Past few years, due to the pandemic and the restrictions on movement and travel, consumer behavior has changed and their shopping preferences and spending patterns have evolved. There is a major shift from in-store shopping to online shopping. And why not? Purchasing goods online offers convenience, delivery at the doorstep and a seamless shopping experience.
This shift was made possible through IoT implementation. IoT wireless technologies bridged the gap between online and offline shopping and changed the ways customers shop and businesses operate.
“The Global IoT in retail was estimated to be USD 14.5 billion in 2020 and is projected to reach USD 35.5 billion in 2025."(Source: MarketsandMarkets)
What Makes IoT so Successful with Retail?
1. IoT Sensors - The sensors in Internet of Things ecosystem collect data from different sources and send it to cloud servers for analysis, which is further used to monitor and control various systems, including tracking of goods from production to delivery, monitoring of store activity to prevent theft and fraud, counting the number of people in a queue, etc.
2. RFID Tags - These are technologies in IoT used for automatically identifying and recording data about an object via a tiny, uniquely identifiable microchip tag connected to the object. A built-in antenna on the RFID tag interacts with a scanning device that can remotely read the tag's data.
3. Cloud-based Servers - Centralized servers, like AWS IoT and Azure IoT, offer infrastructure and services to connect to the IoT devices and applications through communication protocols and standards.
4. Retail Beacons - They are small, simple, low-energy, one-directional transmitters that are used to communicate a message from a specific location. This bluetooth beacon technology in IoT wireless transmitter provides contextual information about customers’ in-store movements and personalizes their buying experience by making interactions simpler and more effective.
5. Augmented Reality - Through Augmented Reality, users can access digital information and integrate it into the physical world. AR has the ability to transform IoT data into a tangible format, delivering relevant information and data to businesses, when needed. IoT and AR together enable customers to virtually engage with products, providing a more personalized and immersive retail experience.
Evon Technologies provides expert IoT solutions for clients, globally.
Top 5 Technologies in IoT That Are Reshaping Shopping Experiences
1. Self Checkout Systems
Self checkout systems offer a technology-driven experience that allows customers to avoid the hassle of getting into long lines for getting the cost of products totaled and paying for it. This system offers -
- Customers: the flexibility to manage payments independently and save time.
- Businesses: the balance of cost and improved efficiency.
2. Smart Shelves
These are electronically connected shelves equipped with RFID tags, weight sensors, readers, and cameras that collect and send out inventory data in real-time, like when a product has been purchased or removed. Retailers use this information to improve their stock availability. Such innovative shelving solutions offer -
- Customers: personalized recommendations and deals and detailed product information that can help them make an informed purchase while they have a convenient purchasing experience.
- Businesses: data-driven insights on inventory levels that reduce the chances of product going out of stock ensuring popular items are always available for customers.
3. Hyper-Personalization
Over three-quarters of consumers (76 percent) said that receiving personalized communications was a key factor in prompting their consideration of a brand, and 78 percent said such content made them more likely to repurchase. (Source: Mckinsey)
Integration of artificial intelligence and data analytics through IoT enabled technologies allows companies to provide a one-to-one customer experience customized to their preferences, online behavior, and purchase history. Hyper personalization allows:
- Customers: to experience highly tailor-made experiences.
- Businesses: to develop a good connection with customers, increase engagement rates, build loyalty among existing customers and attract new ones, that ultimately leads to increased satisfaction, loyalty, and sales.
4. Robotics Process Automation
Robotics Process Automation (RPA) uses software technology to build, deploy, and manage robots that emulate various operational and administrative tasks in the retail sector, like inventory management, data entry, order processing, etc. These robots perform the tasks more consistently and faster than humans while improving efficiency and reducing errors. This helps:
- Customers: Reduced human error and execution of manual tasks flawlessly and consistently allow businesses to create rule-based processes that aim at providing the customers improved customer delivery services.
- Businesses: Automation of basic tasks improves administrative processes which in turn results in advanced auditability, better customer relationship management, cost reduction, increased productivity, and more.
5. Voice Shopping
It’s a type of voice commerce where customers make use of voice recognition technology and interact with digital assistants like Apple’s Siri, Amazon’s Alexa, Google Assistant to purchase products online. This hands-free experience -
- Customers: Makes the buying process more accessible and convenient especially for individuals with disabilities.
- Businesses: Turns a better customer experience into increased sales and revenue for businesses.
Evon Technologies, is a leading software development company of India that offers a wide variety of services to help people take advantage of IoT network technologies at various levels of business and day-to-day life. We help you empower your vision technology solutions, revolutionize your customer’s shopping experience, reduce human errors in the retail industry and optimize your retail processes. In all, with highly efficient IoT development services, you get to leave nothing unconnected. If you are looking for high-end IoT solutions, or would like to know more, get in touch with us at This email address is being protected from spambots. You need JavaScript enabled to view it.
