From Point of Sale to Point of Service

HOW RETAILERS CAN PUT PoS AT THE HEART OF CUSTOMER EXPERIENCE

BEYOND RETAIL

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It’s time for a change at the Point of Sale

The in-store experience is changing dramatically. Not long ago it was straightforward and transactional: consumers would go into a store and, if it stocked what they wanted, would buy. If it didn’t, they would walk out, but their options to go elsewhere were often restricted by distance, choice and convenience.

The way people view the store is now more complicated and the market is more competitive. Retail has become about much more than a transaction. The in-store experience requires greater engagement and sophistication. Increased choice and heightened consumer expectations mean retailers must find every advantage in order to make a sale, but some stores are still catching up. One area where many are lagging behind is in their use of Point of Sale (PoS) systems.

The Point of Sale is so much more than a till where customers purchase goods. A modern PoS blurs the line between the shopping and purchasing experience and between the digital and physical worlds. It should be facilitating customer engagement, delivering a great experience and helping associates show shoppers how valued they are with more personalised services.

In traditional retail, the Point of Sale was static. It stood at the counter so shoppers could see where they were supposed to pay. In a competitive market it is no longer the retailer’s job to tell consumers what they are supposed to do. It is their job to react to whatever the consumer wants to do. The rise of the smartphone has bred a generation of ‘commerce anywhere’ consumers, for whom the store is no longer just a place to buy goods. It has become a place to try products before buying them online, or to get more information on a particular product without making a purchase.

In addition to purchasing goods online and on their mobiles, people are embracing new ways to pay in person

- from contactless cards to apps - and they expect retailers to build their in-store experience around such payment methods.

Brands need a PoS system that is smarter and more mobile, that can help associates serve customers on the floor as well as at the till. In this issue of Beyond Retail, we look at how the Point of Sale is changing to deliver a modern in-store experience, and how it can help retailers keep pace with the changing habits of their customers. We also explore how changes in PoS technology can affect store layout and the role of PoS in bridging the online and offline retail experience.

Putting Point of Sale at the heart of customer experience

Point of Sale has often fallen outside of the careful planning that goes into creating a retail experience. Some brands have added a flourish here and there but in general this link in the customer service chain has changed very little in decades.

With so many factors now reshaping the entire in-store experience, every touch point plays a major role in defining how shoppers view a retailer. The Point of Sale system is adapting to reflect this, with leading businesses already treating it as a physical extension of their brand experience.

PUT POINT OF SALE AT THE HEART OF THE BRAND EXPERIENCE

The extent to which in-store staff can help shoppers reflects the brand’s commitment to its customers. People want associates to be helpful and efficient. Whether a shopper is looking to make a quick purchase, ask a question, pick up a click & collect order, or simply see a product in person, in-store staff need access to information at all times.

The consequences of not empowering associates in this way can be significant. Recent research from Oracle found nearly one-quarter

(23%) of consumers have abandoned a purchase in-store due to a lack of information, and nearly one-quarter believe shop staff don’t know enough about the products they sell.

MAKE THE MOST OF DATA

The transformation of Point of Sale is being driven in part by the growing role data plays for retailers. Brands collect more information than ever about their customers and have access to an unprecedented range of data about their own operations.

Up-to-the-minute data on inventory at the Point of Sale allows retailers to instantly answer customers’ questions about product availability and ordering options. At the same time, with data on individual shoppers’ transaction histories, associates can tap into customer preferences and suggest products that will most appeal to them.

The data needs to be as close to “live” as possible, and must flow between back office systems, customer-facing systems, and Point of Sale applications. When a shopper buys the last of an item in stock, for instance, retailers must be able to address the need for replenishment instantly while in the meantime ensuring they do not advertise the product as available to customers online, on a mobile app, or in-store.

MOBILISE THE SALES TEAM

There are clear benefits to having staff behind a sales counter at cash registers – for one, customers can clearly see where they have to go to pay. There are also downsides, however. Customers need to wait until they reach the front of the queue to have their concerns addressed or ask advice from an associate. This may turn off customers and send them to a rival store.

