One of the most popular trends today in online retailing is customers buying online and picking up in-store, a practice referred to, cleverly, in the U.K., as “click and collect.”

In fact more customers are asking for the service from the retailers they most often frequent.

It’s a hybrid shopping experience: Customers can purchase an item anytime anywhere and then pick it up at their convenience at the retailer.

Using this delivery model, a retailer can cultivate a convenient, streamlined image to the busy consumer; in addition, some stores are quite adept at drumming up related sales — upselling — at the time of pick up.

A year ago, Accenture and hybris software, an SAP company, commissioned Forrester Consulting to study how retailers can deploy successful omnichannel strategies.

The Forrester study found that consumers expect more options from their retailers in the era of omnichannel: 71% regard in-store inventory online as a required feature, and half expect to buy online and pick up in-store.

The Forrester research found that too often, retailers seemed to be complacent about their omnichannel capabilities.

On the contrary, omnichannel is constantly evolving as customers’ expectations continue to grow.

Despite the convenience of having an item shipped directly to a consumer, a new survey from retail technology company POPcodes reports that 86 percent of customers  who order products online and pick them up in store do so to avoid shipping fees.

The POPcodes study also found that 57 percent of consumers use the “order online, pick up in-store” option because they believe it makes returns and exchanges easier.

Four out of 10 respondents said they have picked up an online order in person.

“This survey reiterates what many of us in the retail world already understand:  The Internet has certainly changed the way consumers shop, but they will always have a special place in their hearts – and wallets – for shopping in a store,” Gregg Aamoth, CEO and co-founder of POPcodes, said in a statement. “Retailers simply have to figure out how to better tie the virtual and physical shopping worlds together.”

If you’re not offering click and collect, the time is now to get a strategy together.

Customers are clamoring for it; the POPcodes research reported that 97 percent of consumers who have chosen that option said they would do so again.

Buying online and picking up in-store personalizes the online transaction, opens an avenue for an upsell and is an effective competitive weapon.

Bridging the gap between online and in-store shopping is a win-win for both retailers and consumers alike.

This entry was posted by Jennifer Bosavage on Monday, November 24th, 2014 at 10:17 am .

Regardless of which industry is being discussed, the most intelligent operations tend to enjoy the highest possible revenues and profits each year, and the ways in which firms gather insights have been forever changed by modern business intelligence solutions. In many ways, retailers appear to be the best-positioned to derive value from big data and other modern analytics tools, specifically because of how consumer-related market fluctuations can be better analyzed and predicted than others. 

Retailers can find a breadth of resources that can help to generate valuable, indicative data regarding the preferences, behaviors and demand of their current and prospective clientele. The trick is to not only understand where to find this information, but how to get it moving through the evaluation and analysis chain fluidly and ensure that it is pushing decision-making in the right direction with timely, accurate and valuable insights. 

The video question
Forbes recently reported that video analytics might act as the next frontier of retail customer intelligence, with retailers finding unique and revolutionary ways to take data garnered from these pursuits and realize its value. According to the news provider, although this is still a relatively new pursuit for most involved, the diversification and enhancement of strategies have already become clear, leading even more competitors to get moving on these prospects. 

"It's an interesting development," Professor and Director of the Master of Digital Media Program at Vancouver's Simon Fraser University Richard Smith, told the source. "Grocery stores actually used to have big windows with one way mirrors around the roof of the store. It was partly because of loss prevention but also to get a better sense of their customers."

It might be important to note here that the uses of business intelligence solutions are relatively boundless, and companies can apply the software to virtually any type of operational procedure for improvement purposes. Forbes pointed out that retailers can mine data generated by the cameras in their stores to predict which types of customers might go to certain areas of the facility more commonly, then adjust their product placement accordingly. 

Although this might seem a bit too complex for a retailer to take part in, the solutions are becoming commoditized, opening the doors to all types of businesses regardless of what their IT capabilities might be currently. 

Making it count
The most important consideration to remember when sculpting a modern retail customer intelligence strategy is the identification of needs and objectives, and alignment of investments with those requirements. Big data and other analytics programs are certainly more palatable today than in the past, but there will never be a time in which decision-makers do not need to commit resources to the establishment of sound policies and strategies to guide these investments in the right direction. 

