2016.02 | mobile wallet strategy

14DD1532-L-Mobile-Payment-CD372_52a_PCR_SPINX_Gas_Pump_Mobile_phoneOne of the most common areas that challenges retailers these days are mobile payments – or as many of them refer to it – leveraging a mobile wallet – which I now interpret from retailers to mean paying without a card or currency versus a specific mobile wallet platform.

I’ve written a number of posts on the subject of mobile wallets over the years, usually lamenting that we will never get away from a physical wallet. The potential for shoppers to not use a physical wallet are certainly more realistic now then when I wrote those posts, but the process continues as an evolution and not a revolution.

The common nirvana that all retailers seek is the ability to seamlessly and simply accept all payment options desired by the majority of regular shoppers while being able to provide a personalized and loyalty building experience. The challenges restricting vendors, payments providers and retailers from that objective are legacy systems, budget, agreements with payment processors, and time to build these payment connections into their systems.

Mobile payments are certainly a part of that over-arching strategy of enabling payment, so what is the best strategy? That will differ by retailer, but there are some universal concepts to consider:

  • To start, target your end state, and attempt to draw the long map back to where things are today. Even if there are gaps, talk to retail solution vendors, payments vendors, card providers, banks and anyone in the industry to access their vision and experience. Keep in mind that all of the technology will change in a few months and it will need to be re-assessed. Basic long term planning as should be targeted for all large scale retail solutions.
  • Don’t get stuck on offering payments within your in house mobile app, UNLESS your app provides a unique value proposition to the shopper that you are trying to leverage and payments is a logical extension of that app.  In my admittedly anecdotal experience, users have lots of apps already, and don’t look for more retailer apps as a rule UNLESS they provide a unique value proposition that fulfills a need to them.  Your most loyal customers may want your app to be able to pre-order their meal, control your fuel dispenser, or buy movie tickets, and it makes sense to enable payments to conclude that shopper interaction.  Make that in app payment as simple as possible with services that can remember the card or retrieve it with a password.
  • Consider the payment options that are already in use or are desirable for your shoppers.  If your shoppers are using credit cards, encouraging them to use a debit driven solution as part of a mobile solution is a challenge.  If you want to drive a particular payment model, be prepared to encourage shoppers with points or deals. Bitcoin sounds cutting edge, but is it worth accepting as a tender for the volume of business and it’s volatility? Having a gift card balance for coffee makes sense, but for groceries it is not logical. If the payment option you need to enable is not available, push the vendors for it.
  • How would a mobile wallet be used at the front end of your store?  If it isn’t dead simple for both shopper and cashier, it’s going to slow the queue and increase wait time.  That is a tough sell for any retail environment, and death for a high velocity retail environment.
  • Consider the full customer interaction with payment integrated. The challenge often encountered is that the majority of retailers have a loyalty program of some type. Shoppers need to identify themselves to obtain their loyalty benefits. With a mobile payment solution, shoppers generally have to show a loyalty card on their mobile, and then use the mobile to pay. Having to scan two different codes or tap more than once seems redundant, but this issue is often not easily solvable today at a traditional point of sale, as loyalty members have to identify themselves PRIOR to tendering to obtain discounts, collect points, etc, and THEN they pay the calculated total at which they pay with their device. (Starbucks manages one scan by using a stored value card tied to a loyalty account. Mobile apps to pre-order food, control a fuel dispenser or buy movie tickets have users registered with details stored and payment can be online by storing a card, so no double tap there either) Consider options to avoid the double tap/scan.
  • apple walletConsider Apple Pay and Android Pay if they make sense for your business.  With Apple Pay, there is some benefit to the security of fingerprint verification for retailers, and it is relatively easy to use with the iPhone and Apple watch, and getting notifications of payments immediately is certainly useful to some shoppers as is the ability to not carry their card.  In Canada the limitation right now is that Apple Pay only works with Amex.  Android Pay is another good option, particularly if you have an Android heavy shopper base.  The downside is that there are additional fees for these solutions.
  • Ensure you support and train users and store staff well on all the payments provided. There is nothing worse than having a customer trying to love your brand and pay with a new option and they cannot.  Payments are getting increasingly complex, but cashiers are catching up.  Many of them have received on the job training from bleeding edge shoppers who attempt every new payment and are willing to risk embarrassment or rejection with new payment types, but it would be better to have a complete map of payment options laid out simply.
  • Leverage your pinpad or contactless reader as much as possible for payments that are not over the air. Whether shoppers have to swipe, dip, tap, or enter a PIN; whether they use a card or a mobile device, the pinpad is currently the interface to which shoppers are accustomed. Keep the transaction and the payment linked physically.  If the transaction is on the mobile, pay on the screen of the mobile.  If the transaction is at a device (POS, Fuel Dispenser, Vending Machine, Ticket Dispensing Kiosk) keep the payment interaction connected to the device and pinpad.  Geo-fenced and over the air on the mobile screen solutions are an awesome concept, but are a challenging jump in logic for most shoppers today.  Unless you are a bleeding edge retailer, that is one for the future.

