This eBook will allow retail business and IT managers to understand which are some of the key elements that can help increase sales with the next new POS generation. Find out how technology can change the way retailers do business and interact with their customers.
2. 10 Ways to Increase Sales With Your New Next Generation POS Technology
1 Introduction 3
2 Enterprise-wide inventory visibility 4
3 Mobile POS 5
4 Delivery flexibility 6
5 Customer identification: Beacons 7
6 Product identification: RFID 8
7 Clienteling 9
8 Loyalty Management 10
9 Flexible discounts and promotions engine 11
10 Mobile Payments 12
11 Visibility 13
12 Conclusions 14
13 About us 15
3. 10 Ways to Increase Sales With Your New Next Generation POS Technology
1 Introduction
The retail industry is undergoing a profound
transformation. Brands are being controlled
by empowered consumers with growing
expectations in terms of speed, convenience
and personalization.
Speed in the sense of getting their products
faster, convenience in how they are allowed
to buy, pay and receive these products
and personalization which allows them to
feel as unique as possible thanks to in-depth
knowledge and understanding of their needs.
Leading worldwide retailers are investing to
systematically understand and serve these
increasingly powerful consumers and are also
investing in customer engagement. In this new
consumer omnichannel age, innovation is no
longer a ´nice to have´ in any sales channel, but
a must-have. This innovation is especially true
in physical stores, where sales in coming years
will count for over 95% of total sales worldwide.
POS solutions are also evolving and they are no
longer a simple cashier but the real brain of the
store, responsible for delivering the promise of
a seamless omnichannel shopping experience.
For brick-and-mortar retailers it is critical then to
adopt new generation POS solutions that are
aligned with customer expectations. Here we
present 10 ways to increase sales with your next
new generation POS.
This e-book will assist retail business and IT
managers to understand which are some of
the key elements that can help increase sales
with the next new POS generation.
4. 10 Ways to Increase Sales With Your New Next Generation POS Technology
2 Enterprise-wide inventory visibility
Inventory visibility has become a must
for retailers aiming to succeed in today’s
omnichannel reality. In the words of Terry
Lundgren [1], CEO of Macy’s Inc, omnichannel
is very much about inventory optimization
through technology, and inventory visibility
across all stores and channels is the key
enabler. For Macy’s true inventory visibility
provides multiple benefits for shoppers and
retailers:
It allows store associates to rapidly check
system-wide availability, locate an item
and make it available for delivery or next
day pickup by the shopper.
It can reduce markdown costs and
inventory write-offs by enabling some
mislocated items to be sold, either online or
in alternative stores.
It can enable store inventory items to
be available to fulfill online orders on
Macys.com, even when fulfillment center
inventories are depleted.
At the stores it means giving associates a
POS solution that provides detailed inventory
information across the enterprise that can
be used to simply inform the customer or to
fulfill an order generated in another store or
through the online channel. This capacity
enables the adoption of store fulfillment
strategies that help retailers to increase sales,
increase inventory turnover and minimize
markdowns.
According to eBay Enterprise,
with a potential of 20%
or more incremental sales, a
$50 million online retailer is
leaving more than $27,000
per day on the table until
ship-from-store is implemented.
Cross-store stock visibility in
Openbravo Web POS
5. 10 Ways to Increase Sales With Your New Next Generation POS Technology
3 Mobile POS
Without a doubt, mobility has become one
of the driving forces leading the omnichannel
transformation today. For brick-and-mortar
retailers, the use of mobile technologies provides
the opportunity to deliver new in-store shopping
experiences for both associates and customers.
Mobile POS is a clear example of how mobility is
helping retailers to improve the in-store shopping
experience. Empowered store associates are
armed with modern mobile devices that provide
detailed information about products and
customers and have the capacity to process the
whole transaction until payment. This enables
them to provide a truly customized sale and gives
them the opportunity to directly influence the
customer where buying decisions are made thus
increasing the chances of closing a sale.
The adoption of a mobile POS solution also has
a positive impact over the brand image, which
can help to increase the number of people
According to Boston Retail
Partners, approximately 300%
more retailers plan to deploy
mobile POS technology in the
next two years [2]
.
