AT&T: Breaking IoT barriers produces retail benefits

Establishing an Internet of Things (IoT) technology strategy may not be easy, but can offer substantial rewards to retailers who overcome the inevitable challenges.



“There is a vast opportunity to use IoT technology to connect retailers with their assets and consumers,” said Michael Colaneri, VP of sales for restaurant, retail and CPG, AT&T, during an interview with Chain Store Age. “But it requires business process re-engineering to connect multiple edgepoints.”



According to Colaneri, retailers can use a Subscriber Identity Module (SIM) card associated with merchandise on display in stores to turn existing off-the-shelf point solutions, such as digital price tags or electronic shelving, into IoT connections.



“You can use IoT to interface with a consumer’s mobile device,” said Colaneri. “Customers who opt in and are within range can be directed to items they bought previously or had placed in their online shopping cart, or would complement items already in their basket. You could also provide a targeted discount.”



Colaneri said this type of seamless store experience can be delivered via beacons, but does not have to be.



“IoT is when you connect two or more machines without requirement for manual intervention,” explained Colaneri.



In terms of IoT strategies that directly connect retailers or brands to consumers in their homes, Colaneri said so far Amazon.com has taken a leading role with offerings like the Dash Button and Amazon Echo artificial intelligence device, but this may change.



“Amazon has inserted itself as a conduit between the consumer and brand,” said Colaneri. “But as consumers shift to mobile, they won’t need a third party.”



Colaneri said most appliances are now sold already equipped with ability to directly enable IoT or operate with an IoT-enabling SIM card. Thus in the near future, consumers may have more options to automate shopping with devices like “smart” refrigerators that sense when staples are running out, or even “smart” detergent bottles that place renewal orders when they run low.



“Companies will be able to directly interact with customers,” said Colaneri. “It’s a cool thing.”



This could lead to more CPG companies acting as retailers, as well as more retailers gaining a competitive edge with Amazon.



However, before any retailer enacts any type of IoT strategy, they need to address three major challenges.



“There is a business challenge,” said Colaneri. “How do you pay for it? Then there is a technology challenge. Do you have the expertise? Then finally there is an organizational challenge. Does your operation support this type of activity?”



As IoT becomes more a part of the mainstream retail environment, meeting these challenges will become more critical, advised Colaneri.



“Consumer expectations grow exponentially,” he said. “The more technology there is, the bigger their expectation.”