In the last few years one of the most interesting changes to hit the industry has been digital tags. These electronic versions of price tags are connected to a database in a computer and use e-ink to display the price. This technology allows price changes in store as easy as typing a new price into the program and then clicking "send".
Retailers can gain a lot of digital price tags. The most significant advantages of using electronic price tags in retail is their capacity to engage in dynamic pricing in-store as well as to provide an omnichannel experience that increases customer loyalty.
Here are 5 reasons brick and mortar retailers should consider the investment in shelf holders for labels that retail stores sell.
1. The pricing across all channels is correct
The internet has revolutionized the way that people shop and it's common for consumers to price check an item while they're at a shop. If the prices displayed online aren't the same as those in the physical store, customers are less confident in the business. This is often what they find.
Electronic labelling systems will, however, totally alter this interaction. With a standardised pricing system your customers will not be disappointed by price variations any longer. Your business can instantly adjust prices to reflect any changes that are online and in-store. Find more details on how to digital labels work on our site.
2. Shelf edge influence
The shelf edge is among of the most important sales influencers. Most purchases are made on this shelf, therefore you must ensure that the pricing is accurate.
A digital tags can be prone to human errors. It's also a slow process, and by the time you're finished re-labeling the prices may have changed online. This is especially relevant when you are pricing electronics to be competitive with both online and offline rivals.
With ESLs however they are able to make these adjustments easily and you'll be able to capture more sales at the shelf edge. ESLs enable you to respond quickly to price changes, make instant promotions, track the effectiveness of promotions, and protect margins for stock that is time-sensitive. It is possible to create promotions based on where a particular customer is located in the store , with only two clicks.
3. Enhance your omnichannel experience
Omnichannel retail is the future, it's not hard to see. According to Planet Retail, 56% of customers believe that technology has improved their shopping experiences.
4. It is not as costly as you imagine.
ESLs need an initial investment. And if you're unsure about whether you'll use ESLs, it's understandable that you're hesitant about moving forward with the technology.
However, with electronic shelf tags as the final and most potent point of influence on an offer, the power to influence what a customer sees at the push of an icon is priceless.
5. Payback is quick
The payback for ESLs is very high. The company's sales in-store generally rise by 6%, with a typical margin of between 2% and 3 percent.
The benefit of transitioning shelf labels is also rapid. One of the customers of display data is a major European retailer with more than 800 stores, has secured the return on their investment in just 16 months and predicts over 170% ROI in the coming two years. The retailer anticipates that their return on investment will grow by 400% if they expand up to five years.
Creating an innovative omnichannel experience is all about connecting stores and online. The edge of the shelf is not an instance of this. This is a crucial moment in the process of becoming an Omnichannel Buyer. Retailers should be mindful that the use of electronic shelf labels could be one of the most efficient ways to link these two areas.