Electronic Shelf Labels: Should you Consider One for Your Business

By Dhwani Madan | Business

Technology has changed many things in the retail industry. In addition to how we advertise and market our products to our target customers, it has also changed how we display product pricing in our stores.

A few years ago, shoppers had to stare at paper or plastic price tags that displayed static price figures to determine the price of a product. However, the introduction of a digitalized pricing system has called for the extinction of this error-prone and outdated labeling system.

Even as the traditional system is starting to phase out, should you implement the new label system in your retail store? Here are a few reasons why you should.’

What is an Electronic Shelf Label?

Imagine electronic shelf labels as digital versions of manual or paper labels. Like the traditional labels used in stores today, electronic shelf labels are designed to display product prices. Typically, these digital labels are placed on the front edge of retail shelving, so they are visible to customers looking to purchase products.

Once you attach an electronic shelf label to your shelves, it will be directly connected to your store’s ERP and POS to cut down pricing management labor costs, reduce pricing errors, and enable flexible pricing.

Here are a few reasons why you should implement electronic shelf labels in your business.

1. Correct pricing across channels

Gone are the days when shopping was limited to physical stores. Today, people shop online. Some even go further to cross-check the price of an item online when shopping in a physical store.

So imagine a customer walks into your store and sees the $50 price tag on a product only to check it online and discover a lower price. Do you think such a customer will trust you after the incident? Even if it was a mistake, you would still suffer the consequences.

Hence, this calls for the use of an electronic labeling system. Using this system allows you to align the product pricing in your store with online prices. When the two prices are equal, customers won’t be disappointed. In fact, they’ll trust you more.

2. Shelf edge influence

The marketing ads you put up are good sales influencers. However, they are nowhere near the shelf edge. The self-edge remains one of the best sales influencers. This is where many sales are made so you want to ensure that the figures on the price tags are correct. And to do that, you may want to switch from traditional price tags to a more flexible and digitized option. But why?

You see, a paper price tag is prone to human error. In fact, creating the tags can be a slow and hectic process. And you may have to go through the same stress if the prices change. However, with SES-imagotag electronic shelf labels, you won’t have to endure such stress. You can make the necessary changes easily at any time and any day. You can also enable instant promotions, monitor what’s working and what’s not, etc.

3. It’s pocket friendly.

As a retail business owner, it’s common to consider price when implementing a new initiative in your business.

Are electronic shelf labels expensive? While they are definitely not as cheap as paper labels, they aren’t expensive enough to rip holes in your pockets.

They are pocket-friendly, and that’s not even the best part. The best part about this tech is that it is easy to install and configure. You don’t need the help of a tech guru, nor do you need to watch a 20-minute-long YouTube video to get it up and running.

4. Boost customer satisfaction and experience

Marketing experts argue that the best way to retain a customer or build customer loyalty is by increasing customer satisfaction and experience. And what better way to do that than implementing electronic shelf labels in your store?

With these labels affixed to various shelves, customers can see information about the product they intend to buy, such as its price, origin, etc. Plus, identifying promotional items becomes easy. All these can increase customer satisfaction and in-store experience.

5. Improves your omnichannel experience

Omnichannel is indeed the future of the retail industry. In fact, based on statistics by Planet Retail, 56% of customers believe that tech plays a key role in their shopping experiences. With that in mind, how does a tech like an electronic shelf label help you build a successful omnichannel experience?

It’s quite simple. You see, electronic shelf labels help you communicate with your customers in ways that weren’t possible. This tech helps

  • Display reviews of products to give shoppers insights into what previous customers say about the product
  • Display stock levels so customers know if the product is in stock or limited.
  • Enable simple ordering with QR codes
  • Display online prices of other stores so consumers can trust you when you say your price is the best

Of course, these are just a few of the perks that come with using ESLs—there are more.

6. Traceability

Electronic labeling allows you to trace your products, whether for managing rented items, re-commerce, or rental. This tech offers customers access to all the important details they need regarding a product. These details include:

  • Origin of item
  • Rental rates and conditions
  • Perishability, “Best before” date, or indication
  • Information on consignment
  • Used or reconditioned item
  • Final sale indication
  • Information on weight, size, and use of the product

Traceability display offers customers the necessary details required to select their preferred product, thus making them more satisfied. In addition to satisfying customers, a traceability display can also lead to greater availability of in-store employees for other related problems or tasks.

7. Perishability management

Expiration dates are one of the most important details customers look out for before making a purchase. However, sometimes, it can be hard to determine the expiring dates of a product. With electronic displays, this common issue can be solved. This tech helps customers note the sell-by date of the product in the store.

It also helps the store owner directly apply discounts on products near the consumption period and automatically alter the price. This allows, for example, the store owner to decide to automate the display of 60% discounts for products that are 72 hours away from the expiring date. The display and automation of expiration dates, prices and discounts can help store managers better manage their inventory, thus increasing customer satisfaction.

8. Monitors customer movements and patterns

Want to track customer movements and patterns to understand how they shop? Easy! Simply install movement sensors on each electronic price label. The sensors can monitor customer movement and traffic around your store, offering you a detailed heat map of your retail space.

You can study the heat map to understand your in-store traffic. This information can help you with product placement, promotional areas and displays, aisle layout, etc.

In addition, the heat map allows you to determine how many shoppers passed by a particular product but failed to make a purchase. If you have a slow-moving product in an area with significant traffic, consider switching it or altering the price.

Conclusion

Even as you consider other technological initiatives for your retail store, it;’s best to consider implementing electronic shelf labels. These labels make your work easier by reducing the time and effort spent creating traditional price tags, and they also help increase customers’ in-store experience.