Category Archives: Point of Sale Software

by Retail Pro

Retail industry focusing on data security

The malicious malware that hackers used to attack Target has been tied to a number of recent breaches in retail stores, including Neiman Marcus and Michaels Company, Inc.. On January 17, the FBI issued a report to leaders in the retail industry, warning that the risk for continued attacks is high.

"We believe POS malware crime will continue to grow over the near term, despite law enforcement and security firms' actions to mitigate it," read the FBI statement, according to Reuters. "The accessibility of the malware on underground forums, the affordability of the software and the huge potential profits to be made from retail POS systems in the United States make this type of financially motivated cybercrime attractive to a wide range of actors."

The malware strain used in these attacks allowed criminals to gain network access undetected. According to Reuters, the FBI believes that one variant of the software can be updated remotely, making it more difficult for retailers and the government to guard against it.

Consumer response and expectations
With all of the news about data breaches in the retail industry, consumers are highly aware of the problem. However, the issue has not significantly deterred them from shopping at stores. In fact, The Associated Press (AP) reported, customers remain more concerned about security in ecommerce software and mobile transactions.

The AP polled people to assess their reaction to the recent data breaches. It found that the majority of Americans are extremely concerned about personal data since the breach, but haven't changed their shopping habits or taken significant steps to protect themselves. For example, only 37 percent have tried to use cash instead of cards, the poll found, and 41 percent have checked their credit score.

While the source attributed these results to Americans accepting data breaches as a part of life, it also points to the fact that there's relatively little that consumers can do to avoid using credit cards and having their data collected. Therefore, the expectation is that retailers, banks and security experts should have the greatest responsibility in protecting data.

Tips for keeping POS systems secure
Even if customers are not dissuaded from shopping because of security concerns, merchants should take this opportunity to make sure their systems are as secure as possible. Having up-to-date POS software is a good place to start. In addition, Security Dark Reading recommended merchants take the following steps for defending POS systems:

  • Use strong passwords
  • Update POS software applications
  • Install a firewall
  • Use antivirus
  • Restrict access to the internet
  • Disallow remote access
by Retail Pro

Single platform system improves multichannel store operations

Merchants that want to improve customer engagement, data analytics and retail inventory management require streamlined, efficient retail technology. According to a recent report by the National Retail Federation (NRF), Demandware and the University of Arizona, 35.8 percent of retailers are considering a single-platform solution to help them manage their multichannel operations.

The survey polled more than 200 retail business technology executives in the U.S. and Europe and found that the majority plan to upgrade their retail software and increase or maintain technology investments. With the growth of ecommerce and omnichannel marketing, many companies see single-platform solutions as the best choice.

"In this consumer-led industry, retailers are working overtime to keep up with the expectations and demands of their savvy customers, and are intent on integrating the digital shopping experience like never before," said NRF Vice President of Retail Technologies Tom Litchford.

A single platform is advantageous because it seamlessly integrates information from all channels. Store associates can have instant access to updated inventory information on their retail POS devices after an online sale occurs. It also facilitates comprehensive customer intelligence. As IBM CEO Ginni Rometty said at the NRF Convention, big data is becoming a "natural resource" for the retail industry, and businesses need access to consolidated, up-to-date information.

by Retail Pro

Target breach renews emphasis on POS and card security

As the fallout from Target's data breach continues to develop, one question lingers on retailers' minds: How can they prevent this from happening to them? The attack, which is now reported to have affected up to 110 million customers, slipped past Target's security measures and stole hordes of data from the retail chain's servers. And it wasn't just Target: Neiman Marcus announced that its data had been stolen and the same malware strain has reportedly been linked to at least six other retailers. 

As new information continues to emerge about the scope, nature and source of the attack, industry leaders are seeking solutions to bolster security and protect customer data from multiple angles. 

Emphasis on chip-based payment cards
The recent data breaches have renewed industry interest in the latest technology for credit and payment cards. 

"The technology that exists in cards out there is 20th century technology and we've got 21st century hackers," Mallory Duncan, National Retail Federation (NRF) senior vice president, said at the annual convention, according to Reuters.

