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 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 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.
VISIONS FOR YOUR BUSINESS Discover the world’s leading trade fair for the outdoor industry. July 17 – 20, 2008 Friedrichshafen, Germany www.european-outdoor.com
Change language