Retail management software has enabled merchandisers to scrutinize customer trends, support brick-and-mortar and ecommerce operations and numerous other functions related to the industry. Now, the intelligence collected by these technical programs is going to be amassed and shared between competing online and tangible stores to combat cybercrime. 

Cyberattacks sustained by Target, Neiman Marcus and other companies have stirred concern among organizations that have made a business out of selling commodities to consumers. When a retailer fails to adequately protect sensitive customer information, the masses flock to their competitors in search of similar service and better protection. 

Forming an alliance
According to Dark Reading, The Retail Industry Leaders Association responded to this issue by launching the Retail Cyber Intelligence Sharing Center (R-CISC), an information sharing and scrutiny platform supported by Target and other major merchants that both have and have not encountered cybersecurity issues. The National Retail Federation, which announced its plans to establish such a support system in May, did not partake in the endeavor, but is working to develop a similar retail business intelligence community of its own. 

"For a number of years, NRF has been working with all of the stakeholders to ensure that the broad spectrum of our industry … have access to the tools and information they need to combat and stop these crimes," said NRF Senior Vice President for Communications and Public Affairs Bill Thorne, as quoted by the source. 

A solution to an ongoing problem
Tire Business noted that R-CISC operations will focus on identifying threats in real-time and distributing reports with its members to reduce the risk of cyberattacks. In addition, the association intends to educate merchandisers on best practices for sharing data and combating cybercriminals who target POS software and ecommerce operations. Academics and universities are expected to provide the R-CISC with research and collaborate with retailers to utilize emerging technologies that can subdue digital deviancy. 

The public sector isn't going to be exempt from these processes either. Phyllis Schneck, deputy undersecretary for Cyber Security and Communications at Homeland Security's National Protector and Program Directorate, noted that protecting consumer financial information is imperative to maintaining the confidentiality and robustness of every sector's cyber protections. 

"We have a sharp increase in the number of malicious actors attempting to access personal information or compromise the systems we all rely on," she said in a statement, as quoted by Tire Business. 

This level of collaboration is a positive step forward, and retailers should strongly consider contributing to the R-CISC's efforts. 

This entry was posted by Retail Pro on Monday, June 9th, 2014 at 6:04 am .

In response to The Great Recession, coupons became one of the most popular retail customer trends at the time. Although the economy is gaining traction, many people still exercise this practice to scale back on basic expenses and purchase their favorite products at a discount price. 

Those who are heavily engaged in couponing pay attention to timing, ways to double up on discounts and loyalty programs. Such a practice drives item liquidation and can be a boon to merchants looking to get excess inventory out of warehouses and in the hands of consumers.

Merging trends 
Mobile commerce is one of the most popular consumer shopping practices to date. According to Mobile World Live, the success of an e-commerce operation partly depends on how well a website integrates with smartphone and tablet technology. Usability isn't the only important factor – merchants need to make sure their mobile suites contain the same offers and features a shopper would find if they were to visit their online platforms through a desktop. 

For example, an organization could leverage retail point of sale software that allows consumers to take pictures of physical coupons and load them onto the website from anywhere, anytime. However, the digital age has created an environment in which merchants can now send emails to loyal customers containing discount offers. Synchronizing these promotions with a consumer's online account will enhance the ability to finalize transactions on his or her smartphone. Such a tactic will also give the sanctioning retailer appeal over competitors that do not provide people with the same level of service. 

Scrutinizing behavior 
James Bickers, a contributor to Retail Customer Experience, noted that merchandisers should make sure that couponing doesn't get ahead of them. He cited an instance in which a woman received $90 worth of goods from a pharmacy for $5. He even maintained that some coupon pushers are so good at what they do, they actually get the bill down to a negative number. 

Bickers pointed to a major flaw in many retailers' POS software. If a register can't accurately process the discounts logged into a seller's system, then it could result in grievous losses. Ceasing to offer consumers the chance to save money at the till isn't the answer, but getting a better handle on technology is imperative if merchandisers want to turn a profit. Investing in the appropriate software shouldn't be treated as an option, but as a priority.

This entry was posted by Retail Pro on Thursday, June 5th, 2014 at 9:11 am .