Openbravo Web POS [3] is a responsive
web and mobile POS solution
walking into the store and ultimately help to
increase customer sales and loyalty.
Moreover, a mobile POS solution can also help
to reduce queues during busy periods, so sales
staff can efficiently set up mobile POS or kiosks to
help to accelerate sales payments, the returns
process and thus reduce the potential loss of
sales during crucial periods of the year, like
Christmas, in the winter or summer sales, or other
holidays.
Software vendors providing a mobile POS
solution follow two different approaches:
an OS dependent application that must be
installed on each mobile device, usually iOS or
Android, or
a full web and mobile solution that only requires a
browser to be run on each device and provides
offline capabilities to allow associates to run the
solutionevenincaseofconnectivityloss.Typically
these solutions are also built using the responsive
design concept, so they can be run seamlessly
from mobile devices of different sizes
Migration to mobile is not slowing down, but
increasing as several industry reports confirm.
Although the interest in mobile POS solutions
is rapidly growing amongst different retail
subsectors, hardgoods and softgoods specialty
retailers today are showing greater interest and
are leading the adoption of these solutions.
6. 10 Ways to Increase Sales With Your New Next Generation POS Technology
4 Delivery flexibility
Consumers demand more flexibility when
shopping. And this clearly applies to the way
products are delivered. Different delivery
options can be either asked for by consumers
for convenience or directly proposed by
retailers as a way to improve service or as a
tool for saving the sale.
As an example, when a product is out of
stock in the store, the retailer allows the
customer to pick up the product in the same
store during the next few days, pick up the
product in another store or sends it to the
customer’s home.
Travelling customers may be interested
in sending their purchases home, either
immediately or by scheduled delivery. Or
goods may be difficult to manoeuvre due
to big dimensions. Another option is store
pickup for online purchases.
All these options require the point of sale to
be able to manage these special orders but
also represent a supply chain management
challenge for the retailer.
Consumers demand more
flexibility when shopping and
that includes offering different
options such as choosing when
and how they receive their
items as some studies reveals [4]
.
7. 10 Ways to Increase Sales With Your New Next Generation POS Technology
5 Customer identification: Beacons
According to Business Insider4 beacons are
consideredoneofthemostimportanttechnologies
in retail since the mobile card reader, and will see
triple-digit growth rates over the next few years.
Location-based app notifications powered by
beacons increase user engagement in apps,
and drive more in-store sales. For this reason,
retailers are increasingly looking to beacons to
enhance the in-store shopping experience while
simultaneously bridging their physical and online
experiences.
When placed in a store, beacons use Bluetooth
technology (BLE or Bluetooth Low Energy) to
detect nearby smartphones and send them
media such as ads, coupons or supplementary
product information. They can also be used as
point-of-sale systems and to collect information
on those consumers.
According to the same Business Insider
report, the beacon installed base will consist
of 4.5 million active beacons overall by the
end of 2018, with 3.5 million of these in use
by retailers.
For example in the US, half of the top 100 retailers
already started to test beacons in 2014, and it is
expected that they will have this new technology
installed in a third of their store locations by the
end of 2015.
But, what does this mean for retailers? The use of
beacons provides retailers with benefits in three
main areas:
Analytics: The BLE technology gives retailers
greater insight into customer purchases. For
example, retailers can know how much time
a customer spends in each part of the store,
and how they navigate the store. This is highly
valuable information that can be used to
optimize the in-store experience and increase
revenues.
Loyalty: The use of beacons allows retailers to
create powerful 1:1 offers for customers, on the
spot (literally). This sort of customized targeting
could, for example, use the customer’s
purchase history and favorite items to come
up with product-specific offers when they
approach that item on the shelf or a concrete
area in the store. Solution vendors like shopkick
and their solution ShopBeacon [5] leverage
beacon technology to provide an improved
shopping experience.
Customer Service: retailers can also improve
their customer service as well. For example,
imagine that as soon as a customer walks
into the store, the store sales staff know their
name, what product categories they shop
most, the items they browsed last time but
didn’t purchase and what their spending
habits are. Using this information, retail stores
can create a better shopping experience
and offer superior customer service.