There has to be a benefit to both the retailer and to the shopper for there to be a reason for mobile payments, and the benefits are slowly tipping the scales towards increasing the usage of mobile.  There are too many things that favour it, and the landslide of devices in the hands of millions means it’s coming sooner or later.  Be sure to stay ahead of it and have a strategy.

2016.01 | retailer api for shoppers

LCBO appThe number of channels through which shoppers can access their retailers has been growing quickly for years now. Those channels are going to be expanded even further, as another set of retail interfaces are being developed by people who are not retailers. Entrepreneurs, hobbyists and even fans of a particular product, brand, segment or retailer are recognizing that data is available online and people are hungry for that data.  These individuals will make that data available in a format to reach a specific audience for fun or profit.

A fascinating example of a non-retailer developed channel is found in Ontario. The Liquor Control Board of Ontario (LCBO) is the one of the largest retailers of alcohol in the world. They have a broad spectrum of products and an even broader spectrum of consumers. The LCBO have attractive and busy stores, and do an excellent job of running their retail business, including the availability of a very useful and functional LCBO branded mobile app that provides timely inventory and pricing information to allow their shoppers to find their favourite products.

elsie appBefore that mobile app was in place, an enterprising individual built a crawler to gather the data hosted on the LCBO.com eCommerce site and made it available to mobile app developers via an API at LCBOAPI.com.   The API had almost 100 keyholders that were accessing the data as of February 2015, and the service has 60,000 to 80,000 requests for data on a daily basis.  The API presents all of the current data of the LCBO’s pricing and inventory by store from the e-commerce site gathered on a daily basis.

While this alone is commendable as an interim step since the LCBO didn’t have an app at that point, the really interesting part is what the 100 different users of the API are doing with that data.  It’s all the same data, but the way it is used and presented can vary widely.

Users who prefer a different look and feel from the LCBO app can leverage the elsie app on their mobile device to check on pricing and availability.   The UI is an elegant and simple affair, and it provides picks at LCBO from kwaf as a side benefit for wine lovers.

searc2h6oGoing in a completely different direction, the website searC2H6O allows users to quickly sort and search through any products at the LCBO in a simple and yet information rich user experience in a web browser on a desktop or mobile to validate pricing and availability before they go out to shop.  The focus here is more based on price, with a per serving cost provided.

wine alignWinealign is another website that leverages the data.  With a focus on wines, including in depth articles, ratingsand reviews, users can peruse all types of wine and then immediately see the availability and pricing before they leave home to shop.

I searched for the same product on all of these services and the images make it easy to see that they all provide a unique experience.  This data could certainly be leveraged further, with apps or sites for whisky lovers, for craft beer aficionados, or whatever other unique subset of products is out there – enabling direct access to inventory and pricing information as a link from their content to the products.

The last few years has really been all about the standard channels in retail – the store, the eCommerce website and the mobile application. While these examples are really just a variation on that theme, they are an indicator of more sophisticated interactions to come as third parties connect to this data and use it in new and unexpected ways that retailers or vendors could may not have the time or budget to justify.   Embracing these channels as an opportunity is the best way forward for retailer and shopper alike.

