Founder & CEO, Danavation
Digital Smart Labels™ provide retailers with the tools to dynamically change pricing strategies, and to more readily align them across all selling channels.
Switching to Digital Smart Labels™ (DSLs) not only reduces a retailer’s reliance on paper, it also spurs new ways for businesses to implement an effective omnichannel strategy.
This is how Danavation describes the power behind DSLs, which are micro e-paper displays that automate pricing and product information in real time. As connected devices, the company sees them as adaptable to change marketing methods to better service customers and eliminate static pricing strategies.
DSLs also lower a retailer’s carbon footprint. For example, an average-sized grocery store can spend approximately $100,000 per year on costs associated with changing labels, such as paper, labour, and ink cartridges, says John Ricci, Founder and CEO of Danavation.
“That number isn’t something I’ve come up with — it’s from our customers, so we know it’s a certain-sized store,” says Ricci. “And in a post-pandemic world, hygiene is extremely important. Think of all the surfaces that are touched inside of a store. With DSLs, you no longer have employees lifting data strips and replacing price tags multiple times a day or week.”
Elevating branding partnerships
DSLs run on lithium-ion batteries with a 10-year lifespan (based on one update per day), so they don’t need replacing with any real cadence. Ricci also notes that their independent functions make them dynamic, allowing retailers to easily plug them into their overall marketing strategies and metrics.
This could include leveraging brand sponsorships in dynamic ways, like a flash or branded sale, with the DSLs being updated to carry out cost-sharing promotions with major brands. Ricci likens it to European soccer stadiums that display sponsored banners that can change at different points during a game.
“Imagine there’s a long weekend coming up, and you approach a couple of the big brand suppliers, a financial institution, or even an automotive company sponsoring an event,” he says. “Their logo is present the whole weekend, and then come Monday, it flips over to somebody else’s logo. You don’t have to replace the paper or any signs. Just program it and flip it.”
This also can apply to online promotions to ensure that prices are the same in-store, he adds. And for retailers who sell shelf space to brands that pay a percentage for better visibility or the opportunity to be included in flyers and promotions, the labels could even be an additional revenue opportunity.
Engaging customers through QR codes
QR codes may also offer an interactive contactless touchpoint to engage customers with valuable information on a product. One example would be tracing a bottle of wine to the vineyard the grapes grew in, possibly with images or a video explaining more about its fermentation process and taste.
“The beauty of a QR code is that it automatically updates, and since it displays digitally, it’s easy to make immediate adjustments if there’s a problem with it,” says Ricci. “They can also help with movement recognition and analytics in stores, so you know where to strategically place products by the hour, day, or week. You want customers in your stores, and when you help them find what they’re looking for quicker, it’s important.”