5 Reasons Why You Should Use Electronic Shelf Labeling SysteM
Over the years, the retail sector has embraced automation in a number of different ways, culminating in the adoption of electronic shelf labels across appliance stores, convenience stores, department stores, supermarkets, and other retail outlets around the world. Originating in the early 90s, the first batch of ESLs was limited in their offering. However, modern electronic shelf labels can display a lot more information other than the price of the items and can integrate with other modern retail devices.
Electronic shelf labels create an omnichannel synchronization network for a retailer. Most of these units use low-power central processing units and wireless connections to operate. ESLs are made up of three main components – label management software, a communication station, and a terminal display. ESL systems also have a database where workers can see everything at a glance and control them. This makes managing operations across different channels much easier to manage.
For retail owners still in two minds about investing in this powerful technology, we’ve decided to introduce 5 reasons why they should invest in ESLs.
Reasons to use electronic shelf labels by retailers
The use of electronic shelf labels by retailers has allowed them to reduce labor requirements by a great degree and introduce dynamic pricing solutions.
1.Providing more information
Modern ESLs can display more information on each label other than just the price. They can include facts such as additional product information, nutritional facts, size, price per weight, and stock remaining. Retailers can use this to add additional information to each item, or even print a QR that can be used to access even more information via the store’s app or website.
2.Enhancing omnichannel presence
Retailers that have a physical and digital presence should provide an omnichannel experience to customers. ESLs can help in building up an omnichannel presence by letting retailers interact with their customers in a number of ways such as,
Each electronic price label can be fitted with a movement sensor relatively cheaply. This allows retailers to accurately track customer movement and traffic around a store, providing them with a virtual heat map of the retail space. Marketers can gain valuable information from in-store traffic details, which will allow them to focus on product placement, promotional areas and displays, aisle layout, and other aspects. It also reveals the number of people who passed by a certain product without making a purchase. It can help in identifying slow-moving products in a high-traffic area, which can then be addressed.
4.Dynamic pricing
Dynamic pricing is one of the biggest benefits offered by ESLs. Dynamic pricing refers to the ability to set flexible prices, based on current market demands via an electronic medium. This is not possible in traditional systems which use paper labels. Dynamic pricing can help retailers to keep up with the latest market trends and pricing by competitors. This is extremely useful for bolstering sales in times of slow product movements. By using dynamic pricing, a retailer can also raise product prices to maximize margins when an opportunity arises.
5.Time-saving and ROI
Time management, when it comes to employee time, is one of the greatest challenges of point-of-sale modernization. Retailers started facing issues due to the emergence of new sales models such as recommerce, consignment, or rental. The time required for handling and labeling started eating into the profits of many retailers. Longer management times can also affect efficiency, resulting in employees devoting more time to low-value-added tasks instead of catering to customers.
Luckily, integrating a POS management system with an electronic shelf labeling system can significantly improve a retailer’s ROI. ESLs also help brick-and-mortar stores to fully automate their pricing policies. This greatly reduces the risk of pricing errors to 0 while increasing control and flexibility over price changes and promotions. What used to take days and even weeks in some cases in megastores can be achieved in mere minutes with the help of ESLs.
Final Thoughts
An electronic labeling system can assist retailers in reducing the number of errors in the physical display of labels. It can also help in automatically updating prices according to the requirements of the market. Retailers should thus, not hesitate to install electronic shelf labels at their outlets, as it is a proven tool to increase sales and have more customers.
Electronic shelf labels create an omnichannel synchronization network for a retailer. Most of these units use low-power central processing units and wireless connections to operate. ESLs are made up of three main components – label management software, a communication station, and a terminal display. ESL systems also have a database where workers can see everything at a glance and control them. This makes managing operations across different channels much easier to manage.
For retail owners still in two minds about investing in this powerful technology, we’ve decided to introduce 5 reasons why they should invest in ESLs.
Reasons to use electronic shelf labels by retailers
The use of electronic shelf labels by retailers has allowed them to reduce labor requirements by a great degree and introduce dynamic pricing solutions.
1.Providing more information
Modern ESLs can display more information on each label other than just the price. They can include facts such as additional product information, nutritional facts, size, price per weight, and stock remaining. Retailers can use this to add additional information to each item, or even print a QR that can be used to access even more information via the store’s app or website.
2.Enhancing omnichannel presence
Retailers that have a physical and digital presence should provide an omnichannel experience to customers. ESLs can help in building up an omnichannel presence by letting retailers interact with their customers in a number of ways such as,
- Displaying reviews of products, which lets customers, understand what others like or dislike about a particular product.
- Enabling QR code ordering, which allows customers to order from the retailer’s online store if their physical shelf runs out of stock?
- Displaying online prices of competing retailers, which adds credibility to the retailer.
- Displaying stock levels, which inform customers if the supply of a particular item is limited.
Each electronic price label can be fitted with a movement sensor relatively cheaply. This allows retailers to accurately track customer movement and traffic around a store, providing them with a virtual heat map of the retail space. Marketers can gain valuable information from in-store traffic details, which will allow them to focus on product placement, promotional areas and displays, aisle layout, and other aspects. It also reveals the number of people who passed by a certain product without making a purchase. It can help in identifying slow-moving products in a high-traffic area, which can then be addressed.
4.Dynamic pricing
Dynamic pricing is one of the biggest benefits offered by ESLs. Dynamic pricing refers to the ability to set flexible prices, based on current market demands via an electronic medium. This is not possible in traditional systems which use paper labels. Dynamic pricing can help retailers to keep up with the latest market trends and pricing by competitors. This is extremely useful for bolstering sales in times of slow product movements. By using dynamic pricing, a retailer can also raise product prices to maximize margins when an opportunity arises.
5.Time-saving and ROI
Time management, when it comes to employee time, is one of the greatest challenges of point-of-sale modernization. Retailers started facing issues due to the emergence of new sales models such as recommerce, consignment, or rental. The time required for handling and labeling started eating into the profits of many retailers. Longer management times can also affect efficiency, resulting in employees devoting more time to low-value-added tasks instead of catering to customers.
Luckily, integrating a POS management system with an electronic shelf labeling system can significantly improve a retailer’s ROI. ESLs also help brick-and-mortar stores to fully automate their pricing policies. This greatly reduces the risk of pricing errors to 0 while increasing control and flexibility over price changes and promotions. What used to take days and even weeks in some cases in megastores can be achieved in mere minutes with the help of ESLs.
Final Thoughts
An electronic labeling system can assist retailers in reducing the number of errors in the physical display of labels. It can also help in automatically updating prices according to the requirements of the market. Retailers should thus, not hesitate to install electronic shelf labels at their outlets, as it is a proven tool to increase sales and have more customers.