According to Boston Retail
Partners, approximately 200%
more retailers plan to use
geolocation within three years
Shopkick's shopBeacon
(iBeacon/BLE) Trial Live at Macy's in SF
8. 10 Ways to Increase Sales With Your New Next Generation POS Technology
6 Product identification: RFID
RFID lets retailers identify individual items, cases
or pallets in the same way bar codes do, but
wirelessly, with richer data and without the need
for a line of sight. It’s been more than a decade
since Walmart shook the retail world with a bold
plan to plaster its supply chain with RFID. But
the reality is that RFID adoption has been low,
mostly due to the high cost of the tags. But the
situation has changed and now retailers are
starting to consider it more seriously, especially
now when inventory accuracy and control
have become even more critical in today’s
omnichannel world.
The tags, which contain a simple chip and
antenna, are embedded into product pricing
labels, such as those that hang from apparel.
They are powered by the radio signal emitted
from readers, which can be hand-held or fixed
in place. This allows the store associate to check
the inventory of an entire rack of hanging dress
shirts, for example, by simply walking around the
display with a handheld reader. The software
then displays a list of sizes or styles that need to
be replenished, and the associate can narrow
in on the needed items in the stockroom by
turning the reader to a “Geiger counter” setting.
But RFID is now also becoming a way to improve
the store shopping experience. Adding RFID
tags to the products in the store and using smart
mirrors that are able to read these tags, allows
retailers to present product information to the
consumer seamlessly.
The same concept can be applied to fitting
rooms. At the point of sale the use of RFID tags
can also speed up the check out process
replacing the traditional barcodes, which also
helps to improve the shopping experience.
Leading retailers like Macy’s, Saks and Lord &
Taylor are all jumping onto the RFID bandwagon.
RFID enables precise visibility into exactly what
inventory is available and where, reducing the
risk of out-of-stocks. In pilots, Macy’s saw a 50%
higher sales growth rate for products tagged
with RFID.
In pilots, Macy’s saw a 50%
higher sales growth rate for
products tagged with RFID.
9. 10 Ways to Increase Sales With Your New Next Generation POS Technology
7 Clienteling
Clienteling is the set of business processes
retailers use to increase customer lifetime
value through the delivery of a personalized
shopping experience. Clienteling delivers rich
data to an associate’s fingertips, allowing him
or her to provide a personalized experience
that will improve customer satisfaction and
increase revenue. This is not really a new
capability but something that has gained
more and more importance in today’s
omnichannel reality.
Clienteling provides a powerful single view of
the customer, with information like customer
profile, summary of activity across all channels,
purchasing history, wishlists… This information
can be linked with available detailed data
about products and promotions (like product
characteristics, product catalog browse,
inventoryvisibility) forassociatestoprovideareal
assisted sale, for example, by recommending
complementary products or informing about
applicable promotions and discounts that the
customer is eligible for based on their current
basket. As a result this helps to increase cross-
selling and up-selling possibilities and provides
powerful save-the-sale tools that will all help to
increase sales.
Clientelling helps to increase
cross-selling and up-selling
opportunities and provides
powerful save-the-sale tools
that will help to increase sales.
10. 10 Ways to Increase Sales With Your New Next Generation POS Technology
8 Loyalty Management
Loyalty programs have a simple objective:
engage and reward customers to enhance
brand experience and increase sales, creating
lasting and profitable relationships with
customers. Ultimately, to get brand advocates
for life. In today’s omnichannel world a true
omnichannel loyalty program will engage
the customer at the right time, at the right
place, through the right channel, with the right
message.
At the POS this means several things today,
ranging from the availability of clienteling
features mentioned before to the use of more
traditional strategies like points management,
coupons or special targeted promotions,
that are not really new things but are clearly
influenced by consumer access through
multiple channels.
Traditional loyalty programs consider rules to
transform customer purchases into rewards.
That is earning points for each sale, rewarding
specific products with extra points. Afterwards,
customers can use the earned points to pay
at the next sale or to be translated into direct
discounts. Real omnichannel loyalty programs
currently offer the possibility to redeem points
in one channel that have been gained in a
different one, for example accumulated points
at a point of sale that can be presented and
used in the online channel.
