The Internet of Things in Retail: Redefining Brick and Mortar Stores
intelligence processed at the edge to provide real time personalized offers and recommendations
to in store customers.
4.3
Mashup of the Physical and Digital World
The path to purchase in a multichannel environment is complex. As mentioned earlier, in-store
customer journey maps, with dwell times, help understand customer behavior. Moreover, sensor
data which reveal customer priorities and product preferences can be linked with perceptions
and online sentiments. For example, combining the first impression of the customer during a
new product introduction with feedback on social media, can help predict product uptake. The
predictions are then used against actual results to introduce machine learning and complex
modeling of the real world in a digital environment. Overtime, the digital world will allow for
fast, accurate and low cost simulation of decision making and changes reducing risk, time and
resources.
4.4
Data as a Service
Sensor data gathered from various devices can be analyzed and reused for different contexts
beyond the store operations and customer experience, thus opening up a new stream of
opportunities for retailers. For example, data captured by sensors may also be of interest to other
industries such as Consumer Packaged Goods (CPG) manufacturers for New Product
Development and Introduction (NPDI). CPG manufacturers promoting a new product in-store
would like to understand a customer’s first impression on a product trial. In-store sensors and
video analytics can capture facial expressions and also determine their demographics, giving CPG
manufacturers firsthand, unbiased feedback on how their product has been perceived by
customers. High value products such as jackets, luxury handbags and jewelry can also be
embedded with sensors. In case of stolen or misplaced items, sensor data can help owners or
insurance companies track the items. Thus with these new sources of data, organizations often
find unanticipated value in the information for other purposes or stakeholders. In the case of
item theft or loss, that insight can lead to preventative or public service information, on how to
reduce crime and theft in a broader context and audience.
5.
ALIGNING IIOT WITH THE RETAIL VISION
With retailers under constant pressure to improve customer service and margins, they are
realizing the importance of investing in the IIoT-R. According to a report published by Juniper
Research, retailers seeking to capitalize on IoT technologies will spend an estimated $2.5 billion
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June 2016