ROI as early as 6 months for ZBD’s epaper for retail

Since the emergence of fully graphical ‘epaper’ displays for retail, the Return on Investment argument for ESLs (electronic shelf labels) has changed radically. ZBD took the decision in September 2008 to make a significant investment to create a next generation ROI model. The result, which has been heavily market-tested since January 2009, and developed in conjunction with Martec International, an independent retail consultancy, models all the capabilities – ‘Use Cases’ – that ZBD displays support to deliver benefit to retailers.

ZBD is taking a consultative approach with retailers and its ROI tool is proving invaluable in helping them assess the relevance and payback period for their own specific business segment: mass and c-store food, non-food, speciality, department, warehouse, discount, telco etc.

“We’re using the ROI tool to help retailers visualise all the ways in which epaper displays can deliver savings and benefits within their unique business, and just as importantly, to help us understand their processes and business drivers”, says Jann Naef, Product Marketing Director, who is leading the ROI programme.

With ZBD’s displays, any ERP or upstream data can be delivered to the point of purchase without limitation: product information, including graphics and brand logos, price and promotion data and competitor pricing, any consumer information: from health data and ‘food miles’ to feature/function information, CO2 footprint etc. Staff can benefit by having planograms and replenishment information at the shelf: availability, due date, off-shore location etc. – as well as alternative product data, up-sell data and more.

Typically, the ROI is deployed in 3 stages. First, ZBD presents a segment-specific model with some data specific to the retailer which is used to filter those ‘Use Cases’ that are relevant to the retailer’s operations. The 2nd iteration uses more detailed client data to determine the anticipated payback period for all the relevant Use Cases - the ‘quick wins’. The 3rd iteration lays the foundation for the pilot: which Use Cases to test; what is the projected benefit; how the data is to be gathered; and so provides a framework for success evaluation post-project.

All output is framed within a P&L and cashflow view of the retailer’s operation over the lifetime of the system – which can be in excess of 10 years - along with executive summaries and graphic representations of savings and benefits.

“We are currently in discussions with over 50 retailers in the UK, USA and Europe and it is proving a hugely valuable discovery tool for everyone – retailers have been uniformly positive about the breadth and thoroughness of the ZBD’s ROI model’’ says Naef. Depending on the retail segment and the permutation of Use Cases that apply to the retailer, the majority of participants in the ROI programme are finding a potential payback period of between 6 months and 18 months.

ZBD pulled together its own expertise – including ROI models previously produced - and commissioned Martec International to take a fresh look at the opportunities for epaper in retail. Brian Hume, Martec founder comments: “In constructing the ROI model, we reviewed the various ways in which ZBD's display technology could contribute to improving a retailer's overall profit performance. We surprised ourselves at how many ways the technology could help, other than the purely obvious, and the model assesses the impact on profitability and cash flow of all the various options. The model gives an accurate, time-phased assessment of costs and benefits allowing retailers to simulate a variety of implementation strategies and select the one that works best for them.”