data
The new era of retail brings with it a slew of changes to the industry, including the challenges of omnichannel retailing and the need to invest in proper digital solutions to execute this strategy.
The new era of retail brings with it a slew of changes to the industry, including the challenges of omnichannel retailing and the need to invest in proper digital solutions to execute this strategy. Smart tags and label integration are ideally positioned within this changing landscape, and these solutions hold huge potential for those operating within the sector.
SML investigated an increasingly competitive branding market in Part 1 of The Value of Labels and Tags series , where ensuring brand messaging is consistent and compelling across all packaging has never been more crucial. In this Part 2, SML examines the data collected by these RFID smart tags and labels, as well as the benefits they may have on retail operations and how they increase overall efficiency and performance. Smart labels and tags should not be disregarded by retailers and can offer real-time benefits across the industry.
An Omnichannel Approach Puts the Customer at the Center
The nature of modern retailing has changed significantly, and as a result, retailers must adapt their solutions accordingly. Inventory accuracy and clear visibility are increasingly beneficial for today’s retailers in attempts to streamline omnichannel operations and access real-time data on how transactions impact inventory levels. This stock level visibility allows retailers to reallocate items as needed and aids retailers in their provision of a customer-focused in-store experience – a critical element of modern retailing.
To meet customer expectations of an omnichannel approach, retailers must be confident that the products customers want are available when they want them, especially when implementing a BOPIS (Buy Online Pickup in Store) strategy. Well-planned operational monitoring is essential to avoid disruptions in the customer experience, for example, delays in BOPIS provisions.
After all, according to a Google Consumer Insights finding , an omnichannel strategy increases store visits by 80%, and 85% of BOPIS customers are incentivized to make an additional purchase. This in turn increases sales and average transaction values for retailers, simultaneously supporting growth and streamlining the customer experience.
Utilizing Data to Improve Operations
The data collected by smart tags and labels can in turn be utilized to help streamline operational capacities from the supply chain to improvements on the shop floor, such as increased sales and overall customer satisfaction. Every customer interaction generates a data stream and certain digital tools can assist retailers in combining and analyzing this data, forming a complete picture of the customer.
With a 360-degree view of the customer, brands can create more valuable experiences that are highly personalized and tailored to the specific needs of their shoppers. By doing so, retailers can create more meaningful, long-term relationships and therefore increase brand loyalty.
Introducing effective label and tagging solutions can also help retailers navigate the new era of retail that continues to be increasingly environmentally conscious. For example, smart, data-informed labels and tags could include information to incentivize consumers to recycle more, in turn working towards ESG goals whilst having the ability to create a circular economy. This is beneficial for retailers as firstly, environmental considerations are being addressed and additionally, new business opportunities may arise from this circular economy model.
The Retail Renaissance
Leveraging the right RFID smart labels and tags can help retailers stay competitive in today’s agile and increasingly competitive market. Retailers around the world are faced with slowdowns and sudden drops in consumer confidence and spending power, even as next-generation products proliferate and vendors compete for attention. While RFID and other smart label solutions have the potential to significantly impact a retailer’s profits and alleviate pressure in today’s environment, capturing the value can be difficult. Success goes far beyond technical expertise and reaches into functions across the entire retail business.