Maximizing Retail Technology Investments: A 4-Step Framework to 5x ROI

Retail technology investments have become mission-critical for staying competitive.

But they don’t always deliver the impact retailers expect. Balancing the need for innovation with cost pressures is tougher than ever.

While cutting-edge tools promise transformative results, the reality on the ground often looks different. Store teams get overwhelmed, and technology designed to help, doesn’t.

Rather than continually purchasing the shiniest gadgets, innovative retail leaders focus on squeezing more value from tools they already have. This solution-oriented mindset ensures any new investment truly fills a gap and delivers ROI.

We’ve been partnering with leading retailers for over a decade to do precisely this. This partnership has helped us develop a four-step framework to optimize retail technology investment and help you achieve significant returns. Check it out below 👇

Start by examining how work is actually done in your stores. Speaking to users and auditing current workflows helps highlight pain points and define success metrics before adding new technology.

Retail success begins with a thorough reality check of your operations. Before introducing any new device or app, assess your current processes in detail. Which tasks are causing the most frustration, are error-prone or taking too long?

By mapping this out, you identify tangible pain points to solve and set clear goals for improvement. The most successful retail tech projects start with a clear vision of the desired workflow outcome, not just the problem to fix.​

For example, is your goal to speed up inventory counting or reduce pricing errors? Define those key results upfront (e.g. 50% faster counting, 100% pricing accuracy) so you know what success looks like.

Every project needs a tangible problem and a measurable outcome from the start​.

Remember to include the user in the process. They are our customers and must be involved in the discovery phase to provide honest and unfiltered feedback. I’ve witnessed users leverage retail technology better and solve problems more easily than those who weren’t.

Retail tech – example case

VF Corporation, the leading active lifestyle retailer, was canceling 15% of its online orders due to stock shortages. During an audit, it became clear that the root cause was the inaccuracy of inventory levels in stores. Slow scanning and manual data comparison limited associates to only checking 10% of received items, resulting in discrepancies. So, they implemented a more mobile, real-time solution with smart data capture to achieve 100% inventory accuracy and 50% time savings for associates.

The quote from the technology director has become a favorite of mine and shows the correlation between solving a problem workflow and measurable outcomes.

The accurate inventory levels we get with Scandit Smart Data Capture have ultimately boosted our omnichannel revenue.

Andrea Comi – Global Director, Digital and Technology DTC, VF Corporation

By auditing your workflows, you highlight inefficiencies and attach real numbers to them. This guides you to the right solution and builds a compelling business case for investment.

Before introducing new hardware, assess what already exists in your stores, from employee smartphones to legacy systems, and put it to work.

Once you know what needs fixing, your instinct might be to buy new gadgets or systems. But the smartest retailers resist that urge at first. Instead, they examine their existing infrastructure and ask, “How can we do more with this?”

Your stores already have technology, such as point-of-sale systems, inventory systems, smart devices, and handheld computers. Even personal smartphones that nearly every worker and store manager carries can be leveraged in a BYOD (bring your own device) strategy.

Rather than scrapping everything for the ‘next big thing,’ maximize these assets. This approach is called ‘sweating your assets’: use what you’ve got to its fullest before investing in something new​.

Retail tech – example case

This strategy dramatically lowers upfront costs and speeds up adoption. Associates need minimal training because they’re comfortable with the hardware. As another bonus, leveraging existing tech can minimize disruption.

You’re not tearing out platforms or forcing a year-long implementation; you’re simply augmenting the current environment.

Prioritize flexible software that integrates easily with your current systems. The best solutions don’t require a total rebuild – think configurable solutions and apps that work with what you have.

There is an endless choice of software and platforms available to retailers. Because retail changes so frequently, it needs to be adaptable on the fly. This means choosing solutions that play nicely with others.

I’ve spoken with retail executives who have said point-blank that they “will not invest” in tech that cannot communicate with their current store ecosystem​.

Flexibility is a non-negotiable. When evaluating solutions, look for APIs, out-of-the-box connectors, or compatibility with industry-standard platforms. Even better, consider no-code or low-code solutions that let you tailor functionality without heavy development. This way, you can slot new capabilities into your operations in days or weeks, not years.

