Forrester TEI study: Pricer ESLs – payback period of 18 months
Pricer delivers a significant ROI based on operational efficiencies and digitally enhanced store estates that help to protect margin, according to ‘The Total Economic Impact™ of Pricer, a commissioned study conducted by Forrester Consulting in November 2022.
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The study, which explores the cost savings and business benefits of in-store digitalization enabled by Pricer’s Electronic shelf label (ESL) solution, found that Pricer delivers a five year ROI of 277%.
Having conducted in-depth interviews with representatives of three grocery retail businesses that had deployed Pricer in their stores, Forrester combined the results into a composite organisation that is an omnichannel grocery retail chain with 500 stores. In addition to the Return On Investment (ROI), Forrester’s research shows that deploying Pricer’s solution equats to a Net Present Value (NPV) of 96.02 million Euros. It also finds the solution effectively paid for itself in 18 months, highlighting Pricer’s ability to quickly deliver value to retail organizations.
The study found that Pricer’s ESLs helps retailers improve store operational efficiencies through time savings resulting from price change automation, faster picking and packing of ecommerce orders fulfilled through the store, and more efficient stock replenishment. This, the study found, not only helps the operational running of the store, but also allows them to control pricing and profits more closely, at a time when retailers are facing a squeeze on already tight margins as inflationary pressures impact their manufacturing, supply chains and labor costs.
In addition to the operational benefits, the Forrester Total Economic Impact™ of Pricer study also points to further benefits of deploying the solution. These includes enhanced customer experience through more dynamic and accurate pricing and promotions, as well as enriching the experience at the shelf-edge with product information, rich content and displays to drive customer engagement, something shoppers are increasingly demanding.
Magnus Larsson, acting CEO at Pricer, comments: “The Forrester Total Economic Impact study shows the far-reaching value that ESLs deliver – both in operational efficiencies and in driving greater profitability. However, it also underlines a key shift in how the technology is being used to deliver value. ESLs have moved beyond their original purpose to enable instant, automated price changes to cut labor bills and deliver price integrity between the shelf and the till. Now the technology offers so much more than this; it embodies the dynamic link between the product and the customer.”
Today, ESLs are able to communicate the offer, and make changes in real-time not just on price, but on promotion. And this responsiveness and agility is now essential for grocers seeking to gain competitive advantage on their offer, rather than simply outdoing each other on price, thus avoiding a race to the bottom, he concluded.