With help from a proven provider of customer intelligence solutions and support, retailers can step into the modern era of strategic oversight for stronger performances each year. 

This entry was posted by Retail Pro on Monday, November 24th, 2014 at 9:48 am .

In the past several years, consumers and businesses have become more significantly interested in digital purchases and service offerings, especially thanks to the increasing ubiquity of mobile devices and other computing platforms. As such, retailers need to respond through a somewhat aggressive pursuit of ecommerce visibility and footprints, working to ensure that all possible prospects are aware of the products and services offered in their physical and digital storefronts. 

This might seem like a relatively simple procedure, with companies simply creating websites to complement their brick-and-mortar locations, then moving through the motions of marketing and client relationship management similarly to the ways they would decades ago. However, this is simply not the case, and retailers need to remember that the rules of engagement have been forever changed by the speedy increase in ecommerce sales and entirely digital clientele. 

Those who understand this quicker than others in their market might be able to drive profits higher than before expected. 

The truth behind the numbers
There have been plenty of reports, essays and the like regarding the importance of ecommerce involvement among retailers and other businesses, and the constant recommendation might desensitize decision-makers from the truth of the matter. In a word, those firms that do not actively pursue clientele through digital platforms are going to not only lose ground to competitors, but might be putting their continuity at risk to boot. 

One study from Statista highlighted the real value of ecommerce today, while also indicating just how important the digital realm is going to be to the United States economy for the foreseeable future. According to the firm, ecommerce sales are forecast to hit $304.1 billion this year alone, rising more than $40 billion from the $263.3 billion recorded in 2013 and showing the steep incline in the rate of purchases made through digital platforms that is expected to continue for years to come. 

For example, the firm projected ecommerce sales to continue enjoying strong compound annual growth rates through 2018, exceeding $440 billion in revenues by 2017 and approaching the half-trillion mark the following year. One can only assume that this will continue on through the end of the decade and beyond, perhaps even accelerating further should the next generation of consumers be even more interested in these capabilities. 

Alternative advantages
No longer does the average consumer call a complaint in to customer service, as so many communications involved in the relationship take place over the Internet. Remember, too, that bad news has a way of spreading far more quickly than positive feedback, and that social media channels can either make or break a brand's presence both on the Internet and in the physical location of the store. 

As such, get moving with comprehensive plans to not only embrace ecommerce platforms, but also integrate marketing and relationship management into the digital realm for optimal oversight of the brand image among current and prospective clientele. 

This entry was posted by Retail Pro on Monday, November 24th, 2014 at 9:48 am .

The connection of devices offers businesses a great opportunity not only to collect data and learn about how customers interact, but also to gain insight on why certain products are popular — and others are duds. The Internet of things is a network of Internet-connected machinery that can offer a detailed glimpse of customer behavior.

The IoT has enormous market potential; GE Chairman and CEO Jeff Immelt has publicly said that GE would invest $1 billion in creating Industrial Internet technology and applications to help customers become more productive. Immelt estimates that “Industrial Internet” could add $10 to $15 trillion to global GDP during the next two decades. And research firm Gartner predicts that the IoT will comprise 26 billion units installed by 2020; by then, IoT product and service suppliers will produce incremental sales revenue of more than $300 billion, mostly in services.

In the retail segment, IoT can produce substantial savings, as well as be a catalyst for additional revenue. Knowing when stock of a particularly popular item is depleted, as well as who has bought it and who is likely to buy it can all be accomplished when devices are “talking” among themselves. Deliveries can be scheduled optimally and personalized promotions that are relevant to shoppers can be used to promote a “customer first” atmosphere. For instance, the store mannequin connected to a camera that is connected to facial recognition software can provide insight to store owners regarding who shops when, so other types of promotions can be used to drive store traffic at desirable times.

Gathering, storing and analyzing data that comes from the IoT can offer retailers information that can help them increase their businesses. PCs, tablets, backend systems can all be connected via small sensors. IoT enablement can help to blur the lines between in-store and e-commerce shopping experiences as virtual reality changing rooms and interactive displays are used to create an increasingly seamless experience.

