Retailing Techonology.docx

Allum karibasappa institute of management Retail marketing

Topic:

Retailing and technology

Presented by: Bharath Babu Akhil Meghana Pavan kumar

Synopsis • Meaning of Retailing & types • Meaning Retailing transactions • Why Retail Technology • Technology related trends impacting retailers • Technology Trends Requirement • Most Important Retail Technologies • Trends in retailing technology • The challenges faces by retail industry • Some of technology in retailing

Meaning of Retailing: Retailing refers to a process where the retailer sells the goods directly to the end user for the own consumption in small quantity. Types of Retailing       

Departmental stores Super market Warehouse stores Mom and pop stores Specialty stores Malls Dollar stores

What are retail transactions? Retail is the sale of goods to end users, not for resale, but for use and consumption by the purchaser. The retail transaction is at the end of the chain. Manufacturers sell large quantities of products to retailers, and retailers attempt to sell those same quantities of products to consumers

Why Retail Technology 1) Point of Sale: Until very recently, customers have had to stand in long lines to purchase their merchandise. Thanks to technology, though, customers can check out from wherever they are in the store through handheld computers, scanners, and printers. This has significantly improved the satisfaction of customers because before, about 10% of customers would leave without making a purchase if they had to wait a long time in a long line. The use of technology in retail has also made payment processes easier with contactless payments. These payment methods use RFID or NFC technology to allow the customer to make their purchase with their smart phone or even watch. This technology has eliminated the need for passwords or PINs and has streamlined the checkout process for customers. Faster transactions have led to higher sales volumes in stores that offer remote POS and contactless payments. 2) Customer Service: When customers have to wait in long lines to purchase their items or can never find an associate to help them out, they get frustrated with the store and their satisfaction goes way down. Technology changes this by offering customers the help they need with self-help kiosks. These kiosks have helped businesses save money and increase the satisfaction of their customers. Machines like self-help kiosks are an excellent application of IT in the retail industry. Technology has also improved the way customers shop online by providing a more personalized shopping experience. Technology is also being used by companies to offer their customers virtual views of products through augmented reality. Augmented reality allows customers to get a better idea of what they want to purchase before they make their final decision. With this technology, businesses have improved the experience of their customers and increased their sales. 3) Management of Inventory: The practice of managing inventory has always been very costly for businesses. With technology that can track inventory through its purchase cycle and offer real-time information about the product to management, inventory management has gotten

better and is costing companies a lot less. With technology tracking items and offering real-time updates about the items, managers have a much better sense of what is being purchased and what items they need to order to keep their merchandise stocked. When technology is used to keep track of inventory, store merchandise is more organized and the potential for employee theft is drastically decreased. 4) Price Auditing: Just like with inventory management, price auditing has been a time-consuming and costly process for businesses. Price auditing is necessary, though, for companies to ensure that they’re not overcharging or undercharging their customers. Technology has streamlined this process by automating price checks when products are scanned. This creates more accurate pricing, saves store employees a lot of time and creates better trust between the store and the customers. The impact of this information technology in retaining has been very great and beneficial.

Technology related trends impacting retailers • Social media • Mobile/online shopping • Mobile/online promotions and coupons • Use of in-store mobile technology by store associates • Waning stores/brand loyalty as consumers become more empowered • Ability to scan QR codes, compare products and pricing • Influence of peer ranking and review on consumer purchase decision • Mobile payments • Show rooming

Technology Trends Requirement

Customer experience • Exploring the technologies that impact a customer’s experience in the store, online and across different channels. Data and analytics • Identifying new forms of data and new opportunities to improve operations and better understand customer behaviors. Infrastructure and core IT • Demonstrating how cloud and related technologies could streamline operations, lower costs and strengthen the business overall.

Existing Technologies            

Cash drawer Receipt printer Barcode scanner Scales Cheque reader Pole display Digital signature Pad debit/ credit card reader Portable data assistant Label printer Displays All in one pos

Most Important Retail Technologies o Point of Sale (POS) and Inventory Control Software A good POS / Retail Management System can be a huge time saver and money maker for you. That's partly why it's number one... In its simplest form, a good POS system will track all your sales so you can easily see how your business is doing (at any time). In other words, it replaces your cash register.

