Sometimes new technologies are implemented at the initiative of the state, which, for example, wants to know about all purchases in stores – soon only online cash registers will be installed in them. In other cases, stores themselves are looking for ways to attract customers, using various screens and Digital Signage players.

What are electronic price tags

Electronic price tags (EPTs) are displays of various sizes that show information about the product and its price, and sometimes additional data. The technology of electronic price tags appeared abroad about 20 years ago, and it is used by many large European retailers. In Russia, the process of implementing them in stores was legally simplified only in 2016, but in a short time, only a few players conducted pilot implementations of the system and were satisfied with the results.

Currently, EPTs are available on the market with screen diagonals ranging from 1.5 to 8 inches (from 3 to 20 cm). Small electronic price tags, for example, 1.5-inch ones, are most often placed directly on the display shelf next to the goods. Larger displays (6-8 inches) are usually attached to a suspended cornice above the product or separate stands next to large-sized goods. There are several types of electronic price tags – infrared, with radio channel, and those that work via Wi-Fi.

Advantages of use

At first glance, it seems that these digital displays at most help stores save on consumables when printing paper price tags. However, if you dig deeper, it becomes clear that this is a powerful marketing and competitive tool that can be part of a centralized video management system.

Price wars

A store using electronic price tags can gain an advantage in the fight against competitors who work in the old way using “paper”. In general, in grocery retail, when using the second approach, it is very difficult to conduct promotions frequently – that’s why the well-known magazines and newspapers with a list of discounted goods appear in stores no more than once a week.

At the same time, retailers actively analyze the activities of competitors, so any marketing campaigns and discounts do not go unnoticed. In the case of traditional paper price tags, it’s not so easy to reduce prices for a group of goods following a competitor – at least a week will be spent on preparing new price tags in stores, as well as printing marketing materials.

When using electronic price tags, changes can be made within one day. As a result, a store that repeats the steps of a nearby competitor can deprive them of the benefits from the conducted promotion and, conversely, increase its own revenue due to higher sales.

In addition, when using electronic price tags, the store gets the opportunity to conduct promotions like “peak hour”, when the price for a product is valid only within a certain time frame. With paper price tags, it is virtually impossible to conduct such promotions, while the use of electronic ones allows for easy price changes throughout the day and attracts customers.

As a bonus, by abandoning paper price tags, the store saves on personnel and consumables. Think about it: to change the price of even one product, you need to print new price tags and then place them on the shelves. If we’re talking about a chain of stores or the need to change the price of many goods simultaneously, the task becomes much more complicated.

Using free software for screens can further optimize the process of managing electronic price tags and make it even more effective for retailers.

Mobile apps: a personal price for each customer

More and more retailers are releasing their own mobile apps. However, they are usually not very useful for shoppers – most often, they can only be used to receive notifications about promotions taking place in stores. Considering that in large chains, promotions occur less frequently than once a week, the interaction with app users doesn’t bring much benefit. However, using a Digital Signage platform can significantly improve this situation.

Personalization using electronic price tags

Electronic price tags can add more personalization to this process. Many of these devices are equipped with NFC modules – as are most smartphones. Therefore, the price tag can interact with a phone that is nearby, which is one of the key functions of Digital Signage.

For example, if a smartphone has an app installed whose user participates in the loyalty program of the retail chain, then when approaching the price tag, they will see the price of the product with their own discount on the phone screen. This eliminates the need to carry plastic store cards or provide a phone number or e-mail at the checkout to find out the final price with the discount applied.

Extended possibilities for promotions

Moreover, the interaction of a smartphone with an electronic price tag allows stores to provide opportunities for product manufacturers to conduct promotions. For example, a soft drink manufacturer can offer a discount on a product to certain groups of app users on specific days – and they will see information about this on the electronic price tag when they are already in the store near the right shelf or refrigerator. Such functionality is easily implemented using a cloud-based Digital Signage system.

Less negativity and financial losses

When using paper price tags, various errors can occur that lead to negativity from customers. A common situation is when one price is set for a product in the cash register software, but for some reason, another price appears on the price tag (for example, an employee made a mistake or forgot to change it). This is discovered at the checkout, and if the item “rings up” at a higher price, the customer is unlikely to be pleased.

