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WHITEPAPER

SMART RETAIL

Connecting consumers and retailers – how IoT will change the future of shopping

October 2016

ENABLING GLOBAL IOT CONNECTIVITY

Retail is entering a new era. In the connected world, the ability to improve efficiencyand performance by incorporating new technology into traditional industries is the keyto success. Embracing the Internet of Things and adopting connected technology acrossthe supply chain will enhance the customer experience and keep profits healthy.

At the heart of retail lies the customer journey, and retailers must constantly strive togive their shoppers a positive experience in order to stay ahead in a fiercelycompetitive market.

• ~90% of sales still take place in physical stores. [1]

• Long queues could cost retailers thousands each day. [2]

• Over half of consumers surveyed would like to replicate the experience of paying without queuing that they get online. [2]

• 73% of shoppers are frustrated by long queues. [2]

Whilst customers value fast transactions, they do still value individualised advice from store staff. The key challenge for bricks and mortar stores is to leverage the digital revolution and replicate the personalised service which is available online, ensuring that customers are satisfied and keep coming back.

IoT is at the heart of Smart Retail with mobile points of sale, connected self-serve kiosks, digital signage and shelf edge pricing all taking retail outlets to the next level.

TRANSFORMINGRETAIL

[1] McKinsey

[2] Sage Pay


THE CONNECTED CONSUMER

A connected shopping experience gives your customer the flexibility and reliability they want. With connected points of sale, digital signage and live pricing, you can help them save time and stress.


Consumer satisfaction is of prime importance in retail, and providing every customer with a positive shopping experience every single time they visit a store is an achievable goal with the right technology in place.

Mobile points of saleProviding customers with autonomous payment options such as contactless, mobile apps and self-serve kiosks can reduce queues, free up staff, improve customer service levels and give shoppers increased levels of privacy.

Digital signageImproved instore communication with customers can increase sales and consumer satisfaction levels. Live updates on stock levels and product information can help shoppers to make informed buying decisions, reduce the need for staff intervention, and enable retailers to target consumer groups with offers and discounts.

Shelf-edge pricingTraditionally, it can take a large supermarket a number of days to make a price change to a particular product range. By introducing digital shelf-edge pricing, retailers can offer their customers the best prices while reducing the risk of human errors in labelling.

PERSONALISEDCONSUMER EXPERIENCE


SMART SUPERMARKETS

Smart Supermarkets will mean fewer queues, more satisfied customers and reduced waste.


Smart Retail can help you to connect with your target consumers, engage with theirhabits and preferences, and win their loyalty and trust.

Beacon technology allows retailers to target shoppers within close proximity. UsingBluetooth Low Energy (BLE) technology, it is possible to identify the location andpreferences of your closest audience. In a busy retail environment such as a shoppingmall, timely and targeted marketing can be extremely effective in encouraging impulsebuys and repeat purchases of favourite products.

BLE technology and Radio-Frequency Identification (RFID) can both be used to keeptrack of products and facilities, in store and at the warehouse. These technologies canhelp retailers improve their performance levels and stock management, reduce the riskof loss or theft and keep waste to a minimum.

Customisable billboards displaying personalised messages and giving customersindividualised offers and incentives based on their own preferences and past purchasescan bring a whole new dimension to advertising.

External input monitoring such as climate and weather monitoring, footfall count andtraffic flow analysis can provide individual retailers, town planners and shopping centremanagement teams with sophisticated business intelligence to help them managelogistics, stock levels, positioning and staffing.

Keeping personal data safe and making sure that payments are secure and reliable areessential in retaining customer loyalty and trust.

KNOW YOUR CUSTOMER


• WE ARE ABOUT TO EMBARK

ON THE NEXT GLOBAL RETAIL REVOLUTION

•


SMART RETAIL – RELIABLE CONNECTIVITY IS KEY

Just a few minutes of internet outage can cost you thousands in revenue– avoid downtime with a reliable mobile connection.

The European Union estimated over 150 billion euros in lost VAT revenue in 2012 alone. [3]

[3] European Commission


The financial crisis gave governments across the world a real incentive to tackle the ‘shadow economy’. This parallel market includes all unreported and hidden economic activity, which currently costs nations vast amounts in lost tax revenue.

Data security and fiscal compliance are essential factors for retailers who are embracing connected technology. Governments across the world have responded to potential risks by issuing specific legislation covering retail transactional devices and including requirements such as fiscal compliance technology and insistence that payment platforms be cloud-connected.

Even in countries where tax collection continues to be a ‘trusted model’, internet connectivity is essential for business continuity.

Cellular connectivity will be central to Retail IoT strategies. Mobile broadband is already critical to support the expansion plans of retailers where fixed-line installation cannot keep pace with store opening schedules. Likewise for pop-up stores, events and market places. Even after fixed-line broadband is installed in static retail outlets, a cellular failover option is retained to ensure continuity of service.

In the case of mPOS and Digital Signage, Hardware-as-a-Service style business models will also ensure a key role for cellular. OEMs and Service Providers will increasingly utilise cellular to ensure that in-store devices and equipment can be provided, managed and maintained remotely with appropriate operational assurances.

FISCAL COMPLIANCE AND BUSINESS CONTINUITY


• SELECT A CONNECTIVITY

PARTNER WHO WILL ENABLE YOU TO DELIVER CONSISTENT

RELIABLE SMART SERVICES TO YOUR CUSTOMERS

•


CONNECTING EVERYTHING FROM HAMBURGERS TO HOSPITALS

Arkessa is an award-winning Machine to Machine (M2M) and Internet of Things (IoT) managed connectivity service provider.

We have extensive experience delivering connectivity services for retail operations.

• Connectivity-as-a-Service

• Mobile Broadband

• www.arkessa.com/download


• NOT ONLY RETAIL

IOT WILL ENABLE ENTERPRISE AND CITY-WIDE EFFICIENCIES

AND MOBILITY•


CONNECTED SERVICES

Successful cities will provide sustainable and energy efficient services which keep businesses moving

VEHICLES AND TRANSPORTATION NETWORKS

Traffic congestion causes pollution, delays and can adversely impact national GDP. 50% of traffics jams are caused by drivers looking for a parking space. V2X and IoT can help keep traffic moving and enable cities to deliver more efficient and accessible public transport solutions.

ENERGY AND UTILITIES

IoT will help Utilities and Energy providers deliver operational efficiencies and create a better balance in supply-demand. Customer loyalty can be enhanced through the provision of digital services which simplify energy management and cost reduction in the home.

BUILDINGS

Buildings consume roughly 40% of the worlds energy and regardless of age nearly every building wastes energy. Building control technology and data-driven automation can help reduce HVAC costs by 25%


SUSTAINABLE LIVING

Business and workers will increasingly value productivity and efficiency.

Customisation and service oriented business models will optimise the consumer experience giving them flexibility and convenience.

PEOPLE, AT HOME AND AT WORK

Enterprise Mobility services will be enhanced by IoT solutions. Field service personnel, remote and lone workers will have secure managed access to Enterprise systems. At home, Insurance led schemes will reduce premiums and provide some protection against fraud.

RETAIL

Queueing hurts the bottom line of retail businesses and customer experience also suffers. Assured internet connectivity and IoT solutions can help retailers serve customers faster, engage with them in store and anticipate peaks and patterns in customer behaviour.

MANUFACTURING

Industry 4.0 and the digital networking of manufacturing processes will make it possible to manufacture products at lower costs and in a manner that is more flexible, energy-efficient, resource-saving and customisable.

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whitepaper smart retail - arkessa€¦ · iot is at the heart of smart retail with mobile points of...

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