- Labour costs: creation of labels, price changes (often several thousand per week, inc. promotions), price checks at the shelf edge and the management of complaints due to price discrepancies.
- Cost of paper and of printing the labels. Electronic shelf labeling cuts these costs by more than 80%
- Cost of the ESL solution (repayment or rental + maintenance)
- Overall, SES's customers save over 60% by replacing their paper labels with electronic shelf labels.
ROI of electronic shelf labeling
ROI of electronic shelf labeling: 0.5% to 1% of sales
When measuring the Return On Investment of replacing paper labels with electronic shelf labels (ESLs), two easily quantifiable advantages emerge:
1. Cost reduction
2. Profit optimization
- The increasing frequency of price changes is a significant trend in the retail sector worldwide (it has doubled over the last 5 years). This has led to a growing number of pricing errors, which in turn has had numerous consequences: falling profits (pricing errors, delays in displaying price rises or delays in returning to pre-promotion prices), financial penalties/fines, gestures of goodwill to appease complaining customers, etc.).
- The use of electronic shelf labels dramatically reduces this fall in profits (by around 90%).
- In-store studies have shown that they have a similar impact on the trading account and on cost reduction.
How the ROI can go up to 1% of sales
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These quantifiable advantages come with a number of other benefits, which are more difficult to measure but which weigh just as heavily in a retailer's decision to invest:
- More dynamic and responsive pricing policy
- Optimization of margins
- Client satisfaction and brand loyalty
- Image of modernity
Benefits
Case studies
Case studies
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