Five Benefits of Electronic shelf labels

The industry's most significant innovation in recent years has been pricer digital labels. The "electronic" models of price tags utilize e-ink to display a price and are connected to a database on computers. This labelling technology makes the process of changing prices in stores as simple as typing in a new price in the software and clicking "send".

Retailers can reap many benefits from electronic price tags. However, the most significant benefits of using electronic price tags for retail are the ability to provide real-time, dynamic pricing in stores and to create an omnichannel experience to enhance customer loyalty.

Are you interested in finding out more about these price tags' benefits? 

Here are 5 reasons brick and mortar retailers should think about investing in shelf holders for labels that retail stores sell.

1. Pricing across all channels is correct

The internet has changed how people shop, and it's common for consumers to price check an item while they're standing in a store. Shoppers lose trust in a company if the prices displayed in stores don't correspond with the price displayed online, and unfortunately this is the situation they often confront.

An electric labelling system, however, completely change this interaction. With a standardised pricing system, your customers won't be disappointed by price differences anymore. Instead, your company can immediately reflect any online price change in-store. You can find more information on how do electronic labels work on our site.

2. Shelf edge influences

The edge of your shelf is an important selling point. The majority of purchases are made right at this point, therefore you must ensure that your pricing information is accurate.

A electronic shelf tags could be vulnerable to human errors. This is a lengthy process , and prices could have changed online by the time you're done redoing the label. This is especially relevant when pricing electronics in order to compete with offline and online rivals.

With ESLs though, these changes are easy to implement, allowing you to make more sales from the shelf edge. ESLs allow you to react quickly to price changes, make instant promotions, monitor which promotions are performing, and protect margins for stocks that are time-sensitive. In just a few clicks, you can create deals based on where the customer is located within the shop.

3. Enhance your omnichannel experience

It's no secret that the omnichannel is the new way to shop. Planet Retail found that 56 percent of consumers believe that technology improves the shopping experience.

4. It's not as expensive as you imagine.

Here's the thing: ESLs do require an initial investment. It's normal to be hesitant about using them.

But with the electronic shelf tags being the last and most powerful point of influence on sales, the capability to determine what a buyer is able to see at the touch of the button is invaluable.

5. Payback is quick

ESLs are highly profitable and pay back. The company's sales in-store generally increase by 6 percent, with a typical margin of between 2% and 3%.

It is easy to understand the advantages of changing shelf tags. Display Data's customer was a major European retailer with over 800 stores and has the ability to repay their investment within 16 months. They are also expecting an ROI of 170% within the next two years. The retailer anticipates that their ROI will increase by 400% if they expand to five years.

Conclusion

Making an innovative experience for omnichannel shoppers is all about connecting stores and online. The edge of the shelf is no instance of this. Retailers need to be mindful of this crucial moment in the omnichannel buyer's journey and realize that electronic shelf labeling is one of the most effective ways to link both domains.