Retail stores have come a long way from the mom-and-pop stores of several hundred years ago. Technological innovations, such as the invention of the cash register, the creation of credit cards and the rise of ecommerce websites, fundamentally changed the way people shop.
Retail technology, a.k.a. retailtech, continues to be the driving force behind the changing retail landscape today. Some of the newest developments include scan-and-go checkouts, visual outfitting software and digital price tags
While these retailtech developments are exciting, the entire sector is also filled with jargon and acronyms that are difficult to decipher.
Statista reports that the market for artificial intelligence in retail is projected to reach 31.18 billion U.S. dollars by 2028 — and that’s just one type of technology.
With the retailtech sector expected to grow at an impressive rate, it will be useful for interested parties to understand the language.
TechRepublic Premium has created a quick glossary of 90 key concepts to help people understand what is going on.
This exclusive resource explains terms in the retailtech sector, such as average transaction size, shortened to ATS, which is a metric that refers to the average amount of money spent by a customer in a single transaction. ATS is calculated by dividing the total amount of money spent by the total number of purchases. Also known as average transaction value.
You will also encounter the concept of checkout completion rate which refers to a metric that tracks how many people completed a purchase after putting items in their cart. Checkout completion rate is calculated by dividing the number of completed orders by the number of customers that added items to their cart or started the checkout process but didn’t complete it.
What’s more, the resource throws light on the customer acquisition cost. This refers to a broader metric that measures how much money it costs for a retailer to acquire a new customer. It includes not just advertising costs but also costs for sales, marketing, property, equipment and whatever else is needed to attract a customer.
Explore the glossary further to unravel the intricacies of electronic article surveillance, shortened to EAS, which refers to the use of technology to help deter shoplifting in stores. One example includes attaching EAS tags to clothes, which can only be removed by sales associates if the item is properly checked out and paid for. The tags set off detectors at the store exit if the item is carried through the doors with the tag still attached.
This resource will also let you dive into the realm of mystery shopping. Mystery shoppers are employed to pose as regular shoppers to observe a store or website and gather information about the customer experience. They summarize the information in a report and submit it to the retailer to help them improve the customer experience.
Elsewhere in the glossary, the concepts of dead stock, dynamic pricing, impulse purchase and smart shelves are explained.
If this grabs your attention, you can download the 17-page quick glossary for $19 at TechRepublic Premium.