Retailers like Best Buy have been embracing this for a while. Got any great examples of leveraging retailer APIs that makes something amazing? I’d love to hear about it.  Contact me or leave a comment!

2015.03 | retail mobile apps in canada

This recent online article provided an interesting quotation.  “Canadians are not all that engaged in getting mobile apps from retailers” according to Indigo’s VP of Marketing and Customer Intelligence.  Do Canadians avoid downloading apps or using mobile options to shop because we don’t see value?  Not everyone would agree with that opinion, and if apps provide value that aligns with their brand, retailers’ most dedicated brand followers are likely to be among their users.

There is no magic formula to mobile apps. Retail is all about choice. Every shopper is different and has their own unique journey. Every retailer provides different services and experiences. I have a number of Canadian retailer apps on my mobile device, and the ones that stay on have different traits that I find engaging:

Transaction Capability

I have purchased movie tickets using the Cineplex app for years now. It works well and interfaces to Passbook to simplify scanning for ticket pickup. One opportunity to make the app even better is to simplify payment. Mobile doesn’t lend itself well to entering credit card numbers. While I understand the challenges of storing credit card numbers, online retailers already do it, and I would be willing to store mine as it would easily cut the transaction time in half.

From my perspective, using the app allows me to buy my tickets on the way to the theater while someone else drives and skip the purchasing line at POS or kiosk at the theater. It may not be a value to all users, but skipping lines is a popular past time for most people. Retailer Bonus: lines are shorter for those that choose to buy tickets onsite!

Pre-Ordering


Picture1While I remain uncertain about the value of pre-ordering in an environment like Starbucks that is often high traffic with a lot of queuing, the pizza ordering process has a process to it that lends itself well to mobile ordering. There are a number of options available in Canada, but the one that works for me isn’t an app at all. Panago pizza has a mobile enabled website. Their ordering options are very simple, and best of all, my most recent orders are front and centre when I login. Many apps are focused on jazzy animations of pizzas with the toppings on them.

Animations are fun for first use, but not when I want to just order the same order I had last time for pickup on the way home from the airport after a long day. No need to pay on the app. I pay when I get there, so no need to enter card numbers. If they ever put this simple interface on an app and stored my login it would certainly have a place on my mobile. For now it’s one of few bookmarks on my mobile desktop – and they even remembered to provide the icon on the site so it’s easy to see on the mobile.

Simple User Identification

Picture2One of the main challenges with websites over mobile apps is having to enter passwords. Using password managers like SplashID and 1Password simplifies this, but the majority of the people I speak with glaze over when I mention these tools, and most users forget their endless passwords, adding unwanted multiple steps to a mobile transaction that will dissuade them from using the app. Google and Apple are doing their part to enable browsers to automagically remember all of these passwords, but if credit cards are stored, security starts to suffer.

iTunes makes buying music and video simple by approving purchases with the fingerprint reader on the home button. Lululemon’s shopping app also identifies users by their fingerprint. This is a seemingly overlooked way to login to apps and bring up all of my info – shipping addresses, shopping cart, credit cards and more to apply to a transaction while providing some security. Retailers are constantly looking to remove friction from the purchasing process and both of these apps do that very well.

Fun and Rewards

Going to see a movie in a theater is a shared experience. I find that the Timeplay app for use at Cineplex theaters enhances that shared experience while providing rewards that are valuable to me – scene points towards free movies. The app allows everyone in the theater to compete in a movie trivia game where the mobile devices are used to submit answers to trivia games on the screen – like bar games of old. The top winners get Scene points and snack bar prizes. My children like to compete with me, we all have fun, and I eventually get a free movie entry.

An opportunity to improve the biggest issue with the app was recently addressed by enabling the user’s scene number to be stored in the app and prizes more easily applied. Once again, data entry of long numbers is not ideal. Removing those barriers makes everyone’s experience better, and will increase app usage.

Memory Extension

Picture3Retailers that have extensive inventories of products that lend themselves to repeat purchases provide utility with a favourites tracking capability. LCBO carries a lot of different kinds of wine, and everyone has gone there with instructions to pick up a bottle of wine that a loved one liked that they thought was from Australia and had a blue label; no red….or was it yellow. What year was it?