Figuring out the reasons for incorrect price display delays the queue movement, customers remain dissatisfied. Moreover, by law, the store is obliged to sell the product to the customer at the price indicated on the price tag. That is, immediate financial losses are possible here. Using Digital Signage management helps avoid such situations.

Advantages of electronic price tags

Paper price tags are usually not very large, and it can be difficult to see details about the cost and discounts on them. As a result, it often happens that a buyer expects to get a product at a lower price and gets upset when they learn that they didn’t fall into the right time slot. And any residue left with the customer leads to them not coming to this store next time, preferring a more loyal competitor.

Electronic price tags can be much larger than paper ones, and they can sequentially display several screens of information, not just static text. As a result, it’s easier to see all the details related to the price on them. This is one of the key advantages of Digital Signage, which helps improve the customer experience and increase sales.

What hinders the implementation of electronic price tags

Despite the numerous advantages of electronic price tags, there are a number of factors that hinder their widespread implementation in retail. Let’s consider the main challenges:

Technical difficulties and maintenance

The implementation of Digital Signage software requires a certain level of technical expertise, which the Advision team undoubtedly possesses. Retailers need to train staff to use the new system and provide ongoing technical support. In addition, electronic price tags require regular maintenance, software updates, and battery replacements, which add additional operational costs.

Dependence on technology

Electronic price tags depend on reliable technological infrastructure, including Wi-Fi networks and power sources. Any failures in these systems can lead to incorrect price display or complete system failure. This creates additional risks for retailers, especially in regions with unstable power supply.

Integration problems

Implementing a Digital Signage solution can cause difficulties with integration into existing store management systems, such as inventory software or cash register systems. Ensuring seamless communication between all components can be a challenging task, especially for stores with outdated IT infrastructure.

Resistance to change

Like any innovation, electronic price tags can face resistance from both staff and customers. Some employees may be reluctant to switch to the new system, fearing job loss or the need to learn new skills. Customers, especially older ones, may prefer traditional paper price tags and be distrustful of electronic displays.

Lack of standardization

There are still no unified standards and regulations in the electronic price tag market. This creates uncertainty for retailers regarding choosing the best solution and ensuring its compatibility with future technologies.

Environmental considerations

While electronic price tags can reduce paper use, they create new environmental problems related to the production of electronic components and battery disposal. This can be an important factor for retailers striving for environmental responsibility.

Despite these challenges, electronic price tag technology continues to evolve. New solutions, such as Android media player for digital signage software, offer greater flexibility and functionality. Over time, as the cost of technology decreases and awareness of its benefits increases, we can expect wider adoption of electronic price tags in retail.

You’re right, I overdid it with the keywords. Here’s a corrected version of the conclusion with more natural use of terms:

The future of retail with electronic price tags

Despite existing challenges, the future of electronic price tags in retail looks promising. With the development of technologies and decreasing equipment costs, more and more retailers will be able to take advantage of this innovative system.

Digital signage software continues to improve, offering more energy-efficient solutions and improved integration with other store systems. Modern software solutions are becoming more intuitive and easy to use, facilitating their implementation and reducing the need for specialized staff training.

Moreover, the development of technologies such as Android-based media players opens up new possibilities for creating interactive and personalized shopping experiences. This allows retailers not only to effectively manage prices but also to create a unique experience for shoppers, increasing their loyalty and boosting sales.

As digital solutions for stores become more accessible and versatile, they gradually transform from innovative technology into a necessary tool for competitiveness in modern retail. Retailers who can overcome initial difficulties and effectively implement electronic price tags will gain a significant advantage in the market.

Ultimately, electronic price tags are not just a replacement for paper analogues, but a step towards creating smart, flexible, and customer-oriented stores of the future. With each new implementation and improvement, we are moving closer to an era where technology and human experience harmoniously combine, creating a new reality of retail.

Advision — Content Management System for remote management and media planning of video and audio content broadcast. We help offline businesses and advertising companies automate workflows and implement reliable Digital Signage infrastructure using our own software and hardware solutions.

Contact us and we will help you implement the most modern technologies to solve your problems!