by Alan C. Brawn CTS, DSCE, DSDE, DSNE, DCME, DSSP, ISF-C
When we think of digital signage, most of us think of large screen displays. The mantra is “the bigger the better”. We seek a high degree of impact, enhanced experience, and recall… all of which encourage this thinking. In my 40 years in AV and digital signage, I have never heard complaints about the image being too large! Screen sizes have evolved and expanded as thirst for size creates an insatiable appetite. In the (digital) beginning we had 32” LCD flat panel displays, which over the years migrated to 55”, and now 65” or larger has become commonplace. Now throw dvLED into the mix and screen real estate grabs have crossed the chasm into another dimension. Okay, I get it… but this is not (I repeat not) the hottest topic in digital signage. To be sure, expansive displays are the most visible, but it is those tiny non-traditional displays on shelves (aka. electronic shelf labels) that are experiencing the biggest growth, doubling the annual CAGR of AV and digital signage writ large. It is time to see what’s at the root of this and seriously pay attention to electronic shelf labels (ESL) and their impact on the digital signage market.
Fundamentally electronic shelf labels are battery-powered displays that exhibit key information, such as pricing, special offers and promotions, inventory status, product details and more. ESL devices work by sending and receiving information in accordance with the company network through Bluetooth or other wireless connectivity technologies. This allows the shelf labels to be updated in real time, eliminating the requirement for an employee to manually print new paper labels and change the product information on the shelf. Sounds simple… but is far from that in their impact.
In digital signage size will always matter at some levels, and this is true even in small display labels on shelves. Size aside for a moment, it is not the visual impact or experience driven by the display label size but rather the “work” that the ESL performs that make this such an interesting and expanding domain.
As we continue, do not make the mistake of thinking that ESLs are only relevant to retail. In fact, the applications and benefits cross over into many areas. Keep the applications below in mind as we speak to the “work” done by modern ESLs.
- Retail
- Supermarkets, grocery, and convenience stores
- Healthcare and pharmacies
- Warehouse
- Manufacturing and production
- Event centers, museums and libraries
- And more…
No matter what the application, ESLs can perform the following tasks and more:
- Cost savings:
- Improved operational efficiency and productivity
- There is less time spent on repetitive tasks and increased “return on efforts”.
- Accurate pricing:
- ESLs ensure that prices are correct at all times, including during sales. Backend data is synchronized with the ESLs, so that product prices are always accurate. This is managed via a system integration and runs automatically. Compliance is assured. Reporting shows ESL update status and other stats so management can track progress.
- Error Reduction:
- Automated ESLs can assist in reducing the number of errors in the physical display of labels on shelves and a reduction of the discrepancies in the price paid by the consumer.
- Dynamic pricing:
- ESLs allow retailers to adjust prices in real-time based on various factors such as demand, time of day, or the pricing strategies of competitors.
- Margin optimization
- ESLs enable an agile pricing strategy, where prices on one or all products can be changed as frequently as required. This keeps margins consistent against fluctuations in inventory prices and wholesale price changes.
- Real-time promotions:
- ESLs provide access to current promotions and information about products. You can run more promotions with agile pricing. You can even counter competitor promotions within minutes. Tailor promos delivered at the shelf edge based on purchasing data.
- QR codes
- QR codes direct customers to product specs, user guides and product comparisons. QR codes can also enable online functions like ‘Join membership club’ or saving a product to a project or wish list, to review and purchase later.
- Automated shelf management:
- There is more efficient stock status, replenishment, picking, and fulfillment.
- Stock forecasts
- ESLs provide data on stock levels and forecast ordering levels that will be needed in specific periods of time or promotions.
- Warehouse and inventory management
- ESLs have the added benefit of showing the number of items in stock, even if they are not all directly available on shelves.
- Low stock alerts
- Each label can be geolocated within the point of sale, making it easier for employees to restock items.
- Perishability Management
- ESLs can help directly identify the sell-by date of the product in the store. It also enables the product manager to directly apply discounts on products at the end of the consumption period and to automatically change the price.
- Improved omnichannel experience:
- ESLs can provide a seamless customer experience across all sales channels, including online, mobile, and physical stores, ensuring consistent branding and allowing customers to move freely between each channel without disruption to their shopping journey.
In retail and B2C sales it is all about customer experience. A happy customer is a loyal and repeat customer. Electronic shelf labels can provide customers with more than just pricing information. They can display additional product details, QR codes, or promotional offers, contributing to a richer shopping experience. Accurate, clear, and real-time pricing information through electronic shelf labels enhances transparency and trust, which significantly improves the overall customer experience.
Electronic shelf labelling solutions signify a significant leap forward for retail and other industries. They offer a transformative tool that brings substantial benefits for customers and the companies alike. Those embracing ESLs are not just modernizing their operations; they’re optimizing their price management and stock level strategies, ensuring accuracy, fostering efficiency, and ultimately improving the shopping experience for their customers. As one subject matter expert opined, “The implementation of electronic labels is more than an investment in technology—it’s an investment in the future of retail.”
ESLs may be a bit of a paradigm shift for some diverting attention away from a big screen mentality, but those tiny (relatively speaking) electronic shelf labels perform “work” that is desperately needed by retailers and others who deal with stock levels, pricing, promotions, and tasks that can be automated. These applications play to the strengths of those in the digital signage design and integration communities. Digital signage experts understand the key elements and follow the process of a needs assessment, uncovering and amplifying problems to be addressed, and then providing a manageable system approach that solves problems and provides tangible and measurable value that cannot be underestimated. ESL defines ROI! After this I promise you will never look at self-labels the same way again.