The LCBO app allows shoppers to scan barcodes on bottles and add them to a favourites list. For the next visit to the store, it’s easy to find that bottle that is impossible to remember without some help. It’s much easier to show your mobile screen to a store associate than describe its physical attributes. As an added bonus, the app will provide details on inventory as of 24 hours at your closest store or at any store in the chain too ensure you make the most of your trip.

This is a great example of truly connecting the mobile and store experience – it’s simple, it suits the needs of shoppers in this environment and provides value.

The Indigo app mentioned in the original article that prompted this post is on my mobile as well.  It has the ability to hold favourites lists as well, and you can name them, so I keep ongoing lists of books my family mentions to remember as gifts.  The app also leverages Passbook for loyalty card use.

Payments

For small transactions with regular customers, enabling payment via a barcode and stored value card is the best way to enable payment without using the pinpad at point of sale. Starbucks has done this well for years, and I have personally trained numerous Tim Horton associates over the past few months on how to accept the Tim Card on my mobile with their imager at POS and drive thru.  Wendy’s Canada are new to the game, and their solution works in much the same way – though with unique constantly changing six digit codes instead of a barcode.

While this payment capability is very useful, I still see shoppers re-loading their stored value card at the POS. That is a value of both of these stored value apps – the cards can be reloaded on the app. No need to hold up the line or enter a PIN at the POS. I think most people aren’t comfortable setting it up, and there is some need for culture shift there. Both of these apps do well at this, though once again, in my opinion, passwords and initial setup reduce the full contingent of potential users who are scared off by the effort. My initial setup for the Tim’s app took three attempts to match 2 passwords with capitals, symbols, etc.

Passbook Enablement

Picture4As someone who aspires to minimize my wallet, I use Passbook every day. I’ve seen very few others using it when I am at a POS, and it should be more widely used. Apps like Air Miles, Tim’s, Starbucks, and Cineplex all enable loyalty or payment cards to be stored in Passbook.

Passbook negates the need to carry another piece of plastic. There is no need to look through your phone to find and open the specific app for the card you want. I always have my mobile with me to show my card. While not every retailer can scan the card as they are not in the right cycle for replacement of their scanners, they can still give their number for entry – kudos to Rexall staff for always doing this when I show my card.

There is not an ideal mobile wallet yet, but changes like this are cultural, take time and are achieved by taking small steps – I start with loyalty cards and coffee payment. Drivers license and other ID could be next. I’m doing my part to encourage shoppers and retail associates to become comfortable with these options by using them and talking about them with others. Passbook is far from perfect, but it’s the best option to date.

There are lots of value in mobile apps already available and there is lots of opportunity for more.  Consider just a few other opportunities I’ve not seen realized in Canada as of yet:

Mobile Apps for Gas Pumps – It’s been very cold in most of Canada this winter.  Why not control the fuel pump from inside the relative warmth of our cars?  The technology exists to do this and even order food from outside the store.  You could even scan codes from windshield washer fluid, ice or firewood in the summer and pay without having to enter the store.  Oh, and it’s time to get rid of those stickers that say not to use your mobile at the pump.  The gas station operators are less concerned than in the past. The myth of danger is busted.  That said, we should always pay attention to what we are doing when we fuel.

Coupons – I’m not sure why we can’t open our mobile and select coupons to apply to our loyalty card for usage when we buy those items in Canada.  The technology exists and is available and in extensive use in the US.

Enable the app as Information Hub – All retailers are enabling buy online and ship to store.  Why not build this information into my account page so I can look it up?  A red notification icon on the app here would be more likely to catch my attention than an email.  Receipts should go here too.  I hate wasting paper.  Let me tell you that on the app, and don’t make me take a paper receipt automatically.  All account details should be available to me here and online and on my tablet.  Dominos does a great job of showing the status of your order and lets you track your order through the process. It would be fantastic to do this with orders for bigger items.