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By mobilising shop staff and PoS, retailers can ensure someone is always there armed with information to provide shoppers with friendly, helpful guidance. With a mobile Point of Sale that links to live data on stock and inventory, associates can answer questions and even process transactions without customers needing to join a queue at all.

Similarly, mobile Point of Sale systems allow staff to serve shoppers who are wandering around a store deliberating about a purchase. Consumers are fickle and can go off their decision to buy in the time it takes to carry a shirt from the rail to the counter. With staff serving customers instantly on the floor, retailers can catch them while they are in the mood to purchase.

Importantly, a mobile Point of Sale also gives retailers greater flexibility to manage resources. They can put more staff on the counter when queues are too long, or deploy them around the store to give shoppers a personalised experience whenever possible. Consumers are increasingly open to assisted selling and if brands can get their sales teams out from behind the static barrier of a counter they will see significant returns both in terms of sales and loyalty.

RETHINK THE IN-STORE SPACE

If the sales counter can be a barrier to engagement, then there are likely to be better uses for that space.

The traditional counter will continue to have a place in the store for some time, but the floor-space allotted to tills will shrink. Those people visiting stores to get information on a product or seeking personal assistance from an associate will not wait in a queue at the till for long, and retailers are beginning to take a more flexible approach to PoS in response.

Going mobile with the Point of Sale not only allows brands to deliver a more proactive and bespoke service to customers, it also frees up space that would have been reserved for the counter. Retailers can use the additional space to display more stock or present products more stylishly. They can also use freed up space for innovative in-store technologies such as virtual changing rooms (in the case of fashion brands) or as a space to demonstrate products.

The added area can also be used to enhance the value of mobile PoS tablets. For example, retailers have begun to offer shoppers a comfortable purpose-built space where they can discuss their needs with a sales associate.

RUN A MORE EFFICIENT BUSINESS

Any innovation or change within a business must deliver results and a return on investment. Mobile PoS will see staff become more efficient and more effective. Sales will increase as ‘shopping cart abandonment’ decreases and as consumers are engaged at the point of greatest intent to purchase.

The synching of Point of Sale data and inventory and availability data will improve customer satisfaction by reducing wasted journeys or ensuring customers are given alternative options. With more accurate and timely data on customer demand, retailers will also be able to better manage their supply chain and replenishment.

Furthermore, a mobile PoS that is solid state and has fewer moving parts requires less energy and less maintenance, which keeps costs down. The ability to send customers digital receipts rather than using a physical printer for each purchase also reduces paper waste and running costs. All of these in isolation may be incremental savings, but combined they make a considerable case for updating the approach to Point of Sale at a time when retailers are competing on price with a wider array of rivals than ever before and scrutinising their margins and operating costs.

THE COMPONENTS OF A SUCCESSFUL PoS EXPERIENCE• The ability to accept customers’

growing range of preferred payment types

• To quickly find and hand over click & collect orders

• To accurately answer shoppers’ questions on any product

• To make recommendations for customers based on their purchasing history

• To seamlessly manage refunds and returns

All of these are components of a successful brand experience, and all are underpinned by a smarter approach to the Point of Sale.

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FROM THIS...

TO THIS The counter can still be a focal point for customer service but its size and importance can be reduced, if complemented by mobile Point of Sale on the shop floor.

By reducing the counter and freeing up space, retailers can create more comfortable, engaging spaces to speak to customers.

By reducing the size of the sales counter, more space can be freed up for product.

Shop staff with mobile Point of Sale devices can answer questions and make sales, increasing customer satisfaction, reducing ‘shopping cart abandonment’ and increasing sales.

Customers who have bought or checked availability online can be served quickly upon arriving in store.

An improved experience will see more customers returning to the store.

Changing the Point of Sale experience

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PAY H

ER

E

The sales counter takes up a lot of space and can restrict the service staff can deliver.

Off-putting queues and slow service can increase ‘shopping cart abandonment’, making stock control difficult, causing clutter and amounting to lost sales.

Customers wandering around, with a question may not want to join a queue just to get an answer.

Not every customer in the queue is buying something. Some have questions about product availability or delivery options which could be answered on the shop floor if staff have access to that information.

Customers may walk out if their questions aren’t answered quickly.

