As retail technology continues to evolve, Digital Shelf Edge Labels (DSELs) are gaining traction, particularly in Europe and the US. Major retailers such as Carrefour and Walmart have embraced this technology, and it’s now making its way into UK stores. But what exactly are digital shelf edge labels, and why should retailers consider using them? Let’s dive into this comprehensive guide to understand how DSELs work, their benefits, and best practices for implementation.
What Are Digital Shelf Edge Labels?
Digital shelf edge labels replace traditional paper pricing labels with electronic displays. These displays, which can either be screen-based or e-ink-based, allow for real-time updates of pricing, promotions, and product information directly on store shelves. They are connected to a retailer’s central pricing system, ensuring that price changes are accurate and compliant with local regulations.
This technology is designed to be energy-efficient and robust, capable of synchronizing across multiple labels to create attention-grabbing promotions or displays. Whether for a small grocery store or a larger retail chain, DSELs present a dynamic way to display product information. A report from Grand View Research states that the global digital signage market is expected to reach USD 31.71 billion by 2025, underscoring the growing trend toward such technologies.
Types of Digital Shelf Edge Labels
1. E-Ink Displays: E-ink displays, commonly found in e-readers like the Kindle, use a thin film with small charged particles. When an electric current runs through these particles, they shift positions to show images or text. E-ink displays are highly energy-efficient and easy to read in various lighting conditions but offer limited color options and motion graphics
2. Screen-Based Displays: Screen-based displays, which use either LCD or LED technology, provide vibrant, full-color graphics. These displays are perfect for animated promotional content and interactive features like QR codes. Although they consume more energy than e-ink displays, they offer a far richer visual experience, making them ideal for drawing attention to specific products or promotions.
Benefits of Digital Shelf Edge Labels
The Digital Shelf Edge Labels offer numerous benefits to the retail world.
1. Real-Time Price Updates:
One of the main advantages of DSELs is the ability to update pricing instantly across all stores. This reduces labor costs and minimizes human error, ensuring that promotional prices are applied consistently and on time. A study from Deloitte found that retailers using DSELs can reduce pricing discrepancies by up to 70%.
2. Increased Promotional Opportunities:
Unlike static paper labels, DSELs can show multiple promotions using the same amount of physical space. Retailers can incorporate animations, countdowns, or time-sensitive offers, tailoring promotions to different times of day.
3. Enhanced Customer Experience:
DSELs not only make stores look more modern and organized, but they also provide customers with valuable product information. QR codes can link to details on nutrition, sustainability, and product usage, improving customer engagement and helping them make informed purchasing decisions. In fact, according to a survey by Digital Signage Today, 62% of consumers are more likely to buy a product after engaging with digital signage.
4. Accurate Pricing and Compliance:
By integrating with centralized pricing systems, DSELs ensure accurate pricing information across all stores, preventing discrepancies between shelf labels and checkout prices. This accuracy builds customer trust and avoids potential legal complications.
5. Environmental Benefits:
Traditional paper labels contribute to waste, while DSELs are a sustainable alternative that can be updated electronically, reducing the retailer’s carbon footprint. Moreover, the additional space on digital labels can promote the store’s sustainability efforts, reinforcing its environmental values.
Implementing Digital Shelf Edge Labels
Building a Business Case
Though DSELs offer numerous advantages, they require a significant upfront investment in hardware, software, and training. Retailers should work closely with digital signage providers to assess the return on investment and ensure that the costs justify the benefits. A case study by the Boston Consulting Group revealed that retailers could see a 20% increase in sales after implementing DSELs.
Selecting the Right Technology
Choosing between e-ink and screen-based displays depends on the retailer’s specific needs. E-ink displays are ideal for static pricing and low-energy consumption, while screen-based displays are more suitable for dynamic promotions. Factors such as display size, resolution, and connectivity should also be considered when selecting DSELs. Notably, MPOS’s Electronic Shelf Edge Labels (ESELs) provide an innovative solution by seamlessly integrating with existing pricing systems, offering both e-ink and screen-based options tailored to diverse retail environments.
Running a Pilot Program
Before rolling out DSELs across all stores, retailers should conduct a pilot program to test the technology in a small-scale environment. This allows for evaluating system integration, identifying potential issues, and gathering data to bolster the business case for a broader rollout.
Engaging Stakeholders and Providing Training
Early engagement with stakeholders is critical to the successful implementation of DSELs. Additionally, staff must be trained on using the digital signage management system and troubleshooting common issues. Ongoing support from the digital signage provider is also crucial to address any technical challenges.
Best Practices for Using Digital Shelf Edge Labels
- Strategic Placement:
DSELs should be used in high-traffic areas and for products with higher margins or innovative features. They work best on eye-level shelves or end caps, where they can create maximum visibility for promotions or cross-selling opportunities. - Monitoring Performance:
Retailers should track sales data and customer engagement metrics to determine the effectiveness of their DSELs. Dynamic displays allow for A/B testing of different promotional strategies, helping retailers identify the best-performing content and refine their approach. - Creating Engaging Content:
For screen-based displays, retailers should allocate a budget for video and animation content. Working with content creators who specialize in digital signage ensures that the promotional material is designed for the retail environment without overwhelming customers with too much information. - Providing Value-Added Information:
DSELs should go beyond basic pricing. They can be used to display customer reviews, product quality details, or styling and serving suggestions. This additional information builds customer trust and enhances the shopping experience, fostering brand loyalty.
MPOS Electronic Shelf Edge Labels: Transforming Retail Efficiency
In the evolving landscape of retail technology, MPOS Electronic Shelf Edge Labels (ESELs) stand out as a game-changing solution for convenience stores. These smart labels replace traditional paper price tags, enabling retailers to manage pricing and promotional information dynamically and efficiently.
- Remote and Instant Updates: Retailers can update prices and promotions from anywhere, at any time. When a promotions list is uploaded to the system, ESELs automatically reflect these changes, ensuring that customers always see the most current information.
- Dynamic Pricing Solutions: ESELs allow for real-time adjustments based on demand, inventory levels, and competitor pricing. This agility not only enhances customer satisfaction but can also lead to an estimated 10% increase in annual revenue for stores using this technology.
- Centralized Control: By managing all changes from a central system, retailers can maintain consistency across multiple locations. This centralization ensures accurate and error-free pricing, which is crucial for building customer trust.
- Enhanced Customer Experience: ESELs provide more than just pricing. Retailers can display additional information such as nutritional facts, customer reviews, and product descriptions, enhancing shoppers’ understanding of their purchases.
- Cost and Time Efficiency: By eliminating manual label changes, ESELs reduce labor costs and save time, allowing staff to focus on customer service and in-store management.
Reimagining Retail: Embrace the Digital Shift
Digital shelf edge labels offer numerous benefits, from real-time pricing updates to improved customer engagement. However, they may not be suitable for every retailer. A thorough cost-benefit analysis is essential to determine if DSELs are the right choice for your business.
As customer expectations evolve, retailers must adapt to provide a more dynamic and informative in-store experience. DSELs are part of this evolution, helping stores bridge the gap between physical and online shopping. For progressive retailers, particularly those leveraging MPOS’s Electronic Shelf Edge Labels, this technology is an investment that can pay off in terms of improved efficiency, increased sales, and enhanced customer satisfaction.