It's difficult to decide where to even start talking about POS software because it can do SO many things for you. I could literally write a book about ALL the reasons why a POS system will help you -- so I'll quickly summarize in 5 key areas. A good POS system can... Dramatically improve your customer service. Simplify and improve inventory management. Improve the effectiveness of your marketing efforts. Easily show where you're making and losing money so you can make adjustments and increase profits. Save huge amounts of time by automating bookkeeping and countless other retail tasks for you. Now keep in mind... not only will a POS system give you a huge benefit, but it can also be the MOST difficult technology to choose. There are many things to consider and you certainly don't want to miss out on anything important because it's very expensive to change POS systems. So take your time and do your research when you choose a POS system. o Customer Relationship Management (CRM) Software One of the unwavering keys to building a successful retail business is to build relationships with your customers. Because of that, CRM software is a critical tool for the retail business. And not only will CRM help you improve your customer loyalty it will help you market to potential prospects and generate new business. In a nutshell, CRM software allows you to track your customers, identify market segments and then easily communicate with them via email, telephone, direct mail and more. Some POS systems actually include CRM capabilities and that's what I recommend. This allows you to track all this information in one place and reduce time consuming double entry. In any case, CRM software can be purchased as a standalone product or considered its own module in your POS software. So it deserves its own category. o Bar Code Scanning and UPC Codes Simply put, bar code scanning allows you to check products at the point of sale much faster and more accurately than can be done on the keyboard. Not only will this save you time, but you should also consider the effect of your inventory...

Just think about the consequences of entering the wrong product number and throwing off your inventory. Your inventory is the lifeblood of your business and accuracy is vital. These errors can cause you to lose sales, increase inventory costs, and waste hours of time. I should also point out that if your merchandise has UPC codes, you can easily scan those tags without the need to print your own bar codes. This can be a huge time saver. o Electronic Data Interchange (EDI) EDI technology allows you to send purchase orders (created in your POS software) to your supplier electronically via phone line or internet. Not only does this save a huge amount of time, but it can also reduce errors -- so you don't have to apologize to your customer because you special ordered the wrong item. Just imagine, using your POS software to automatically generate purchase orders (based on order levels and sales history) and then sending your order to your supplier electronically. You can process your entire order without entering a single product number! How much time would that save you? o Retail Accounting Software More and more retailers are doing their accounting in-house because they can quickly produce up-to-date financial statements and see how their business is doing at almost any time. This has become easier for the small business owner because of a variety of user friendly accounting applications. Accounting software can be purchased stand alone or can be integrated with your POS software. Now it's important for you to consider each different module within an accounting system. I suggest that your Accounts Receivable module (what people owe you) should almost always be integrated with your POS software. It's also a good idea to get your Accounts Payable module integrated with your POS too (because you'll reduce double entry). Your General Ledger module can be stand alone or integrated o Store Traffic Counters These valuable devices will help you improve sales conversion ratios, increase store traffic, and improve advertising. If you're serious about increasing sales conversions then you need an accurate measure of

your store traffic so you can determine your closing ratio. Automated traffic counters are accurate and objective. They provide surprisingly detailed data that takes the guesswork out of measuring closing ratios and even how ads pull. Store traffic counters also help better schedule your sales staff because they identify actual foot traffic in your store during certain time periods. You can also determine if traffic goes up or down during marketing promotions so you can figure out what works the best. And this is just the tip of the iceberg! There are MANY benefits to this technology. o Graphics Design Software Most small retail business owners tend to wear many hats… and taking care of marketing promotions can be one of them. With computers and graphics programs today, you can save thousands of dollars by creating simple flyers, brochures, and ads with your own graphics design software. Popular programs include Adobe In Design, Adobe PageMaker, Corel Draw and Microsoft Publisher. o Websites & Shopping Carts Whether you sell products on your website or not... websites can be powerful tools to promote your retail business. For example, you could link to your website from business cards, newspaper ads, and more. This gives you an opportunity to tell your story, give people an idea of what you sell, and convince them to stop by your store. Since it would be very expensive to tell your entire sales story in a newspaper ad... you can finish the job by sending people to your website and save money. Then if you're really serious, you can utilize a website shopping cart so customers can place orders and pay you right from the website. Even better, integrate your website shopping cart with your POS software. o Payroll Software Payroll software can allow you to do payroll in-house and save a bunch of time. The software calculates the deductions that come out of each payroll, like FIT, SIT, FICA, 401K, HSA, flex, etc. It also calculates the totals for W-2's (and prints them) at the end of the year. And of course, it also prints nice looking checks with all the deductions per payroll as well as year-to-date totals.

o Portable Data Terminals (PDT) and Hand Held Computers Portable data terminals are great tools that allow you to quickly count your inventory and easily update your POS system. You can simply carry around this portable terminal, scan your merchandise, and then enter your on-hand quantities. This allows you to more easily and accurately count your inventory. In addition, hand held computers are becoming more popular. They allow you to create orders and complete various tasks on a computer that fits in the palm of your hand. You could place orders from a truck or anywhere inside or outside of your store.

