Electronic Shelf Labels (ESLs), otherwise known as digital price tags, are a key component of effective retail operations. Whether they’re put to use in small convenience stores, large grocery stores, pharmacies or warehouses, this environmentally-friendly solution for price updates and inventory management is widely accepted as the new standard for on-shelf communication.

When it comes to efficient retail operations, digital price tags work for you. But how do they actually work? Let’s take a closer look at how this paperless, wireless technology functions.

Display technology

Electronic Shelf Labels (ESLs) work by using wireless technology to display and update product information digitally on retail shelves. Each individual digital display screen is linked to a central management system (more about that below). Some models only require power during updates.

Even though they are paper-free, digital shelf labels look almost like regular paper shelf labels. They can be made from electronic paper (E-paper) or liquid crystal display (LCD) screens, both of which display crisp, clean letters and numbers. Some models can also incorporate colours and other types of visual information.

For example, the SmartTAG™ line, a new generation of ESL available through JRTech, offers total freedom of design via a customizable screen. The e-ink used for displaying information on these tags can display bright colours and sharp and attractive graphics.

Many types of product information can be displayed using digital price tags, including stock levels, promotions, nutritional information and QR codes. They can even be integrated with a low-power, flash notification system to facilitate product identification by store employees who are fulfilling online orders or restocking shelves.

Central management system

A central server or label management software controls the entire ESL system. This software processes and packages product data and prices into information packets, which are sent to communication stations.

These stations relay the information to individual digital price tags throughout the store. The ESL tags receive the transmitted data and displays are updated accordingly, showing new prices or other product information.

Central management means fast, efficient and cost-effective label updates, leading to the complete optimization of your in-store operations management. After the initial investment, retailers can save costs on labour and materials by doing label updates digitally, instead of manually by store staff. This also reduces the risk of error, as labels are controlled at a single source and can be updated in batches of any size.

Wireless communication

Wireless communication is what makes electronic price tags so efficient. A central server sends information to communication stations using wireless networks. 

While some ESL systems rely on radio-frequency to do updates, this type of system can potentially involve delays to batch updates. Infrared electronic shelf labels, such as those sold by JRTech, have the advantage in terms of both speed and reliability. Visible light communication is also used, though less often.

All types of wireless communication means labels can be updated as often as necessary, with no paper waste or time-consuming printing operations.

ESLs can also be implemented in combination with advanced IoT technologies and systems that make the most of AI tools. As part of a larger strategy, digital labels can be used to enhance shopping personalization and perform advanced data collection and analysis, leading to greater profits and higher levels of consumer trust.

How electronic shelf labels could work for you

Electronic Shelf Labels facilitate supply chain management by making it possible to update and adjust pricing and other information across thousands of displays rapidly and efficiently. The ability to implement dynamic pricing strategies quickly and efficiently will give retailers a competitive edge in a fast-evolving market.

They also serve as more than simple display tags, enabling coordination with inventory management software, mobile payments using NFC technology, and other internet-based functions and solutions. Geolocation and Put-to-light technologies can also be integrated for even more advanced functionality.

ESLs are designed to be energy-efficient, with some models offering battery life of up to 10 years. As such, they are more than just a paper replacement: they are a practical, environmentally-responsible long-term solution for retail labeling that can save millions of tons of waste per year.

By automating the price update process, ESLs help retailers reduce labor costs and improve pricing accuracy. They can provide valuable data on customer behavior when integrated with other retail technologies.

JRTech supplies Electronic Shelf Labels to leading retailers

The electronic shelf labels sold by JRTech represent the most reliable price automation system in the world.

You can trust these solutions to provide high-performing results in a variety of retail environments.

Contact us today to learn how our solutions can help your business embrace the future of shelf label technology.

Food waste is a global crisis with staggering proportions. According to the latest UN Food Waste Index Report, a shocking 1.05 billion tonnes of food were wasted in 2022, accounting for nearly one-fifth of all food available to consumers. In the United States, the problem is equally alarming, with 38% of the food supply—88.7 million tons—going unsold or uneaten in 2022. This waste carries a hefty price tag, costing the U.S. economy approximately $473 billion in the same year.

Retailers and supermarket chains play a significant role in this wasteful cycle. The retail sector alone was responsible for 131 million tonnes of food waste globally in 2022.

This immense amount of food waste has significant environmental, economic, and social impacts. However, with the rise of AI and IoT technologies, numerous innovations are emerging that can help retailers in the food industry contribute to the food waste solution, rather than the food waste problem.

How to tackle food waste in the big picture: measure, then act

The WRI Report on Reducing Food Loss and Waste puts an emphasis on measuring food waste. Data is essential when developing food waste management strategies, integrating solutions, and assessing the results of actions put in place.

As more and more European countries begin to measure food waste, with a declared target of reducing food waste by half between 2016 and 2030, retailers need to have the technology to support accurate evaluation of inventory and keep up with expected level of awareness.

Thanks to both global and local initiatives, grocery stores can measure food waste and take meaningful action to fight it. By facilitating food waste management at the micro level, retailers can begin to help solve the bigger issue.

Challenges retailers face when it comes to food waste

Grocery stores face several challenges when trying to reduce food waste.

Inefficient Supply Chain: The supply chain for grocery stores is often highly inefficient, leading to overstocking and waste. Common challenges include inaccurate demand forecasting, inadequate inventory management, and poor communication between suppliers and retailers.

Cosmetic Standards: Consumers often have high cosmetic standards for fresh produce, leading to the rejection of fruits and vegetables that are still edible but do not meet these standards.

Short Shelf Life: Perishable foods have a limited shelf life, making it challenging for grocery stores to sell them before they expire. This can lead to waste if not managed effectively.

Customer Awareness: Customers may not be aware of the impact of food waste or how to reduce it, unless they are educated via in-store promotions, recipe cards, and other initiatives that can encourage them to make informed purchasing decisions.

Limited Use of Technology: Grocery stores may not be utilizing technology such as digital smart labels, AI-powered dynamic pricing systems, and inventory management software to optimize their operations and reduce waste.

5 food waste management technologies

AI and IoT are being leveraged to help businesses participate in the creation of a Circular Food Economy, which the European Commission defines as “an economy where the value of products, materials, and resources is maintained for as long as possible, and the generation of waste is minimized”.

Following the model of “measure” then “act”, large retailers are beginning to use AI and IoT both in-store and behind the scenes to improve operational efficiency, collect and use data, and find new, innovative solutions to the problem of food waste in retail.

For example, AI-enhanced food storage solutions can actively monitor and control storage environments by adjusting factors like temperature and humidity to extend the shelf life of food. By predicting and automatically adjusting storage conditions for various food types, these AI systems can significantly reduce spoilage rates. This technology has the potential to be especially transformative in warehouses and refrigerated transport, improving food preservation and efficiency.

AI can also significantly enhance the efficiency of the food supply chain by analyzing large data sets related to food production, distribution, and consumption. This capability allows for the identification of inefficiencies and prediction of potential waste areas. Specifically, AI algorithms can accurately forecast food demand so that retailers can optimize their inventory levels and minimize overstock, thereby reducing waste.

Food waste management technologies for retail

Let’s take a look at four technologies that have been developed specifically to reduce foods waste in grocery stores:

1. OneThird

OneThird, a company named for the statistic that one-third of the world’s food is wasted, provides cloud-based software and handheld scanners to retailers and distributors, enabling them to predict the shelf life of produce with AI.

They also offer quality assessments to aid suppliers in making decisions that minimize waste. The company boasts high accuracy in its shelf-life predictions through data analysis and other methods, ensuring timely delivery from farm to fork.

2. JRTech

JRTech Solutions is the #1 supplier of Pricer  Electronic Shelf Labels (ESLs) in North America, and has equipped major grocery chains such as Metro, Super C, Whole Foods, Avril Supermarché and more. They are a provider of next generation ESLs specifically designed to support even the most demanding activities in the new era of store floor automation and digitalization, SmartTAG Power & Power+.

