Retailers have used artificial intelligence (AI) and RFID technologies separately to improve operations and experiences for a while. Now, some decision-makers have found opportunities to use both, bringing measurable benefits to everyone involved.
AI and RFID applications can increase customer personalization, helping them feel their favorite retailers understand and cater to their needs.
Many shoppers intend to buy specific things at stores, feeling inspired by advertisements they saw or instances of celebrities they follow wearing the desired items on the red carpet. However, because they may be short on time or not in the mood to browse, they may anticipate that they can go directly to where the store sells them, choose the size or variety, and pay for the items within minutes.
Improving Inventory Accuracy
AI and RFID technologies can support such circumstances. Old Navy recently began using a system that combines RFID, AI, and data analytics to show workers the exact locations and quantities of specific items. Those insights allow them to direct shoppers to the products they need while ensuring the amounts on the shelves meet expected demand.
The solution selected by Old Navy’s leaders enables granular tracking to monitor inventory movement at the shelf level. Retailers can use that information to optimize their floor layouts and item locations, creating specific displays to call attention to the most in-demand or fastest-selling goods. Then, even if people come in for something else, such strategies to highlight products could encourage them to buy more than planned.
One study found that 80 percent of respondents felt positive experiences were as important as a company’s offerings. This example shows carefully chosen technologies can help browsers find what they need and feel accommodated, increasing the chances they will return soon and recommend the retailer.
Enabling Seamless Shopping
Consumers do not necessarily want to interact with store associates on their shopping trips. Perhaps they just want to get in and out as soon as possible or are trying to grab something specific within a busy day, such as by going into an airport shop before a flight. Those situations and others like them are precisely why Amazon’s decision to open physical stores has included expanding the usage of its Just Walk Out technologies.
As the name suggests, people can shop there by grabbing what they need and leaving without waiting in line, having items scanned, and paying whatever amount the cashier mentions. Conversely, Just Walk Out stores have sensors, AI, computer vision, and other technologies that track what someone takes and bill them later.
After the initial success of Just Walk Out technologies, Amazon launched an additional solution that combines those innovations with RFID. It allows people to buy hats, shoes, shirts and other softline items by tapping their payment cards or holding their palms over readers while using the stores’ exit gates. They can even wear their newly purchased clothes out of the store. A pilot of this technology occurred at the Climate Pledge Arena, allowing fans to purchase items while attending ice hockey games.
They loved that option because it allowed them to get branded gear to support the local team without taking too much time away from the action. That initial positive feedback caused leaders to launch the technology at a second sports arena soon afterward.
Reducing Friction While Maintaining Security
A downside of many theft-deterrent systems is they make shopping more cumbersome for all or most shoppers. Retailers must protect their bottom lines from the substantial minority of visitors who attempt to steal, but most people find receipt checks and locked cases at least somewhat frustrating. They can become time-consuming and frustrating for those who have no intention of theft.
Fortunately, RFID tags are much less intrusive, even as they provide valuable information. The accessories can reveal the type and quantity of items taken and which door someone used when dashing from the scene. Those details assist law enforcement officers with catching thieves and provide affected retailers with useful and reliable information for insurance claims or other documentation. Additionally, this approach is effective without making shoppers feel retailers are overzealous and intrusive with their theft-prevention attempts.
Some tech-centered executives add AI to their efforts, creating layers of protection for their stores’ stock. Since RFID tags give location information and team members often embed them into clothing and other merchandise, these products alert loss-prevention officers to potential thefts.
However, some stores also have AI-enabled cameras installed near the checkouts. They can detect sneakier attempts to steal, such as if someone intentionally scans a lower-priced item at a self-checkout station to pay less than they should.
RFID and AI Make Shopping More Enjoyable
Retailers with physical stores must explore numerous ways to make shopping as pleasant and efficient for consumers as possible. People are likelier to give shops their repeat business if those outlets have the inventory they want while offering convenience and a great atmosphere. RFID and AI provide those benefits and others when retail professionals determine the most appropriate use cases.