Another method used to reward loyal customers
is coupons. These are sent via email, text
message or even in social networks like on the
Retailer page on Facebook. Coupon codes are
given in the store by customers so a discount
is applied automatically or they are offered
another type of promotion.
Loyalty management aims to
create lasting and profitable
relationships with customers.
11. 10 Ways to Increase Sales With Your New Next Generation POS Technology
9 Flexible discounts
and promotions engine
An effective way to increase sales and build
loyalty among customers is the use of discounts
and promotions. Retailers need flexible engines
that effectively run and track personalized
promotion campaigns, from the very simple
one to more complex constructions. Engines
need to allow them to create discounts of any
type, targeted to a specific group of customers,
member lists and tiers and award benefits
by product categories, or specific products,
allowing them to include or exclude products or
customers from the promotions. Engines need to
be programmable for specific times or periods,
so promotions are automatically applied, and
deactivated when the range of dates is not
valid anymore. And most importantly, created
promotions must be quickly and seamlessly
transmitted to the stores in order to reduce
time-to-market.
There are many other examples of discounts
and promotions that are a must for today´s
engines. To mention a few: the classic steep
discount, e.g a 20% discount on specific items,
has proven to be effetive for selling overstocked
items, or when the expiry date is approaching.
Running this type of campaign on a regular
basis means that customers often associate
the place with good deals that will keep them
coming back. Offering free samples with each
purchase enables customers to discover new
products based on their preferences. Or similar
promotions of buying 2 but paying for 1 of a
different or the same product. Another effective
promotion proven to encourage sales is packs
of products at special price. They are positively
accepted among customers, and demonstrate
that packs encourage buying products that
customers would otherwise not buy.
Best deal discounts are also well received by
customers, where the POS system calculates the
best deal for the customer depending on the
chosen products and the available promotions.
This kind of technique helps to build trust between
the retailer and customers which will almost
certainly have a positive impact on future sales.
Promotions are typically communicated to
consumers by e-mail or in a text included in the
printed ticket. Therefore POS systems should be
able to manage such e-mail campaigns and
also to integrate with social networks.
POS solutions must also be able to manage
discretionary discounts that are applied to
the ticket for a concrete reason, such as, for
example, a product defect. In these cases it is
also important that the POS supports managers’
approvals to avoid fraudulent activities.
Retailers need flexible engines
that effectively run and track
personalized promotion
campaigns.
12. 10 Ways to Increase Sales With Your New Next Generation POS Technology
10 Mobile Payments
After several years of talking about the imminent
widespread adoption of mobile payments by
retailers it seems we are finally in a situation
where this can happen and most industry
analysts already predict that mobile payments
will finally move to the mainstream, mainly
driven by the growing interest of consumers
but also now thanks to the new existing
technologies and vendors that have invested
to provide the technologies that can make it
happen. Apple Pay is of course at the center of
this process since its launch last year. The Apple
Pay adoption has come quickly and easily, and
now other vendors such as Samsung, Google
or Paypal are just trying to battle against Apple
with their own solutions. LoopPay’s acquisition
by Samsung and Softcard’s acquisition by
Google are two great examples of how the
market is rapidly changing and of the strategies
different vendors are following. In other
territories like China, Alipay is also consolidating
itself as a market leader that could become a
future competitor for all these vendors in other
markets.
The mobile payments war exists not only in
the field of technology vendors but also in the
field of retailers. Some of them are investing in
their own mobile payment technologies. This is
the case in the US of the Merchant Customer
Exchange (MCX), a retailers association
including Walmart, Best Buy, Sears and others,
that have invested in their own solution and now
it is also competing against Apple, Samsung or
Google solutions. CurrentC, the MCX’s mobile
payment solution, is a mobile wallet that lets
customers save, earn participating merchant
loyalty rewards and pay across their growing
network of merchants.
Innovation in mobile technologies will however
not stop here. Retailers and technology vendors
are continuously investing to create higher
consumer engagement and better shopping
experiences. A good example is the Australia-
based food retailer 100% Genuine Imported
Foods Chain Stores that has challenged China's
current retail payment system by launching
the technology "facepay" in Shanghai. The
smart payment system is supported by face
recognition technology and will be used for
the first time in chain stores in China. When
customers come to the chain store, they only
need to show their faces and hands before
cash registers. Once they are recognized, the
payment is completed.
