The use of RFID tag in the fitting room
The fitting room is a place where retail purchases begin and end. So it is important to make sure that customer feels convenient and have a good experience so that it can increase sales for the retail store. Radio-Frequency Identification (RFID) is a technology that can read and capture information that stored on a tag to an object by using radio waves. Every item in the store will have an RFID tag, so whenever the customer goes to the fitting room and the item that they bring will show information about that item like the size and color availability and what other people also bring with that item. Therefore, the retail store will have customer behavior data.
The aim of this project is to improve customers shopping experience at the retail store. Also, increase sales and customer information for the retailer.
To increase sales of the retail shop by recommending an item to the customer based on what other customers also try on
To learn about customer shopping behavior data by detecting what item customer bring to the fitting room
To connect the customer with the store where a customer can communicate with shopping assistant through the screen in a fitting room
Shorten time to view stock availability, reduce the stock when it sold and reduce check out process time
When the customer goes to a fitting room they have the intention to buy an item. A customer wants to have the recommendation on what items that can they pair with the item that they want to buy. They also want to know what other color or size that currently available in store. If they want to try another color or size in store, they want a sales associate to bring the items to the fitting room, so it will increase shopping experience. Shopping assistant can receive notification from the customer about what item customer want and which fitting room they currently in. To make it more convenience customer can have the item deliver to their home without them have to carry all the items that they bought. The retail store has fewer data about customer behavior in comparison with an online store. Because in a retail store today there is no system that can track what item customer try the most. With RFID tag in every item in the store, when a customer goes to the fitting room and display the item, that data can be used to gain more information about the customer.
However, sometimes the item that customer brings to the fitting room is not the fit them and it is not convenient for a customer who already in the fitting room to go outside and grab for another item. Customer doesn't need to check with the shopping assistant if they when to check the availability of item because according to Meli`a-Segu ́ı et al., (2013) RFID tag can able to view the availability of product, reduce the stock when it sold and reduce check out process time that will shorten the lines. When they already have items that they want to buy the other size or color that customer want may not be available at that time and customer don't want to go back to store to get that item because it is not efficient. So, the store can have home delivery. Wang et al., (2016) said that home delivery in retailer store could actually affect customer loyalty and awareness of its company image. For the retail store, it is hard to identify what item customer bring to fitting room and try it on. The store cannot track which item have that customer try on the most. Based on Landmark and Sjøbakk (2017) retailers in physical stores hardly have log files and data-rich customer profiles whereas in online shopping they have that information from tracking cookies and analytics. The data are important for the business. In referring to Pradhan et al., (2017) based on market research has shown that 67% of customer wants targeted offers that have relation with their personal interests. When customer goes to the fitting room they have the intention to buy the products, with RFID tag store can track what item that customer frequently try on and suggest what other customers also try on with other items.
In response to this problem, this research is to find several options to increase customer experience in fitting room and retail store as a whole new shopping experience. According to Sachddeva and Goel (2015) the achievement in retail store is more on how retailer sells it than what they have to sell. That's made a difference between retail and online store.
Sachddeva and Goel (2015) said that mood, feelings and intensity of emotions that created in a precise moment are what people remember about shopping experience. Nowadays many retailers are integrating the customer shopping experience as a part of their customer offerings. With increased number of web retailing, retailers must uplift in store experience for their customers into something more exciting and entertaining to increase a number of customer in physical store.
Current fitting room problem that complained the most by customers according to Ayalp et al., (2016) are inadequate number of hangers, small-sized rooms, lack of sitting units, poor ventilation and unclean fitting rooms. So customers have some problems with the interior design of the fitting rooms.
As stated by Laney (2017) when customers faced a barrier in the fitting room, like long queue and difficult to find sales associate they tend to buy the product first and then try it at home that eases the return. It will benefit the customer but not for retailer. Product that customer have try one have higher chance of return rate than if the customer try it on first to match their size. Product returns cost around $270 billion dollars every year. If fitting rooms are provide technology like RFID, it can gathering statistics on how well service in the fitting room, like length of response time. Information that the stores get from the technology not just benefit for customer data but also opportunity to evaluate staff, because if customer calls for help sales associate name will display in screen.
Auld (2017) article state that shoppers who interact with a sales associate are more likely to buy a product and have higher transaction value. So, it's important for sales associate to have all information needed to increase experience and increase sale. Tablet is one of the tools that can be used by sales associate. Tablet will inform if customer need help in fitting room and which item they need to looking for.
