RFID tagging increases sales
After the successful cases of RFID implementation in the retail industry that have proliferated in the last years, it’s fair to say that RFID tagging and systems increase sales, customer satisfaction and inventory accuracy. According to consulting firm Kurt Salmon, “retailers that have adopted RFID tagging have achieved sales increases of 3% to 10% due to this technology”. Some of the most known cases are John Lewis, Mark & Spencer, Macy’s and Levi’s Brazil.
Why does RFID tagging increase sales?
First of all, the internet has transformed the customer’s behaviour. Nowadays customers are more and more used to search and buy products online, as well as to confirm product availability on the store website before visiting this particular store. That makes our inventory accuracy more important than ever. The RFID technology system keeps the online inventory updated without delay. That’s why with RFID tagging retailers increase sales, customer engagement and satisfaction.
On the other hand, RFID tags enable the stores to check their stocks continually and to make an instant evaluation about which are their most popular products. This way, retailers can show their “bestsellers of the moment” always in the right line, and sell even more of them.
In the same way, the accurate inventory provides to retailers the information about when they are getting overstocked of certain goods, warning them about this waste of money, space and time. As well as RFID technology system boosts sales, also helps to adjust the amount of stock needed, whether on a specific date or during the normal trading.
About rewards, risks and challenges of RFID tagging adoption
Until here, we have already mentioned a few rewards of RFID implementation like the increase of sales, the improvement of customer satisfaction and engagement, and the better control of stocks. It’s important to remark too that RFID tagging also helps to avoid the loss and theft of items. Among the challenges, there are the improvement of personalised marketing and communications, as well as offering a fulfiller customer experience at the stores.
But there are also risks which must be noticed. Among them, to point out the need of choosing correctly the RFID solution that will be adequate to the specific characteristics of our business, regarding the environment, the kind of goods, the timing, etc. Also, it’s critical to pay attention to other human errors like attaching the wrong tag to a particular garment or encoding tags improperly.
If you have any problem or doubt about the implementation of RFID technology in your business do not hesitate to ask us.