Payment security is top of mind for retailers this year, according to a study released this week  from Boston Retail Partners (BRP). And, based on the numbers, it seems as though many retailers haven’t paid payment security much attention in recent years: 63% of respondents said this type of security was among their top three concerns, the highest number in the history of the 16-year-old survey.

Part of that commitment to secure transactions has to do with the rollout of EMV, also known as chip cards or chip and pin cards. While widespread in Europe, EMV is just rolling out in the United States. All retailers will be required to have EMV readers available by October 2015, or they face being liable for charges incurred by bogus cards. It is therefore not surprising that retailers are set to jump on solutions securing payment transactions; what is unusual is that the number of retailers planning to support EMV is expected to increase by 650%.

Last year’s seeming epidemic of breaches at several top retailers, in addition to high profile hacking on top of the approaching October 2015 EMV deadline, is giving security this sudden sense of urgency. But chip and pin aren’t the only weapons in the arsenal.

Survey respondents report implementing end-to-end encryption: 35% have already put solutions in place and another 45% plan to implement it by October. Overall, BRP projects a 151% increase in encryption within two years.

Finally, tokenization use will see a hike of 146% during the next five years. Tokenization lets retailers remove sensitive data in flight and at rest from their networks. One-third of the respondents have implemented tokenization for payment processing and another 40% plan to implement it before October 2015. One-third of the respondents have implemented tokenization for payment processing and another 40% plan to implement it before October 2015.

Increasingly, retailers are looking toward modern payment security solutions to protect sensitive customer and organization data. By moving to EMV and encryption in conjunction with tokenization, 2015 may be the beginning of a more secure retail environment.

This entry was posted by Jennifer Bosavage on Thursday, January 22nd, 2015 at 8:12 pm .

Customer engagement and retail’s push to “delight” the customer has lead to a re-evaluation of product marketing. Some refer to that by the cringe-worthy term, “marketeering,” but really it’s old-fashioned clienteling: The act of knowing the customer well enough to promote relevant products or services.

Using geo-location, retailers push promotions to shoppers based on proximity.

Although clienteling has been practiced since the dawn of retail, today’s technology offers an abundance of riches in terms of relating to customers. Retailers have been collecting data for years, but only recently have tools emerged that lets them make sense of it. By analyzing that information, retailers can effectively take control of their revenue streams. For example, retailers can take specific information about their shoppers and provide targeted, intelligent offers, as well as time-sensitive notifications, to attract customers. Using that in combination with GPS and iBeacon geolocation technology, is the next step, and it’s coming.

Virtually every retail customer walking down the street or in a mall has a mobile device, but few retailers are taking advantage of that ready-made platform. Solutions such as those from Mowingo and iSign use geo-location to identify the proximity of shoppers before pushing out a notification. In conjunction with that, they create unique customer profiles that aim to send appropriate content.

Context is critical, which is why geo-location and profiling go hand in hand. It reduces the likelihood, for example, of a man getting a text informing him of a flash sale on stockings when he is in the ladies shoe department — following his wife.

These solutions tend to boost loyalty for retailers too, because customers feel like a valued part of the retailer’s community. To compete with Amazon, retailers need to leverage their community location, and providing special, personalized promotions is one way of achieving that goal. Those promotions might include coupons, or VIP events.Going back two or three years, retailers discounted how much customers enjoy coupons; to many shoppers, coupons can be perceived as a sort of validation that they are special, valued, etc., a type of “insider” reward. Once customers feel that they are part of an exclusive club, they are more willing to provide personal information because the value proposition is attractive.

For retailers considering incorporating location services, a best practice is to explain to customers what’s in it for them: “By using your location, we will provide a better service, and reward you for your loyalty.” For some, discounts will be the driving factor to get them into a store. For others, it’s about the sense of community. Reminding customers about options (communication) and offering them specials (discounts) are both effective. Over time, you will  learn which customer needs what amount of encouragement to win their business.

This entry was posted by Jennifer Bosavage on Wednesday, January 21st, 2015 at 8:14 pm .

Last week’s National Retail Federation’s Big Show showcased many advances in point-of-sale terminals. Transaction speed, efficiency and accuracy are offered in different shapes and sizes destined to meet the needs of every retailer. Propelling that market’s growth is the desire of retailers to upgrade equipment to enable adoption of near-field communication technology for payments, according to a new study by Grand View Research. The dramatic popularity and subsequent growth of the NFC-based smartphone category, in addition to increasingly affordable wireless communication technologies, will continue to influence the mobile POS terminal market.  According to the report’s authors:

Mobile POS (mPOS) systems give customers convenient options for checking out in the store and can provide employees with additional information to assist shoppers.