The promising card technology, known as Europay MasterCard Visa standard (EMV), has been used in Europe for years. It stores consumer information on computer chips, rather than magnetic strips, and requires PIN numbers. These chip-based cards might not have prevented the Target hack, but they would make it much more difficult for cybercriminals to use stolen data. 

However, a number of hurdles remain before the technology can become widespread in the United States. First, banks and card companies need to implement the technology and agree on conversion costs and liabilities. Retailers also need to implement systems that are capable of reading the chip-based cards. Many leading POS software systems are EMV compatible or can be retrofitted with the technology, the NRF Convention newsletter noted, and retailers can ensure the greatest security by staying current with software upgrades.

Best practices for point of sale systems
Even before EMV cards become widely available, businesses can take a number of steps to make sure their point of sale systems are less vulnerable to attacks. Newer POS systems have the capability to encrypt data from end to end, which adds layers of protection to customer data, Forbes reported, making it more difficult for hackers to steal identities. POS devices should be used only for POS, Search Security emphasized: A set up where POS applications are used on a computer alongside other programs leaves the POS data exposed to multiple entry points for malware. Instead, POS systems should be on isolated and segmented networks that are protected from the rest of the system by multiple safeguards.

by Retail Pro

NRF advice: Use digital receipts for customer engagement

Digital receipts are environmentally friendly and convenient for customers. They reduce paper consumption, avoid toxic chemicals often found in receipts and help buyers keep track of their documents. According to Retail Week, Twitter founder Jack Dorsey is encouraging retailers to focus on an often over-looked benefit of electronic receipts: customer engagement.

At the National Retail Federation (NRF) Convention on Jan. 15, Dorsey explained how businesses can use digital receipts as a component of their retail marketing strategies, the source reported. He suggested merchants use interactive digital receipts that can be sent as an email or text message, a venue for opening the door of communication between the store and the customer.

"Sometimes the receipt isn't taken –  the reason it's not taken is it's not useful," Dorsey said in his keynote address, according to Retail Week. "We see the receipt more as a communication and publishing medium – a product in itself that people want to take home and engage with."

POS software makes this form of customer engagement easier for businesses. For example, Retail Pro, in partnership with flexReceipts, offers eReceipts through its retail management software. By sending eReceipts, retailers can include personalized promotions to engage consumers and encourage additional purchases.

by Retail Pro

Gentle introduction of retail technology converts customers

Retail technology is continuously advancing, offering more opportunities for businesses and more convenience for customers. But some consumers are wary about adopting the latest trends and they could be alienated if companies change their systems too abruptly or aggressively. To capitalize on the benefits of retail technology, such as POS software or mobile payment systems, businesses should take a lesson from Starbucks: Introducing small, unthreatening options is the best way to get consumers on board.

How Starbucks became a leader in mobile payments
Even by 2011, Starbucks hit the 26 million transaction mark for mobile payments, Computer World reported. The coffee giant currently offers two apps: One that allows customers to pay with their Starbucks Card by tapping their phone, and another that pays through credit or debit accounts. This strategy for fueling customer adoption could help expand what USA Today noted is now a relatively small pool of tech-savvy mobile payers.

CIO magazine explained that Starbucks catalyzed its retail technology venture by starting with something simple and comfortable for customers: Good, old-fashioned Starbucks gift cards. The cards were an easy transition for customers used to paying by plastic, the source said, and Starbucks focused its holiday retail marketing on selling gift cards. Then, with millions of cards in the hands of coffee drinkers, Starbucks launched a campaign to promote its Starbucks Card app, encouraging consumers to put their gift card dollars into app accounts. After years of using a special Starbucks card to pay at the shop, CIO magazine suggested, customers were more comfortable using a special app to pay instead.

Slow and gentle is good general advice for retail technology
Starbucks' insight that easing people slowly into the sometimes intimidating frontier of technology is wise advice for the retail industry. No one likes to feel pressured to change to a new system, and an inviting approach gives customers the space to see how a new option is advantageous and convenient, without the negative experience of being forced to adapt.

