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Increasing sales at retail stores with RFID-based interactive systems

The world of retail is rapidly changing. Shoppers are becoming technologically-savvier, increasingly sophisticated, fashion conscious,value-seeking, and less loyal.
 
In this environment, customer retention is becoming increasingly difficult as shoppers are willing to shop at a wide variety of stores and across a broad range of retailing formats.
 
To face these market pressures, retailers are focusing on improving the customers experience. After all, a customer's experience strongly influences buying frequency, buying behavior, world-of-mouth communication, and overall satisfaction.
 
However, the shopping experience at retail stores has hardly changed in the last 15 years. As a result, retailers lose many opportunities for selling more to customers in their stores. 
 

RFID has incredible ability to improve the customer shopping experience by enabling real-time customer-product interaction in stores. Interactive product recommenders, interactive fitting rooms and smart mirrors based on RFID improve customer engagement and increase cross-sell opportunities by showing shoppers matching products and information relevant to the products they are holding. 

RFID interactive systems bring all the advantages of online stores to physical stores. Once an item is detected in a certain context, it crosses over into virtual space. There, the shopper can do pretty much anything with that item that can be done on a website: show the complete look, provide recommendations,  show different colours, sizes and styles, etc.

Researchers have found out that using RFID-based interactive systems can increase the sales of retail stores by even 30%. The article "Intelligent product cross-selling system with RFID technology for retailing", published in the International Journal of Production Economics, shows the impact on sales of such systems. In the first few weeks, sales increase 10%, but once store staff encourage shoppers to use these systems, the sales increase can reach 30%.

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According to Kurt Salmon, a management consulting firm, RFID-based interactive systems can improve conversion rates by 40% to 60% and increase cross-sell opportunities by 15% to 25%.

We are entering a new era in retailing, the era of Customer-Centric Real-Time Retailing, and RFID interactive systems will play a key role. Stores of the future will include such systems to improve the customer shopping experience, to increase sales and to differentiate their offering.

Click here to see Keonn's interactive RFID systems for retail.