“mPOS terminals are expected to replace the current transaction and payment techniques owing to their improved features such as mobility and better user experience. They allow sales and service industries to conduct financial transactions remotely for improving customer experience. Mobile POS terminals have low initial cost as compared to their traditional counterparts leading to increasing demand from SMBs. Retail and hospitality sector have experienced significant growth in demand for mPOS solutions, driven by increased need for customer analytics features and high ROI.”

The researchers also found that the ease of use and improved return on investment offered by those newer systems has favorably impacted the market. Increased demand for mobile POS terminals such as smart card EFT (Electronic Funds Transfer) is also estimated to stimulate the market. Advanced POS systems are more durable and reliable than their ancestors (aka, cash registers), resulting in significant reduction in total cost of ownership (TCO), making them a hot ticket for small and midsize businesses, which are always trying to maximize cost efficiencies.) Further, the introduction of chip-embedded payment cards and personal identification numbers have minimized security concerns pertaining to sensitive data theft, which is also expected to augment POS terminals market growth. The global POS terminals market was valued at more than $30 billion  US in 2012; the POS software segment is expected to surge in the near future due to increased demand from retail businesses, in large part. In fact, the study found that retail is expected to remain the major market segment during the next six years.

This entry was posted by Jennifer Bosavage on Monday, January 19th, 2015 at 8:31 pm .

Is brick really the new black? At the NRF2015 Big Show this week, it seemed that way. JDA Software was one of several vendors that focused presentations on how retailers can reposition brick-and-mortar stores as the center of the new customer experience.

To remain competitive with online merchants, brick-and-mortar stores are adjusting their practices to create memorable customer experiences.

Today’s customers, particularly Millennials, are always “on,” and that has caused retailers to react accordingly. Connectivity between online and brick and mortar outlets, for example, is quickly becoming a “must-have.” Although e-commerce use is commonplace, brick and mortars also have a spot in the retail ecosphere. An NRF panel entitled, “Brick Is the New Black,”  Chairman and CEO of JDA Software Bal Dail, President of Levi’s Brand James Curleigh, former CEO of Walmart U.S. Bill Simon, senior partner at brand agency Lippincott James Wright, discussed strategies to meet the wants and needs of tech-savvy customers. The panel’s conclusion? Retailers can leverage brick and mortar environments to thrive in today’s dynamic retail landscape despite the rise of online shopping and omni-channel. Partly this is being accomplished by creating more interesting in-store experiences, and partly by encouraging customers to use online technology to facilitate in-store pickup.

“The death knell for brick-and-mortar was premature. Physical stores remain at the emotional and financial core of today’s retail model and can be leveraged to engage and delight the new boss and deliver real profit and brand equity,” said Wayne Usie, senior vice president of retail industry strategy at JDA Software. “However, retailers need to act now to evolve their processes and capabilities to capture the potential that the new boss holds, or risk losing this fickle customer to a competitor.”

Melding the online and physical worlds with strategies such as “BOPIS” (buy online, pick up in store), also referred to as “click and collect,” help brick and mortars attract customers who are comfortable with e-commerce, particularly the Millennial set. Such customers can browse and comparison shop quickly and efficiently online, and then go to the physical store location for the “look and feel” experience, and, finally, to take delivery of the product. Of course, to be successful, inventories need to be in perfect sync to avoid customer frustration and disappointment.

Sometimes, however, a little pocketbook persuasion is necessary to rout them from behind their screens: A recent study by Parago said that 80% of shoppers would BOPIS for a $10 rebate on a $50 purchase. That’s a hefty 20% discount. However, if a brick and mortar store can entice a customer to buy more merchandise when he or she comes to retrieve the original order, it may be well worth offering the incentive.

Have you implemented click and collect? If so, let us know in the comments how it’s going, and whether customer’s shopping baskets increase once they are in the physical store. If you haven’t yet implemented click and collect, let us know why not.

This entry was posted by Jennifer Bosavage on Wednesday, January 14th, 2015 at 8:33 pm .

What will retailers focus on in 2015? That’s the big question at the National Retail Federation’s Big Show, taking place this week at the Javitz Center in New York City. For many, the driving force this year will be to provide an extraordinary customer experience, and that means investing in technology. From electronic shelf labels, to fitting rooms to electronic shelf labels, technology will power the evolution in how retailers approach and interact with their customers.

Retail industry leaders are driving changes to enhance the customer experience across their channels.