Customers arriving in-store may already have checked product availability on their phone. Upon arriving they want to be served as quickly as possible.

‘The S factor’: Why it’s time to make PoS about service as much as sales

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WHY IS ORACLE GETTING INTO PoS JUST AS MANY

OTHERS ARE GETTING OUT?

Point of Sale has never been more relevant. The use of PoS in-store is even changing and enhancing the experience shoppers get online and on their mobile devices. A terminal can’t achieve this alone but when linked to applications in the store and outside, as well as inventory and databases, a PoS system can underpin the innovative services that help retailers differentiate themselves.

This is where Oracle sees the greatest value of PoS and it’s why delivering a system specifically engineered to help retailers meet the customer experience expectations of the ‘commerce anywhere’ generation is our top priority.

WHY IS IT SO IMPORTANT FOR RETAILERS TO FOCUS ON PoS?

Whether at a traditional till or in the hands of a sales associate on the shop floor, the PoS is the engagement point for customers and an extension of the overall brand experience. Retailers who have realised this are beginning to view their own PoS systems in a whole new light. That is why the Oracle Retail PoS offering integrates seamlessly with all of a retailers’ back end data and systems, funnelling all this information to associates in store so they can provide better service.

It is more user-friendly and more mobile. It works as a tablet in both portrait and landscape mode, for ease of use. It can be taken out onto the shop floor to answer questions and provide assisted selling when needed, or it can dock at the sales counter during busy times when a queue is developing. It helps retailers adapt their in-store experience to how their customers are shopping.

The store is more than just a place to purchase items. It is a destination for customers to find information and inspiration and we’ve rewritten the code of our PoS applications to reflect this change.

HOW CAN HARDWARE HELP RETAILERS WORK SMARTER?

The in-store purchasing experience needs to be almost as easy as what’s achievable online, where shoppers can find and buy a product from a retailer in a matter of seconds. Shoppers can rethink a purchase in the time it takes to carry an item from the rail to the till, so having associates on the floor to catch them while they’re in the mood to buy will go a long way to reducing ‘shopping cart abandonment’.

In addition to helping retailers provide a convenient and engaging in-store experience, Oracle’s PoS also helps cut overheads. As a solid state device with no moving parts it uses between 15 per cent and 20 per cent less power than other terminals. That translates to significantly lower energy bills. A PoS with no moving parts is also far more resilient, which leads to less downtime.

For a retailer with hundreds, or in some cases thousands of stores these savings add up quickly.

HOW BIG A TASK IS ROLLING OUT A NEW PoS SYSTEM?

It doesn’t have to be difficult at all. Because Oracle offers every element of the retail technology chain, from server to hardware to PoS applications, we can find a set-up that is right for each and every retailer before the system is implemented. We also take on much of the testing and certifying of our systems in-

house, which reduces the cost and time of a roll-out. Once that is all done, rolling a PoS system out across multiple stores becomes a relatively quick and simple process.

WHAT DOES THE FUTURE LOOK LIKE FOR PoS?

It’s going to be more flexible and more mobile. Durability and resilience have been major considerations for brands, and rightfully so, but greater portability and more intuitive design are now vital. Stores are going to see great benefits from giving sales associates tablets they can take out onto the shop floor to better serve customers and make more sales.

Being able to provide customers with relevant information on products and availability requires sales associates to have this information at their fingertips.

Some retailers have had one PoS at the register to process sales and secondary devices for associates on the floor providing assisted selling. But in many instances these linked to separate systems. We see a future where the same PoS can pair with a cash drawer or printer and quickly be unlocked from the till to serve shoppers whenever and wherever in the store they need.

Self-service is the ultimate goal. Retailers must be able to meet shoppers’ preferences in whichever form they want and this is easier when you have one device performing multiple functions rather than disparate devices working independently.

Q&A with Jeff Warren, Vice President, Oracle Retail

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

The Point of Sale is so much more than a till where customers purchase goods. A modern PoS blurs the line between the shopping and purchasing experience, and between the digital and physical worlds. It should be facilitating customer engagement, delivering a great experience and helping associates show shoppers how valued they are with more personalised services.

BEYOND RETAIL