Because the IoT is expected to expand swiftly— some figures say more than 30 percent annually — retail management software can help store owners take advantage of the trend. For example, some customers may use smartphones to shop online while others use tablets. Still others will feel most comfortable on a laptop computer. For retailers, that information can be very relevant as they continue to understand how their customers shop. Some customers will respond to improvements in point of sale at their brick and mortar, while others will appreciate an efficient site experience. The more a retailer knows about a customer’s shopping habits, the better it can serve that customer and anticipate his or her needs.

This entry was posted by Jennifer Bosavage on Thursday, November 20th, 2014 at 6:30 pm .

One of the most interesting observations about the retail sector over the recent past is the adaptation of online features at brick-and-mortar stores. Only two years ago, it seems, retailers were anxious about holiday receipts due to the practice of showrooming, and the social capabilities of online shopping seemed to threaten brick and mortar sales. But then, it seemed to click (excuse the pun): What is more social than going out and physically being seen? Price matching is as old as retailing itself. And nothing beats experiencing a product before buying it. Put the best feature of e-commerce — its ability to be everywhere at once — to work in a brick and mortar, and you’ve created an enormous competitive advantage.

A great example of that trend is the newest UGG footwear store that opened this month outside of Washington, D.C. Deckers Brands, which owns the brand, has opened one other, similar “UGG Innovation Lab” in Santa Barbara, CA. Like that location, the Tysons Corner, Va., store uses technology to create a customized, customer-centric atmosphere.

“Omni-Channel isn’t just a catchphrase for Deckers; it’s an integral part of our culture of innovation and our retail strategy – one that we’ve made investments in for more than five years now – to engage with our consumers with respect to their preferred shopping channel” said Dave Powers, president of omni-channel for Deckers Brands, in a release. “That strategy is on full display at the UGG store, where we are merging the best of digital and physical shopping experiences, and setting the foundation for future Omni capabilities across our brands.”

By integrating online features into the in-store experience, shoppers can make selections from almost 230,000 SKUs. But if a customer just can’t find that perfect pair, UGGs offers customization. The “UGG By You” program gives buyers control of the design process to make their mark on five classic UGG styles. And for those fancying a bolder approach, the “Bling it on Program” lets customers use Swarovski crystals to personalize their looks. In addition, the store has installed technology that reports on products that are tried on, and offers feedback to the consumer on suggested additional products. That’s very similar to an e-commerce site’s “Recommended for You” or “Shoppers Who Have Bought This Item Also Like…”

To enable that, Deckers is implementing radio-frequency identification (RFID) technology that lets shoppers who are trying on merchandise to view digitally triggered content on four 65-inch HD touchscreens throughout the store. That content comprises product information and options, style tips, videos, related marketing campaigns, and suggested complementary products. Shoppers can send themselves SMS texts with a product link directly from the HD screens.

Of course, customer associates are out from behind the cash
wrap, using handheld devices to search inventory, answer customer questions and finalize sales as well. But these days, that’s old hat at many specialty retailers, which took the cue from the Apple Store.

Whether you are a retailer specializing in products from footware or home goods, keeping tabs on inventory is mission critical. Technology can provide retailers with data that initially only was captured by e-commerce stores. Now brick and mortars can know who’s trying on what, how long they engage with the product before purchasing (or not) and can make suggestions for add-on sales before the shopper even reaches an associate.

Retail Pro offers retailers a highly competitive solution that helps track inventory. In addition, our software can be used to monitor fast-selling products, keep tabs on slow sellers and otherwise help their purchasing decisions — something that’s vital in today’s borderless e-conomy.

This entry was posted by Jennifer Bosavage on Wednesday, November 19th, 2014 at 8:53 am .

In the past several years, ecommerce has become a more significant and imperative aspect of myriad industries, including retail, payment processing, banking and beyond. Those organizations that have balked on embracing this technology are likely already experiencing several competitive disadvantages, even if they are not apparent in the annual financial analyses completed that compare one year's performance to another. 

Now, it appears as though nations are getting a bit more competitive in this arena, with certain governments trying to stimulate more ecommerce activity in the private sector in hopes of boosting gross domestic product. Although the United States has been a leader in this category since the outset of the platforms, it is losing ground to some of its premier competitors on the global stage, namely China. 