Take electronic shelf labels. LG Innotek, introduced customized ESL solutions for various retail outlets at NRF 2015.  Electronic Shelf Labels are just a small part of the burgeoning Internet of Things (IoT) solutions market; LCDs and electronic paper provide shoppers information on product price, sales promotions, etc. The integration of ESL lets retailers manage the price of all the products in a store, and helps in real-time tracking inventory status. Customers can check on product information and easily find the product as the ESL communicates with their smartphones. ESL can also process the order, payment, and delivery on site.

Once a customer has made a selection, the next stop is often the dressing room. MemoMi’s MemoryMirror is a digital mirror that rolls video, 360-degree viewing and social networking into one high-end retail package. The product itself debuted at last year’s Big Show, but it’s here at the 2015 show again, promoting its alliance with Neiman Marcus and its roll out at the luxury store’s Walnut Creek, Calif., outlet. The MemoryMirror is designed for in-store clothes shopping, capturing stills and video of everything the customer tries on. It’s not in the dressing room — that was deemed too creepy — but is located right outside, in a common area. Using simple body gestures, or via a companion mobile app, the mirror can be controlled to see 360-degree back and side views, observe outfits side by side, and change the color of the clothing. For retailers, the MemoryMirror can gather shopper data by measuring and analyzing in-store behavior.

Finally, after the customer has gathered and tried on his or her items, it’s time to check out. Increasingly, retailers are employing new POS systems to ease that friction point. Whether it’s checking out via an app, through an associate with at tablet, their own smartphone or a traditional POS, consumers today are demanding a seamless, easy payment experience.

At NRF 2015, Retail Pro is demonstrating its comprehensive and flexible software that is aimed at helping retailers evolve their omni-channel strategies. Mid-market and global brands alike can create consistent, impactful customer experiences at every touch point with brand-conscious POS and web-based applications accessible across devices: Ease of use combines with insightful data analysis.

Retail Pro International will be showcasing its retail management software at NRF 2015 through January 13, in booth #1503.

This entry was posted by Jennifer Bosavage on Monday, January 12th, 2015 at 8:29 pm .

Mobile payment is quite likely to be one of “the” big topics at the NRF Big Show, which starts  Sunday in New York City. Just as “omnichannel” and “customer-centric” were the focus of previous years, it’s a safe bet that mobile payment solutions will be a dominant player at the Javitz center next week.

Retailers need to embrace mobile payments.

A recent study conducted by Wakefield Research during the holiday shopping season found that most of the respondents were interested in paying for purchases at physical store locations with their smartphones. Fifty-three percent responded that it was important for more stores to install devices that let consumers pay with their devices, which seems to suggest that there is a willingness to pay via this method but the option is not always available. Age also seems to be a factor; 64 percent of respondents who were younger than 40 seemed most eager to pay using a mobile phone.

A few large retailers have implemented the technology needed to make mobile payments a reality for these shoppers, or they have announced plans to get on the bandwagon. That kind of publicity will further help speed user adoption. BI intelligence forecasts that US mobile payment volume will grow at a five-year compound annual growth rate of 172%. Apple Pay has seemingly lit a fuse: In just the month after it debuted, payments made through the feature comprised between 0.1% and 1.6% of transactions at five top retailers, according to BI Intelligence, which characterized that rate as “exceptional momentum.”

For mobile payments to become a viable option for consumers, not only must retailers invest in new hardware and software, but consumers must also be educated in what benefits the technology offers, as well as how information is protected. More than half of the Wakefield respondents (56 percent) said they would continue shopping at a store that had suffered a credit card information breach; however, the number of consumers who were less likely to continue shopping at such a store was still a significant 44 percent.

Retailers ought not miss the opportunity to educate customers on mobile payments — it could afford them the opportunity to continue to build a trusted relationship with the consumer, and there are substantial benefits for both parties using mobile payment technology. Among the top advantages to using smartphones instead of traditional payment methods cited in the Wakefield research:

#1 – Speed of use (34 percent)

#2 – Freedom from carrying a wallet (29 percent)

#3 – Access to mobile deals (24 percent)

#4 – Ease in tracking spending (23 percent)

#5 – Safety of personal data (18 percent)

The last is a critical point. Eighteen months ago, a Federal Reserve study noted that 42 percent of consumers were concerned about data security, and that concern was the most cited reason regarding why consumers have not used mobile payments. While consumers may have been skeptical about the security surrounding mobile payments, many (particularly Millennials) are concluding that with today’s technology, mobile payments might, in fact, be more secure than credit cards — even those with chip-and-pin technology. Ironically, secure mobile payments may, in fact, take off because of the recent spate of credit card hacks.

