IoT in retail: 10 use cases, benefits, and challenges

Once deployed, connected devices and sensors can aggregate and process massive amounts of customer data, which can further help to personalize marketing campaigns. For example, depending on their business goals, retailers can use IoT to deliver more targeted ads, offer personalized programs and discounts, or tailor content to specific customer segments.

Inaccurate inventory tracking can cause overstocking, stockouts, and shrinkage, so it remains a persistent problem for retailers. However, IoT in retail can automate inventory visibility, solving these and other inventory management issues for good.

Implementing smart inventory management systems encompassing RFID tags, store shelf sensors, beacons, digital price tags, and video monitoring coupled with image analysis can enhance procurement planning at every level of the supply chain. When the company runs out of a particular item, the system can automatically reorder the necessary items based on IoT data analytics.

IoT adoption allows a retailer to make business more cost-effective and profitable via intelligent energy consumption and distribution. For example, retailers can deploy smart lighting networks that automatically turn off when no customers are in the store or work at total capacity during peak hours.

In addition, such an intelligent network can provide data on energy usage over weeks, months, and even years. It enables a retailer to optimize energy consumption and allocation in the short and long run.

Thanks to advanced connectivity provided by IoT technology, delivery tracking is no longer a problem for retailers and customers. On the one hand, IoT allows retailers to track products to their final destination, ensuring every customer receives their order on time. In turn, customers can check the status of their orders even in real time, leading to increased satisfaction and loyalty.

A retailer can monitor a particular product even after it has been delivered to a customer to evaluate its usability better. First, the retailer can alert customers when their products need maintenance. In addition, the retailer can draw insights from usage monitoring that are worth considering when creating new product lines.

The use of IoT sensors enables a retailer to track the product's entire journey, from the production site and warehouse to a customer's home, using GPS and RFID tags. With this information, logistics managers can identify delays and bottlenecks to optimize the supply chain, making it more robust and cost-effective.

Managing the supply chain of sensitive and perishable goods such as food, medicines, or biological materials is complex and demanding. IoT technology makes it possible to monitor such indicators as temperature, humidity, and pressure in real time, thus helping ensure product safety and quality.