ESLs can significantly contribute to reducing food waste in grocery stores by allowing retailers to:

• Promote surplus inventory: ESLs can be used to promote surplus or near-expiry products through targeted discounts, encouraging customers to buy these items and reducing the likelihood of waste.
• Improve inventory management: ESLs can help retailers track inventory levels more accurately, enabling them to better manage stock and reduce overstocking of perishable items that may go to waste.
• Implement dynamic pricing: ESLs can be integrated with AI-powered dynamic pricing systems, which adjust prices based on real-time data and market conditions. This approach offers consumers competitive prices while supermarkets maximize their profits, reduce waste and maintain their commitment to sustainability.
• Make real-time updates: ESLs allow for instant price changes and updates on product information, so retailers can dynamically adjust prices for items nearing their sell-by dates. This encourages customers to purchase products before they expire, reducing the likelihood of waste.

3. Apeel

Technologists are also addressing the challenge of extending the shelf life of perishable fruits and vegetables. Apeel Sciences has developed a product that coats fresh produce with a protective layer made from oils derived from the byproducts of other processed fruits and vegetables. While it has yet to be approved by health food advocates, this coating helps produce last longer, providing consumers more time to purchase and consume it, thereby reducing waste.

Food waste management technologies for food recovery

It doesn’t stop here. Food recovery technologies are also being developed at record speed to enhance the efficiency of food recovery and redistribution by real-time matching of surplus food with areas of need.

For instance, an AI system can process data from food banks, shelters, and excess food from restaurants and grocery stores to effectively direct donations to where they are most needed, so that surplus food is used to feed people instead of being wasted in landfills.

4. Spoiler Alert

Several tech startups are aiding food companies in managing data on unsold products. Spoiler Alert, founded by MIT graduates, utilizes analysis of unsold inventory from manufacturers and wholesale distributors to identify potential waste and recommend prevention strategies. Already adopted by major companies like Sysco and meal kit provider HelloFresh, Spoiler Alert has helped reduce food waste by 50% and double donations within a single year.

5. Flashfood

Flashfood, a company based in Toronto has created a platform that helps users find food items that are close to their best-before dates, purchase them at reduced prices, and pick them up in-store. This system not only allows consumers to save money but also helps grocery stores minimize losses and reduce their carbon footprint, creating a mutual benefit. The technology is particularly effective for larger chains, which tend to produce more waste.

JRTech is a trusted provider of Pricer Electronic Shelf Labels

Food waste is a major challenge faced by retailers and economies worldwide. By implementing the right technologies, grocery stores can make significant progress in reducing food waste, protecting their profit margins, and promoting a more sustainable food system.

JRTech has a proven track record in providing high-performing digital tools to retailers in the food industry. Digital technologies, including inventory management software and Electronic Shelf Labels, play a key role in effectively solving the food waste problem.

Contact us today to implement our technology and help your business embrace the future of sustainable, low-waste food sales.

The retail landscape has undergone a significant transformation in recent years and one trend that’s gaining traction is the phygital retail experience.

As shoppers increasingly demand a seamless interaction with brands across all touchpoints, phygital retail offers a way to bridge the gap between digital and physical spaces. This approach not only refines the shopping experience but also has the potential to drive sales, with 43% of shoppers indicating they’re likely to spend more with retailers that offer meaningful in-store experiences.

As e-commerce continues to grow, accounting for 24% of global retail sales by 2026, creating an effective phygital strategy will be important for retailers to win and retain customers in this new retail landscape.

What is phygital retail?

Phygital retail is a term that combines the words “physical” and “digital.” It refers to a retail experience that merges the best of both online and offline worlds to create a unique, integrated and seamless shopping experience.

This approach recognizes that today’s consumers want to move smoothly between physical and digital touchpoints. Phygital retail aims to bridge the gap between the two worlds so that customers can enjoy fluid, coherent shopping experiences within an omnichannel retail environment.

How does phygital retail work?

Phygital retail thrives on the integration of multiple touchpoints to create an omnichannel ecosystem where each platform complements the others.

In short, phygital retail works by integrating digital technologies such as augmented reality (AR), virtual reality (VR), in-store digital kiosks, mobile apps, QR codes and the Internet of Things (IoT) into physical stores to optimize the shopping experience.

Benefits of phygital retail

There are several factors that make phygital retail a perfect way to achieve the key elements of a successful shopping experience for all types of retail customers.

Consistent omnichannel shopping

In the core of phygital retail is the idea of creating seamlessness. This means retailers aim to give shoppers a unified and integrated journey across all the different touchpoints they interact with the brand, without any friction or disconnect.

High level of personalization

Post-pandemic, 71% of consumers expect companies to deliver personalized interactions and 76% get frustrated when this doesn’t happen. Personalization is a driving force in modern retail and phygital strategies take personalized experiences to new heights by leveraging customer data, artificial intelligence and machine learning algorithms to deliver tailored recommendations, offers, content and interactions to each individual shopper.

Seamless convenience

Retailers can successfully integrate digital elements into their physical stores and physical elements into their digital stores to combine the advantages of both physical and online shopping.

Live video shopping allows customers to interact with a live host or ask questions, see products in action and get as much of a physical experience as possible while shopping online. It’s convenient for avoiding crowds and line-ups during peak seasons and still includes that all-important element of customer engagement.

Enriched customer experience

Some customers want distinctive in-store experiences that cannot be replicated online while also enjoying the flexibility to shop, pay and fulfill orders from any location. Brands can create unforgettable, immersive in-store phygital experiences using technology, lighting, music, visual merchandising and more, while allowing consumers to finalize purchases online.

Others want the convenience and information-rich experience of online shopping while still being able to physically interact with products. Digital kiosks or mobile apps can provide in-depth product info, real customer feedback and personalized recommendations – all right there in the store! This empowers shoppers to make smarter choices with confidence.

Real-time availability updates

One common shopping frustration, especially during busy seasons, is the potential unavailability of popular items. Phygital retail alleviates this issue by offering real-time information on product availability. Customers can easily verify whether a product is in stock at their local store or ready for immediate online delivery, minimizing the likelihood of disappointment from finding items sold out during store visits.

In addition, as AI solutions find their way into the retail landscape, adjustable in-store product displays using digital signage make it possible to update important stock and promotional information almost instantaneously across multiple store locations.

Data-driven insights

The better you understand your customers, the better you can serve their needs. Phygital retail provides data-driven insights that enable businesses to understand customer behavior, preferences, pain points and shopping habits.

This data can be used to tailor marketing strategies, improve customer service and create targeted promotions. Informed decision-making is key to success in the retail industry, combined with effective marketing campaigns and optimized inventory management.

Loyalty

A positive customer experience is proven to yield higher customer-satisfaction rates and boost sales-conversion rates. By creating a phygital retail environment that successfully responds to consumer demand for an engaging, personalized omnichannel shopping experience, brands can dramatically increase individual customer loyalty and reap the many benefits of repeat purchasing.

When to implement phygital retail

Suppose you own both a physical retail store and an online shop, making 25 in-person sales and 200 online sales monthly. It might seem like your brick-and-mortar store isn’t performing well, but a portion of your online sales might actually come from customers who initially visited your physical store and later made their purchase online.

By developing an omnichannel shopping experience, you can maintain engagement with these customers across both platforms, thereby enhancing the potential for repeat business. Phygital retail works in every situation where consumers interact with your brand in both physical store locations and online.

How to implement phygital retail

By merging physical and digital storefronts, retailers can provide a holistic shopping experience that combines the best components of ecommerce and brick-and-mortar business models to boost sales revenue.

Phygital retail can be used on a grand scale, but many businesses can integrate elements of the trend with accessible technology like Electronic Shelf Labels to drive efficient use of data and effective in-store communication.