Certainly, there will be plenty of mobile technology to check out at the Big Show. See you there.

This entry was posted by Jennifer Bosavage on Friday, January 9th, 2015 at 7:54 am .

With the rise in mobility, comes an increase in data. And,if it seems to you that virtually everyone on earth has a mobile phone, you’re right: According to the United Nations Telecommunications agency’s most recent figures, more than 6.8 billion cellular subscriptions are in existence worldwide, and that’s pretty close to the world’s population figure of 7 billion. With all those cell phones in use, m-commerce — specifically, using handheld devices to purchase goods and services — is quickly becoming ubiquitous. And with that comes the realization that a whole lot of data is being generated, and cataloged.

With big data capabilities, merchants are using retail business intelligence to improve the shopper experience in their stores.

During Tuesday’s keynote panel at the Consumer Electronics Show, “How Mobile Is Fundamentally Changing our World,” technology experts from across the industry addressed how mobile connectivity is transforming business and personal lives. the panel discussion was hosted by John Ford of CNBC, and included Jan Brockmann, chief technology officer and senior vice president of Electrolux; Phil Abram, chief infotainment officer of General Motors; Steve Mollenkopf, CEO of Qualcomm Incorporated; and Jeroen Tas, CEO HISS of Philips. The panelists discussed concerns regarding mobile connectivity, including privacy and data collection in addition to how different sectors are evolving due to the influence of constant Internet access; for example, the smart home, automobiles and the health care industry.

“We are, as an industry, at a very strong point of experimentation,” said Mollenkopf. “People are trying to figure out what are these new categories, how do they work, who’s going to win, what will the consumer understand and what will the consumer put up with in terms of data being taken about their daily lives, and how will we manage that as an industry.”

That last point is key: How much of their personal information will consumers be willing to share, particularly with retailers? And, with the Internet of Things being touted as the “next big thing,” there is concern that the continuous collection of every ounce of data will reveal too much about individuals. Correlating the “just right” pieces of information can unravel a person’s anonymity, exposing information not intended for public consumption.

“This pervasive collection of data inevitably gives rise to concerns about how all of this personal information will be used. Will the data be used solely to provide services to consumers?” said Edith Ramirez, Chairwoman of the Federal Trade Commission in her CES keynote. “Or will the information flowing in from our smart cars, smart devices, and smart cities just swell the ocean of ‘big data,’ which could allow information to be used in ways that are inconsistent with consumers’ expectations or relationship with a company?”

Retailers are in the position to collect huge amounts of data. Consumers should always be provided with clear and simple notices of the proposed uses of their data and a way to opt-in, or out. Where possible, retailers could also de-identify information; data concerning trends in fashion do not need to be personally identifiable, for example. Trends are, after all, general observations. As Ramirez noted, fostering consumer trust is just good business sense.

This entry was posted by Jennifer Bosavage on Wednesday, January 7th, 2015 at 8:05 pm .

Cloud computing has been among the most exciting and transformative technologies to hit corporate and consumer IT in history, while studies indicate a wealth of industries are already seeing these solutions deployed in ubiquitous fashion. Because of the ways in which cloud services can boost the efficiency and productivity of employees, systems and more, while simultaneously making assets available in a broader range of locations, the applications in retail are clear. 

Chances are that a growing majority of retailers are already using cloud-based solutions for a range of tasks and requirements, and are likely enjoying a wealth of advantages because of the decision to overhaul their IT frameworks with these revolutionary services. However, retailers will need to ensure that they are prioritizing security improvements when leveraging any type of new technology, and cloud is no exception. 

How to get it right
Talkin' Cloud recently listed several resolutions that cloud computing users should oblige in the new year, affirming that data control, storage behaviors and general awareness of threats among staff members should all be in the spotlight at the beginning of 2015. Remember, while the cloud is not inherently more or less secure than any other type of IT framework, the demands are a bit different when it comes to defending these environments from threats. 

According to the news provider, all businesses should understand the regulatory compliance statutes they are governed by when leveraging cloud computing services for data-related purposes, especially when that information is sensitive, such as credit card numbers. Additionally, the source stated that taking a comprehensive approach to cloud security, including the integration of BYOD policies and protections, can help firms further strengthen their defense against a variety of threats. 

Finally, Talkin' Cloud suggested becoming a bit more diligent and persistent in evaluations and assessments, working to proactively identify vulnerabilities before threats use them to wreak havoc on systems and data. 

