Mobile phones were utilized by 64% of Gen Y shoppers for in-store shopping-related activities during the recent holiday season, according to a recent Motorola Enterprise Mobility Solutions annual research study of holiday shoppers. The survey found that consumers across 11 countries turned to their mobile phones for in-store activities spanning multi-channel comparison shopping, peer feedback, product information, and coupons, all signaling the need for retailers to adopt mobile shopper technology strategies to remain competitive.
The growing influence of smartphones continues to re-write the rules of retailing. At this month’s NRF 99th Annual Convention and Expo in New York, literally hundreds of companies debuted mobile solutions designed to tap into the power, functionality and convenience of smartphone’s like the iPhone, Blackberry and Android.
In addition to new mobile CRM applications designed to help retailers engage directly with smartphone users, solution providers also debuted a number of core store management tools designed to run on smartphones.
With rumors running rampant that Apple is said to be considering commercializing the iPod touch-based EasyPay POS system, a few companies were looking to beat the company to the punch with the launch of a POS handheld solution with similar functionality to the device now in use in Apple stores nationwide. Global Bay introduced a hanheld solution, which is said to be “store system agnostic and can be readily integrated” into a retailer’s existing POS systems, such as Raymark, Epicor, JDA, SAP and Oracle.
“Hardware manufacturers are rapidly releasing hardware add-ons for the iPod touch which allow sales associates to scan products, accept credit card payment and print receipts. We plan on supporting our retailers by supplying the handheld software that leverages these devices” says Global Bay CEO Sandeep Bhanote.
In addition to Global Bay’s “Apple-like” solution, there were reports that Agilysys and at least one other company were showcasing similar POS solutions designed to run on smartphones.
While Apple currently only uses the EasyPay POS technology at its own Apple retail, the blogosphere has been busy with rumors that Apple may be positioning itself as a player in the POS space, offering the software and hardware to other retailers.
Apple’s iPod touch-based system has an integrated hard plastic shell, which houses the iPod touch, and a mag stripe reader for credit cards and a barcode scanner for scanning product information. Credit card transactions are reportedly handled entirely on the EasyPay device, with customers using a stylus to enter their signature electronically on the iPod touch
Smart Store Execution
In addition to POS solutions designed to run on smartphones, other store execution tools which traditionally ran only on mobile computers are now available on smartphone platforms. For example, Reflexis Systems Inc. announced its integrated platform of labor scheduling, time and attendance, compliance/audit, and KPI/task management solutions now supports a wide variety of smartphones, including the Blackberry.
With the solution, retailers can monitor important metrics and trends related to employee schedules, payroll, time and attendance, task completion, and compliance using a mobile device, instead of being stuck behind a PC in an office. When an important metric is tripped, an alert can be sent to the appropriate manager's handheld device. The manager can then assign corrective action based on best practices embedded in the system.
"Mobile technology is redefining the retailer-consumer dynamic," said Murtaza Ghadyali, vice president of product management for Reflexis. "Just as consumers are increasingly relying on mobile phones to research prices and product, find stores, and make smarter buying decisions, retailers can leverage the technology to increase employee efficiency and product knowledge and improve customer service. Reflexis workforce management solutions on smartphones further enhance employee performance. Retailers can rapidly detect and respond to problems and opportunities while spending more time on the sales floor helping customers."
The role of in-store kiosks was also mobilized at NRF, with the introduction of Escalate Retail’s new Pocket Kiosk. The Pocket Kiosk is designed to empower consumers with the rich information and features of online shopping, in the palm of their hand – at the shelf.
Since many of today’s in-store shoppers are no longer satisfied making purchase decisions based upon a brief description on product packaging or shelf labels, so they either go home to do more research online, or they use their smartphone to shop online. Escalate’s Pocket Kiosk is designed to deliver consumers the rich content and convenience mobile shoppers demand – in an intuitive and personalized mobile interface - to help influence purchase decisions while they are in store.
Customer-Facing Smartphone Apps
In addition to addressing store efficiency with mobile devices, solution providers at NRF also unveiled several innovations to help retailers simplify and personalize their engagement directly with consumers. The Enterprise Mobility Solutions division of Motorola launched its new Mobile Loyalty Solution. Delivered as a managed service, the new solution is designed to help retailers foster a more personal relationship with their customers and digitize store-branded membership cards on customers’ mobile phones
Compatible with most mobile phones in the US market, the Motorola solution is designed to provide customers with a more convenient shopping experience by offering access to the best offers and discounts on products that interest them.
The new Mobile Loyalty solution can act as an extension to an existing retail loyalty program or serve as an alternative option for retailers looking to create a new program. The platform is ultimately aimed at helping to eliminate the need for membership cards and paper coupons
By mobilizing the card, retailers are afforded the opportunity to increase program participation, and shoppers are rewarded with special offers, more convenient access to customized coupons and a quicker check-out experience.
Customers can opt in to the program online or in the store by text messaging a short code to indicate interest in receiving offers on their mobile phone. Customers then receive a mobile application with a bar code on their mobile phone that acts as the shopper’s unique identifier or mobile loyalty card and can be scanned at the point of sale
The solution is designed to approach loyalty with a ”closed-loop” system that allows retailers to maintain a rich database of shopper product interests, purchase habits and preferences. While Motorola manages distribution to the program members, retailers can focus on creating relevant marketing messages, as well as determining how frequently coupons and offerings are sent.
Mobile payment also moved closer to reality with the launch of a new breed of customer-facing payment acceptance devices from Silicon Valley-based ViVOtech, a leader in Near Field Communication (NFC) and contactless payment systems. The new devices, the ViVOpay 8800 and ViVOpay 8600 payment acceptance devices for merchants with PCI 2.1 certification and built-in contactless NFC technology, not only allow retailers to accept highly secure payments at POS, but also deliver a personalized mobile marketing experience to their customers.
The ViVOpay 8000 product series features built-in intelligent mLoyalty software enabling merchants to offer mobile marketing and loyalty programs to their customers. As a result, customers enjoy a high-value shopping experience with personalized and location-based services and offers delivered directly from the merchants.
How do these mobile devices interface to existing POS platforms?
It being wireless how do they handle PCI compliance?
Do they process Debit transactions?