Why are Retailers Using Electronic Shelf Labels?
One big reason why retailers turn to electronic shelf labels is simply that digitization helps them save money and better manage their resources.
Around the world, digitization has become a buzzword in the retail industry. However, this trend is here to stay as it has proved time and again to be highly beneficial with each new innovation that gets introduced. One such device that many retailers have started incorporating into their stores is the electronic shelf label or ESL. These digital tags are slowly becoming more common in businesses of all sizes and seem to have a number of uses. But why are retailers starting to use electronic labels and what do they get out of doing so?
To Reduce Overall Costs
One big reason why retailers turn to electronic shelf labels is simply that digitization helps them save money and better manage their resources. With ESLs, they also no longer have to regularly spend to have new paper labels and signage printed, which can be extremely time-consuming, expensive, and wasteful. Instead, any information displayed on the ESL screen can simply be updated from a centralized server.
Updates are reflected in minutes without having to replace any of the store signage, which makes ESLs a low-waste and eco-friendly way to run a store. Moreover, many ESLs are also battery-powered and do not need to use electricity to function.
To Improve Pricing
Another advantage that electronic shelf labels have is that they enable retailers to use a dynamic pricing strategy. With the convenience and speed of ESL price updates, retailers can easily change their prices according to the demands of the market. By leveraging this pricing strategy, it can help them boost their sales and revenue. Retailers can execute time-of-day pricing to optimize their margins and keep things consistent by pricing their products just right at the right time of the day. Dynamic pricing helps retailers avoid revenue leakage that can occur from inaccurate pricing.
To Provide a More Interactive Customer Experience
When shopping in a physical store, many customers may require more personal interaction. Otherwise, they would have simply bought what they needed online. Retailers can provide this experience by using electronic shelf labels. Shoppers can find product information displayed right at the shelf edge along with customer reviews, current stock levels, and more. If they need help locating products or want to ask staff members a question, customers can also use the ESL for that by pressing the button.
Electronic shelf labels also have NFC capabilities so retailers can generate a custom QR code. Customers can scan it to visit the company website while they’re in the store or to pay for their purchases. With ESLs, retailers can easily provide a convenient and personalized shopping experience that customers look for when they go to a physical store.
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