The Impact of Digital Price Labels on Omnichannel Retailing
Digital price labels are versatile and powerful. And most of all, it has a significant impact on omnichannel retailing.
As retailers continue to innovate various methods of modernizing retail stores and providing the best service to customers, it's evident that omnichannel retailing should be prioritized. The omnichannel retail experience is one of the essential keys to thriving in the digital retail world. Now, digital price labels are a clear start, but a modern pricing label solution isn't its sole impact on omnichannel retailing and retail businesses.
What is omnichannel retailing?
Omnichannel retailing is a modern approach to selling products and services that integrates digital technology with in-store shopping experiences. Simply put, omnichannel retailing is all about combining online and offline channels to better serve shoppers and patrons.
This kind of retailing approach has allowed retailers to provide a seamless, personalized customer journey across multiple channels, including stores, online, and mobile. With omnichannel retailing, customers can shop with a consistent experience, regardless of the device or channel they use. The combination of physical and digital shopping helps create a more engaging experience for customers. It also gives retailers greater flexibility and control over how they manage their stock and pricing. Solutions like digital price labels can help facilitate the omnichannel retail process among stores and brands. Other modern retail technologies are also being implemented one by one to ensure an omnichannel retail experience.
Overall, omnichannel retailing offers a better shopping experience for customers and a smarter way for retailers to manage their businesses.
How did omnichannel retailing change the retail industry?
Omnichannel retailing has changed the landscape of the industry for various reasons. It is one of the results of the modernization or digitalization of the world and has had a significant impact on both consumers and retailers.
Here are some key ways in which omnichannel retailing has changed the retail industry:
Seamless Customer Experience
Omnichannel retailing provides a seamless and consistent shopping experience across all channels, whether online or offline stores. This has led to a more integrated approach to retail, where customers can research, browse, purchase, and receive support through various touchpoints without encountering any complications.
Retailers have shifted their focus to understanding customer behavior, preferences, and needs across different channels. This customer-centric approach has led to improved personalization, better-targeted marketing efforts, and the ability to provide tailored recommendations and promotions.
In a survey from Harvard Business Review, it was reported that omnichannel shoppers spend an average of 4% more every time they’re in a physical store. They also spend 10% more when shopping online, compared to those who interact with a business through a single channel. Shoppers in this survey showed that they are willing and more than happy to spend more from businesses that offer various channels, leading to increased profits for the brands.
Improved Customer Loyalty
Criteo, a global technology company, has also reported that 63% of omnichannel shoppers made two or more purchases, versus just 44% of in-store-only shoppers over a three-month period. Omnichannel shoppers have also made 3.34 purchases from a brand, compared to in-store shoppers, who only made 2.1 purchases on the overage. This shows more loyalty from customers to businesses with more consistent and personalized touchpoints.
Integrated Inventory Management
Omnichannel retailing necessitates accurate and real-time inventory management across all channels. This has led to the integration of inventory systems, which allows retailers to fulfill orders from various locations, reducing out-of-stock situations, and optimizing stock levels.
Flexible Fulfillment Options
Retailers can now offer diverse fulfillment options, including buy online, pick up in-store, curbside pickup, and same-day delivery, because of the omnichannel experience. This flexibility enhances convenience for customers and helps retailers utilize their physical stores more effectively.
Omnichannel retail generates a wealth of data from customer interactions and preferences across different channels. Retailers will be able to use this data to gain insights into customer behavior, preferences, and buying patterns, enabling data-driven decision-making to refine strategies and optimize operations.
Improved Customer Engagement
Retailers engage with customers through various channels, including social media, mobile apps, online chat, and personalized marketing campaigns. This has enhanced customer engagement and loyalty by fostering stronger relationships.
Enhanced Marketing Opportunities
Omnichannel retail also enables retailers to create consistent marketing campaigns across different channels. Targeted messages, personalized recommendations, and seamless promotions contribute to more effective and cohesive marketing strategies.
Innovative Shopping Experiences
Technologies like virtual reality (VR), augmented reality (AR), and interactive displays or signage have been incorporated to create innovative and immersive shopping experiences. According to Silversea Media, 61% of consumers said they prefer retailers that offer AR experiences. Customers can virtually try on products, visualize furniture in their homes, and engage with products in novel ways.
Challenges for Traditional Retail
Traditional brick-and-mortar retailers have faced challenges due to the rise of e-commerce and social media platforms. Adapting to new technologies and facilitating omnichannel experiences have been essential to catering to customer expectations.
Rise of Mobile Commerce
Smartphones and mobile apps have accelerated the growth of mobile commerce. In the United States, 76% of adults say they buy things online using a smartphone, while 69% of them say they make purchases via desktop or laptop computers. Now, retailers are focusing on optimizing their mobile apps for a smooth omnichannel retail experience on the go.
Logistics and Supply Chain Innovations
To meet omnichannel customer demands for fast and flexible deliveries, retailers have explored new logistics and supply chain solutions. This includes last-mile delivery optimization, partnerships with third-party delivery providers, and innovations in packaging.
The implementation of omnichannel strategies has led to changes in employee roles and skill requirements. Retail staff need to be proficient in using digital tools and technology, handling online customer interactions, and managing diverse fulfillment processes.
What are the technologies used in omnichannel retailing?
