News
The importance of technology in retail is ever-increasing. The retail industry seeks to stay aligned with cost and profit margin goals in an all-or-nothing scenario where managers strive to keep costs low and profits high. Considering the level of competition in the industry, this is difficult to maintain. Every retailer is always looking for new ways to attract more customers while keeping their costs in check and under control. Technology is one of the ways in which these goals can be achieved. Ever-changing consumer expectations are forcing retailers to digitally transform their businesses. Customer experience, inventory and supply chain management, among others, are some of the areas where technology is being used today to improve retail. Considering the race in this industry for the highest number of customers, the use of technology actually becomes inevitable to stay ahead. The importance of technology in retail is therefore undeniable, making it necessary to adapt to the use of new tools that best serve customers who seek maximum convenience and efficiency when shopping. Just like customer experience and supply chain management, there are other aspects of retail where technology can be used to increase store productivity and revenue. Let's learn about some of them below. ALSO READ: • Understand the best way to count products automatically and quickly
• What is quality inspection?
Speak with one of our specialists and discover how Pix Force can transform your business
The importance of technology in retail
Checkout points
The traditional location where goods are sold to consumers is the checkout line. However, studies show that in long lines, one in ten customers abandons the queue without finalizing their purchase. Long lines can also irritate customers, which reduces their willingness to return to the store. The use of technology in this area can contribute to customer retention. For example, with the help of handheld computers, scanners, and printers with integrated credit card readers, the point of sale can become mobile, diluting the need to go to the checkout point and wait in lines. During peak sales seasons, for instance, these mobile point-of-sale terminals can be distributed at various spots throughout the store, allowing customers to quickly complete their purchases at any of them.
Contactless payment
Contactless payment is one of the most beneficial technological advancements regarding payments, as they speed up the time of purchase in retail. Contactless payment systems are basically credit or debit cards, or even smartphones and tablets, that use technologies designed to make secure payments. They have an integrated chip and an antenna that allows users to "wave" the card over the reader, thus making their payment. There is no need to sign anything, nor the use of a password, which reduces the need for cash or the risk of the customer forgetting the password, making transactions faster.
Reduction in inventory costs
An inventory control system is a basic tool in retail management today. It allows us to know what products we have, and how many of them we have received and sold. When installed, these systems automatically update the database as products are moved from one location to another - from the warehouse to the store, for example. These systems also provide various instant data analysis tools, which serve to track your business records. When online, all aspects of store performance are at your fingertips. It is possible to select and view products according to cost, price, margins, date of receipt, first or last date of sale, and barcodes. In minutes, the retailer can create new categories with hundreds of subcategories of style, size, and color.
Customer service
Customer service is one of the main factors when it comes to the importance of technology in retail, as it is one of the places where most problems happen. In retail, large stores need to have a broad and fast capacity to provide information to customers. That's where technology comes in. Self-help kiosks can be placed in stores, where consumers can access information about products, the store, and inventory themselves (both for the store they are in and for others in the same chain that are nearby), directory (which indicates where the product is), and the like. Many retailers use these kiosks instead of additional sales associates, which helps reduce overall costs. Some of the kiosks also have "call for help" buttons, which alert nearby salespeople. These kiosks allow consumers to answer their own questions without having to search for them throughout the store with salespeople, which improves their experience, increasing their retention and likelihood of returning to the establishment.
Conclusion
The importance of technology in retail, in a few points, can be understood as something that brings several benefits. And it goes far beyond what was mentioned above, as it also includes e-commerce stores (online trade), consumer feedback, inventory control and its automation, recording and monitoring of cost and profit margins, among other sectors. Today's technology is essential in tasks that require speed and high data processing, something that is dominant in retail. Its application, therefore, is important to remain not only relevant in the market, but also competitive among industries that already understand this concept and have already begun to modernize. Finally, Pix Force through artificial intelligence can help the retail sector to streamline its business practice. Want to know more? Get in touch.
Fabio Caraça
Fábio Caraça is the Chief Growth Officer at Pix Force. He leads Pix Force's transformation into a scalable SaaS operation, combining strategic vision, culture, and high-impact execution.