Further considerations
Perhaps most importantly, retailers must commit to doing a better job of governing identities, access and credentials when using any type of technological framework in 2015, cloud or otherwise. Some of the most significant data breaches that have struck the industry in recent years have been traced back to poor credential and password management, meaning more prolific performances in these areas might effectively safeguard the company from disastrous events. 

This entry was posted by Retail Pro on Wednesday, January 7th, 2015 at 5:29 pm .

Businesses have rapidly started to adopt, deploy and optimize retail customer intelligence solutions in the past year, while there are still plenty of opportunities for those who have been a bit slower to the punch to get rolling on the relevant projects. However, companies that have not even started to consider the merits of implementing big data and other types of advanced analytics solutions are likely to find themselves at a competitive disadvantage in the coming years if they continue to balk on these investments. 

Intelligence tends to yield success in the competitive and saturated markets of the modern era, and failure to use the full range of technologies and tools to become a bit smarter represents a step in the wrong direction. Retailers are experiencing massive increases in data generation, collection and analysis, so leveraging the most effective and advanced intelligence solutions should be a high priority going into 2015. 

Case in point
Alexander Linden, research director of prestigious firm Gartner, recently participated in a question-and-answer that was then published on the company's website to give those heading to its analytics conference this winter some perspective on what items will be on the agenda. In the piece, the expert urged the need for more agile and effective strategies that work to the advantage of the company through the use of advanced analytics technology. 

When asked why chief information officers and other leaders should begin to take analytics more seriously, Linden had the following to say:

"The overall amount of data and analytics is growing in every industry," he affirmed. "CIOs need data science to extract nontrivial information. For example, it's mission-critical to determine how to acquire new customers, do more cross-selling and predict demand and failures. Normal business intelligence and descriptive analytics**, and even traditional software engineering, can't handle those situations. Advanced analytics can surpass human capability in coping with significant volumes of data, and dealing with highly complex digital business settings. Digital businesses have to adopt data science methods in more use cases, by driving the availability of sensor data, expanding bandwidth and reducing storage costs."

Furthermore, the research director noted that companies will need to ensure that they have the right types of skills and talent in-house to handle the data science-related tasks associated with advanced analytics, and that seeking out these professionals should be a priority given the impending shortage various firms have predicted. 

Push it to the limit
Retailers are in a unique position to get more out of intelligence solutions than businesses in a wealth of other industries, notably because this sector has been one of the quickest to digitize its workflows and information management. By leveraging advanced analytics solutions, retail customer intelligence can be substantially improved and prepared to further the financial and operational improvements of the company down the road. 

In short, advanced analytics will become more critical, and companies that recognize this sooner rather than later might be able to grab a competitive advantage out of the deal. 

This entry was posted by Retail Pro on Wednesday, January 7th, 2015 at 9:25 am .

File this under putting one’s money were one’s mouth is: Today, the Consumer Electronics Show announced it would be using Beacon technology as part of an indoor positioning system for attendees. The navigation system is powered by Bluetooth Low Energy beacons, and will help attendees navigate the estimated four million square feet of show space.

The technology is similar to that which can be used inside stores to find products or service associates, as well as facilitate mobile payments. An attendee launches the CES app on his or her smartphone and then selects a show destination, such as an exhibitor’s booth. The app directs the user to the destination via beacons that have been placed within the show floor.

Beacon technology is spawning a number of retail projects that will expedite the adoption of mobile payments, as well as energize other areas of the overall shopping experience. For example, Index, which offers technology that analyzes consumer behavior, will support Bluetooth-based beacons to detect a customer’s presence and deliver personalized messages on a countertop iPad or even on the shopper’s mobile phone.

“We are excited to deploy our new indoor location technologies on such a massive scale,” said Marc Wallace, CEO and co-founder, Radius Networks, in a release. One are that the technology could be instrumental in popularizing within the retail segment is gamification. “Radius Networks previously partnered with CES to implement an award-winning scavenger hunt program at the 2014 CES that was designed to drive attendees to key areas of the show floor,” said Wallace. “Since then, proximity technology and the Internet of Things have taken off.  This year, we are excited to demonstrate how easy-to-deploy, low-cost beacons can completely change the way people approach indoor location.”

Gamification could be a big part of drumming up excitement in customers. For example, having customers opt-in to a treasure hunt helps retailers expose more merchandise to shoppers, who might otherwise have opted for a quick, focused shopping trip. Finding that hidden “treasure” might also mean identifying some impulse or add-on purchases, further extending the sale in an entertaining manner.

This entry was posted by Jennifer Bosavage on Monday, January 5th, 2015 at 6:47 pm .