Here are 5 simple ways to begin implementing phygital retail:

1. Offer flexible fulfillment options: Allow customers to buy online and pick up in-store (BOPIS) or use curbside pickup, reducing shipping costs and increasing sales.
2. Streamline checkout: Implement self-checkout or no-checkout options, like Amazon Go’s “just walk out” experience, to digitize the checkout process and make things more convenient for customers.
3. Implement endless aisles: Offer buy-in-store, ship-to-home options to increase in-store sales and create a seamless customer experience, even when products are out of stock.
4. Use local push notifications: Communicate with customers through mobile notifications to alert them to new products, special offers and post-purchase follow-ups, building relationships and boosting engagement.
5. Host pop-up stores: Add a physical presence to online businesses with short-term pop-up shops, allowing customers to engage with products in person and testing the waters for a physical location.

Challenges of implementing phygital retail

Some common challenges of adopting a phygital approach include:

• Implementing digital technologies
• Ensuring data privacy and security
• Overcoming the complexities of maintaining inventories across channels.

Retailers need to choose and invest in technology that supports their current business model and ecommerce tech stack and prioritize data security by implementing robust security measures and complying with data protection regulations.

As with any new strategy, start small, test and then scale.

Examples of phygital retail

Several well-known businesses have already embraced the phygital trend, including Harry Rosen. They have successfully created digital versions of their in-person services, combined the traditional in-store experience with the simplicity and convenience of online shopping and used digital technologies to elevate the physical shopping experience.

Here are three industries that are successfully using a phygital approach for retail success in 2024:

1. Pharmacies: Some pharmacies have introduced virtual consultations with pharmacists to allow customers to assess their needs at home and proceed to in-store pick-up or delivery at their convenience.
2. Liquor Stores: Many liquor stores have digital kiosks that allow customers to find information about their accounts digitally. Customers have the option to interact with digital channels while still visiting the physical location. If they have a concern, an actual human is close to assist if needed.
3. Clothing: Luxury brands are embracing the phygital in creative ways. Guggi uses innovative social media campaigns to catch millennials’ attention and was one of the first to design interactive in-store displays that let customers search through, rewind and pause content with hand gestures.

JRTech is a trusted provider of phygital retail solutions

While some sources, like the New York Times, claim that phygital and omnichannel retail are basically the same thing, there is no doubt that the trend – whatever you want to call it – is here to stay.

Phygital retail has the potential to offer retailers improved operational efficiency and higher profitability, but to make phygital integration a success, retailers need to know which digital technology to implement.

JRTech has a proven track record in providing high-performing digital tools to retailers in various industries.

Contact us today to learn how our digital signage and cutting-edge Electronic Shelf Label technology can help your business embrace the future of phygital retail.

Convenience stores are reporting record increases in sales, thanks to a changing market landscape and access to proven sales-enhancing technology like digital signage.

During the first 6 months of 2023 alone, convenience store in-store sales had increased by 9.4% compared to the same period in 2022.

Convenience stores are successfully using digital advertising to improve customer experience, implement targeted sales tactics and respond to the increasing demand for self-service options.

Benefits of digital signage in convenience stores

Digital signage is proven to drive convenience and speed, two key elements of customer experience. Since it can be altered in an instant, digital signage opens the door to dramatically improved adaptability. Adaptive product promotion makes it possible for store owners to reduce waste, adjust to demand, respond to inventory challenges and increase margins, all thanks to focused, flexible in-store communication.

1. Food and beverage sales

As convenience stores report steadily increasing user interest in food-on-the-go options, stores that contain Quick Service Restaurants (QSRs) and other related solutions could benefit from significant profits with the right digital signage approach.

Quick-service restaurants can display digital menu boards outside and inside physical store locations, so customers can easily see what’s on offer and make a choice. Providing customers with an enhanced menu increases operational efficiency, and also provides an opportunity for suggestive selling and promoting special offers.

Compelling content is key to upselling and cross-selling, in particular as it concerns beverage purchases. People who visit convenience stores may have a clear purchasing goal in mind, but this does not mean that they are unlikely or unwilling to change their order while they stand in line. In fact, over 40% of American consumers claim to have changed their purchases as a result of being exposed to digital signage while waiting in line.

2. Customer satisfaction

In the current era of personalized shopping experiences, customer engagement has become vital to successful retail operations. Digital signage offers an opportunity to stimulate interest and increase engagement with minimal output by staff and management.

Digital signage is reported to reduce the perceived wait time at checkouts by as much as 35%. In addition, retail firms using digital signage solutions have seen a 46% boost in customer satisfaction. Clearly, a well-implemented digital signage solution can have a major impact on customer satisfaction.

3. Direct in-store traffic

Convenience store owners can implement digital signage to motivate customers to enter store locations and, once inside, to direct traffic. Combine quality visual content and strategic sign location to encourage customers to frequent historically low-traffic areas and take an interest in products or offers that you want to promote.

4. Implement self-service options

Convenience store owners report that labour shortages are their biggest concern in the current business landscape. Digital signage is becoming a recognized solution for providing optimal customer service with minimal staff. Today’s consumers have become comfortable with different forms of self-service experiences, including BOPIS (Buy Online, Pick up In-Store) kiosks and QSR self-ordering kiosks.

In fact, according to a recent survey, 66% of shoppers preferred self-service and self-checkout to interacting with a human representative. Digital signage is now established as a dependable alternative to human-to-human interaction in retail.

Key areas for convenience store digital signage

Convenience stores can benefit most from implementing digital signage in three key areas:

Forecourt: Engage customers with vibrant colours, informative content and up-to-date promotions to create a dynamic and modern shopping environment. Here is a place to communicate fuel prices and highlight loyalty benefits. Remember that digital signage allows for real-time updates without waste, making it an excellent way to improve your convenience store’s sustainability score.

In-store: In-store digital displays have been shown to boost store sales by up to 30% and have long-term effects on customer satisfaction and loyalty. They can help consumers find products quickly.

Personalized promotions via digital signage can lead to better customer experiences and higher customer return rates thanks to dynamic and engaging content. For example, a social media wall allows retailers to display user-generated content alongside their own posts, enabling them to push promotions, encourage follows, and increase brand awareness.

Checkout: Digital signage helps in reducing perceived wait times at the checkout counter, leading to a more positive customer experience. It can also increase sales: Real-time promotion updates encourage impulse purchases, and clearly communicated offers can increase opportunities for cross-selling.

Future trends in convenience store digital signage

As retail continues to transform thanks to developments in AI, digital signage has become a fundamental tool for linking a variety of IoT solutions.

While no-one can predict the future, it is certain that technological solutions that enhance customer engagement, offer opportunities for customizing the purchasing experience and contribute to overall store efficiency and reduce environmental impact will remain a part of every retail outlet, including convenience stores.

JRTech is a trusted provider of digital signage solutions for retail

JRTech has a proven track record in providing retailers with high-performing digital tools. From state-of-the-art digital signage to cutting-edge Electronic Shelf Labels, our solutions are tested and trusted.

Whether you need to increase customer engagement, or you are looking for efficient and effective solutions to inventory management and in-store communication challenges, digital technology offers the means to facilitate change and boost profits in retail.

Contact us today to learn how this technology can help take your convenience store service and operations to the next level.

There are many types of customers in retail, each with their own unique Persona. Understanding the customer’s viewpoint is crucial in any sales situation, but you can go even further by understanding their individual goals and identifying broader behavior tendencies.

Let’s take a look at the types of retail customers in more detail, so you can cater to their precise expectations and needs, and make your retail business thrive!

Retail customer types: before the purchase

Customers who haven’t bought anything yet are often described as being at the ‘awareness’ stage of the marketing funnel. They could become valuable customers, but first you need to encourage them to make a purchase, according to their specific purchasing behaviors. 