Choosing between custom-built and out-of-the-box solutions

A good rule of thumb for me depends on the complexity and criticality of the workflow. An out-of-the-box solution is often the best choice for highly standardized workflows, like clienteling, POS, or reception, ensuring fast deployment and lower maintenance costs.

Omnichannel and store operations workflows, which involve a large associate base and diverse use cases, typically benefit from some level of customization to align with specific business needs and drive maximum efficiency.

Retail tech – example case

By prioritizing solutions that meet your systems where they are, you give your organization room to grow. You can modernize step by step, and flexible tech tends to be future-proof. It’s easier to update or extend capability to accommodate a process update.

So, when evaluating tech investments, ask vendors about integration and configuration first. The easier it is to integrate the solution into your current tech stack, the faster you’ll see benefits and the lower your risk of disruption.

Demand a clear return on investment. Set success metrics (cost savings, revenue gains, or efficiency improvements) and estimate the payback. Tech that delivers 5x ROI or better deserves the investment.

In retail, margins are thin and budgets tight, every dollar spent on tech needs to pull its weight. Leading retailers prioritize ROI relentlessly. In fact, Scandit’s retail clients often set a high bar: if a solution can’t promise at least a fivefold return, it doesn’t get funded.

This ensures a focus on changes that truly move the needle.

So, how do you ensure a strong ROI? It loops back to Step 1: You’ve identified pain points and their costs, so you know the value of solving them.

Now, calculate the expected benefits of your proposed solution in dollars (or hours, etc.) and compare it to the cost.

Will a new mobile batch scanning app result in 30% to 50% less time spent receiving pallets? Find out the annual labor hours saved and what that’s worth.

Will an AI-powered shelf intelligence solution boost on-shelf availability to above 95%? Estimate that revenue.

By quantifying these gains, you can prioritize projects that pay back quickly and generously.

Retail tech – example case

Staples Canada identified that their price audit process was slow and error-prone, especially for new associates, which indirectly hurt customer experience. Staples equipped staff with iPhones running a scanning app powered by smart data capture software. With AR guidance, they streamlined a three-step task into a one-step ‘scan-and-confirm’ process. Dramatically speeding up price checks​ and guaranteeing accuracy.

This simplification allowed Staples to reduce hardware costs by 45% and save thousands of hours across 20,000 weekly price checks, delivering huge ROI.

Stories like this illustrate why ROI comes last in the framework but is arguably the most important filter. If you’ve audited your workflow, leveraged existing tools, and ensured a flexible integration, the final question remains: is it worth the investment?

When yes, you can proceed confidently, backed by data.

Don’t wait for perfection

One of the biggest factors that slow progress is keeping pilots too small for too long. In my experience, retailers that move quickly from pilot to scale, rather than waiting for ‘perfect’ results in a handful of stores, see ROI much faster.

The key is to test, learn, and scale confidently. ‘Fail fast’ is a great motto for driving innovation.

If the ROI isn’t there – don’t be afraid to shelve the idea or seek an alternative. By prioritizing ROI, you ensure that each retail tech investment tangibly benefits your business, associates, and customers.

Technology can be a game-changer for retail, but only if applied thoughtfully. These four steps create a solid game plan for any retail tech investment.

• You will know exactly what problem you are solving and how you will measure success.
• You will make the most of the devices and systems you already possess, saving time and money.
• You will select solutions that seamlessly integrate and scale with your business.
• You will invest with confidence, supported by a clear ROI analysis.

In my experience, a siloed approach to technology adoption is one of the biggest barriers to achieving a 5x ROI. Many retailers focus on optimizing single components, such as hardware, software, or specific use cases, rather than looking at the entire workflow. The best returns come from a holistic view, where retailers consider the full tech ecosystem and optimize processes end-to-end.

By being methodical and customer-focused, you’ll avoid flashy projects that fizzle out, and instead deploy innovations that truly make a difference.

Remember, the goal isn’t to have the newest toys; it’s to streamline operations, empower associates, and delight customers in a sustainable way.

Now is a great time to evaluate your current setup and identify opportunities to apply these steps.

Here’s to powering smart retail with the technology you have and wisely investing in the technology you need.