The retail industry is rapidly changing due to the adaptation of technological advancements, and one of those additions is a digital price tag. Digital price tags have changed the way the traditional retail market used to function by introducing a way to update a number of displays across multiple channels at the same time. With the help of electronic shelf labelling or digital price tags, retailers are not only moving forward in reducing the time and effort of their workers but also improving the customer experience.
A brief introduction to digital price tags
In a typical price tag operational process, there can be hundreds of price changes that can even go up to thousands, depending on the size of the store. Needless to say, this very task requires a huge amount of time and effort to put the new data by replacing the new price with the existing one almost every single day. Here, not only is the labour time associated with the process but also the product costs for printer maintenance, ink cartridges, and paper that need to be considered.
In such a scenario, digital price tags rely on a local network to update the prices when required by using electronic paper for displaying product information on the screen. Electronic shelf prices can instantly update hundreds and thousands of display information across multiple channels simultaneously.
The ability to update the prices is one of the most sustainable assets of digital price tags, making it easier for businesses to provide a better customer experience, especially in physical locations. ESLs also provide retailers with a fast, consistent, and precise price changing operation across several branches and channels.
With that being said, let’s look at some of the advantages and disadvantages of incorporating digital price tags into traditional retail practices.
The pros of using digital price tags
Show more information about the products
ESLs help by showing more information than just the pieces of the products in order to assist the customers in making a purchasing decision. Digital price tags help customers choose between two similar kinds of products by offering them information like nutritional facts, inventory updates, and price per weight. Many ESL systems also enable customers to redirect them to the business app or website by showing QR codes in case of a product shortage in the physical location.
Requires low operational cost
In a business, it all comes down to increasing the ROI, and ESLs can be an excellent way to ensure that in the retail sector. Contrary to popular belief, using paper labels costs more than using electronic price tags since this approach requires printing equipment and ink along with time and effort. ESLs, on the other hand, help to save labour time and material costs by eliminating the need for paper, ink, and printers.
Moreover, ESLs, for this reason, also reduce the overall carbon footprint and, with that, your overall environmental impact.
Update product prices in real-time
Updating product prices manually can be a time-consuming task. Electronic price tags with their ability to implement dynamic pricing enable your business to modify the prices in real-time and maintain integrity despite price fluctuations. Dynamic pricing also helps your business to stay profitable during the price changes in the market and capitalise on-demand. This way, you can take advantage of the technology and lower prices to increase overall sales.
Dynamic pricing can also help customers by offering them competitive prices. This increases customer satisfaction and customer loyalty in the long run.
Offers an omni-channel experience
Businesses can sync their online and physical commerce by incorporating ESL into their retail shops. Customers usually prefer an omni-channel experience that ESLs provide, especially in the digital age. In order to offer that, retailers need to be interactive to serve customers by offering them the option to switch between different interaction methods in different areas like websites, apps, and physical stores.
While these are some of the most obvious perks of using electronic price tags, there are some downsides to employing this technology as well. Let’s take a look.
The cons of using digital price tags
It can be a costly investment
When compared to label printing machines, ESLs can be a costly investment initially. However, despite the upfront cost, using digital price tags can reduce the cost of labelling supplies in the long run. This means prices will be adjusted over time regardless of the initial investment cost.
Replacement costs are more
Although the electronic price tags are encased in hard plastic covers, they might be prone to damage due to the environment of a retail store. Upon damage, these price tags can be expensive to replace and may add additional costs for the business.
Like with any product or technology, there are a few cons to using digital price tags. However, these drawbacks are outshined by the many benefits provided by ESLs, which is another reason why they are rapidly gaining popularity in the retail sector.