Moving retail IoT strategies from concept to reality to drive sales, engagement, efficiency and competitive advantage
The Internet of Things in Retail: Getting Beyond the Hype....
Brian Kilcourse, RSR, interviewed by Carl Goodman, Head of Content, ECN's Retail Edge
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Download the RSR’s 2016 Benchmark Report: The Internet Of Things In Retail: Getting Beyond The Hype
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Why is this event crucial for the retail industry in 2017?
In 2015 there were 4.9 billion connected ‘things’ in use worldwide and by 2025 Gartner is predicting this figure to rise five-fold to around 25 billion. Some estimates are even more bullish with Cisco estimating that 50 billion devices will be connected to the Internet by 2020.
It’s clear that the explosion and variety of new connected ‘things’ is having a hugely disruptive influence on most industries; however retail is the key sector where the Internet of Things is already having the most impact.
With a $326 billion worldwide retail industry IoT revenue opportunity predicted by IDC by 2018; its’ little wonder that that 60% of UK retailers say they already have a dedicated budget for IoT. Similarly, Juniper Research predicts retail spend on IOT to reach $2.5bn by 2020.
Those retailers that are quick to respond to IoT are already increasing sales and customer engagement through providing a more experiential omnichannel experience within an IoT-connected bricks and mortar environment. Others are already massively reducing costs and improving their profitability through using IoT to improve operational, stock and supply chain efficiencies.
Outside of the store retailers are already using IoT technologies to engage customers in new ways, increase their understanding of them through IoT- led data strategies and sell more products to them at home through voice-activation sales, replenishment buttons and e-commerce connected fridges.
As customer connectivity and retailers own internal connectivity continue to grow at ferocious speed; those who can implement effective IoT strategies have a huge opportunity to increase profits, competitive advantage, loyalty and market share. Those who bury their heads in sand, however, may cease to exisit.
But what does IOT really mean for you as a retailer? How do you build a strategy or develop the one you have? What strategies should you have for the store, your technology, customers, marketing, operations and supply chain to drive profits, customer experience and efficiencies in the new connected world?