To this end, retailers can incorporate some forms of technology while maintaining traditional options, at least at first. For example, a store switching to mobile point of sale might find customers more satisfied if they still have the choice to go to a traditional check out line. Over time, as customers become more comfortable with the new system, the store could switch over completely. 

by Retail Pro

Retail technology empowers store associates

Retail customer trends indicate the advantages offered by new retail technology, both on the Web and in stores. At the National Retail Federation (NRF) Convention, which took place Jan. 12-15 in New York City, industry leaders gathered to preview innovative retail solutions and discuss ways to optimize their business strategies. According to 1to1 Media, one of the emerging trends is how retailers can use new technology to empower employees.

Even as ecommerce becomes more popular, consumers view brick-and-mortar locations as valuable shopping centers. Personal relationships are a key component of successful retail marketing, and interactive experiences draw in customers who want to try before they buy. Retail technology, such as integrated retail management software, can help stores capitalize on the benefits of their physical presence. 

With the help of retail customer intelligence, store clerks can offer personalized advice or assistance to customers, 1to1 Media explained. Streamlined point of sale processes also help employees focus on personal connections with shoppers, instead of staying behind the counter or keeping their eyes on complicated check-out systems. For example, Retail Pro Prism, which was featured at the conference, provides store clerks with information and mobility. As reported in the Convention newsletter, retail experts agreed that customer engagement, including relationships with employees, is key to business success.

by Retail Pro

Retail technology and innovation make brick-and-mortar an asset

Although ecommerce has dominated the news recently, brick-and-mortar locations can play a substantial role in consumer conversion and loyalty. According to a report by KPMG, novel uses of new retail technology are giving physical store locations a fresh purpose and potential. In fact, Chris Malone, a managing partner of Fidelum Partners, wrote in Forbes magazine that retail store experiences are critical for ecommerce success. Even without an ecommerce component, brick-and-mortar venues can stand out with some creative thinking and smart use of technology. 

Play up your strengths
An enormous benefit of the physical storefront is the face-to-face interactions between consumers and employees. Humans are driven by relationships, and a positive store experience augmented by friendly, helpful staff will capture customer loyalty, according to KPMG. Businesses with knowledgeable, well-trained staff also earn the respect of customers as industry experts.

Provide in-store perks to draw customers inside
Another benefit of a local venue is the ability to provide special options and benefits in real-time. For example, some stores are integrating coffee shops or pharmacies into their space to give customers another reason to stop in and stay longer, The Nielsen Company reported. Pleasing store layouts and interactive displays also go a long way. KPMG called it "shopper-tainment" – people like to try things out and play with gadgets, which is a big plus over online shopping. Retailers should offer demonstrations and trials to keep people coming back.

Compete with online convenience
Shoppers like online purchases because they're fast and easy. Merchants can make their in-store operations fast and easy, too, especially with new retail technology. For example, POS software can enable customers to purchase an item anywhere in the store, without walking to the checkout lanes. Kiosks can extend product offerings otherwise limited by shelf space, as reported by KPMG. That way, customers can still see and touch physical items, but if they want a different color or model, they can immediately look it up at the kiosk.

Create cool experiences with new retail technology
As technology becomes more powerful and more portable, the opportunities are endless. Merchants need to think outside the box and use technology to shape and personalize the all-important customer experience. For example, the KPMG report mentioned that some retailers are using RFID smart tags on clothing to communicate with audio systems in their fitting rooms. The system chooses songs appropriate to the type of clothing a customer is trying on, which likely coordinates with the his or her preferences.

The report found that one of the main reasons managers are disappointed with the results of new technology is that they don't have the time or the knowledge to successfully integrate them with their business models. But with some guidance from experts, they can develop a cohesive technology strategy tailored to their companies to form an impressive customer experience.

by Retail Pro

2014 expected to usher in more integrated retail technology

With the new year comes new predictions for the market. For 2014, the buzzwords are centered on technology and a more integrated customer experience. From handheld point of sale options to better websites, retailers are focusing on consumer convenience and accessibility. As smartphones continue to become more intimately integrated with daily life, retail technology is essential both for online sales and storefront locations.

