Retailers have a huge opportunity to provide consumers with intuitive, technology-driven experiences. As technology increasingly becomes a competitive differentiator for retail organizations, software and digital investments can provide a strong foundation for growth over time. According to McKinsey research, retailers with more mature technology business models consistently outperform those who operate more traditionally.
But rather than investing in technology for the sake of investing, experts say technological innovations should be implemented to “better understand the customer, reduce service costs while maintaining and improving the customer experience.”
To achieve this, retailers are adopting edge computing. This technology can simplify store operations such as inventory management and click & collect, allowing retailers to focus on improving the customer experience while increasing sales. With an efficient and integrated IT infrastructure, retailers can develop flexibility and agility to meet the challenges of an ever-evolving, competitive marketplace.
Modernizing the shopping experience
The edge is the place outside the data center or cloud where data closest to the point of creation is processed to generate immediate value. For retailers, the edge can be a storefront, warehouse, pick-up locker, or any other place where goods and services are handled at some point. And it has transformation potential that comes at just the right time: retailers face challenges such as security, e-commerce competition, workforce shortages and customer engagement.
The edge is already proving its worth as a key differentiator for retailers looking to rise in a crowded space. There are three key challenges facing retailers today and how edge is helping to address them.
Tim Loake is vice president of Infrastructure Solutions Group at Dell Technologies UK.
Give business information a boost
Edge computing helps retailers better understand behavior and needs throughout the customer journey. The ability to monitor product interactions, detect repeat customers, and gain detailed insight into the path and choices consumers make has traditionally been a benefit of e-commerce sites. With edge computing, brick-and-mortar retailers gain the same insights while meeting local privacy and regulatory needs.
Counting traffic has always been a challenge. Every retailer knows how many transactions to expect in a physical store. However, whether that number is too high, too low or just right depends on the number of actual visitors at that location. Conversion rates, line lengths and in-store heat mapping are key metrics that can greatly benefit from the insights generated by edge computing. The ability to analyze customer visits and review advanced on-site shopper analytics adds an extra level of granularity that brick-and-mortar retailers previously found difficult to see.
Path following and product interaction can also be improved with edge computing, as it gives retailers insight into the paths customers take through the store. Such insights include where they stop and what products they interact with before coming to the checkout, giving retailers deeper insights into how to optimize their store layout and merchandising, leading to higher sales overall.
Finally: improving loyalty detection. Retail customers increasingly expect personalized experiences online, so why not extend that to the physical store? The edge enables more advanced technology that in turn provides customers with more convenient and seamless physical experiences that encourage repeat visits and greater loyalty. For example, retailers can use license plate tracking to speed up the drive-thru experience by suggesting a customer’s order based on historical transactions.
Refined onboarding and training programs
Physical stores are designed to operate offline, making over-reliance on the cloud a difficult hurdle for retailers. That’s where the edge comes in, collecting data and enabling intelligent automation exactly where the business needs it.
The retail industry is no stranger to high turnover and employee turnover. While still an emerging technology in retail, edge computing is helping to deliver more augmented reality (AR)-enabled training and onboarding experiences directly to employees.
With AR, frontline workers can explore different scenarios and training exercises, helping them become more productive much faster. For example, order fulfillment improves average curbside pickup time by allowing employees to find paths and pick orders more efficiently. Thanks to the edge, systems tell employees exactly where to go, even if they are new. It’s all delivered in real time directly to their workplace device.
Edge computing also supports AI virtual assistants to help employees with their daily tasks. From answering customer questions to providing guidance along the way, this helps employees be more productive and efficient, reducing training costs and increasing customer satisfaction.
Proactive loss prevention
While loss is a reality in the industry, edge computing is helping retailers better anticipate and rethink the way they approach asset protection.
Two of the top pain points impacting net sales for retailers are security and safety. This includes everything from online returns fraud and shoplifting to employee protection and cybersecurity breaches. Edge technologies integrate data from multiple sources to protect against these challenges and support loss prevention. For example, stores can improve checkout security by integrating point-of-sale data with computer vision. Additionally, edge technology can detect intruders in limited areas at limited times.
Edge also enables more advanced security technologies, such as facial recognition that can proactively alert staff to potential bad actors entering a store. With organized looting costing retailers £953 million a year, the role of technology in improving safety is more important than ever. Using edge computing, automated alerts can be sent to employees when there is an unusual spike in the number of people suddenly entering the store or gathering in a particular area. If people are detected in restricted areas, the video can also be selectively sent to supervisors for review before authorities are alerted. This limits false alarms and associated costs.
Edge computing is a powerful tool that can catapult retailers above their competition. By harnessing the power of edge, retailers gain real-time insights into customer behavior, improve digital experiences, improve workforce management and even security measures.
The future of retail belongs to those who use technology effectively to drive innovation and growth. A well-thought-out edge computing strategy is essential to achieving this goal.
We recommended the best ecommerce website builder.