Mobile POS Solutions Help Both Retailers And Customers

By Bob Johns, associate editor, Integrated Solutions For Retailers magazine

Stella Nova Technologies' John Kenney knows firsthand how retailers are increasing their interaction with the customer.

As mobility forces its way into the retail industry, we are seeing software and hardware developments both on the consumer and retailer sides. With competing technologies from Google Wallet, ISIS, PayPal, and others, how do retailers deal with consumer demand for a mobile POS solution?

I recently approached John Kenney, SVP of business development with mobile POS application provider Stella Nova Technologies, to find out what movement he is seeing in the mobile POS industry. John noted that "Mobile POS has far more universal appeal across retail verticals than any technology development I have seen." Multiple types of retailers are realizing that by using mobile POS systems and capitalizing on consumer-based hardware such as smart phones that allow the consumer to use e-wallets, they can realize a positive ROI from POS hardware removal, repurposing of space, and reallocation of labor. ComScore recently reported that smartphones now represent 40% of all cell phone usage in the United States, and retailers are seeing their use in the store and online. As consumer smartphone use increases, retailers need to create a seamless relationship that follows the consumer no matter where they are or what hardware they are using. It needs to be a free-form transaction that utilizes a common basket for the consumer. The associate in-store can work directly with the consumer, using the store's mobile device, to pull up the consumer's basket, answer any questions regarding the items, pull the items with the consumer, and suggestive sell directly from the mobile device. The consumer can then check out directly with their mobile device or on the associate's device. Kenney pointed out "No real logic that retains consumer information should reside on the mobile devices. Retailers need to protect sensitive information and remain PCI compliant." By using a solution that requires all of the business logic to reside on a secure company server or a secure cloud system, a retailer can retain the privacy and security that the consumer wants and the regulations require.

Customer Centricity — Now With Some Teeth!
Recently our chief editor, Matt Pillar, revealed how the true age of customer centricity has finally arrived through mobile technology. Although customer centricity has been talked about for years, mobility has finally allowed for more meaningful interaction between retailers and consumers. Mobile POS solutions are becoming a significant part of this equation. Mobile POS systems allow for associates to interact directly with consumers on the sales floor to make recommendations, check availability and pricing, and even review product specifications. Consumers receive personal service and don't have to wait for an associate to go looking for answers. Everything is at the consumer's and associate's fingertips. The retailer is also positioned as a technology leader that is not perceived by the consumer as outdated. With consumer interaction in mind, Kenney noted "Retailers that have been traditionally slow to react to and implement changes in technology have been amazingly eager to jump in." He has seen deployments in department stores, grocery, restaurant, hospitality, specialty retail, and home improvement.

At Stella Nova Technologies, Kenney has helped numerous retailers implement mobile POS systems on a multitude of platforms and devices. Retailers must realize that there is no single solution that works for every vertical and scenario. Rather, companies must remain flexible to changing consumer interaction preferences and technologies. Solutions must be both hardware and OS agnostic to aid in any retailer's transition to mobile POS. As more retailers are placing mobile POS systems into trial, Kenney recommends that "Between 2% and 5% of a retailer's locations should be considered for a pilot trial to provide a statistically valid sample." The trials should cover diverse geographic and demographic locations. Rapid deployment chainwide will then allow for the seamless interaction with the consumer no matter what location or channel they are visiting.

As customer centricity begins to finally bloom, retailers are beginning to move away from antiquated business models that focus strictly on numbers. Customer experience, loyalty, and satisfaction now play a larger role in the goals of associate, customer, and company interaction. Developing a mobile POS that can aid in the growth of the customer relationship will help the retailer gain long-term loyalty.