Consumers want a seamless experience, whether they shop online, at a store, or both. Businesses can gain a competitive advantage by making the shopping experience more integrated and more helpful for customers. "One of the key trends is more – and better – omnichannel integration," said UK Google Managing Director Dan Cobley in an article for Retail Week. "Done right, the combination of a store network and online is a winning formula that pure-plays can't match." 

The results of an omnichannel sales strategy were impressive for Finish Line in 2013. As reported in Internet Retailer, Finish Line's third quarter sales saw an increase of 22.9% to $364.5 million from $296.6 million. Chairman and CEO Glenn S. Lyon emphasized the company's strategic use of technology in the Finish Line Q3 2014 Earnings Call: "Our total performance is being fueled by effective digital initiatives that create increasingly more personalized consumer engagements through desktop computers, mobile phones, tablets and social media," he said. "Our objective isn't to dictate where customers shop; rather, make sure we are wherever they prefer to shop."

by Retail Pro

Retailers moving toward more mobile in-store experience

Although Aéropostale's initial sales during the holiday shopping season were less than impressive, the retailer will be addressing its user-engagement issues with improved mcommerce offerings, according to Mobile Commerce Daily. 

This includes the introduction of a mobile app, as well as increasing the number of iPad kiosks located throughout their brick-and-mortar locations. These are intended to enable better information sharing and browsing through the business's products. Customers will also be able to mix, match and otherwise interact with items more thoroughly than ever before. 

"We're going to see brands start incorporating in-store mobile payments, mobile-only discounts and promotions and other next-gen mobile capabilities that will continue making it easier for consumers to browse, shop, explore and make purchases," Carin van Vurren, CMO of Usablenet, told Mobile Commerce Daily. 

By expanding its use of retail technology, Aéropostale will also be able to improve its store operations as sales associates will be able to assist customers at the kiosks. The platforms will also double as point of sale systems that allow staff members to complete transactions from nearly anywhere in a store. Merchants should consider providing similar solutions to their employees and customer base in an effort to further streamline the purchasing process and enhance omnichannel offerings. 

by Retail Pro

Many merchants are going a step beyond price matching

For many retailers, the thought of haggling with customers may seem archaic, or more appropriate to small shops rather than big box stores and well-established businesses. Yet according to NBC News, the practice has been gaining popularity and may become a mainstay for many stores. 

Price matching or accepting competitors' coupons has been standard practice for many retailers for years now. This was not necessarily that crucial a few years ago, when a shopper might have to pore through multiple flyers or catalogs to find the best bargain. But in the age of ecommerce and easily researched products, the process has become both faster and simpler for the average consumer. NBC News noted that even Best Buy accepts discounts from other merchants if customers could show proof. 

But for some retailers, simply matching another price is not enough. According to the source, a few merchants are beating competing deals by taking an additional 10 to 20 percent off the relevant items. This includes major chains such as The Home Depot and Lowe's, while even high-end businesses such as Nordstrom created price-matching guidelines for their staff, even if these practices are generally not advertised. 

"I truly feel that the shopping landscape is going to change," Joe Marrapodi, chief executive of Greentoe.com, told NBC News. "It's going to be much more driven by the consumer and ability to negotiate."

Marrapodi added that negotiating does need to be consumer initiated, which can avoid the problem of customers immediately expecting to receive a deal on marked prices. 

Do not get hung up at the point of sale
Merchants that choose to engage in this practice will need adaptable retail software that can quickly mark the change without slowing down the line or otherwise impeding other shoppers from quickly purchasing their items. On-the-fly discounts can add complexity to the point of sale, but this should not unduly disrupt the process or complicate inventory management, particularly when the end goal is to achieve a greater number of sales with a larger volume of customers. With negotiation becoming a more common consumer tactic, industry professionals should adjust to the change, or at least ready their staff members with an answer when a patron requests price matching or an even steeper discount on a product.