According to Boston 350%
Retail Partners,
more retailers plan to support
NFC payments by October 2015
13. 10 Ways to Increase Sales With Your New Next Generation POS Technology
11 Visibility
To get in-depth knowledge about customers
and react in a timely manner to habits and
behavioural changes, retailers today rely on
tools that provide actionable insights into each
process around the shopping experience,
including detailed visibility across different
channels, performance of different promotions,
products or product families and detailed follow
up of all related supply chain management
activities.
At the stores, store managers require detailed
information about sales per associate, per
hour, best selling products and categories, total
discounts, payments by payment method,
returns… Easy access to this kind of information
in near real time will facilitate a greater
understanding of how well a store is performing
and can make a huge difference in meeting
sales targets.
New generation POS solutions provide powerful
embedded analytics capabilities that will allow
store managers to get a clear picture of the store
performance in near real time. They provide a
fast and direct way to achieve results by means
of dashboards, pre-built data models, reports, or
self-service analytics to deliver quick on-demand
reporting and interactive analysis of retail data.
New generation POS
technology provides powerful
powerful embedded analytics
capabilities that will allow store
managers get a clear picture
of store performance in near
real-time.
14. 10 Ways to Increase Sales With Your New Next Generation POS Technology
12 Conclusions
Retail is one of today’s fastest changing
industries. Retailers must be ready to embrace
change and innovation as a way to stay
competitive while being ready to serve
increasingly demanding consumers. In this
reality technology is dramatically changing
the way retailers do business and interact with
their customers. In the stores, POS solutions have
evolved from a simple machine to the real brain
of the store, responsible for delivering the promise
of a seamless store shopping experience, a
must in today’s omnichannel retail landscape.
New generation POS systems are also the
perfect partner to help to increase sales. Their
omnichannel and customer-centric nature,
flexibility and advanced technology empower
retailers to meet the client’s expectations,
ensuring that they save the sale and build long-
term profitable relationships with customers.
References
1. http://www.retailwire.com/discussion/16710/omni-channel-at-macys-its-
about-inventory-too
2. http://bostonretailpartners.com/press_release/nearly-300-retailers-plan-
deploy-mobile-pos-two-years-according-boston-retail-partners-survey/
3. http://www.openbravo.com/retailers/product-features/web-point-of-sale/
4. http://www.pressroom.ups.com/Press+Releases/Archive/2015/Q1/
Study+Reveals+European+Online+Shoppers+Demand+Flexibility
5. http://www.businessinsider.com/beacons-are-the-most-important-new-
retail-tech-2014-7
6. http://shopkick.com/shopbeacon
15. 10 Ways to Increase Sales With Your New Next Generation POS Technology
Openbravo is the provider of the preferred Commerce and ERP Platform. A
state-of-the-art. Commerce solution for agile retailers and a broad horizontal
ERP solution for any industry, both built on top of an easily extendible web,
mobile and cloud ready development platform, ready to power companies
ideas for building smart enterprise solutions. Openbravo solutions are
distributed exclusively through the network of global Openbravo partners.
With 3M+ downloads and 1,000s of organizations using Openbravo solutions
every day, Openbravo is a world leader in the Open Source enterprise
software space. Openbravo has offices in India, Mexico and Spain.
This material is provided by Openbravo SLU (we/us) for informational purposes only, as a general guide and not as professional advice. It is subject
to change without notice. It is provided without representation or warranty of any kind, and you agree that you shall not hold us liable for errors or
omissions with respect to the material. The only warranties for our products and services are those set out in the express warranty statements in the
licenses and other legal documents accompanying those products and services and nothing in this document should be construed as constituting
an additional warranty. This e-book may not contain all the information available on the subject and you should consult with appropriate
professional advisers if you are seeking specific expertise. You agree we shall have no liability or responsibility to you or any person or entity for any
loss or damage arising, or alleged to arise, directly or indirectly due to the provision of the information contained in this e-book.
About Openbravo
13 About us