Li et al., (2013) Radio Frequency identification (RFID) increase the operational distance from inches to number of feet for passive RFID tags or even for active RFID tags it can reach hundreds of feet in compare to classical barcode system. Novotny (2015) said that RFID is a "next generation barcode". RFID is a tiny wireless computer. Information can be sent between the tag (transponder) that is attached on a product and a device called the reader (interrogator) by using radio waves. RFID tags enable to support full automation of large number of inventory management functions in industry because of their wireless transmission, processing and storage capabilities. Shahzad and Liu (2015) add that RFID tags can be used for various applications like object tracking, 3D positioning, supply chain management, inventory control and access control.
As identified by Lesonsky (2014) big e-commerce company for example amazon.com can collect customer data from purchasing history, browsing history, product reviews, website analytics and use algorithm to portray information. In other side, retail store doesn't have that kind of information available for them. Retail store gains information from inventory tracking and customer loyalty program. With implementing RFID retail store can get information about what people try on that will be similar to add to cart in online store, if customer does it they have intention to buy the product.
Hardware and software
Disadvantages and advantages of existing
Background related to solution
How does RFID tag improve customer shopping experience in retail store
How does RFID tag increase information about customer
What are the benefit of implementing RFID tag in retail store
What is the suitable development tool in implement RFID tag in fitting room
What is the most effective methods of testing RFID tag usage in fitting room
What is the hardware that will be required for RFID tag in fitting room
The data gathering method that will be used for this proposal are questionnaire and observation. To analyze data method that is chosen for this research are quantitative and qualitative data research. Quantitative is chosen for questionnaire and qualitative for observation. The data that collected from questionnaires will be displayed in diagrams that show data that shows frequency of occurrence. Qualitative analysis is use to find pattern about customer and fitting room. By doing literature review it will answer the required technical information for the research. The data analysis that will be used for observation is qualitative data analysis since observation is the process of examining for specific event which in this case observing customer in fitting room.
Questionnaire is chosen for data gathering method because this research involves with a large number of people, which is retail store customer. Questionnaire is more convenient to gather from customers that visit a retail store. With questionnaire we can know more about customer preference when they went to fitting room in a retail store. Customer can be asked when they go to the fitting room.
Question and Objective
How long you spending time in fitting room?
Objective: Some stores want to turn over their fitting room quickly, to get more customers in. measuring how long customers are staying in the fitting room can help to develop better customer service strategies that will improve sale conversions in fitting room.
How often you visit fitting room when you are in store?
Objective: When customers go into fitting room and try a piece of clothes, the higher chance that they will buy the clothes. Therefore, the more people go to fitting rooms, the better store make sale.
What do you think about your experience in fitting room?
Objective: To know what are customers really thinks about fitting room. Therefore the bad experience will be improved.
What do you want to have in the fitting room?
Objective: To know what customer really want exist in fitting room, so that it can increase their loyalty to the stores and stores can improve.
Do you think by installing screen in fitting room that connected to store will benefit experience?
Objective: To know if customers will be satisfied when there are new technologies installed inside the fitting room.
Observation is chosen to observe customer behavior in stores that using fitting room. The role of participant observation is complete observer that does not reveal the purpose of the activity to those being observed. With observation researcher can really view the current customer behavior when they are in the fitting room and what are the limitations are in them. The limitations that found during observation can be used for reviewing system that can be use to increase sales and information about customer in retail store.
Checklist and Objective
Number of fitting room calls
Objective: To know how many times customer calls sales associates for help. Customers who call for help from fitting room have higher chance of buying, they putting trust in sales associate, which will boost trust and loyalty. The data of fitting room calls will recorder in database to increase information about customer.
Length of response time
Objective: Customer will trust and loyal more if sales associates are responding to help in a timely manner. The device screen can track length of time of sales associates respond to customer in fitting room.
Number of the same customer who return back to fitting room
Objective: Usually customer doesn't want to go back to fitting room twice unless they really want to buy the item. By observing researcher can know how many customer return to fitting room and buy the product.
Number of customer in fitting room and customer in retail store
Objective: Find comparison between number of customer and number of customer who using fitting room in a day.
How many products customer try on in fitting room
Throughout process of doing research, the limitations on personal is looking for the right journal or article that related with topic chosen by researcher.
title - 1
research design – explain 2 data gathering method - 2
reflection – lesson learned - 1
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Andreas D. Landmark, Børge Sjøbakk, (2017) "Tracking customer behaviour in fashion retail using RFID", International Journal of Retail & Distribution Management, Vol. 45 Issue: 7/8, pp.844-858, https://doi-org.ezproxy.apiit.edu.my/10.1108/IJRDM-10-2016-0174
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Auld, R. (2017) Brick and mortar stores invest in the connected retail associate. [Online]. Available from: https://pointofsale.com/2017033117561/Point-of-Sale-News/Brick-and-Mortar-Stores-Invest-in-the-Connected-Retail-Associate.html [Accessed: 19th June 2018].
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