There are 10 main types of retail customers that fall into this category.

1. Lookers and unsure customers

Lookers are customers who are just curious. They don’t have a specific purchase in mind and are just browsing around.

What To Do: Whether you run an ecommerce or a brick-and-mortar store, excellent customer service will have a huge impact. Consider installing a chatbot or live chat option on your website. Do everything you can to make your virtual and physical stores appealing and user-friendly, and encourage customer engagement. You can offer assistance or recommendations, without being overly intrusive, and let these potential buyers navigate products at their own pace.

2. Discount customers (bargain hunters)

Discount customers, or bargain hunters, are on the hunt for special offers and discounts. If your products are not on sale, they probably won’t visit your store, in-person or online. They are more focused on price than on the product or the brand.

What To Do: Despite their focus on price, discount shoppers contribute to inventory turnover and tend to shop frequently. Showcase the value you offer, even if your discount isn’t quite as deep as that of your competition. Display promotions on digital signs and use Electronic Shelf Labels to color-code special offers and make it easy for these customers to identify special discounts and deals. If you entice them further with a loyalty program and excellent customer support, or use customer segmentation tools to really hone your offer, bargain hunters can turn into loyal customers.

3. Researchers

Researchers have a clear understanding of their needs and have diligently done their research to compare your brand with competitors. They are not easily swayed by attractive websites or substantial discounts; their focus lies more on benefits and value.

What To Do: Researchers base their decisions on value, price, and product quality. Incorporate social proof, such as testimonials or reviews, to draw them in, and use digital tools to communicate relevant information in-store.

4. Impulse customers

An impulse customer relies on their emotions when making a purchase. They spot a product, it makes them feel good, happy, or excited, and they decide to buy it.

These customers are often open to upselling, especially if you enhance the positive feelings associated with their purchase.

What To Do: Provide a unique or exciting experience to encourage impulse buyers to make purchases. Advertise your promotions and special events clearly, and add atmosphere and interactivity to your store with digital signage. Simplify the checkout process so it is fast and easy both for online and in-store transactions, so they can complete their purchases seamlessly.

5. Unsure customers (indecisive)

These are customers who aren’t sure if they want to purchase or what exactly to buy. Often, they either don’t have enough information or have too much, leading them to feel overwhelmed. Indecisive customers can consume valuable time that could be better put toward nurturing paying customers or engaging in other business-boosting activities.

What To Do: Unsure customers usually hesitate due to a lack of confidence rather than an unwillingness to make a purchase. Engage them in conversation to find out what they need, what their budget is, and how they intend to use the product. Narrow down their choices to two options if possible, then confidently guide them toward a purchase. Remember, each indecisive customer represents an opportunity for a sale, so stay cheerful and avoid displaying frustration.

6. Looking-to-switch customers

These customers are actively seeking to switch brands. Their favourite brand may no longer be available, or they may be dissatisfied with prices or service quality. Looking-to-switch customers present a valuable opportunity to expand your customer base and increase revenues by positioning yourself as an attractive alternative to the brand(s) they know.

What To Do:  Research your competitors and do a SWOT analysis to identify their strengths and weaknesses, then find out what your customers want. Focus on communicating that your brand offers what competitors lack, and present your product or service as the solution to their problems. Offer a unique solution that sets you apart from the competition, such as a better shipping option. By strategically addressing the needs and concerns of customers looking to switch, you could attract and retain their business.

7. Need-based customers

Need-based customers actively search for a solution to a specific need or pain point. They know what they require and are on a quest to find it. Their needs are often recurring, and by successfully addressing their pain points, you could become their go-to source for the product or service they want.

What To Do:  Train salespeople in physical stores and customer support teams in e-commerce businesses to identify and cater to this customer type. Make sure your mobile and e-commerce checkout processes are smooth and secure, and do everything you can to prevent stock-outs.

8. Wandering customers

Wandering customers explore malls or spend time online without a specific purchase in mind. They might enter a physical or online store without a clear intention to buy, just for the fun of exploring and having a unique experience.

What To Do: You can attract wandering customers by putting friendliness at the forefront, both online and in-store. Offer unique experiences such as product sampling. Avoid being intrusive while they’re browsing in-store, as they are probably enjoying the experience and don’t want to feel rushed or pressured.

9. Chatty customers

Chatty customers crave the social aspect of shopping, and may take quite a bit of time to talk and tell stories. They can show enthusiasm, but may not necessarily make a purchase.

What To Do: Chatty customers are not necessarily bad, but they can be a distraction. Be friendly but firm: if you see another customer who needs attention or could benefit from your involvement, excuse yourself politely and move away. Just remember to remain courteous to avoid negative customer service reviews. You can also learn to manage an overly talkative person in ways that won’t backfire.

10. Showroomer

Showroomers are people who may try on clothing or handle products in person, but intend to purchase them online if they can find a better price. You can spot them using their mobile phones to scan products, and scrolling through price comparison apps as they browse. 

What To Do: If possible, try to match your competitors’ prices so the showroomer won’t find a better offer online. Try to convince showroomers that the value of your product is greater than the online option. Remind them they can take their purchase home immediately, with no shipping costs or risk of damage, and they know exactly what they are getting.

Types of retail customers: after the purchase

Customers who have made a purchase have a lot of potential. They’ve made it through the ‘consideration’ and ‘conversion’ stages of the funnel, so now is your chance to convince these purchasers to become loyal!

Let’s take a look at 4 types of customers who have already made a purchase, and see how to respond to the very different ways in which they might respond.

1. New customers

Recent customers have just made their first purchase from your physical or online store. At this stage, they haven’t developed loyalty and are merely testing the waters to see if they like buying from you.

What To Do: New customers generally seek guidance and support. Ensure that your customer support team is responsive and helpful. Clearly communicate your return policies to avoid confusion. Make concerted efforts to show appreciation, as making a good impression can turn a new customer into a loyal one.

2. Active customers

An active customer currently uses your products or services, but hasn’t yet developed complete brand loyalty. They choose your offerings for convenience, but could switch to a competitor if presented with a more appealing option.

What To Do: Provide robust support and foster ongoing engagement through excellent customer service. Direct your efforts toward assisting active customers throughout their buyer’s journey with the goal of establishing your brand as the answer to their needs.

3. Referral customers

Referral customers are directed to your store through recommendations from one or more of your loyal customers. They may not be familiar with your brand and offerings, and are often cautious. They can have high expectations and require careful handling.

What To Do: Similar to new and unsure customers, referral customers benefit from guidance before making a purchase. Offering support and assistance can improve their understanding and confidence in your products or services. You can use digital signage to display products and promotions in an attractive, minimally invasive manner.

4. Unhappy customers

You usually find yourself dealing with unhappy customers when something has gone wrong. However, there are many possible reasons a customer can become unhappy, and sooner or later, you will find yourself having to deal with angry customers, bullies, complainers, impatient customers, customers who claim to know everything, customers who are hard to please, and lapsed and at-risk customers. 

What To Do: First, remember that the customer’s dissatisfaction is not a personal attack. Take a breath, take a distance, and try to stay calm. Listen to their issue, and if possible, guide them to a solution. Be courteous and respectful, and try to see the issue from their point of view. If you can offer some level of solution, they may calm down. If they insist on ranting or hurling insults, you are well within your rights to ask them to leave your store or to call for assistance from security. Dealing with angry reviews online also requires specific strategies, which every retailer should be familiar with in this digital age.

High-value retail customers

The best customers in retail are loyal shoppers who may even take the initiative to put in a good word for your brand on their own time. It’s tempting to sit back and relax around this type of customer, but this is not necessarily the right approach for long-term success. Here are a few ways to encourage and retain the most high-value types of customers.

1. The customer on a mission

Customers on a mission have a clear goal in mind. They know what they want to buy from you, and intend to get out of your store with their product as quickly as possible as they have other things to do.

