Is There a Return on Investment (ROI) for RAIN RFID in Retail?
Retailers are implementing RAIN RFID to increase sales, streamline omnichannel operations, provide customers with new ways of engaging with their products, and gain valuable insight into product interactions. But understanding the real impact on the retail bottom line is a complex calculation.
To help, Impinj has created a ROI calculator tool that calculates the ROI of implementing RFID. The tool measures all of the areas that using RFID can impact:
- Increasing revenue through improved conversion of shoppers in stores and online
- Increasing the average per-item selling price due to better allocation, reduced markdowns, and reduced shrinkage.
- Cutting costs through labor savings by reducing the time it takes for staff to hand-count inventory.
- Reducing capital expenses tied up in excess inventory used to hold buffer stock.
Start by entering some basic information about your organization – the number of stores, square footage and the average revenue per store and selling price. From there refine additional business data including inventory turnover, labor rate, gross and net margin. There are estimations of costs and a few assumptions in the model that are adjustable.
As you work, you will see a summary chart showing the ROI over 5 years. Once you’ve adjusted the variables, click to download a custom report showing the ROI for your organization.
Retailers using the Impinj platform and tagging items with RAIN RFID gain deep insight into their business through timely, accurate data about every item in their stores and supply chain – where it is, where it’s been, and the interactions with customers and employees. With this valuable information, retailers increase sales by delighting their customers with better-run stores, more product availability and enhanced shopping experiences. And, when a retailer gains real-time accurate data about the items across their enterprise, it opens the doors to all types of process improvements, automation, and efficiencies.