Middle Kingdom, high results
Reuters recently reported that China's State Council released a statement regarding increased backing of ecommerce retailers, appearing to be a direct result of the nation's latest economic hardships. According to the news provider, it makes sense that the government there is becoming a bit more focused on building solid ecommerce performances, as it has long depended on foreign trade to get by, but is ready to now enjoy improved economic performances throughout its own consumer landscape. 

The source pointed out that China has an annual online shopping day similar to Cyber Monday in the United States, when consumers flock to websites to make purchases on good deals from ecommerce retailers. This year, Singles' Day took place on Nov. 11, and consumers purchased more than $9.3 billion of items and services in the digital arena, Reuters noted. 

With one of the biggest economies in the world, one can only assume that China, as well as other nations with such massive populations, will continue to gain ground on Western counterparts in the ecommerce arena before long. 

A good balance
Now, just because other nations are enjoying stronger performances in the ecommerce sales segment does not mean that the trend is passing in the United States. Rather, the opportunities to be even more financially successful will only go up as more nations become globalized in the economic sense, allowing domestic retailers to break into new markets through the use of digital commerce platforms. 

By focusing efforts on the establishment and optimization of ecommerce capabilities, the sky is the limit for sales increases going into the new year, regardless of which nation the business is operating within. 

This entry was posted by Retail Pro on Wednesday, November 19th, 2014 at 4:04 am .

Today, Michael Kors became one of a handful of companies embracing Instagram as a way of selling product. In and of itself Instagram is a handy way for marketers to get the word out about their products. However, currently, there’s no seamless way for a retailer to “seal the deal” after a potential customer “hearts” (equivalent to “liking” on Facebook) a particular post. Still, the aim is to make shopping from mobile devices simpler than ever, while promoting a sense of community. And it appears to be working.

The brand is not alone in trying to encourage a social tie-in with shopping. A number of upscale retailers — such as Nordstroms and Marc Jacobs Beauty —  have implemented ways to help Instagrammers buy their favorite products. Michael Kors’ solution is similar to several available; after registering at #Instakors with an email address, a user who likes a shoppable photo will receive a linked email to buy the product. The Kors mantra: Like it. Shop it. Own it.

It’s just one step too long to being truly convenient; that email requirement is kind of clumsy. But Instagram has not made mention of streamlining the process and providing live links anytime soon. So, a number of enterprising developers have tried to fill the niche. For instance, LikeToKnow.it, helps fashion bloggers monetize their efforts by operating in a similar way to #Instakors; readers who “like” a clothing photo receive an email with links to items in that post.

A different take on the Instagram shopping quandary came from Dash Hudson, which this past July raised $400,000 in seed funding. Rather than relying on the additional email step, Dash Hudson features photos of clothing in its own app. The issue of photo permissions looms large with this, but it works like this: A teenaged girl follows model Cara Delevingne on Instagram. The follower “likes” a particular photo that has been rendered shoppable — and a purchase button offers the opportunity for immediate gratification. It’s easy and fast. What’s fascinating is the lack of a shopping cart. Apps like Dash Hudson are great for one-off purchases, but would not be suited for purchasing multiple items (as one might do at a grocery store). However, Dash Hudson is catering to a somewhat exclusive audience; not too many people will buy more than one $595 Sophi Hulme bag at a time.

“It’s an elegant solution. We killed the shopping cart so you can get anything from your favorite brands in a few touches,” said the CEO of Dash Hudson Thomas Rankin in an interview last month. “It’s a new experience, but with the same things you expect from a traditional retailer – like free shipping and returns. That denim on denim outfit Rosie Huntington-Whiteley is lounging in? Get it in seconds. Simplicity is what makes people fall in love with us.”

That goal of offering customers simplicity is a guiding force behind Retail Pro’s solutions. In particular, it guided us in our partnership with Merchant Warehouse and our decision to deliver the Genius solution to Retail Pro 8, Retail Pro 9 and Retail Pro Prism customers. Simplicity is important to our customers, so they can offer technology that helps shoppers enjoy the retail experience. For example, the “future proof” nature of the Genius solution means emerging payment technologies, such as EMV and NFC, and loyalty/couponing applications, etc. can be added with ease to any existing Genius engagement device.

