The adoption of the Internet of Things (IoT) has grown significantly across industries. The technology is widely used in agriculture, healthcare, and the transportation industry, and the world is witnessing a rapid increase in IoT deployment in retail. For example, more and more retailers will rely on IoT to evaluate people’s purchasing behavior, adjust inventories, and save storage space to save money and build and nurture long-lasting relationships with customers.
According to a study, the global internet of things in the retail sector was valued at $31.99 billion in 2020 and is expected to grow at a 26% CAGR between 2021 and 2028. It is mainly because retailers hit by pandemics are rapidly investing in IoT to get actionable insights to stay afloat.
IoT creates diverse possibilities for the retail sector. Retailers are increasingly leveraging IoT software to watch and monitor the activities of customers and gain valuable insights related to improving marketing strategies and sales tactics. Read this blog to learn the key benefits of IoT in the retail industry.
Benefits of IoT in the retail industry
Many retailers are incorporating the Internet of Things into their operations. Here are some of the key benefits of deploying IoT apps in retail:
Better supply chain management:
Since every item is identified and inspected, the logistics management process can be optimized using RFID and GPS technologies.
Modern in-store inventory tracking:
With IoT, retailers can easily collect and access data essential for product inventory control, visibility, and optimization.
Improved customization and exceptional customer experience:
With IoT and machine learning algorithms evaluating customer data in real-time, retailers can quickly get valuable insights to enhance consumer engagement and participation.
With biometrics powered by the IoT, retail businesses get their hands on vast quantities of factual data. It allows them to track things and delivery operations, reducing the scope of fraud and theft.
In-store staff optimization:
Customers often seek assistance and recommendation to buy the items best suit their needs. Thus, many retail companies have started leveraging motion sensors, face recognition sensors, and cameras driven by neural network models to simplify customers’ purchasing decisions.
Critical IoT Use Cases in Retail
Now that you know how IoT adds value to the retail industry, it’s time to move on to its most popular use cases. Various IoT technologies are deployed in the retail sector to reduce costs and simplify business operations. Some of them are:
Personalized retail marketing and content delivery:
IoT adoption in the retail space has made shopping an exceptionally personalized and direct experience based on consumers’ preferences using artificial intelligence and machine learning.
Best staffing-level indicators:
Staffing has become so easy with IoT adoption. Today, sophisticated models can anticipate demand, supply, and customer retention ratios, helping retailers make the optimal call for staffing.
IoT has made cashier-less payment systems a reality. The cashier-less checkouts save a lot of time for customers and money for companies by removing human interaction.
360-visibility into inventory:
IoT enabled real-time monitoring of goods for retailers. Today, many retailers are easily tracking their inventory using automated methods to stay updated about the abundance and shortfall of items.
Buyer behavior insights:
Today, retailers are quickly about to track buyer behavior by utilizing IoT and artificial intelligence-based retail technology solutions that can easily recognize vital customer behavioral features like gestures and the time spent on shopping.
The rapidly growing and ever-evolving IoT is revolutionizing retail business. A McKinsey and Gartner.com IOT projection has anticipated that IoT-connected devices worldwide will reach 43 billion by 2023. Retailers looking forward to leveraging the Internet of Things can explore the IoT services offered by trusted IoT services and solution providers like Bursys. Bursys has a team of experts that rapidly understands the requirements of clients and implements the best technologies. Reach out to them today to know how you can transform your business utilizing IoT technology.