One of the first questions we’re asked by prospective customers is: “When will we see ROI from Electronic Shelf Labels (ESLs).”
Of course, every retailer is different – with varying numbers of stores, staff and commercial objectives to name but a few. For example, when it comes to grocery stores, some customers are interested in deploying ESLs in aisles that stock perishable goods, while others are looking at store wide roll outs. But one thing I can say for sure is that ROI can be achieved over the short-term. And once you’ve recovered the initial investment, benefits go on accruing.
Cost savings come from 4 main areas:
- Staff time: Your staff will no longer need to manually change paper labels – changes that often happen out of hours (requiring overtime)
- Greater accuracy: Discrepancies between prices / offers on labels and what shows at the check-out result in queues at customer service – complaints that require time (and money) to process
- Improved operations: ESLs can assist your teams in accelerating key tasks such as inventory management and merchandising
- Materials costs: Whether you print labels in-house or use a partner you’ll have a big saving over the long-term in materials costs
Our infographic speaks more to ROI. It comes from a major European retailer that saw its initial investment pay off in under 16 months and is predicting ROI of 400% in 5 years. One of its biggest gains is a saving of $4,400,000 from removing the need to manually amend incorrect labels.
THE LABELS THAT KEEP ON GIVING
Remember too that ESLs don’t just save money, they help you make it. For example, you can change any number of labels, anywhere, in seconds and use them to flag promotions, and personalise offers to customers based on their preferences, location in-store, and much more.