It is no secret the IoT movement is helping retailers achieve better conversion rates and boost profits through connected solutions. By enabling Radio-Frequency Identification (RFID) technology throughout the supply chain, end-to-end processes become more efficient and retailers can ultimately see better business outcomes. To optimize store performance these different connected solutions – from back room, to the floor, to the fitting room – can be linked to provide visibility and communication throughout the store, and ultimately provide an integrated customer experience that facilitates buying.

RFID for Improved Insights

Inventory insight and understanding into how many items, what colors and where they are located is key in meeting customer expectations, especially as BOPIS and BORIS become increasingly popular. Today’s forward-thinking retailers bridge the online/offline gap with real-time inventory insights to exceed customer needs and convert sales.

For instance, a shopper spends countless hours shopping for the perfect size 6 tan coat online and in- store. Finally she finds it online, clicks “Buy It Online Pick-Up In-Store” and the dreaded “Out of Stock” pop-up message appears. That shopper immediately loses interest and moves on to a different retailer. However, retailers can avoid this common scenario by implementing RFID-enabled solutions, and gaining real-time visbility throughout the supply chain to improve inventory accuracy to help eiliminate stock distortion. In this example, if the retailer had used this technology, they would have accurate visibility into the other store locations with the size 6 tan coat in-stock for pick-up.

Not only does having inventory accuracy help uncover where items are available in different store locations, but it also helps retailers discover excess inventory to develop more precise markdown plans and timing. RFID is an ideal technology to integrate with existing operational retail solutions in order to conduct accurate cycle counting and avoid out-of-stocks. It’s through a combination of solutions that retailers can achieve higher levels of actionable data to drive sales and improve operations.

Smart Fitting Rooms and Actionable Data

With IoT-enabled solutions, apparel retailers are finding new ways to maximize profits by taking advantage of a key conversion zone: fitting rooms. Smart fitting room technology can track items as they enter and exit a fitting room, and associates are able to view the data instantly. This can provide real- time insights into the most popular items that are being purchased and the items that never leave the fitting room. Retailers can then leverage this information to make informed decisions on the quantity of certain items to order, whether to discontinue certain unpopular items and recommend other complementary styles or products for purchase.

Pulling It All Together

Retailers’ interest in IoT is all about connecting stores, inventory, shoppers and associates within the digital retail world. Through predictive and usable data, retailers can deliver a differentiated brand experience in today’s always on, always open connected shopping world to maximize business outcomes and increase their bottom line. Ultimately it is the number of shoppers turned buyers that determines the bottom line for retailers, and these connected technologies provide actionable inventory insights to help retailers succeed.