Part of leveraging retail customer intelligence is finding out what people are willing to pay for. Producing a high-quality product and marketing it to a target audience consisting of individuals who may not be able to pay for said commodity is an example of poor analysis. Same-day shipping is becoming quite popular with many e-commerce businesses, prompting some of them to deduce whether their logistics operations will be able to support such an operation while still exercising cost-efficiency on the buyer's end of the deal.

Not on the radar
According to RetailWire, a survey of 1,500 U.S. consumers conducted by The Boston Consulting Group discovered that the majority of participants, about three in four, listed free delivery as a key decision-maker regarding purchases. Coming in at second were lower prices (50 percent). A mere 9 percent of respondents maintained that same-day delivery was a top priority. BCG noted that the latter contingency likely consisted of people between the ages of 18 and 34 with household incomes greater than $150,000 living in affluent urban areas.

"Same-day delivery will be a niche service in the near future," said BCG partner Rob Souza, as quoted by RetailWire. "Retailers may choose to offer it to build customer loyalty, enhance brand awareness, or keep up with the competition. But it is unlikely to generate significant revenues for either retailers or carriers."

Targeting the wrong audience?
For merchants offering discount prices, retail customer trends often point in the direction of affordability. The Boston Herald noted that nationwide merchandiser Target will try its hand at same-day delivery in Boston during June, allowing consumers within select parts of the New England city to order items online by 1:30 p.m and receive them between 6 and 9 p.m. for an additional $10. Jason Goldberger, Target's senior vice president, maintained that the the service will allow the retailer to deliver products more flexibly.

However, some critics such as Norwell analyst Michael Tesler believe that same-day shipping doesn't make sense for discount merchants, asserting that luxury brands such as Neiman Marcus could benefit from the practice because their customers will be willing to pay for it.

"Ten dollars additional on a Neiman Marcus item isn't very significant," said Tesler, as quoted by The Boston Herald.

Consulting point of sale software and figuring out how shoppers are spending their money can give merchants a better idea of whether same-day delivery will benefit their operations or simply be a waste of resources.

This entry was posted by Retail Pro on Wednesday, June 4th, 2014 at 8:14 am .

Consumers are well aware of the fact that merchants are leveraging retail intelligence in order to gain more insight into target audiences. Retail has less to do with possessing the next big product and more to do with figuring out what people actually buy. Yet, no two customers are the same; their preferences may vary considerably even if they shop at the same store. 

Although gathering data on each and every consumer – whether through POS software or video surveillance – allows retailers to offer their patrons personalized offers and better service, these tactics have stirred apprehension among critics. 

How is it used? 
Edith Ramirez, a reporter with KESQ News, noted that organizations have the ability to record every decision a consumer makes whenever they visit an e-commerce site or enter a brick-and-mortar store. As one can imagine, this has caused many people to assume the worst of those using data collection and analysis tools. Popular literature such as George Orwell's "1984" has engrained the cultural idea that large entities engaged in such endeavors have ill intentions. 

In reality, big merchants utilize retail analytics to solidify customer retention. For example, people have dozens of options when it comes to looking for a pair of jeans,whether those choices reside with online vendors or in physical outlets. It's easy for companies to lose a consumer's favor when he or she has a poor experience, so they need to use every resource available to figure out what makes groups and individuals happy. 

Covering bases on a faster basis 
Forbes contributor Walter Loeb acknowledged that people aren't as helpless as they think when it comes to being the subjects of data aggregation. Seemingly omnipresent merchants are at the mercy of those with virtually unlimited alternatives at their disposal, and failing to connect with consumers on a more personal level and blatantly misusing the data collected on them can have drastic consequences. Loeb cited Sears' recent customer retention failures: 

"Over the years, especially under current leadership, the company has ignored preferences. Management has no understanding of what the customer wants." 

Though Sears' missteps are likely the result of poor, ineffective research endeavors. Loeb noted that the merchant has given up control over core brands such as Craftsman tools, Kenmore appliances and Die Hard brands, which are now available for other merchandisers to sell on their own shelves. 

