Better Omnichannel Experiences with RFID Tags

Omnichannel experiences are no longer a luxury for today’s consumers – they are expected! Customers want the freedom to shop whenever they want. In order to provide service, retailers need optimal visibility of their inventory. RFID tags (Radio Frequency Identification) provide this functionality. Items tagged with this technology can be identified at any time via radio waves. With this improved visibility, campanies can more easily track their inventory and offer a better omnichannel experience to their customers.

The world is changing – retailers are keeping pace
A few years ago, the use of omnichannel or RFID technology may have been uncharted territory for some retailers, but now it is an issue that needs to be addressed. During the pandemic, the share of sales made through digital channels more than doubled. Customers decide where they want to shop – and retailers need to be able to meet those needs, regardless of the channel.

Real-time visibility is a prerequisite
Real-time visibility of all activities is a prerequisite. In the past, retailers typically carried out a full inventory check once or twice a year. Over time, it has become clear that this method has a very high potential for error. Today, retailers can no longer tolerate inaccuracies of more than 50%. Consumers take every opportunity to choose their sources of supply. If an individual retailer cannot provide reliable information on stock and availability at all times, they will lose the order and a competitor will be in business. One step towards solving this problem is the use of RFID tags. Increasing inventory accuracy inevitably increases profit margins.

RFID tags not only improve visibility, but also ROI
By tagging boxes with RFID technology, retailers can quickly determine when certain items are out of stock and remove them from the list of available products. The correct use of RFID tags enables companies to establish effective omnichannel activities. Examples include click & collect, reserve & collect, mobile app purchases and home deliveries. The use of RFID tags is not a new concept. The first items were tagged with the technology in the retail sector more than a decade ago. However, with the increasing popularity of omnichannel experiences, it has become more commonplace. The falling cost of RFID tags has also contributed to their use by more and more companies over time.

RFID tags simplify omnichannel processes
The benefits are clear: by using RFID tags, retailers can track inventory, eliminate manual scanning and implement an item-level tagging system to further ensure inventory accuracy. Most importantly, RFID greatly simplifies omnichannel processes. In fact, statistics show that nearly seven out of ten retailers who have adopted the technology offer more than five types of omnichannel services to their customers, increasing their ROI by up to 20%.

Conclusion
As the world continues to change in the wake of the pandemic, RFID technology has a crucial role to play in enabling omnichannel experiences, reducing costs and increasing ROI.

Source: K3