WHY CONSUMERS ARE DRIVING RFID IN RETAIL

With the impetus for RFID within retail stronger than ever, the primary focus has been on the proven advantages for retailers. But the benefits and possibilities are equally as compelling from the consumer’s point of view. In fact, consumer preferences and expectations are contributing substantially to the growth of RFID.

It’s easy to envision the retail store of the near future, with every item tagged with RFID and with smart shelves, smart dressing rooms, smart check out and smart loss prevention, making the customer experience hassle-free, pleasant and highly efficient as well as highly personalized. Here are a few of the reasons customers will continue to drive RFID adaption:

No alarm gates, no noisy alarms and no bulky plastic tags to remove at POS

The RFID-enhanced customer experience begins when entering the retail space. Gone are the intrusive gates and portals required by EAS (Electronic Article Surveillance) system stores utilized to deter theft. The fast, accurate counting and tracking capabilities of RFID technology, when combined with electronic surveillance software, deliver the highest degree of loss prevention data without cameras, portal gates or bulky tags. The RFID tag is easily removed, and can also act as the price tag. RFID technology can be discreetly embedded in carpets or hidden in the ceiling. This means a more attractive sales area, with fewer obstructions and a cleaner line of sight for shoppers. With no EAS tags to remove or deactivate before articles leave the premises, the check-out process is speedier, with shorter waiting times. For customers shopping in discount chains and grocery stores, long queues are consistently listed as one of the most negative aspects of the experience.

Ability to locate items with ease, in the right color, size and style

The point of shopping is to find what we want or need easily. With its near-perfect, real time inventory accuracy and “location” data, RFID technology makes this an effortless experience. Out-of-stocks are rare, and sales associates almost never say, “It should be right here, but I can’t find it.” RFID enables complete visibility into inventory, tracking the movement of items throughout the store, from the rack or shelf to the dressing room floor, or out the door. The technology can be used to create “smart shelves” that are able to transmit information to the retailer when an item is sold. Replenishment is immediate and reordering is scaled to meet demand and the customer preferences, based on information captured by RFID. Such attention to efficiency and service transmits a positive image of the store brand, its management and personnel. Moreover, when sales staff are confident that their POS information is always “spot on” accurate, they are more pro-active in offering assistance—lifting customer service perceptions even higher.

Ability to request items in another color or size without leaving the dressing room

With RFID in place, even dressing rooms become smarter. Each RFID tag can hold 2K or more of data regarding an item. This data can be “read” and acted on by the customer in the dressing room, making it easy to request the item in a different color or size via a touch screen displayed on the dressing room mirror. All requests are transmitted electronically—and instantly—to the sales staff. Studies reveal that 67% of customers who try on items end up buying, and a more intelligent dressing room can enhance the total experience.

Ability to shop and buy across channels with confidence

For today’s customers, the shopping space is a borderless universe, available 24 hours a day, seven days a week. Whenever and wherever they want to shop or make a purchase, the store is open. That’s the reality of today’s omni-channel retail. This is especially true of Millennials, the first generation to grow up in the digital age. With expectations high, transactions must be accurate, fast and enjoyable. RFID helps ensure the experience of shopping across multiple channels is seamless, and highly personalized. The unprecedented visibility enabled by RFID makes it easy to track, manage, direct and redirect inventory both online and in-store in real time, around the clock.

Easier returns and exchanges

Because RFID provides large amounts of detailed information about merchandise as it travels through the supply chain, from manufacturing source to final sale, the technology helps reduce counterfeiting and retail fraud, including fraudulent returns. The information on the tag and the sales receipt can be easily accessed for faster returns and merchandise exchange. A simple extension of this system would be to embed RFID chips in the consumers’ loyalty cards to further personalize the shopping experience. In the future, RFID could expedite purchase and check-out with RFID enabled shopping carts that automatically scan the items in the cart, then charge the cost of the items directly to the customer’s account, at the point of sale, with a wave of the card.

As a retailer or as a consumer, what do you envision or hope to experience in the RFID-enhanced store of the future? Let us know in the comment space, or email success@truecount.com.