Retail customer intelligence isn't about Big Brother-like surveillance, it's about surviving and thriving in a world in where customers call the shots. 

This entry was posted by Retail Pro on Friday, May 30th, 2014 at 9:05 am .

Mobile technology can either be a bane or boon to merchants, depending on how they choose to utilize it. Tablets and smartphones are bringing new insight to retail business intelligence initiatives, but the results of these endeavors cause concern among leaders. The way in which consumers decide to purchase an item is transforming. 

From maintenance to optimization 
The rise of mobile commerce has changed the role of the CIO considerably. According to Infotech Lead, these professionals are working more as innovators and drivers as opposed to a maintenance crew. A major part of this transition involves looking for technological assets that can help businesses cater to consumers who often use their tablets and smartphones. However, CIOs should not disregard the manner in which these devices are being leveraged – many people are on social media websites or searching for items while in a store. 

The source noted the importance of integrating retail customer intelligence analysis with mobile technology. By setting up hardware and software throughout a brick-and-mortar store that monitors the network activity of visitors using smartphones or tablets, merchants can connect with customers by offering them deals through Facebook or other social media sites that apply to their shopping habits. This process can help retailers set up point of sale options that allow people to reserve items online that may be out of stock in-store. 

Setting up the next stage 
Tablets and smartphones aren't the only gadgets on retailers' minds. Mobile technology is quickly catching up with the popularity of desktop-based shopping, but what follows in its wake has intimidating features. The Guardian noted how Google Glass, Apple's anticipated iWatch and Facebook's acquisition of virtual reality headset developer Oculus Rift will have a profound impact on the retail industry. 

Aside from the obvious fact that these gadgets are sure to make the Internet's presence more ubiquitous, merchandisers will have to find a new way to conduct business. For example, Oculus Rift's technology could make e-commerce websites more interactive and look like the layout of a store. Customers may abandon the now popular practice of swiping their fingers to view another product and begin to walk in a virtual world in which they can turn a digital representation over in their hands. 

One thing's for certain – it's imperative for merchants to invest in POS software compatible with current and future shopping trends, no matter how technologically advanced they are. 

This entry was posted by Retail Pro on Friday, May 30th, 2014 at 5:06 am .

Data analytics has enabled online retailers to better track their customers’ purchasing habits, but it shouldn’t be forgotten that these shoppers are human beings. Although a collection of ones and zeros can make an online transaction seem unemotional, complex chemical reactions occur when people choose to buy something. Thankfully, ecommerce software can help online merchandisers identify the characteristics that are unique to each visitor.

Creating an empathetic environment
In a conventional sense, commercial transactions are based on trust between buyers and sellers. Consumers feel more comfortable investing in a product or service when they know the people working behind the counter (in this case, the computer screen) are committed to delivering quality and pay attention to their needs. Bernard Luthi, a contributor to Multichannel Merchant, noted that the data collected from online shoppers should be used as a means to personalize experiences.

“Treating customers as pure numbers can become a slippery slope,” wrote Luthi. “In our rush to streamline processes, it’s important to keep the essence of the retail exchange as human as possible.”

Be present
A combination of retail analytics and live customer service should be leveraged to deliver a positive online shopping experience. Having staff readily available to answer any questions a person may have regarding a particular item or offer is essential. The longer they have to browse a website, the more frustrated they are likely to become. Aside from answering questions, representatives need to be able to give shoppers advice as well. This doesn’t have to come in the form of an unseen employee communicating through a live chat feature – it can also be through customized advertisements and offers.

Setting the stage
There are a few amenities all ecommerce organizations should equip themselves with. According to BusinessNewsDaily contributor Chad Brooks, using the data aggregated from point of sale applications and comparing it to the available stock in warehouses will ensure that backlogs or shortages of certain products don’t occur. It’s easy for consumers to assume that an unlimited number of products can be accessed through a computer screen, so merchandisers must make sure their distribution centers can meet demands.

Lastly, Brooks noted the importance of investing in shopping cart software. POS retail management systems provide merchandisers with the fluidity and security required for people to purchase items online. These programs also have features that keep track of inventory, set up shipping routes and calculate taxes.