What To Do: Make the purchasing process quick and easy and focus on a seamless user experience both online and in-store. If everything is set up correctly, this customer will almost take care of themselves. All you need to do is behave courteously and thank them for their business.

2. Loyal customers (regular customers)

Loyal or regular customers are already happy to shop from you, so you don’t have to work hard to make a sale. Statistics agree that it is more than twice as easy to sell to a loyal customer than to a new one, making them a great source of revenue.

What To Do: The best way to retain loyal customers is by keeping them consistently satisfied. Remind them of your commitment and your values. At JRTech, for example, we are committed to sustainability: our Electronic Shelf Labels are eco-friendly and help grocery stores minimize waste by managing near-expired inventory more efficiently. To date, our retailers have eliminated the use of over 440 million disposable paper price tags by using our digital tags, saving an average of 1,375 trees and reducing their CO2 footprint by over 63.8 tons.

Loyal customers benefit from personalized offers and unique customer experiences. Offer exclusive perks and rewards. You can also use customer segmentation tools to target loyal customers with personalized marketing messages.

3. Lifetime Customers

Lifetime customers are loyal customers who are committed one notch further: they are devoted to your brand not just for now, but for the long run. When measuring Customer Lifetime Value (CLV), these customers rank high, but this doesn’t mean you can just assume they will remain loyal without your making an effort.

What To Do: Never allow a customer, even a lifetime one, to feel neglected or unappreciated. Stay engaged! Encourage their involvement in your community and referral program if applicable. Request them to refer your brand to others and express your gratitude by rewarding them for successful referrals. Consistently deliver value to these customers, coupled with personalized experiences and recognition, to maintain and enhance their loyalty over time.

Long-term benefits like recycling or returns programs can really add value for these buyers. For example, JRTech Solutions has implemented an eco-recycling program where we collect and reuse end-of-life labels, further reducing their carbon footprint. Our customers really appreciate our initiative!

4. Referring Customers

Referring customers are not only devoted fans of your brand but also go the extra mile to recommend your products or services to others. They exhibit loyalty and share positive sentiments about your brand with their friends and family.

What To Do: Once you receive a five-star rating or a positive review, approach these satisfied customers and ask if they would be willing to refer your brand to others. To streamline and monitor referrals, set up a referral program. You can also offer incentives and rewards to the customers who have been referred. This approach helps create a symbiotic relationship that encourages ongoing referrals and fosters brand advocacy.

5. Advocate Customers

Advocate customers represent a unique blend of loyalty, lifetime commitment, and referring behavior. These customers willingly share positive sentiments about your brand, essentially engaging in free marketing on your behalf. This segment stands out as the most valuable within your loyal customer base. 

What To Do: you won’t need to exert much effort to convince these customers to refer others to your brand. However, given that advocate customers are a prized segment, it’s crucial to ensure they feel appreciated and well-cared for. To retain their loyalty, consistently demonstrate gratitude for their advocacy.

Prioritize advocate customers when they reach out to your customer support team, providing them with exceptional service. Engage them through personalized messages and advertisements, and offer additional perks as part of a rewards or loyalty program. This proactive approach not only reinforces their loyalty but also enhances their overall experience with your brand.A

JRTech offers essential digital tools for in-store retail operations

Now that you are aware of the 19 types of retail customers, you can adjust your in-store environment accordingly, for optimal sales and success. 

JRTech is the leading provider of Electronic Shelf Labels and digital signage in North America. Our digital solutions enable retailers to effectively manage inventory, communicate efficiently both in-store and behind the scenes, and provide the best possible customer service through clear labeling and rapid and efficient information updates to prices and promotions.

Contact us to learn how this technology can help you meet the needs of all types of retail customers, today.

Warehouse facilities are central to inventory management for many types of business. Although there have been many advances in warehouse inventory management in recent years, a surprising number of businesses – estimated at 46% by some sources – still rely on manually-driven warehouse management and inventory tracking systems, including paper shelf labels. Unfortunately, these systems are subject to high levels of human error, and are no longer considered competitive in a sector where IoT and digital solutions are becoming the norm.

What are the major challenges in warehouse management?

Effective warehouse management involves coping with three main types of challenges: inventory, data, and operations. Let’s take a closer look at each one.

• Inventory: Keeping accurate warehouse inventory records is essential to effective business operations, and inventory distortion caused by human error has been estimated to cost retailers close to $1.1. trillion a year globally. Inaccurate inventory records are also proven to contribute to customer dissatisfaction and business failure.
• Accurate Data Collection: Human error is common in manual data collection systems, and can greatly impact the efficiency of an entire warehouse inventory system. Traditional paper shelf labels also take time and effort to update, install and remove. As businesses face increasing numbers of labour shortages, finding the manpower to collect data can also be a challenge. 
• Warehouse Operations: Manual processes in warehouse operations, like order picking and labeling, often demand a significant workforce. It’s worth noting that up to 70% of warehouse costs stem from labor resources. The more manpower required, the higher the operating costs and overhead, affecting your bottom line. Additionally, manual tasks like updating and installing labels on products, racks, and bins are prone to human error. This not only introduces inaccuracies in your inventories but also has the potential to negatively impact relationships with partners and customers.

Using Electronic Shelf Labels for efficient warehouse inventory management

There is an ever-increasing demand for warehouse space due to the booming ecommerce sector and recovering demand for in-store shopping experiences. Likewise, the need for efficient data collection and inventory management systems continues to grow.

Manual systems are no longer able to compete with the speed and efficiency of technological solutions, especially as human error continues to play a large role in warehouse inventory management failures.

Imagine having to change hundreds or even thousands of labels using a sticker or paper-based system. With Electronic Shelf Labels, updates to multiple labels can be done in real-time or on a scheduled basis, making the process much more efficient. And that’s not all.

Electronic Shelf Labels can help improve warehouse operations

ESL solutions make managing and finding products easy, as they help with automating tasks related to product location and navigation. Interactive labels simplify finding items, devices, or assets, especially in large warehouses with extensive inventories. Thanks to wireless connectivity, they are highly efficient, and their light and thin designs make installation on bins, racks, items, or assets a breeze.

Electronic Shelf Labels can be used in a variety of warehouse settings

In warehouses with cold storage where temperatures can drop significantly, such as those used by the grocery and pharmaceutical industries, regular paper labels won’t suffice. ESLs can guarantee optimal performance in these special conditions. They enable real-time updates through reliable wireless connectivity and user-friendly displays. When paired with sensor solutions, using Electronic Shelf Labels in freezers provides an extra layer of security as it enables managers to monitor critical temperature levels.

Electronic Shelf Labels help prevent stock-outs

Implementing Electronic Shelf Labels across the shelves, containers, and merchandise in your warehouse offers a sophisticated solution for optimizing processes and saving time, but these tools play an even more crucial role in notifying your staff about inventory levels. With accurate, real-time data about stock levels, warehouse managers and retailers can work together seamlessly with A.I. to use algorithmic predictions for state-of-the art inventory management, preventing stock-outs and responding quickly to consumer demand.

Proactively resolving stock issues contributes to creating a cost-efficient operational environment.

Electronic Shelf Labels boost internal warehouse communication

In retail, Electronic Shelf Labels can serve as effective advertising tools that allow for real-time updates, ensuring accurate, efficient in-store communication. Customers can get relevant, up-to-date information on special promotions or discounts directly from the label, across many locations at once. Similarly, in warehouses, crucial information or reminders for staff can be efficiently communicated through ESL labels. Improved communication between the various levels of management and staff increases efficiency and employee confidence, improving warehouse inventory management at every level.

Embrace the future of warehouse inventory management with Electronic Shelf Labels from JRTech

As companies increasingly shift toward semi and fully automated processes to enhance warehouse efficiency, sales in warehouse automation are predicted to hit $41 billion by 2027. This growth is projected at a steady annual rate of 15% over a span of 5 years, as reported by Business Wire.

