Nexvu Finds Mobilization And Improved Placement Of In-Store Devices Can Save Top 10 U.S. Retailers $500M In 2012
Nexvu's Analytical Findings Determine Major U.S. Retailers Underutilize In-Store Technology By 40 to 60 Percent
Naperville, IL (PRWEB) - According to analytics generated by Nexvu the top 10 U.S. retailers experience 40 to 60 percent underutiliztion of in-store technologies and can add a minimum of $500 million to their bottom line in 2012 through mobilization. Retailers can mobilize in-store technologies by moving fixed devices, such as point-of-sale terminals and kiosks, to mobile platforms while using real-time analysis of in-store customer activity and traffic flow patterns to deploy devices where they are needed most. Leveraging analytics generated from its major U.S. retail clients, Nexvu determined that the top 10 U.S. retailers by number of stores (source: stores.org) can save a minimum of $500 million in 2012 through mobilization and improved placement to minimize the rate of underutilization.
Nexvu (http://www.nexvu.com) determined through its analytical measures that a conservative average cost of $5,000 per year, per in-store device – each cash register can cost as much as $15,000 per year – a large retailer can decrease its operating income upwards of 30 percent even if it averages just one unutilized, or underutilized, device per store. Details of Nexvu's findings can be accessed at http://nexvu.com/PDF/Nexvu_Mobilization.pdf.
"The negative side of underutilization, or the unavailability of devices at the right place at the right time, is lost sales, because it means frustrated customers can't get questions answered, can't find products they want, or will abandon long checkout lines," says Eddie Nath, CEO for Nexvu. "But even if no sales were lost, underutilized devices are at least a half a billion dollar problem on their own," Nath says. Because most devices remain in static locations, and often don't enable customer self-service, they sit idle. This trend of underutilization, across the more than 106,000 locations the top 10 U.S. retailers operate, results in an aggregate cost of more than $500 million per year, at a minimum.
"The key for retailers is to mobilize these customer-facing devices by putting them on mobile platforms and moving them to the spots in each store at the right time where they can serve the most customers. That maximizes the return on those assets, which goes right to the bottom line," says Nath.
Nexvu's measurement of 40 to 60 percent average underutilization is based on analytics drawn from working with major retailers. Its $500 million estimate conservatively assumes just one underutilized device per store, though "the number is more likely between three and six," says Nath. Similarly, the average cost per device of $5,000.00 is conservative as Nexvu "regularly sees costs upwards of $10,000 per cash register per year," Nath says. As a result, a failure to mobilize and improve the placement of in-store devices could cost the retail industry between $1.5 billion and $4.8 billion over the next three years.
About Nexvu
Nexvu (http://www.nexvu.com) delivers analytics solutions to the retail industry that measure, optimize, and visualize the ROI of in-store technology investments in real-time. Based in Naperville, IL, Nexvu's customers include some of the world's largest retailers. The company's monitoring-as-a-service analytics offerings leverage patented technologies and are designed to provide retailers' C-level executives with the control over and visibility into customer and employee interactions with in-store technology. Nexvu's "Store Performance Index" is a unique metric for measuring the top line contributions and bottom line impact of new in-store technology investments including devices, networks, and applications. For more information, please visit http://www.nexvu.com or call (630) 364-4080.
SOURCE: PRWeb
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