Trends Making Retail Technology

Retail tech trend 1: High degree of personalization Personalization in retail is more than just putting someone’s first name in an email blast. Various types of retail tech are enabling merchants to tailor everything from customer communications to product-building. Communication All of the marketing and promotional communication that gets sent to customers will become more tailored to the individual receiving it. In addition to addressing shoppers by their name, retailers can also customize the content of their communications based on each customer’s purchase history. Products Some retailers are taking personalization to the next level by enabling shoppers to build their own products. In-store experience With the use of beacons, mPOS (mobile point of sale), near field communication and Bluetooth technology, retailers are already able to greet customers by their name from the moment they walk in, and

provide relevant information based on what they’re seeking. With targeted marketing messages and promotional pop-ups appearing on screens in the retail store as the customer walks through, retailers will be able to attract, engage and convert prospects into shoppers. Retail tech trend 2: Voice technology With devices like the Amazon Alexa, Google Home, and Apple’s Home Pod, consumers will use voice search to browse and purchase products. Voice technology is also becoming more advanced on mobile devices, with applications like Apple’s Siri already blending AI and voice tech to become powerful personal assistants. Retail tech trend 3: Artificial intelligence We’ve already started to see how Facebook messenger chatbots are becoming the new customer service reps for many businesses. Many chatbots are powered by artificial intelligence and can be trained to answer questions and deal with certain customer requests. Retail tech trend 4: Mobile Online retailers are customizing their shopping experience for mobile phones through building responsive websites that adjust their userinterface as per the device the consumer is using. Not only are mobile phones going to become the preferred medium for users to shop online, they will also be the preferred medium to make ‘contactless payments’ in store. With technologies like Apple Pay, consumers will no longer be seen carrying credit cards in their wallets, and will opt to buy products using the digital wallets on their phones. Retail tech trend 5: The Internet of Things The Internet of Things, a trend where physical things connect to the internet to provide a seamless shopping experience, will completely revolutionize the in-store experience. It will bridge the gap between physical and digital shopping experiences.

The retail industry faces many specific challenges related to IT management, including: • Customer data • Transparency and tracking • Global data synchronization • PCI Security Compliance Some of technology in retailing 1. • • • • •

Bar code scanner Details regarding inventory of goods sold. Automatic update and reordering of stock. Reliable and faster data gathering. Easy accessible to information. Cost effective reduce labor cost

2. • • • • •

E-retailing Cater global market base of customers. High brand recognition. Digitalized format. Avoid direct cost for catalogs Ability to react quickly to changes of customer taste and demand.

3. • • • • •

Radio frequency identification- RFID Automatic identification method. Stores and retrieves data using tags or transponder. Can be attached or incorporated. Contains silicon chips or antennas. Received and respond to radio frequency queries from transceive.

4. • • •

ERP - enterprise resource planning Distribution process management Supply chain management Services knowledge base

• • • • • • • • • •

Configure prices Improve accuracy of financial data Facilitate better project planning Automate the employee life-cycle Standardize critical business procedures Reduce redundant tasks Assess business needs Accounting and financial applications Lower purchasing costs Manage human resources and payroll

5. Omni channel customer experience • Omni-channel means empowering a sales channel to enable more cross channel activities using various tech-nologies. • Examples: Click and collect service • Accept customer returns and refunds for products bought online • Store kiosk for browsing and payment for products. 6. Big data and Customer • A next generation customer analytics. • To track customer shopping and behavioral analytics • To target customers with personalized offers. • Apart from predictive analytics to predict/suggest products & services. •Big data initiatives to: Improve merchandising Supply chain Marketing and promotions Store operations decisions 7. Quick Response(QR) Codes.

• To provide the consumer with more information on the product before they make their purchase, as well as allow them to make the purchase right from their phone. Also: • To prompt new products • Offer coupons • Compare prices in other stores • And allow direct online shopping. Linked to the store inventory and can actually tell us the quantity, size and color currently in stock of the product scanned 8. Smart Phones & Mobile Apps • Smart phones. The majority of shoppers will have mobile apps and connectivity anywhere they go. • Using the retailer’s mobile app, Customer snaps a picture of the shoes. The app recognizes the shoes and automatically gives them the price and the availability of the size at a nearby physical store. 9. SoLoMo Strategies in Retail • The intersection of social, local and mobile information — is helping to boost overall conversions for retailers. •“Social drives traffic; Local drives action; and Mobile drives opportunity.” • As many as 80% of shoppers access social networks on their mobile devices and 96% of consumers research a product or service on their phones. • As a result, retailers are adding product information (54%), store information (42%) and customer reviews and pricing (34%) to their mobile sites. 10.

Contactless Payments

• Contactless technology- uses programs like Visa’s pay Wave or MasterCard’s Pay Pass and eliminate the need for consumers to enter a PIN or sign a receipt for purchases.

• Contactless transactions speed up the payment process as much as 25 percent, providing greater shopping convenience. • It reduces cash-handling costs for retailers and can be integrated into rewards programs . • Eliminates the need to carry around physical punch or stamp cards • Retailers -increasing the number of contactless payment terminals across the country by 250 percent YoY • Consumer purchases using contactless payment increased 100 percent YOY. 11.

Voice Hardware for Warehouse

• Apart from Barcode Scanners ,RFID and Barcode Label Printers. • Voice technology is new to the warehouse management hardware scene. • Voice-directed picking to determine the amount of goods to be picked up. • These devices are fastened to a wireless computer, and data is transmitted to the device at the time of picking. • Huge time saver in world of ecommerce.