Sep 6, 2024

Future success for retailers will be determined by the experiences they can provide customers and employees. Digital-driven experiences that delight and remove friction can boost brand loyalty and talent retention. One of the key enablers of these experiences is Internet of Things (IoT) technology.

Harnessing IoT data for insights

An IoT ecosystem comprises various devices collaborating to create a data-rich environment. These sensors, communicating via WiFi, LoRaWAN, RFID and other wireless technologies, are pivotal in capturing and analyzing data streams. For some time, forward-thinking retailers have used smart cameras and beacons to track customer behavior, offering insights into traffic patterns and popular store sections. As an example, such data could inform employee scheduling to ensure appropriate coverage during busiest periods.

Getting insights into popular sections of the store helps with merchandising as well staffing these areas with associates with specialized product knowledge. RFID tags have revolutionized inventory management by providing real-time tracking, reducing stockouts and optimizing supply chain efficiency. Employees can benefit from automation, no longer having to inspect shelves or check on product availability “in the back.” Other IoT sensors can monitor various aspects of the store – from temperature sensors ensuring shoppers’ comfort and optimal storage for perishable products, to smart shelves that monitor inventory levels – further freeing up store associates to deliver better service.

Streamlining business operations

With IoT, retailers can achieve a new standard in operational efficiency. In addition to lowering energy consumption in lighting and HVAC systems, IoT devices can enable in-store digital experiences with better illuminated shelves and product placements. Smart sensors ensure precise control in refrigerated sections, driving energy efficiency while helping to maintain optimal storage conditions. Retailers can thus support sustainability goals while also better managing costs.

IoT-driven predictive maintenance is another game changer for warehouse and in-store equipment. By employing sensors and analytics, retailers can better anticipate equipment failures before they occur. This helps minimize downtime and extend the life span of assets. Whether it's refrigeration units, conveyor belts, or other machinery, predictive maintenance is invaluable in maintaining a smooth operation.

In industries dealing with perishable goods, such as groceries and pharmaceuticals, storage monitoring and compliance are paramount. In drugstores, precise temperature monitoring helps maintain the integrity of medications. In the food and beverage sector, IoT sensors can help prevent contamination. These IoT applications not only help uphold quality standards but also instill confidence in consumers regarding the integrity of the products they purchase.

Empowering the employee through automation

By automating routine tasks, IoT frees employees from mundane responsibilities, allowing them to invest more time in meaningful customer interactions.

With IoT-enabled RFID tags and sensors, inventory tracking runs on its own, saving employees from having to manually scan and count items. IoT-based surveillance systems and smart cameras can automate the monitoring of potential theft, replacing manual surveillance and helping to improve overall security of the store. IoT can even extend beyond conventional retail functions, supporting smart bathrooms with automated monitoring and control for cleanliness and functionality, enhancing customer comfort.

Innovating the customer experience

By leveraging beacon technology and other IoT solutions, retailers can bring cutting-edge personalization to customers in the store, offering tailored promotions, product recommendations, and real-time discounts based on individual preferences and past behavior. This level of personalization fosters a stronger connection to the brand and elevates customer satisfaction.

Smart shelves and digital price tags represent another facet of IoT's positive impact on the customer experience. Retailers can provide accurate and up-to-date product information, promotions, and pricing to create a dynamic and responsive shopping environment. Customers benefit from the convenience of instant access to product details and pricing accuracy while retailers gain the agility to adapt to market changes.

Implementation considerations

The advantages of IoT in retail are perhaps self-evident, but there are several factors to consider when devising an IoT strategy.

• Choose a connectivity infrastructure that can provide high-speed and reliable connectivity as well as handle and prioritize various communication protocols.
• Review all opportunities for integration with existing systems for optimal efficiency.
• Develop a means of rendering all data actionable and putting it in the hands of employees along with automated alerts for prompt response to equipment failures, restocking needs and more.
• Select connectivity technologies that bring the scalability and interoperability needed to to adapt to the evolving needs of a future-ready retail environment.

IoT in retail is not just a technological upgrade but a transformative force reshaping how retailers understand and interact with their customers. By raising the customer experience, IoT helps retail businesses strengthen the bonds of trust and satisfaction for more lasting brand loyalty.

Partnering with service providers that have a presence in the Minneapolis St. Paul business community – like Comcast Business – can help organizations implement and manage their IoT operations.

Learn more about network solutions from Comcast Business.

Rob Patterson is the regional vice president of Comcast Business for the Midwest Region, responsible for leading, managing and developing the Midwest’s Comcast Business team to achieve sales, revenue and P&L objectives as well as creating and maintaining a best-in-class employee and customer experience. Contact Patterson at robert_patterson4@cable.comcast.com.