We’ve all been told time again that the in-store shopping experience is undergoing seismic change. Technologies such as beacons, omnichannel fulfillment and in-store analytics have promised to change the definition of how a retail store engages with customers. And although iron-clad digital store success stories are few and far between, stores will continue to chase the digital store dream despite not knowing the precise endgame. A handful of market leaders are implementing digital store initiatives that will act as lighthouses to the rest of the industry, showing a glimpse of what's possible with the right strategy.
In 2016, Forrester believes that:
Digital operational improvements will emerge as the golden child of store digitization. Trying to engage shoppers with shiny new technologies makes for some pretty flashy headlines, but does little to boost the retailer’s bottom line. On the other hand, store operations-focused technologies have shown early, but real, results. Tools such as in-store analytics and associate task management are ushering in a new era of store efficiency, using real-time insights to help associates understand what needs to get done and when. The smartest retailers will start combining data from sources like online behavior, in-store analytics, supply chain, and labor planning to make operational decisions in real time.
As far as digital store initiatives go, iron-clad success stories are notoriously hard to come by. Mobile point-of-service (mPOS) is one of the few digital store technologies that has garnered the attention and investment dollars of retail executives—but the return on investment has been nonetheless elusive. Despite large-scale deployments by a number of leading players (including Nordstrom, Urban Outfitters, and Bloomingdales, among others), key questions such as “will this drive incremental revenue?” and “which use cases deliver the most customer and retailer value?” remain. Our newly published report “The Business Case For mPOS Is Associate Enablement” answers these questions and addresses common opportunities and challenges for eBusiness leaders rolling out an mPOS program. In the report, we find that:
Consumers expect digitally-enabled associates to facilitate in-store engagement. Retailers must change their thinking and start to view mPOS as more than just a “mobile cash register.” When shoppers see a store associate armed with a mobile device, they expect to receive contextualized assistance when and where they want it. In addition to ringing up sales in aisle, your associates should be prepared to use their devices to access enterprise inventory, provide product information, and give personalized product recommendations.
Yesterday Manhattan Associates announced the acquisition of mobile point of service (mPOS) provider GlobalBay Technologies. A few years ago, it might seem odd that a warehouse and order management company would be interested in playing a significant role in the experience of customers and associates on the sales floor. However as we recently covered in our Omnichannel Order Management Wave, the role of distributed order management has been elevated and is now key to meeting customer’s rising expectations. Along with orchestrating orders across all inventory locations, omnichannel order management systems (OMS) are already taking orders in the call center, handling fraud management, and providing mobile utilities for associates to fulfill orders from stores. Moving into the point of service (POS) space with an mPOS solution is a logical evolution for Manhattan Associates since it combines enterprise inventory visibility, order management, and order capture all under one roof. In addition this acquisition provides a stronger differentiator from their largest competitor IBM, who exited the legacy POS market in 2012.
So what does this mean for POS moving forward? Three distinct solutions are now possible, including:
My dad came over today for a visit today. He’s an avid reader and consumes The New York Times from front to back. I guess you could say he’s part of my research team as he frequently cuts out articles for me related to digital business. This past weekend he brought over the front page of the business section, profiling the use of tablets in the quick serve restaurant category. Although many digital technologies in physical spaces have yet to transform shopping behavior, the restaurant industry has one of the stronger use-cases to employ digital, including:
Improving service by eliminating waiting in line. At Panera, customers go straight to their table and order via their smartphones. No more waiting in line to order, and standing around for your order to be ready.
Increasing average order size and margins with contextual meal recommendations. Chili’s employs tablets that drive up order size by providing meal recommendations that may have a higher price point, higher margin, or is highly rated. In their tests they indicate a 20% lift in dessert sales! Yum.
Expediting service and improving accuracy. Restaurant staff has a lot to gain by employing digital technology. They can reallocate cashiers to kitchen or service roles, and having customers order at the table improves order accuracy.