Why RFID in Retail?

Why is RFID technology becoming so popular for retail stores? Is it because it’s the cool new thing to do in the retail world? Or are there tangible benefits?

 

RFID technology goes beyond the basic self-checkout lines. Now, as it continues to develop, RFID is being used to increase work efficiency and boost sales, job satisfaction, and customer service levels.

 

Innovative retailer, Zara, has built their business around RFID. They are now able to conduct a physical inventory in their outlets in about 15% of the time it used to take.

 

Before you run out to plan a few RFID pilot projects for your stores, there are five things you need to know about RFID.

 

 

1) RFID provide an accurate and easy supply chain management method from Factory to retail stores.

 

As a retailer, managing inventory isn’t always easy. Through technology, you’re able to be on the grounds of each of your stores to see what’s in stock and what’s available for purchase. When your customer goes to your store 

 

2) RFID Technology Provides a Faster Checkout Experience

Okay, faster checkouts might not sound all that sexy, but when you look at it from the customer’s standpoint, it is.

 

Consumers today demand high levels of service. As your customer stands in line waiting to give you her money, she grows exponentially impatient with each minute she has to wait.

 

With RFID technology, the impatience melts away. Instead, she’s left delighted by her buying experience – something you can bet she’ll remember the next time she needs to make another purchase from you or your competitors.

 

3) Retail RFID Technology is Being Adopted Faster Than Ever Before

Over half of product manufacturers have implemented item-level RFID. Another 21.1% plan to implement RFID over the next year and 18.4% say they plan to implement RFID over the next two years. That’s according to the 2014 GS1 US Standards Usage Survey.

 

The retail industry has reached the tipping point. Now, an increasing number of retailers have seen the proven concept and are adopting RFID technology. As more retailers see tangible results, other retailers jump on board. 

 

4) There’s a Significant Cost to Adding RFID Technology

According to  RFID Journal report, retailers were spending an average of $30,000 for a single store pilot. That cost has decreased over the last 6 years. Now, there’s a new cost standing in the way of retailers adopting this technology: employee acceptance.

 

As a retailer, you work hard to optimize your stores and maximize your daily routines. Adding in new technology shakes up your work and forces your employees to get uncomfortable while learning something new.

 

It’s the sales floor level changes that pose the greatest obstacle for retailers.  Employees are curious about new technology, but inevitably their excitement boomerangs back to one question: “What’s in it for me to make my job easier?”

 

Your team wants to know how RFID technology will make their jobs easier. At the corporate level, it’s easy to see the big picture and how this technology will improve operations once implemented. At the store-level, it’s harder to see until the technology is put into effect.

 

To overcome this challenge, you must show your team how job satisfaction will improve through fewer frustrated customers and more efficient store management during busy times.