Spring - InsideOutdoor Magazine

POS Software Directions & Directory
by Martin Vilaboy
After a good bit of overspending in the “dot-com” era and the
time leading up to Y2K, retail IT executives were forced to serve
a type of penance, and were pushed into the back room of organizations
where technology was seen mostly as a cost management
mechanism rather than a strategic weapon. For many retailers,
that’s placed even more pressure on already-aging IT infrastructures—point
of sale software and systems notwithstanding.
According to an Aberdeen Group survey of 175 retail companies
in January of this year, for example, 60 percent of respondents
said they are working with POS systems that are
older than five years. Out of that 60 percent, 35 percent have
POS systems in place that are more than 10 years old. Aberdeen
research also shows, by the way, that the “specialty store” segment,
in general, is where one is most likely to find legacy systems
in place.
The Competitive Framework
Process
Organization
Knowledge
Technology
Performance
Source: Aberdeen Group
Best-in-Class Average Laggards
Ability to access Web sites , catalog and fulfill Web generated orders at POS
32% 14% 9%
Ability to process accurate product promotions through POS (prince integrity
and coupon usage)
63% 55% 30%
Ability to provide stores with help desk phone support personnel
61% 47% 34%
Ability to analyze POS data close to real time to plan targeted promotions
for POS execution
41% 27% 11%
Customer-centric hardware, software and peripherals POS technologies can
currently use
- 44% touch-screen POS
with multi-channel
service functions
- 42% POS software for
loyalty programs
- 80% POS software for
gift card processing
- 30% POS system with
CRM software
- 60% universal PIN entry
device for payment
acceptance
- 25% mobile POS
handheld
- 35% SOA for POS
application integration
- 28% touch-screen POS
with multi-channel
service functions
- 30% POS software for
loyalty programs
- 59% POS software for
gift card processing
- 25% POS system with
CRM software
- 21% universal PIN entry
device for payment
acceptance
- 13% mobile POS
handheld
- 14% SOA for POS
application integration
POS performance management parameters used
42% report and manage
customer POS experience
using customer
satisfaction at POS
22% report and
manage customer POS
experience using customer
satisfaction at POS
26 | InsideOutdoor | Spring 2008
- 14% touch-screen
POS with multichannel
service
functions
- 12% POS software
for loyalty programs
- 36% POS software
for gift card
processing
- 12% POS system
with CRM software
- 11% universal PIN
entry device for
payment acceptance
- 12% mobile POS
handheld
- 9% SOA for POS
application integration
15% report and
manage customer
POS experience using
customer satisfaction
at POS
That may seem reassuring to retailers still tapping away on
older systems, but at the same time, nearly half (47 percent)
of retailers surveyed said complex and time-consuming POS
checkout procedures were a major pressure impacting customer
POS experiences. And as we stress elsewhere in this issue, much
of technology investments moving forward will be influenced
directly by the customer experience and other loyalty drivers.
So while it took nearly half a century for barcode technology
to move from its crude beginnings to something retailers “needed”
to its current universal form, today new technologies come
from multiple directions, adoption cycles move in years rather
than decades and those that fall behind seem to have less time to
regain their competitive position.
The stakes, when it comes to POS systems, have gotten higher,
as well.
“POS applications have moved well beyond the automation
of everyday retail sales transactions,” say analysts
at Gartner, Inc. “Retailers of all sizes no longer see
POS technologies as merely cost-cutting applications but
as key tools to driving revenue growth by enhancing the
customer experience and retaining customer loyalty.”
Indeed, POS transactions are a primary source of
customer and retail data, and that data is being used by
retailers to monitor store performance, manage supply
chains and inventory, plan and allocate merchandise,
develop promotions and marketing, forecast customer
spending and measure customer service.
So it’s probably not surprising that Aberdeen
Group’s “Best in Class” retail companies – in terms of
their performance in a group of standard customercentric
measurement – “are at least two times more
likely than all others to have cutting-edge customercentric
capabilities and enabling technologies that aid
in a consistent approach toward fulfilling customer
needs at POS from an order management, loyalty programs
and guided selling, and payment acceptance
standpoint,” says the research firm.
So you can see where your retail operation stands in
relation to Aberdeen Group’s top performers in customer
satisfaction at the point of sale, below is a completive
framework that details the POS capabilities of the “retail
winners” with a comparison to “average” performers
and “laggards.” Following that are detailed listings
in a directory of POS software providers and resellers
that service outdoor, independent and specialty retail.
Hopefully, it can help with any upgrade, replacement
or migration strategies you may have in the works.
Anyone who would like to see the specifics as to
how Aberdeen Group defines its “Best in Class” with
regard to this discussion, please feel free to contact us
at martin@bekapublishing.com.