Creating a corporate environment in which consumers are treated as more than just numbers in a report will reinforce a positive brand image and solidify a customer base.

This entry was posted by Retail Pro on Thursday, May 29th, 2014 at 8:37 am .

The majority of merchandisers are now adapting to an omnichannel environment in which customers can seamlessly shift between brick-and-mortar stores and ecommerce venues. This high-tech atmosphere has convinced many retailers sticking with conventional practices to reorganize their store operations, integrating analytics, tablets, and entirely new formats into the physical shopping experience.

Scrutinizing what's popular
A mixture of online platforms and mobile devices have influenced the way in which consumers search for and purchase items. This was recently reflected when Street Fight Magazine referenced Future Stores' "2014 State of Brick and Mortar Report," which surveyed retail professionals spread across the United States. The study found that 57 percent of respondents claimed they are committed to investing in omnichannel operations, adjusting supply chain processes to adequately accommodate those shopping both online and in physical outlets.

Brick-and-mortar as a service
Another popular retail merchandising trend is experimentation. Future Stores discovered that 61 percent of the businesses surveyed stated that they are trying out alternative shopping formats. This could involve anything between self-checkout, equipping employees on the floor with tablets capable of finalizing purchases or setting up small kiosks that provide people with customer reviews of certain products.

According to The News-Journal, the look and feel of the typical brick-and-mortar store is likely to change in the near future. Many experts such as Doug Stephens maintain that these outlets will be more oriented around creating a fun and stimulating experience. However, an ingredient that's sure to influence these facilities is convenience. The click-and-go feature associated with the online retail industry is sure to make a place for itself.

The source noted Forester analyst Sucharita Mulpuru's summation that stores will become more service-oriented and make drive-through pickup, order-online and pick-up-in-store practices routine.

Mixing things up
The News-Journal cited a few examples of how physically-rooted merchandisers are adjusting their practices for the new age. Seattle-based merchandiser Hointer displays clothing in a gallery-like manner, showing one article as opposed to an entire rack. When customers see items that they like, they tap their smartphones to a coded tag and select the color and size they want. After they make their specific selections, they can go to the dressing rooms to try on the clothing they chose. CEO Nadia Shouraboura noted that the process has resulted in more sales and happier store visitors.

Innovation and creative thinking are sure to prepare brick-and-mortar stores for the next technological wave and ensure their place in the merchandising industry.

This entry was posted by Retail Pro on Thursday, May 29th, 2014 at 5:31 am .

For your online retail business to be as profitable as possible, it takes more than just offering products that people want to buy. Everything from your site layout and navigation to customer service and point of sale services can be drivers of success when approached from the right angle. It’s important to look at a few key elements of ecommerce software, including the customer experience, products, payment options and mobile point of sale.

Customer experience

When people visit an online store, they want an easy, straightforward experience that helps them find what they’re looking for and reach the point of sale easily. An infographic from ecomextension pointed out that fast site load times and ease of navigation were two of the most important factors to focus on. If a page does not load fast enough, shoppers may be frustrated and click away before they even place an item in their virtual shopping cart. Other features retailers should pay attention to included language options, mobile optimization and store locators.

Products

The purpose of an ecommerce site is to sell products or services, so it’s important that these are given the most attention when enhancing the user experience. Customers want access to thorough product information, photos of the items and pricing. Since many consumers research customer reviews, including these can give better insight into goods, allowing shoppers to make more informed decisions. A 2013 UPS survey found that 80 percent of online shoppers look for businesses that offer a variety of brands and products, so it may be useful to have a section on a product page that suggests complementary items.

Payment options

Consumers have many ways to pay for online purchases, so retailers that can accept a variety of payment types, from credit and debit cards to digital wallets and digital currency, may stand a better chance at converting a site visitor into a sale. The UPS report indicated that 71 percent of consumers valued having a selection of payment options. This sentiment bled over into shipping as well – 73 percent look for ecommerce businesses that offer a variety of shipping options, such as overnight, two-day, standard and green shipping.