The omnichannel retail approach aims to provide a consistent and personalized experience, regardless of whether a customer is shopping through a physical store, a website, a mobile app, or any other touchpoints. Here are several modern technologies that contribute to the implementation of omnichannel retailing:
- E-commerce Platforms: Modern e-commerce platforms provide the foundation for online retailing. These platforms allow retailers to create and manage online stores, catalog products, process orders, and offer various payment and shipping options to various kinds of customers.
- Point of Sale (POS) Systems: These systems are used in physical stores to manage transactions, inventory, and customer information. Integrated POS systems can help synchronize data between online and offline sales channels. This boosts reach and sales, and allows retailers to know more about their customers.
- Mobile Apps: Nowadays, retailers often develop mobile apps to engage customers and provide a convenient shopping experience. These apps can offer features such as personalized recommendations, mobile payments, digital coupons, and in-store navigation. This modern approach has been well-received by consumers.
- Data Analytics and Business Intelligence: Retailers rely on data analytics and business intelligence tools to gain insights into customer behavior, sales trends, and channel performance. These insights inform strategic decisions and help improve the customer experience. These insights are also necessary for retailers to keep up with the demands of modern consumers.
- Artificial Intelligence (AI) and Machine Learning (ML): AI and ML technologies power personalized recommendations, chatbots for customer support, and predictive analytics for inventory management and demand forecasting.
- Beacon Technology: Beacons are small devices that use Bluetooth technology to transmit signals to nearby smartphones. Retailers can use beacons to send location-based offers, promotions, and personalized messages to customers in physical stores.
- Virtual and Augmented Reality: These technologies enable immersive shopping experiences, allowing customers to visualize products in real-world environments before making a purchase decision.
- Social Media: Social media platforms play a crucial role in omnichannel retailing by allowing retailers to engage with customers and showcase products. Some social media platforms also have specific features that allow customers to buy from a retailer without ever leaving the app. This helps create an engaging and personalized buying journey for the audience.
- Digital Price Labels: Digital price labels, or electronic shelf labels (ESL), have become one of the most common and popular technologies used to achieve omnichannel retail. This is because by replacing traditional paper price tags, digital price labels have reduced time, money, and manual labor, improved inventory management, allowed customers to use other kinds of payment options and channels, and enhanced overall store operations. These digital labels can also be used beyond displaying prices. They can act as marketing materials, help facilitate better customer service, connect online inventory, reduce out-of-stock situations, improve the replenishment process, and more.
- Digital price tags are a versatile and powerful solution for retailers who are looking to streamline their transactions and provide a better service to all customers.
- Label Management Software: With digital price labels in place, retailers are also utilizing label management software to better oversee every electronic shelf label in the store. An ESL management system like SOLUM's Aims (made specifically for SOLUM digital labels) allows retailers to manage storewide operations within one platform.
With Aims, retailers, and managers can see stocks or inventory levels, assign specific labels and prices to products, modify and design the layout of every ESL, facilitate navigation or order picking process, create reports, and more. The best part about a management software like Aims is that it lets retailers integrate e-commerce stores and online inventory as well. This enhances inventory management and helps achieve omnichannel retail.
What is the impact of digital price labels on omnichannel retailing?
Digital price labels, as an omnichannel retail solution, have created a welcoming and efficient effect on businesses. From employee productivity to customer engagement, to inventory management, to supply management, electronic shelf labels (ESL) can empower these specific operations.
SOLUM's Newton ESL, for example, has the technology and all the features that will help retailers and consumers achieve an omnichannel retail experience. It can provide mobile payments with its NFC (near-field communication) capability, improve the shopping experience and replenishment process, integrate physical inventory with online inventory through Aims, enhance in-store customer service, ensure accurate product pricing and information, and a lot more.
Foto Ruano has already experienced the impact of digital price labels on their camera retail store. This included price changes, in-store promotions, navigation, and more.
Foto Ruano Brand Manager Bruno Pereira Corvalán shared, "Our intention with the Newton labels, it was to generate an omnichannel. And as you investigate, and investigate more, you realize that it's not only about the price. It is that it also offers localization, real-time price updates, and different promotions, that you can combine it with different text content. All that hard work of searching is made easy with a simple device that works both internally as well as externally."
Similarly, Kotsolovos, the largest retail store in Greece with over 90 retail stores, has made the switch from paper labels to SOLUM electronic shelf labels. The result is more than favorable—a more convenient customer journey and a 7% increase in employee productivity—proving that digital price labels have a direct influence on making omnichannel retail possible.
Omni Channel Operation Manager of Kotsolovos' parent company, Antonakakis, Georgios, shared more about their decision to adopt digital labels for an omnichannel retail experience. He mentioned in a Kotsolovos case study by SOLUM, "To have the omnichannel strategy, you have to change your physical stores. You have to make them more digital. The electronic labels help us by using NFC technology, it completes the omnichannel journey of the customer. That means that a customer can interact with an electronic label and can see more content about the products..."
He also emphasized the various channels and touchpoints the customer can utilize for their buyer's journey. He explained, "...you can move forward from there and complete your purchase online, or back in your home. So it helps us in an omnichannel journey. What I believe is that ESLs are working towards the improvement of the perception that our customers have for Kotsovolos. And what we have seen is that there are some young customers who are using the QR-capability, or the NFC capability that the ESLs have, so as to put the items in their baskets and maybe close their baskets afterward, when they go to their house."
Digital price labels are an ideal stepping stone into omnichannel retailing. For your business to flourish and to cater to the needs and preferences of your customer base, you need to make decisions about implementing a powerful digital solution. Get a digital price label solution for your retail stores now.