The benefits of RFID for improving the customer experience

The retail sector has made omnichannelity a central concern, in order to offer a unified, tailor-made customer experience. With this in mind, RFID technology is emerging as a beneficial solution for the entire distribution chain. Discover the benefits of RFID for greater efficiency and improved customer experience.

What is RFID?

RFID or "Radio Frequency Identification" is a data storage technology that can be retrieved remotely. The medium consists of a radio tag glued to a product and equipped with an electronic chip and antenna, activated by an electromagnetic energy transfer system using an RFID transmitter.

There are different types of chip (low-frequency [125 kHz], high-frequency [13.56 MHz] and ultra-high-frequency [UHF]), differentiated by the reading distance they allow. The higher the frequency, the greater the reading distance and the more powerful the chip. The chips are available in three distinct technologies:

• Active chips ;
• Semi-active chips;
• Passive chips.

What are the advantages of RFID?

RFID technology is used as an inventory management, communication, access control or theft protection system in the retail sector. It brings many benefits, including optimized supply chain management, directly affecting point-of-sale efficiency and customer satisfaction.

Better inventory management

In stores and warehouses with stocks, RFID chips considerably improve logistics management. They simplify and speed up operations, with a very high level of reliability. Using tablets, it is possible to retrieve data from several tags simultaneously, without them being directly visible. RFID chips provide greater visibility of stock levels in real time, to combat stock shortages and ultimately increase customer satisfaction. Thanks to RFID technology, flows are recorded by the system, from the arrival of a product at the warehouse to its sale. The technology optimizes inventory and supply management, maximizing efficiency and boosting sales.

Even more efficient services

In order to offer a customer experience that reduces the friction of fitting, some retailers are using RFID technology in connected fitting rooms. The fitting room mirror is equipped with sensors capable of determining a person's physical appearance. Each item brought into the booth is detected thanks to RFID chips, then augmented reality superimposes virtual garments onto those on the user's body. If the item doesn't fit, a consultant can be notified so that the right size or color can be brought in. The fitting room also informs visitors of a product's stock status. If a product is out of stock, it suggests alternative solutions and increases the average shopping basket by suggesting complete looks. With Cenareo'sdigital signage solution forretail, you can offer a resolutely innovative customer experience. With digital signage coupled with interactive kiosks and virtual fitting rooms, points of sale become places for positive, unique shopping experiences. Easily create an impactful, differentiating and fully interactive brand universe to attract and retain consumers, and boost your sales performance.

Smoother shopping experiences

RFID tags have a much greater memory capacity than barcodes. They can not only recognize a product, but also obtain all its characteristics. In stores, RFID chips on products can communicate with consumers via their cell phones, providing information on their manufacturing conditions or advice on how to wear or assemble the pieces in a collection. RFID tags also optimize checkout times. They contain the customer's name, the date and price of purchase, and the product identification number. Product identification tables and payment terminals facilitate payment and returns.

Examples of the benefits of RFID in retail

The use of RFID technology in the retail sector is spreading rapidly, with the successful examples of Decathlon and Zara, to combat theft, manage inventory to prevent the risk of out-of-stock situations, and improve the overall shopping experience for consumers in-store.

Decathlon

Decathlon pioneered the use of RFID in its stores in France. Since 2014, it has been improving the customer experience at the checkout, offering considerable time savings to its consumers. Each product is fitted with an RFID chip so that it can be detected once placed in a bin intended for checkout. Payment is then handled automatically, in just a few seconds. In addition to saving time for the customer, this technology enables the retailer to regulate its stocks and manage restocking in real time. In this way, Decathlon can trace all its products from shipment from its factories to inventory in its warehouses and points of sale, where the RFID chip acts as an anti-theft device.

Zara

Fashion retailer Zara uses RFID tags in all its stores to streamline its operations. The brand is thus able to notify its warehouses of items to be restocked, for every purchase made in-store. The brand orders restocking as closely as possible to consumer demand, with the aim of avoiding unnecessary purchases and losses. For sales staff at the point of sale, technology has considerably improved their working conditions with a view to increasing customer satisfaction. Each salesperson can check the availability of a reference via a tablet, so as to respond as quickly as possible to customer requests.

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