Using Mobile Point-Of-Sale Solutions to Enhance the Customer Experience
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Using Mobile Point-of-Sale Solutions to Enhance the Customer Experience MOBILE POINT OF SALE MANY REtaILERS ARE PILOTING NEW TECHNOLOGIES IN THEIR STORES, BUT ONE TYPE IN paRTICULAR HAS THE POTENTIAL TO FOREVER CHANGE HOW A TRANSACTION OCCURS BETWEEN A BUSINESS AND ITS CUSTOMER: MOBILE POINT OF SALE. The process of checking out in a store hasn’t embrace a seamless experience between online changed much since the 1950s: Shoppers choose and in-store destinations. As consumers evolve their the merchandise they want to purchase and then shopping behaviors and expectations, retailers are approach fixed counters and store associates to pay experimenting with different channels to ship and for the items. sell their merchandise. For example, during the 2012 holiday season, a number of retailers tested different Starting in the 1970s, retail started going through options to fulfill orders. Some relied on local stores a transformation with point-of-sale (POS) terminals to ship merchandise ordered in online stores to replacing cash registers and credit cards becoming reduce shipping time and costs. To address the omni- the norm. However, the process of selecting items channel shopper, other retailers tried new formats. and going to a fixed place in the store to pay for them For example, to kick off the 2012 holiday season, the largely remained the same. That is, until retailers craft marketplace Etsy took its sellers’ merchandise began introducing mobile POS. to a pop-up store. Also, Bonobos, a men’s online-only apparel store, and Piperlime, a Gap, Inc. online store, These solutions give the retailer the ability to process opened their first brick-and-mortar locations in 2012. payments anywhere with any card type, including Without existing infrastructure to worry about, such debit, credit, loyalty and gift cards. retailers can implement mobile POS solutions as they Mobile POS solutions typically consist of a handheld test different formats. mobile computer or device with a payment card Mobile POS also opens up opportunities for reader and compact, portable printer. Once the store organizations without four walls. It can be found in associate swipes the card, the data is encrypted places such as farmers markets and on food trucks and sent over a wireless network. After the charge as well as on delivery trucks and trains. It’s used is authorized, the shopper signs the screen on the not only for queue busting in a store or tableside device and the associate prints a receipt on the spot. payments in a restaurant, but also for utility billing and JC Penney, Sephora and other major retailers route sales receipts. announced initiatives in 2012 to use tablets, Technically, it could even be used in places where smartphones and other devices to employ mobile cash or check payments are the primary option checkout, with some such as AT&T stating they plan to today, such as a home delivery business. Mobile eliminate all counters and stationary POS systems in devices bring the Internet anywhere—meaning the next couple of years. online payments can happen just about anywhere as The growth potential is tremendous. well, including places where building a traditional IT infrastructure might be a challenge. According to Lee Holman, lead retail analyst for IHL Group: “More than three-quarters of retailers are A complete solution eases integration, enabling expecting to increase their 2013 spending on mobile merchants to quickly move from installation to POS over 2012 levels. To put it in perspective, Big application. While this is just the start of the mobile Data is the next most-sought after major technology POS journey, the potential to forever change the way a in retail, and the expected increase for mobile POS business interacts with its customers and customers outpaces that for Big Data by 20 percent.” interact with a business is tremendous. Forward-looking retailers understand that if they are going to even the playing field, they must A Zebra Technologies White Paper 2 BENEFITING BOTH THE CONSUMER AND THE BUSINESS Making a Transaction More Personal and Increasing Engagement, Creating New Efficiencies Providing a Better Shopping Experience to and Boosting Sales Build Customer Loyalty Engage More. “Mobile is the new face of One of the biggest opportunities for retailers is engagement,” according to a report published by providing a good in-store experience from the Forrester in 2012.1 The enabled store associate is the moment the shopper steps into a store to the moment differentiator, connecting with shoppers no matter she gets ready to walk out. when or where they shop. Mobile POS is among the technologies that help When Home Depot announced its mobile POS retailers create a compelling, differentiated in-store investment and rollout in 2010, its CEO Frank Blake