ROI Calculator for Retail Technology

ROI Calculator for Retail Technology​

ROI, often known as return on investment or return on costs, is a ratio that compares net income to investment. This indicates that a high ROI might be interpreted as the fact that the investment’s gains outweigh its costs. in IT and technology domain, the ROI can be used to evaluate the effectiveness of the project or to justify IT projects initial cost. 

According to Analytics Insight (www.analyticsinsight.net), the global AI in retail market will grow at a 34.4 percent CAGR from 2020 to US$19.9 billion by 2027. Retailers are becoming more aware of AI applications, such as those that improve user experience, productivity, inventory accuracy, and supply chain optimisation. Having said that, it is critical for retailers to calculate the return on investment of AI applications in their businesses. The following method can be used to determine the ROI of technology and AI-related investment in a straightforward manner: ROI= net gain/cost. 

Although calculating ROI is a specific formula, the actual impact of technology is more complicated, since long-term profits may exceed a potential short-term insignificant ROI.
If you want to estimate the ROI for a new AI-based project or an IT update, aim for anything in the range of 4% to 7% or higher as a solid ROI.

How does ROI calculator work?

Now that we’ve covered the basics, let’s assess the potential profit of implementing AI in your retail stores. The calculator below works as follows:
To begin, you must know or estimate the average number of clients in your stores.
Second, you must estimate your company’s daily average transaction value or average consumer basket size. For example, the average basket size in a small grocery store is around 14£.
Finally, you need to add the total number of days per year you store is open for business. 

What AI-enabled tools and technology you can add to your store?

Now, let’s look at the possibilities of implementing AI in your stores. The Alertiee Conversion Booster system is Alertiee’s first AI-enabled tool. This solution allows you to track your store’s outside and inside footfall as well as passing traffic. It functions similarly to a people counting system, but with the added benefit of assisting you in optimising your store for peak periods.

The second set of Alertiee’s AI solutions are those that can assist you in becoming a more customer-centric store by getting to know your customers better. This section contains three AI-enabled technologies that are exclusive to Alertiee. 

  • The first is the Alertiee Customer Segmentation software. This solution correctly identifies your consumers’ demographics by utilising computer vision and edge computing. This allows you to first create a more appropriate store design and branding approach, and then incorporate smart signage and multi-media technologies in your store.
  • The second tool is the Alertiee Customer Experience Tracker, this part of our tool helps you to close the gap between digital and physical world for your customers by intorducing spontaneous engagement. This way you can engage with potential customers in the right place, at the right time, and with the right message using passer-by proximity marketing and engagement technology.
  • Alertiee Business Heatmaps is the final AI-enabled tool you can add to your store. This is another important metric for your retail staff to understand how customers browse your store and engage with your displays and products. As an added bonus, Alertiee can assist you in providing the best possible customer experience at the store by making practical suggestions.

ROI Calculator for Retail Technology

Calculate your potential increase in sales by using Alertiee

What is your average daily customer traffic?

0

1000

What is your daily average transaction value in pounds?

1

10000

How many days do you work in a year?

150

365

Do you think you could have more sales?

Do you want to fully understand your customers?

Alertiee.io added value

Current estimate

With alertiee.io

ROI calculator for AI

Why we have the following 4 solution in this calculator  

As we discussed in the first part of this article, evaluating the ROI of a new technology is usually difficult because there is insufficient historical data to use as a comparison and benchmark. The influence of the aforementioned solutions on overall growth and sales, on the other hand, has been tested by the Alertiee team. The potential advantage is based on an optimistic estimate based on a variety of enterprises and case studies.

About Alertiee.io

Alertiee will help you to provide a harmonious customer experience across your omni-channel business. Our technology enables customer experience, marketing and retail teams to close the gap between customers’ digital experience and their physical experience.

  • Boost conversion rate
    Use real-time conversion rate data to locate weaknesses and increase sales. Alertiee provides you proper sensor and analytics dashboard to assess inside and outside number of customers to provide a better conversion rate. 
  • Operational excellence
    Create SMART KPIs for your team by knowing your store’s operational demand.
  • Spontaneous engagement
    Engage with potential customers in the right place, at the right time, and with the right message using passer-by proximity marketing and engagement technology.
  • Knowing your customers
    Create active customer engagement offers with video analytics. Understand your buyers’ attributes, and update store displays and offers in real-time.

Online ROI Calculator Disclaimer

The online ROI calculator is provided for illustrative purposes only, and the information obtained by using the online calculator is not intended to be, and should not be construed as, legal or financial advice to any individual or company. The accuracy and comprehensiveness of the information you provide while using the calculator will influence the results. The online calculator should not be used in place of consulting with a qualified professional. As a result, the Alertiee makes no representations and makes no warranties, express or implied, that the fees generated by the online calculator accurately or comprehensively indicate the regulatory fees owed. Alertiee accepts no liability for any loss or damage, including without limitation, indirect or consequential loss or damage, or any loss or damage of any kind arising out of or in connection with any person’s or company’s use of the website and the online ROI calculator.

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