Electronic Shelf Labels are an important component in any warehouse inventory system that intends to remain competitive in 2024 and beyond. 

JRTech Solutions is a leading provider of Pricer Electronic Shelf Labels that can be easily integrated into a technology-based or even automated warehouse inventory management system, making data collection almost instant and largely free of human error.

Contact us today to learn how our technology can take your warehouse inventory management to the next level.

AI has already left an indelible mark on the retail sector, from personalized product recommendations and inventory management to enhanced customer service and loyalty programs. 

As we move forward in 2024, AI will continue to affect retail operations to bring even more change to this quickly evolving sector. 

Join us as we explore 10 ways that AI is impacting customer experience and overall operations in the retail industry.

1. Personalized recommendations

In the years to come, successful retailers will continue to rely on AI to provide personalized product recommendations to customers based on their preferences and behavior. With online sales and keyword-driven advertising the norm, all areas of retail must be personalized, unique and inspiring to keep up with consumer expectations and maintain a competitive edge. This approach is crucial across all touchpoints, ensuring a seamless and memorable shopping journey.

Examples of how AI can be used in retail to enhance personalized shopping experiences include:

Tailored homepage experience

In the realm of mobile and digital interfaces, platforms are now adept at recognizing individual customers and personalizing the e-commerce journey based on their current situation, past purchases, and browsing habits. Through the continuous evolution of AI systems, users can expect hyper-relevant displays tailored to their preferences with each interaction.

Proactive consumer engagement

Employing advanced Customer Relationship Management (CRM) and marketing technologies, businesses are gaining insights into consumer behavior and preferences over multiple interactions. This accumulated knowledge is utilized to craft comprehensive shopper profiles, enabling the delivery of proactive and personalized outbound marketing. This may include tailored recommendations, rewards, or curated content.

According to one report by McKinsey & Company, effective personalization efforts lead to elevated client engagement and revenue in retail, resulting in a 20% increase in customer satisfaction, sales conversion rates, and employee engagement.

2. Inventory optimization

Efficient inventory management is vital for retailers to strike a balance between having adequate stock and avoiding excess inventory, which can result in increased management costs and markdowns. Today’s successful retailers use AI to optimize inventory levels and benefit from better management of stock and reduced instances of stockouts and overstocking.

AI in retail improves demand forecasting by analyzing data from the market, consumers, and competitors. AI business intelligence tools use these insights to predict changes in the industry and make proactive adjustments to a company’s marketing, merchandising, and business strategies. This also influences supply chain planning, pricing, and promotional strategies.

Walmart provides a notable example of leveraging AI technologies to enhance its inventory management. Their system of “inventory intelligence towers” is mounted on top of floor scrubbers and captures over 20 million photos of merchandise on shelves daily. AI algorithms analyze these images, accurately identifying individual brands on the shelves and determining inventory levels with over 95% precision. It is a winning example of how AI can be used to optimize the balance between stock levels and operational efficiency.

3. Pricing optimization

Moving forward, AI will continue to help retailers optimize their pricing strategies by analyzing market trends, customer behavior, and other factors to set the right prices for products.

Smart algorithms can analyze extensive data and explore numerous pricing possibilities, then recommend the most suitable price. These algorithmic models consider numerous hidden connections, like how changing the price of one product can impact the sales of other items in the retailer’s lineup. By considering these intricate relationships, the algorithms do work that would take thousands of hours if done by humans, and accurately suggest individual prices that optimize both revenue and overall sales.

And by complementing your AI methods with top of the line electronic shelf labels and digital signage, every person in the loop can be made aware of price changes in record time.

Using AI for price optimization in retail typically involves five steps:

• Gather the required data.
• Decide whether to hire a technology provider or develop an in-house solution.
• Select the products for which AI will recommend prices.
• Ensure that managers are educated about the system.
• Maintain the system to keep it operational and effective.

4. Fraud detection

As fraud continues to cost retailers billions of dollars annually, AI-powered tools will increasingly be used to secure online transactions and protect customer data. AI helps to detect and prevent fraud in retail, especially the most common types of fraud:

• Return Fraud: Return fraud, involving deceptive practices such as false returns or using fake receipts, poses a significant challenge for retailers, leading to financial losses through illegitimate reimbursements and potential inventory inaccuracies.
• Credit Card Fraud: Credit Card Fraud, involving the unauthorized use of stolen credit card information for transactions or withdrawals, poses a significant problem for businesses, as they may be held responsible for chargebacks, leading to substantial financial losses.
• Inventory shrinkage: Inventory Shrinkage, a prevalent issue in retail, refers to losses in inventory due to theft, damage, or poor management, with challenges in detection often arising from the complexity of maintaining large inventories and various factors like employee theft, shoplifting, and procedural errors contributing to the problem.
• Employee Fraud: Employee fraud in retail involves harmful acts committed by an organization’s employees, exploiting their access to sensitive information and internal systems, encompassing activities such as theft, document fabrication, financial manipulation, and collaboration with external parties like suppliers or consumers, posing significant risks for merchants.
• Gift Card Fraud: Theft of gift cards is a growing fraud trend in retail, with fraudsters exploiting the simplicity and anonymity of gift cards, often involving the use of stolen credit card information to purchase and sell gift cards for cash or create fake, indistinguishable gift cards, posing risks for both consumers and retailers.

Fraud detection techniques involving the use of AI can greatly reduce the risk of fraud in retail. The most common types of fraud detection that AI-powered tools can assist are:

• Anomaly Detection: In anomaly detection, AI tools are used to identify data points that significantly deviate from the norm. In the context of fraud detection, unsupervised machine learning methods can be employed to distinguish unusual transactions by comparing them to a baseline model developed from a sizable dataset of typical transactions.
• Predictive Modeling: Predictive modeling examines trends in past data, and finds traits linked to fraudulent transactions. It then refers to this information to analyze large datasets of transactional data and customer behavior to identify patterns that may indicate fraudulent activity.
• Natural Language Processing: NLP approaches may be used to examine text data, such as product descriptions, customer reviews, and comments on social media, in the context of retail fraud detection to spot possible fraudulent behavior. NLP algorithms help in fraud detection by pulling out important words and phrases from customer reviews that mention a fraudulent experience, signaling the need for a closer look. Additionally, in chatbots and virtual assistants, NLP can spot potential fraud by analyzing language, and prompt further investigation by the retailer.

There are significant benefits to using AI-based tools for fraud detection, including their ability to analyze large amounts of data and reduce the instances of false positives. By implementing these tools effectively, retailers can boost consumer confidence and cut costs in the long run.

5. Customer service

AI-powered chatbots and virtual assistants will continue to be used to provide round-the-clock customer support. These AI tools answer queries and assist with purchases, adding a level of all-important interactivity to the retail experience and making it possible to provide exceptional customer service at any time of day or night.

Interactive chat programs “converse” with customers to guide users to helpful answers and outcomes, without the burden of heavily staffing a call center. While doing so, these bots also collect invaluable consumer data which can be used as a basis for later decision-making. 

In addition, retailers are elevating customer service by employing AI to offer special, personalized experiences, such as:

Customer sentiment analysis

This involves using AI algorithms to examine customer feedback, social media posts, and online reviews, enabling businesses to address complaints promptly, gauge customer sentiment and pinpoint areas for enhancement. AI not only aids in monitoring these accounts but can also provide suggested responses to complaints through generative AI and, if allowed, even respond to them. Retailers are likely to increasingly rely on these AI tools to handle customer relations and address issues promptly in the future, as better customer service always translates into higher customer satisfaction.

IoT

By leveraging IoT-enabled technologies in retail, it’s possible to obtain valuable insights into consumer behavior and preferences without direct interaction. For instance, tools like interactive tablets can boost engagement and success with customers by making it possible to analyze consumer data and behavior trends with optimum efficiency. As all elements of retail operations become increasingly interconnected, IoT is becoming the logical way to integrate the benefits of AI into everyday retail operations.