The overarching goal for any retail solution should be simplicity. As Leonardo DaVinci said, “Simplicity is the ultimate sophistication.”

This entry was posted by Retail Pro on Monday, November 17th, 2014 at 5:32 pm .

The Internet has been one of the most powerful economic tools in history, while the past two decades have served as at least some indication of what ecommerce will be able to do from a financial growth standpoint. Not only have these platforms helped to open up the private sector to a variety of new entrepreneurial spirits – they have also been pivotal in connecting economies that were once too disparate to interact. 

In the wake of all these innovations and changes has been the wave of economic globalization, which has been nothing short of a miracle for a wealth of businesses, households, nations and more. Ecommerce simultaneously offers new entrepreneurs an opportunity to break into the market without massive overhead, and grants existing ones the ability to expand their prospect pools significantly, so long as they understand how to get the job done. 

Trends in ecommerce
Multichannel Merchant recently reported that one study from Deloitte Digital projects annual ecommerce sales to expand at a rate of 14 percent between 2012 and 2016, growing to $1.4 trillion in revenues at the end of the forecast period. It should not be all that surprising given the perpetual flood of new consumers moving away from traditional purchasing channels and toward those of the digital appeal. 

The source explained that U.S. retailers have actually started to see their total ecommerce market share drop on the global scale, as it stood at 30 percent three years ago, but is expected to drop to 24 percent by 2016. This is not necessarily a sign of the market slowing down in the United States, but rather that other nations are beginning to embrace the platforms with greater fervor. 

According to the news provider, companies might want to keep their eye on global shipping and demand to truly maximize their revenue potential, while not relenting in mobile strategies for domestic commerce as well. 

How to get it right
Regardless of whether a firm is strictly ecommerce or has a combination of digital and brick-and-mortar storefronts, prospect targeting can be enhanced through a combination of sound marketing strategies and exceptional online customer service. Remember, the market is getting saturated, and firms embracing the ecommerce revolution must work hard to separate themselves from competitors, which is often best achieved through a focus on early conversions and long-term relationship management. 

This entry was posted by Retail Pro on Friday, November 14th, 2014 at 9:20 am .

Loyalty programs are the darling of retailers. They are a low cost, proven way to entice customers to make return trips, and retailers are keenly aware of how much
more expensive attracting new customers is compared with retaining existing ones. Promoting loyalty seems to be working for retailers: the Customer Insight Group recently reported 26.7% growth in the number of U.S. loyalty programs from 2010 to 2012.

Retention is tough. Competition abounds; shoppers are more keenly aware of pricing variations from store to store, in large part because of handheld devices they can use to “showroom.” Loyalty to a particular store goes out the window, often, when a 10% discount can be found down the street, or online. In fact, 61% of retailers told Retail Systems Research that customer retention was their greatest challenge last year. Although loyalty programs are increasing members, the amount of participation in the programs by members is roughly 50%: Most people are not active in the programs they are enrolled in. What a lost opportunity!

Loyalty programs provide retailers a list of people who are basically saying: “Yes! I want to hear more about your products and services!” This is, obviously invaluable. The mistake that many retailers make is that they take the consumer for granted. They do not adequately reimburse their most valuable asset — the customer — for either their business or for sharing their shopping data. That doesn’t go unnoticed by shoppers: ClickFox found that 62% of consumers don’t believe that the brands they’re most loyal to are doing enough to reward them.

So, what could retailers do differently?

1. You have a treasure trove of information on each individual shopper. Use it to send out personalized offers. Loyalty is not a one-way street. Remember, shoppers are not only handing over money in exchange for a product or service, but they also are spending time and sharing personal information. Providing extra value — whether in the form of discounts or special events — is a great way to gin up loyalty.
2. Partner with other retailers offering complementary products. In the Northeast, for example, supermarket chain Stop and Shop offers coupons and discounts on in-store items to loyalty members, but it also offers a percentage off on Shell gas.
3. Everyone wants to be special. But there are those who really are really special. And they should be recognized. For instance, McKinsey notes that the hotel chain Starwood, for instance, reports that its top two percent of guests are responsible for 30 percent of the ompany’s profits. Starwood rewards these “megatravelers” with differentiated levels of pampering. McKinsey reports: “Those who stay 100 nights are awarded the ultimate luxury of being assigned a personal Ambassador, a personal concierge who is available 24 hours a day, even sometimes when the guest is not staying at a Starwood hotel.”

