Will 2023 be the year that 5G technology finally realizes its disruptive potential for retail and other industries?
It’s not the first time that question that has been asked, but with each passing year, the incremental rollout of this next-generation wireless connectivity service raises the probability that the answer will be ‘yes’ — at least in certain evolving areas.
Why the hype and heightened expectation?
Well, where 3G networks provided cellphones with internet access, and then 4G allowed streaming video to enter the mainstream, fifth-generation, or 5G, broadband cellular networks up the ante even further with wireless connection speeds purported to be 100 times faster than 4G, while enabling vastly more data capacity than existing networks.
In short, that giant data upgrade not only makes the previously impossible, possible, but it also makes it mobile and capable of running without a tie-in to Wi-Fi.
When applied to the retail industry, these revolutionary next-gen capabilities will massively disrupt the in-store customer experience with their ability to layer in future-fit enhancements, as well as allow for far-ranging innovations and updates across retailer operations.
Again, that’s at least what industry observers are, and have been, hoping for.
As the technology reaches greater maturity, here are the trends and innovations we see as most relevant for retailers and their customers heading into the New Year.
Responsive Operations
Even before 5G-enabled devices are fully socialized across consumer audiences, retailers and their vendor partners will be able to leverage the hyper-rapid connectivity the new network offers to optimize their back-end systems and internal processes.
Operational enhancements like mobile dashboards, automated order picking, and intelligent inventory management systems that leverage next-generation tools like RFID tracking and connected Internet of Things (IoT) profiles are positioned to allow for greater agility and flexibility in order fulfillment as well as optimize stockout management needs.
These solutions will also provide retailers with tools to remove friction from the shopping experience by eliminating back-end bottlenecks. The technologies, which all exist today but have yet to reach full marketplace adoption, will greatly benefit from the instantaneous speed and connectivity 5G offers.
In a time of supply chain chaos and rising prices, these 5G-supported, real-time tools will provide retailers and other partner businesses with the solutions needed to keep their operations running efficiently while at the same time continue to meet and exceed the expectations of an emergent audience of digitally native customers.
Mixed Reality (MR) Shopping
The store continues to play a key role in shoppers’ decision-making journey. Tech-layered, multi-sensory and in-person shopping will be further enhanced by augmented reality (AR) and hybrid MR immersive experiences that surprise and delight shoppers in novel and exciting ways while helping narrow the conversion funnel from discovery to purchase.
Contemporary use cases of AR and MR that may inform future applications include geofenced networks that leverage virtual air space for branded content and promotions, allow shoppers to access product information and view floor maps, all accessible through shoppers’ mobile phones.
5G will be key to the success of future hybrid, “phygital” shopping models that take advantage of smartphone-native capabilities to enhance in-store moments with virtual environments and even social experiences.
Employee Support
The year 2023 will see the emergence of hybrid, connected workforces able to resolve tasks at speed and maximize customer satisfaction.
The real-time connectivity speed of 5G networks will better integrate workforces, allowing for greater communication flow between floor associates, supply staff and store managers. Mobile dashboards that combine multiple systems into single-view platforms will empower retail staff to quickly and efficiently access necessary information and provide customers with better, more personalized service.
5G-supported tools like AR order picking, inventory management solutions, and other operational enhancements will help reduce labor redundancies and human error while allowing for greater staff agility and flexibility.
Dynamic Personalization
Retailers will be able to leverage 5G capabilities to translate the curation and personalization typical of an eCommerce shopping occasion to physical, in-store environments by tailoring product selections and experiences to customer digital profiles and collected real-time data.
Integrated omnichannel solutions will leverage smart displays, AR activations, unique QR codes, and connected profiles to personalize the shopping journey for each consumer, helping to drive a vastly improved in-store experience. Next-generation consumer touch points will also provide retailers with a richer understanding of the ways their shoppers are interacting with products and displays, allowing for iterative optimization and robust insight into behavioral expectations.
Frictionless Checkout
5G will empower organizations to apply the digital competency and frictionless payment processes they’ve enjoyed online to the in-store checkout occasion. The eCommerce checkout journey is immediate and convenient, and consumers have increasingly come to expect a similar experience when shopping in real life.
New technology powered by 5G can provide consumers with this instant gratification, whether by equipping associates with a mobile point-of-sale (POS) connected device or by providing the necessary bandwidth for computer-vision-reliant scan-and-go or self-service kiosk checkout solutions.
Digital wallets and payment platforms supporting multicurrency options such as cryptocurrencies and other digital asset-based payments will likely see broader adoption as 5G helps bring the connected economy closer together in real time.
The rapid acceleration of digital over the past few years has transformed the entire industry landscape, making it imperative for retailers to evolve their fundamentals from the ground up.
5G offers retailers immense long-term potential. By getting started now and realizing that employees and internal operations, rather than customers, might be the first to benefit from the new technology, retailers can win in the short term while positioning themselves attractively for future growth.
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