6. Supply chain management

AI will continue to be used to optimize supply chain operations, forecast demand, and identify potential disruptions, leading to more efficient and reliable supply chains.

As uncertain global events and labour shortages continue to affect the stability of retail operations, AI technology can provide retailers with the timely data and insights necessary to make fast adjustments and meet the next challenge. 

Efficient supply chain management affects every area of retail operations, and when events affect multiple retail locations, both online and in-store, digital technology can keep promotions on track. AI tools can assemble and analyze vast quantities of data quickly to present retailers with the information they need to make vital decisions related to supply chain management. 

To meet a diverse array of customer needs transitioning from mainstream to niche, retailers should reconsider their conventional supply chain in favor of adaptable and flexible ecosystems capable of swiftly responding to changes in consumer behavior. Overall, AI tools make it possible to strengthen agile logistics networks.

7. Enhanced shopping experiences

AI-powered technologies such as augmented reality (AR) and virtual reality (VR) will be used even more frequently to create immersive and interactive shopping experiences for customers. Here are a few ways in which AI is helping to create enhanced shopping experiences:

Guided discovery

To assist customers in gaining confidence for their purchase decisions, automated assistants can recommend products that align with shoppers’ needs, preferences and fit, helping to narrow down the selection.

Visual curation

Algorithmic engines transform real-world browsing habits into digital retail possibilities, enabling customers to explore new or related products through image-based search and analysis. Recommendations are curated based on aesthetics and similarity.

Personalized recommendations

Artificial intelligence in retail can be used to make suggestions based on past order history and user profiles. Online retailers leverage recommendation AI to enhance the customer experience and maximize product sales, replicating the cross-selling benefits of physical stores through intelligent upselling and suggesting complementary add-ons.

Adjustable in-store product displays

Smart retail environments identify customers and adjust in-store digital signage, product displays, prices, and services using biometric recognition to match customer profiles, loyalty accounts, or available rewards and promotions. This creates a tailored shopping experience for each visitor on a larger scale. Stores also leverage AI and sophisticated algorithms to predict customer interests based on factors like demographics, social media activity, and purchasing history, enhancing both online and in-store shopping experiences.

8. Predictive analytics

AI will be used to analyze data and predict customer behavior, market trends, and other factors, helping retailers make informed decisions and stay ahead of the competition. The primary functions of predictive analytics are demand forecasting and insight generation.

Demand forecasting

Knowing which customers want specific products and their preferred purchase locations is crucial for assisting retailers in handling the supply chain, optimizing inventory levels, and preventing markdowns. AI business intelligence tools analyze data from the marketplace, consumers, and competitors to predict shifts in demand, enabling proactive adjustments to a company’s marketing, merchandising, and business strategies.

As AI algorithms become more advanced, an increasing number of companies are expected to adopt the capabilities of demand forecasting using AI.

Generate insights from diverse data

Moving forward, more and more companies are likely to utilize AI tools to sift through vast amounts of data and gain insights into their customer base. Retailers are inundated with information spanning supply chains, stores, and consumer interactions. In today’s retail landscape, it’s crucial to sort data and discard clutter to convert vast masses of information into useful strategies centered around the needs of the consumer.

9. Visual search

AI-powered visual search tools will allow customers to search for products using images, making it easier to find and purchase items online.

This machine learning technology has been widely implemented in e-commerce, enabling consumers to find products by simply uploading images, improving the overall shopping experience. AI-driven visual search not only simplifies information retrieval but also opens up new possibilities for innovation across various industries, including retail.

10. Store operations

AI can be a powerful tool to implement more efficient and cost-effective retail operations. With its ability to analyze data and devise optimizations based on consumer behavior, AI can be used to improve various aspects of store operations, including staffing, layout, and energy management. Some examples include:

Operational optimization 

Logistics management systems, enhanced by AI, dynamically optimize a retailer’s inventory, staffing, distribution, and delivery processes in real-time. This ensures the creation of highly efficient supply and fulfillment chains that align with customers’ expectations for quality, immediate access, and support.

Synchronized online and offline retail

Digital and physical shopping channels often follow different strategies and approaches. However, treating these channels as separate business units creates friction for customers who want a seamless shopping experience, and results in operational inefficiencies. AI can help harmonize the relationship between multiple retail channels, making purchasing and marketing easier across the board.

Cashierless technology

Retailers are exploring cashierless technology like self-service registers to streamline the checkout process. In advanced cases of use, such as Amazon, AI and cameras are used together to track customers in-store, tally up selected items and automatically charge consumers as they leave – buyers no longer have to stop to pay.

Explore the latest in retail technology with JRTech

AI tools are here to stay. With incomparable data analysis capacities and a wide range of uses, AI applications are powerful allies for all retailers. Every business that needs to stay head of the competition by providing exceptional customer service and optimizing operations can rely on AI for help. 

In short, retail and AI go hand in hand. But AI can only function at its best with the right in-store technology to support it. JRTech is an established provider of digital technologies like electronic shelf labels, essential in-store communication tools that ensure your valuable AI-generated insights don’t go to waste.

Contact us today to acquire the tools you need to make the most of AI in retail. Act now to win over the retail shoppers of the future.

Every retailer wants to make the highest number of quality sales possible. One way to accomplish this is by incorporating retail upselling techniques (also called suggestive selling) into your overall sales strategy.

Upselling is not a new tactic in the retail world, but the transformative digital technologies available to today’s retailers provide new opportunities for implementing upselling with unprecedented success.

Join us as the professionals at JRTech take a look at 12 upselling techniques in retail that can be made even more effective thanks to recent developments in digital technology.

What is retail upselling?

Upselling is a sales technique employed by businesses to encourage customers to purchase a higher-end product, upgrade their existing purchase, or add extra features or services. It involves offering customers a more premium or advanced version of the product they intend to buy, thereby increasing the overall transaction value. The primary goal of upselling is to enhance customer satisfaction and increase sales.

Upselling in retail is an effective strategy because it leverages the customer’s existing interest and intent to buy, steering them towards a better, more comprehensive solution. By highlighting the additional benefits, features, or quality of a higher-priced item, businesses can convince customers that the upgraded option offers superior value for their money. This process is often facilitated by well-trained salespeople or through targeted marketing efforts, both online and offline.

Why suggestive selling is important

In essence, upselling benefits businesses by increasing revenue, improving customer relationships, and creating a positive brand image. It also benefits customers by enhancing the overall shopping experience and ensuring they receive products or services that best suit their needs.

• Increased Revenue: Upselling naturally boosts a company’s sales figures by encouraging customers to spend more. This additional revenue can be crucial, especially during economic downturns or when trying to fund expansions and improvements.
• Enhanced Customer Satisfaction: If implemented effectively, upselling focuses on offering customers products or services that align with their needs and desires. By suggesting complementary or upgraded items, businesses enhance customer satisfaction. Satisfied customers are more likely to return, leading to customer retention and loyalty. By recommending products that genuinely enhance the customer’s experience, businesses demonstrate their commitment to customer-centric service, leading to positive feedback, referrals and customer loyalty.
• Competitive Advantage: In a competitive market, businesses need to differentiate themselves. Offering personalized and value-added upselling options can set a company apart, creating a unique selling proposition that competitors may lack.
• Optimized Inventory Management: By promoting specific products or services, businesses can manage their inventory more effectively. Upselling allows companies to focus on selling particular items, preventing overstocking and minimizing waste.
• Cross-selling Opportunities: Upselling often opens the door to cross-selling, where customers are introduced to complementary products or services they might not have considered. This expands the customer’s understanding of the product range, potentially increasing their overall spending.