experience. The handheld device that can check out a described why the company called its program First customer can actually serve many purposes. Phone: “We call it the First Phone because its core purpose is to reduce tasking time for our associates To illustrate: As a shopper walks into a store, a store so that they can instead focus on customer service.”2 associate can swipe the shopper’s loyalty card on With a handheld device that combines a variety of the retailer’s handheld device. Based on the historical uses, such as inventory management, label printing data she has on the shopper’s buying behaviors, with POS and a walkie-talkie, the home improvement the store associate knows she wants extra help in retailer wanted to help its customers—whether do- selecting merchandise. As the shopper begins to look it-yourself or professional ones—by delivering better around or tries on clothing, the store associate knows service in the aisle in real time. that she might be interested in the new items that just arrived and are sitting in the back room, again, Today’s consumers are knowledgeable and armed with because of the data she has on merchandise the mobile devices, using them to research prices and read shopper purchased in the past; the store associate reviews right in the aisles of the store. When armed quickly tailors the shopping experience by locating with their own mobile devices, retailers never have to the items and bringing them to her. As the shopper leave a shopper’s side. They can look up a customer’s decides on items to purchase, the store associate is information, check inventory, verify prices, and quickly there once again, ready to check her out wherever it is and conveniently check out a shopper. Mobile POS most convenient. For an item that may not be in stock, can empower the store associate as he freely moves the store associate can place an order online and have around on the store floor. It also gives retailers visibility it shipped directly to the shopper’s home. As all of into assets and transactions, which in turn gives them this activity happens, her loyalty card is updated with visibility into opportunities to create new value. buyer behavior data in real time. The experience is very personal for the shopper—she’s getting the level Be More Efficient. Mobile POS can create new of service she most desires based on her preferences. efficiencies. Some studies show that mobile POS terminals can speed up the transaction time, cutting In the case of a restaurant, having a mobile POS the average transaction time in half and making device gives the server the ability to locate menu contactless credit card payments five times faster changes, answer questions about ingredients, place than those requiring a signature.3 When shoppers get orders and check out diners at the table. ready to check out, they are ready to go, not ready to stand in a long line. Creating such an engaging and pleasant experience can make a consumer feel valued and build loyalty. Also, with fewer counters in the store, it frees up space Service can provide an edge to any business: While a for other uses. Based on changing shopping trends and restaurant can offer specials of the day and retailers needs, the retailer can “reset” a store without being can cut prices, if a consumer has a bad experience, concerned about fixed wires and stations. it doesn’t matter what kind of deal he may have received. Long lines and poor service create an overall Mobile POS also can eliminate checkout “deserts,” bad impression. On the other hand, responsive store especially in big-box stores. Research shows that the associates and quick checkouts can leave a consumer leading retailers in the U.S. have at least 25 percent of 4 with a positive impression. their store floor space in such deserts. By providing A Zebra Technologies White Paper 3 quicker access to checkout, it enhances the customer completing the transaction and giving the shopper a experience and potentially increases sales as receipt right on the spot. Thirty-two percent of U.S. shoppers may be less likely to abandon carts. consumers expect retailers to have the ability to place an online order.5 Mobile tools may even provide Additionally, mobile POS has value during peak visibility into the supply chain, equipping the associate shopping periods such as the holidays. Depending with the ability to look beyond store locations and on the season, retailers can supplement their fixed determine when additional stock will ship and reserve terminals with mobile POS in specific departments items for consumers. that typically have increased transactions during certain seasons. Outside of retail, event venues are finding value in mobile POS. For example, one stadium now uses Sell More. Using mobile POS can help retailers mobile devices to process debit and credit cards combat the trend of “showrooming” in which in the stands or anywhere in the park.