Mobile optimization

With more people than ever using smartphones and tablets, it’s growing more important for online retailers to cater to mobile users. Websites that don’t display properly or are hard to navigate on a mobile device will deter shoppers from browsing products. As 61 and 55 percent of consumers find the ability to purchase from tablets and smartphones, respectively, ensuring an online store is optimized for mobile browsing can help drive up sales.

This entry was posted by Retail Pro on Friday, May 23rd, 2014 at 9:41 am .

The way consumers shop is changing rapidly, as more individuals are going online to make purchases and research products. This is creating new paths to purchase that retailers should watch. Knowing how consumers go from browsing to purchasing can help retailers better configure their ecommerce software to cater to these trends. The path to purchase encompasses the consumer journey from the moment they discover a product to the moment they buy the item in question.

To get from point A to point B, shoppers may research product information, compare prices between retailers, read consumer reviews and visit brick-and-mortar locations to see the item in person before deciding to buy. These days, this process takes far less time than it used to, thanks to the Internet and mobile technology, which means marketers need to find new ways to appeal to consumers.

Consumer need for speed
A study conducted by Parago, a retail incentive provider, at the end of 2013 examined the path-to-purchase habits of shoppers during the holiday season, arguably the busiest time of year for retail. The results showed that the average amount of time it takes consumers to make a purchase is 2.25 days, taking into account every step of the process from deciding on an item to researching options, choosing a retailer and completing the transaction at the point of sale. This leaves a pretty small window for retail marketing efforts, which will require businesses to match the speed at which consumers can now research and shop for small purchases such as clothing and big-ticket items like home appliances thanks to mobile devices, according to Chief Marketer.

Developing an omnichannel marketing approach can be a good way to drive business. Shoppers may be more inclined to purchase an item if they can do so on their smartphones and then pick up the purchase in-store, saving them time and making the entire process smoother. For this, it will also be important to have POS software that can offer secure, diverse mobile payment options.

Competitive edge can win over shoppers
Consumers have the ability to comparison shop instantly with their smartphones, and about half do so in-store, according to the study. This means they can also easily track down which retailers are holding sales and offering discounts. Since 88 percent of shoppers will look for coupons and other deals before they make a purchase, it may be worth exploring rewards options that give consumers the incentive they need to get to the point of sale.

This entry was posted by Retail Pro on Wednesday, May 21st, 2014 at 10:32 am .

Small and medium-sized businesses typically have to work harder to keep up with large retailers, and a recent report found that many are looking to enhance the point of sale experience by investing in POS software that caters to mobile users. With mPOS systems in place, small retailers can accept all credit cards with ease.

"Small businesses have traditionally been reluctant to accept card payments, but across Europe that is starting to change – mPOS is the catalyst for that. It's a solution that dispels many of the convictions previously held and genuinely works for small businesses if they are accepting payments at their premises or on the go," Caroline Drolet, Visa Europe's head of mobile point of sale, told BizReport.

Europe is going mobile
As technology advances, more options become available in just about every sector, and this includes retail POS systems. Visa Europe surveyed 2,000 small businesses in France, Germany, the U.K., Poland and Italy and found that more than 25 percent are planning to invest in mobile POS software within the coming six months. When asked which features they wanted in their software, the retailers indicated that security was the No. 1 priority. When customers feel their personal information is safe, they'll be more likely to make purchases. Having an mPOS that accepts all major credit cards was another important factor that small and medium-sized businesses wanted to see in the software.

Benefits of mPOS
​When retailers are able to accept payments through mobile devices, they instantly have flexibility not afforded by traditional point of sale setups, such as kiosks and registers. For instance, retailers may be able to give their staff mobile devices with POS software installed. This way, when an employee is helping a customer choose an item, he or she can also ring up the purchase and help expedite the shopping process.

This comes in especially handy for entrepreneurs and upstart businesses, as mPOS systems can be used in any setting. Whether retailers are attending conventions and fairs or taking part in local farmers markets, they will be able to accept a variety of payments. When businesses only accept cash, they may lose sales if shoppers aren't carrying currency, so having the ability to take credit and debit cards will improve conversion rates of browsers to buyers.

This entry was posted by Retail Pro on Wednesday, May 21st, 2014 at 7:38 am .