When done ethically and with genuine consideration for the customer’s needs, upselling can result in increased customer loyalty and long-term relationships, as customers appreciate the personalized attention and guidance provided by the business. Let’s take a look at 12 examples of upselling that can be supported by digital technologies.

1. Mention special sales and offers

One way to upsell products or services is by presenting customers with special offers and sales. To make this type of upselling effective, communication is key.

Online promotions can be brought to the consumer’s attention by an experienced marketing team (either in-house or outsourced) and by digital advertising.

When it comes to promoting sales and discounts in-store, technology like digital signage is key to getting your message across clearly, to the right customer at the right time and place. It’s worth taking the time to develop quality messaging systems to implement in-store upselling, as customers’ attention spans are short and a poorly-constructed upsell via a digital platform could even do more harm turn good, and turn customers off.

2. Bundles and buy-more-save-more opportunities

When it comes to bundled and buy-more-save-more promotions, it’s important to make it easy for consumers to find the products that are grouped together for sales. This type of upselling only works if consumers can quickly and easily find the ‘extra’ products they are looking for. 

Embrace the digital transformation and implement IoT in your retail space to make your store run smoothly and improve customer experience. This will make additional sales more likely due to an efficient and customized shopping experience. Logistics are key.

3. Customer rewards programs

Customer rewards programs like points systems are a great way to encourage consumers to spend more at your retail outlet. These usually involve accumulating points for every dollar spent, which can be put toward a freebie, purchase or gift card. 

Customer rewards programs require that you communicate to customers exactly how many points they will be getting on each sale, and an effective way to keep this information readily available and easy to understand is through the use of Electronic Shelf Labels. These labels do much more than show prices in a digital format. They can display other types of information too, including brand information and points rewards, as needed. 

Customer reward programs also involve data management on a large scale. Consumers will not be able to cash in their points unless they have been accurately tracked and associated with that individual shopper. It is therefore imperative to rely on digital technology like GHGH software to make this type of upselling viable.

5. FOMO

FOMO, or Fear Of Missing Out, involves making the most of a sense of scarcity or urgency to motivate customers to buy more. There is a fine line that must be respected when it comes to this suggestive selling technique: go too far and you could be engaging in unethical practices. But if you respect the limits of this method and stick to tactics like ‘today only’ sales, easily presented and adjusted through the use of digital signage, FOMO can be an effective and legal way to boost sales.

Accurate pricing is essential to FOMO upselling. If customers are not convinced that they are really getting a deal, due to inaccurate price labelling or signage, your efforts could do more harm than good. Retailers can rely on Electronic Shelf Labels to provide accurate, up-to-date information about promotions and regular prices, which is instantly communicated to your POS system so there are no ugly surprises at the check-out. It’s one of the many benefits of implementing a comprehensive digital retail solution.

6. Clienteling

Clienteling is all about treating customers like the people they are, and not just consumers. It’s the basis of developing long-term relationships with your clientele and developing customer loyalty, which will lead to repeat traffic and purchases.

Effective stock management is key to clienteling. Faced with a stockout , many consumers will not only take their business elsewhere to fulfill their needs at that moment, they are also likely to change their shopping habits and avoid your store entirely. When implementing an upselling strategy, be sure that you mange your inventory effectively with the help of digital technology like Electronic Shelf Labels so that you can be sure that the products you are promoting are in stock and ready to move off the shelves.

7. Don’t offer too many options

‘Choice overload’ exists! If you offer too many options while upselling, you could overwhelm your customers and make them feel worse instead of better.

It’s harder for customers to pinpoint which product they want most if they are too busy trying to sort out their choices. In addition, they could be afraid of missing out on the perks of the options they have not chosen, leading to dissatisfaction rather than a sense of consumer satisfaction. It’s been proven that fewer options result in more sales.

Instead of offering too many choices, focus on assessing your customers’ needs accurately. One way to do this effectively is with Electronic Shelf Labels linked with a complete inventory management system. This type of digital technology permits you to analyse which items are frequently bought together, which items are most popular, and other data from promotions and price changes. A customer data platform will allow you to analyse your consumers’ habits and offer them choices that make them happier to visit your store.

8. Leverage first-party data

First-party data is the key to understanding the relationship between each customer and your business. This is particularly easy to access when selling online, as you can analyse pages visited, products purchased, and a myriad of other behaviors on your ecommerce website. You may even have access to certain social economic information, such as customer location and average purchasing power. 

The more you know about your customers, the better you will be able to choose the type of upselling techniques may appeal to them, and when it may be most effective to approach them using suggestive selling. Just knowing whether a customer is likely to open a post-purchase email can allow you to put your time and money into the right marketing channels. 

Remember, with the digital transformation in full swing, there are new ways for consumers to interact with a brand, both online and through connected technologies in-store. Every development, such as the recent implementation of grab-and-go shopping, brings a new opportunity for retailers to collect relevant data and implement changes according to what they learn from analyzing that data, quickly and efficiently.

9. Remember to upsell online as well as in-store

Merging online and offline experiences is vital, and having identical promotions can be time-consuming and problematic without the right technology to support your efforts across multiple channels and locations. 

By relying on digital systems, retailers can seamlessly implement promotions and upselling efforts in-store and online. Changes can be made quickly, prices updated almost instantaneously. This means that your valued customers can access the same bundles, two-for-one deals and points rewards online as in-store, expanding your reach and potential profits significantly.

10. Showcase your commitment to the environment

When upselling, it’s important to focus on customers’ values and make appropriate suggestions. Adapting your store to broader trends, such as retail sustainability will make your customers more likely to be open to suggestive selling tactics, as they will recognize your commitment to current consumer values.

Digital signage and Electronic Shelf Labels are two of the many environmentally-friendly tools retailers can implement as part of their digital transformation. Gone are the days of printing out labels and posters which would have to be replaced as soon as a promotion or season came to an end. Now, with a few taps, retailers can change prices and update signage, adapting to current in-store and online needs without increasing their carbon footprint. Remember, Electronic Shelf Label batteries last for years.

11. Use visuals to upsell

In the current retail environment, customers expect to be able to see how a product can be used before they will commit to making a purchase. Visuals are essential, and digital signage is here to help, whether you need to display an unboxing video or a detailed set of instructions. 

Visuals are also a big part of actual upselling. An effective upselling message should include short copy outlining the benefits of the suggested purchase, an image, information comparing the products in question, and plenty of color to code an easily understandable message.

12. Adjust your upselling tactics to your industry

When you know your industry, you know what your customers want. Upselling tactics should always reflect your understanding of your customers’ needs, priorities and pain points. For example:

• Hardware: Customers need to be informed and advised during the upselling process in hardware stores. By relying on Electronic Shelf Labels for pricing and inventory management, resources can be better allocated to having trained staff who can fulfill consumer expectations when it comes to getting the help they need to make a good choice, especially during labour shortages.
• Grocery stores: It’s no secret that grocery stores display hundreds or even thousands of products on their shelves, each requiring an accurate price tag. Upselling promotions can quickly become complex if these tags are not digitized, as points programs and two-for-one specials demand careful coordination of data and products. Keep your upselling simple, whenever you can, and choose the appropriate technological support for your store.
• Pharmaceuticals: Pharmacies today contain a large array of products, and upselling in this sector is only appropriate for certain items. Knowing which products are likely to be viewed as complementary is vital to successful upselling in this sector, and nothing can replace the efficient data collection of digital tools used for this purpose.

Make retail upselling a success with digital solutions from JRTech

Customer experience is set to overtake price as the defining feature of successful retail. By choosing to upsell with the support of digital technology like Electronic Shelf Labels, you can take your store to the next level and continue to attract the right type of customers with the right type of offers. 

The Electronic Shelf Labels market continues to grow as more and more retailers recognize the value of this technology for successful sales and store management. 

Contact us today to learn how JRTech can help you move toward creating a digitized upselling experience.