Retail Automation has emerged as a transformative tool for businesses in marketing and e-commerce. As companies strive to meet the ever-increasing demands of a tech-savvy customer base, the role of retail technology has become a game-changer.
Whether it is developing smarter customer acquisition strategies for D2C brands, enhancing customer journeys, overcoming common customer experience challenges, optimising inventory, or reducing operational costs, the benefits of retail automation are nothing short of revolutionary.
In this blog, we will discover the five biggest benefits of retail automation solutions supported by real examples that prove how businesses can bolster sales and increase profitability.
5 Key Benefits of Retail Automation Solutions
1. Boosting Operational Efficiency
Retail automation has come a long way in bolstering the operational efficiency of companies. For example, according to a study conducted by Harvard Business School, a digital initiative is making the biggest name in drinks – Coca-Cola, even cooler. Imagine if their vending machines were super smart! Smart tech enables them to know when to refill, a customer’s preferences, and when the machine requires fixing. It is not only about selling soda, but having an efficient flow behind it.
This brings us to say that retail automation helps to streamline order processing as well as customer service remarkably. This frees up employees to allow them to focus on higher-value tasks. This ultimately ends up saving the company lots of time as well as capital.
2. Personalised Customer Experience
According to Forbes, when customers have an impersonal shopping experience, 71% of them become frustrated. An incredible benefit of retail automation solutions is the ability to personalise customer experiences for their users easily. Several industry-wide research studies have illustrated the efficacy of a tailored shopping experience, and its ability to generate higher sales and conversions. This is because customers bond better with brands who engage with them in a personalised manner. This could include presenting recommendations to them which are more pertinent to their previous purchases, and align well with their interests.
Retail technology helps brands to analyse customer data and create a seamless and more personalised customer experience. Additionally, with the rise of smart vending machines, users can enjoy a more convenient and individualised shopping experience. This, in turn, can boost customer satisfaction and thus their brand loyalty.
3. Data-Driven Insights
Technology in retail has become a mainstay for most businesses- and for multiple good reasons. Starting from personalised customer experiences, stock upkeep, point-of-sale systems and much more.
Retail automation helps brands collect a wealth of Big Data. This data is usually centred around customer behaviour, their purchase history, sales trends, and other shopping habits and patterns. D2C brands can then leverage this invaluable information such as individual customer preferences when developing smarter customer acquisition strategies and generate massive gains. This data-driven decision-making amounts to better-targeted marketing campaigns and more sales.
4. Reduced Human Error
Human errors are unavoidable and understandable. Everyone makes mistakes. However, human errors are also a common customer experience challenge. Mistakes can spoil consumer experience and reflect poorly on the business. For example, HUEL, a pioneering FMCG brand, needed a stand-out and tirelessly operational solution at a busy location and implemented an innovative smart vending solution. In order to transform the retail experience, they deployed 5 custom-made smart machines. The result was that the Heathrow launch became a massive triumph, exceeding in design and also reliability. HUEL states, smart vending is not just a sale; it is a reflection of the retail of the future.
Most human errors are typically a result of fatigue or distractions. All of these could be eliminated through the use of retail automation solutions. Whether it is repetitive tasks such as data entry and counting stock, or something tedious and time consuming like backing up the system, incorporating retail technology and retail automation solutions can have key benefits to a business. It helps speed up the process, eliminate human errors, and even free up staff for more important tasks and duties. Also, As per reports, efficiency is improved by 4.1%, while companies gain more money at the rate of 2.9% every year with the implementation of retail automation solutions.
5. Capital Optimisation
Amazon Go has revolutionised the retail industry with its cashless stores; making shopping more convenient and efficient, and cutting labour costs. Amazon uses computer vision and sensors to optimise multiple tasks and help the allocation of capital. The automation of the checkout process improves operational efficiency, reduces costs associated with physical cashiers, and frees up funds that can be reallocated to technology investments and improve business agility, thereby leading to better capital optimisation.
This is because, over the long term, retail automation can result in significant savings for brands. While the initial investment may be slightly hefty, the incorporation of technology in retail reduces labour costs, streamlines operations, eliminates errors, and optimises inventory. All of these benefits of retail automation lead to a strong return on investment, and result in a more cost-effective business. It also allows brands to reinvest this surplus capital into growing the company.
Retail Automation and its Transformative Effect on Businesses
OgmentO’s innovative smart vending machines, as well as other retail automation solutions are pioneers in the way they are changing the landscape of marketing in the country. The implementation of retail technology is a strategic move that can positively transform the way D2C brands in the retail industry operate and do business.
By embracing retail automation, companies can enjoy a wide variety of benefits. These benefits collectively elevate a business’ competitiveness- allowing them to adapt to the ever-evolving demands of the industry and helping them to continue delivering great value to their customers.
The benefits of retail automation are huge, from the streamlining of operations to the enhancing of customer experience. Step into the future of retail – increase efficiency, make profits, and be competitive. Try retail automation today to know just how your business can become better.