As with any meaningful relationship, loyalty depends on trust. Retailers should only ask for and store (securely) information it plans on using. Customers should feel confident that handing over personal information does not place their identities at risk.

There are some new loyalty solutions for retailers, such as AppCard, that help encourage repeat customers. In the case of AppCard, the enrollment process is eased as customers are automatically enrolled in a program. Retailers can discover who is promoting their businesses, and reward their most loyal brand advocates. Such apps help retailers understand their customers through real-time analytic reports, and retain customers through personalized offers, with no integration through POS systems.

This entry was posted by Jennifer Bosavage on Thursday, November 13th, 2014 at 6:12 pm .

In less than a year, chip and pin technology will move from retailer’s “nice to have” category to “have to have.” That’s because in October 2015, all credit cards will be equipped with chip and PIN functionality. Goodbye, magnetic stripe, hello improved security. But, it won’t arrive in time for payment processing for the holidays, and that’s unfortunate.

It would be great if retailers were currently in the thick of implementation of the technology, and that the new readers would be in widespread use this holiday season. Unfortunately, this technology — which aims to make in-store transactions virtually impossible to counterfeit — still isn’t in most stores and won’t be commonly available until next year. That’s the case despite the well publicized data breaches at retailers such as Nordstrom’s, Target and Home Depot.

Experts say that credit and debit cards in the United States are about 10 years behind the rest of the world. Chip and PIN cards, also referred to as “smart cards,” are used globally; many in the payments world are shocked that the United States has been so slow to adopt the protocol. The magnetic strip system used in the United States is simple to hack as it requires customers to simply supply a signature to authenticate a purchase. It’s pretty easy for criminals with victims’ credit cards in their possession to begin making purchases. We’ve all heard horror stories of thousands of dollars being charged before the credit card was cancelled.

Other times, thieves can also use information obtained by Internet hacking or skimming — secretly swiping a victim’s card on a card reader — to create clones of unsuspecting customers’ cards. A version of that technique was used last year at Target when 70 million credit card number were stolen.

Chip and PIN thwarts cloning of credit cards. Criminals trying to use lost or stolen cards with chip and PIN must know the PIN in order to be able to use the card in a transaction. Right now, Walmart is the only major retailer that currently accepts chip cards in its stores.

Last week, President Obama signed an executive order requiring that by January 1, 2015, all retail payment card terminals at federal agencies will be able to accept the chip-and-PIN technology, and all federal government-issued cards should also be equipped with the technology. According to the order: “While the U.S. Government’s credit, debit, and other payment card programs already include protections against fraud, the Government must further strengthen the security of consumer data and encourage the adoption of enhanced safeguards nationwide in a manner that protects privacy and confidentiality while maintaining an efficient and innovative financial system.”

Still, it’s been — and will continue to be — a long road for retailers large and small to make the conversion from magnetic stripe. An estimated 5 billion magnetic stripe payment cards are in use worldwide, with 15 million magnetic stripe POS terminals in the United States, according to market research publication The Nilson Report. Credit card and debit card fraud resulted in losses amounting to $11.27 billion during 2012, according to Nilson’s most recent figures.

Retailers incur $580.5 million in debit card fraud losses and spend $6.47 billion annually on credit and debit card fraud prevention annually, Nilson notes. RetailPro understands that saving on those costs would allow retailers to boost their bottom-lines and invest in better technology and increase inventories. We have recently partnered with payment technology innovator Merchant Warehouse to provide secure, value-added payment solutions.  MW’s Genius Engagement Platform, can accept any payment type, and can even evolve to accept yet-to-be-developed forms of payment. As a contactless EMV platform, retailers using the Genius platform qualify for elimination of PCI compliance, in accordance with Visa’s TIP program.

To learn more about the Genius solution for Retail Pro, go to https://www.retailpro.com/Solutions/Genius.php

This entry was posted by Jennifer Bosavage on Wednesday, November 12th, 2014 at 5:41 pm .