I think that there is a great deal of opportunity to improve on the mobile interactions retailers can provide, but as indicated, there are already lots of great options.  It’s impossible to walk around in public without seeing people staring at a mobile device.  There is no reason that they won’t adopt retailer apps, but they have to be educated, and it has to be more than signage.

For all of the signage I’ve seen at stores, I’ve never seen any evangelists in stores to help people understand all of the value that shoppers can get from the apps.  I’ve never seen cashiers or associates answering customers problems show them how it’s very easy to get what they need from the mobile app.  While the benefits of apps discussed above aren’t of value to everyone, there is definitely a population of people that are completely unaware of the benefits.  In a strange twist, the best vehicle to convince everyone to leverage this technology completely may be human interaction.  In the interim, I’m happy to use these tools and continue to share with others who are interested.

2015.02 | RFID self-checkout

IMG_8720For many years, retailers have heard about the benefits of RFID, and there has been little to no use of item level RFID to check out in a store.  On the weekend, I visited my local library with my family and had an opportunity to utilize the newly installed self-checkouts to check out our books.

Under the old system, all items had a unique barcode and an EAS security tag.  To check out an item, customers presented their books and library card to an attendant at a PC with a scanner.  The attendant scanned the library card to validate the customer’s identification, checked if there were any fines, holds etc, and then scanned all of the items to be checked out.  A receipt was printed and the
Photo 2015-02-09, 7 16 14 PM items were walked around a security gate at the combined entrance/exit, and handed to the library customer.  The security tags set off an alarm when they are near the gates, so the attendant passed them to the holder on the other side of the security gate.

Under the new system, there is no need for customers to interact with an attendant unless they have a fine, a hold, or some other intervention that goes beyond the simple checking out of an item.  The customer uses one of a few self-checkout terminals – which include PC and a scanner, but also a customer facing touchscreen, and an antenna in a pad on the counter.  The Photo 2015-02-09, 7 16 06 PMcustomer scans their library card, and if they have no fines or holds, they can then identify the items to check out.  To identify the items for borrowing, the customer places the items on the pad on the counter, with as many as three at a time piled on top of each other in a stack.  The antenna reads the tags in the books and shows them on the screen for verification.  The customer can validate that the items match, ensure any media inside the item matches the case, and complete the checkout with or without a receipt.

As the items are now considered checked out, the customer can walk past a gate with an RFID reader, and if the item they are carrying is checked out, no alarm will sound.  If an item has not been checked out and allocated to the customer’s card, an alarm will sound.

On the whole, the system worked very smoothly. While only recently installed, customers took to it and had little issue using it.  The library staff were helpful and encouraging for the few customers who did require assistance.

The RFID system was a good fit in the library for a number of reasons:

  • Even if RFID tags are more expensive than barcode labels and EAS tags, items are tagged once and then run through the system many times as they are loaned through their useful life, instead of being purchased once.
  • Most items in a library are flat and lend themselves to easy scanning on a pad like this.  There are rarely very heavy, bulky or oddly shaped items to be checked out.
  • Consumers are accustomed to self service from using it at ATMs, airports and retail self-checkouts so they recognize the paradigm of self service took to it well.
  • All customers are identified with an identity card.  No exceptions.
  • One attendant can now support many customers at a time instead of one, reducing wait times, and ideally enhancing the customer experience. If customers don’t wish to check out their own items, they can assist them easily.
  • Allowing customers to walk out the door with their own items without passing them around a security gate appears to provide better flow and a smoother checkout experience.  It also removes an underlying assumption of distrust implied by the gates and security system as previously configured.

The whole system reminded me of a question I had from a retailer at NRF who asked to see our RFID self-checkouts.  While I would personally like to see RFID checkouts in retail purely from a love of technology, it seems unlikely at present.  There are some differences between this library scenario and many retail environments from a checkout perspective:

  • It will be difficult to convince all the parties involved in manufacturing goods to move to item level RFID tags unless the retailer and consumer are willing to absorb the price.  The prices are getting lower and lower for the sort of passive tags needed for items purchased at retail.  Time will tell if it will be enough!  The big retailers will have to drive this adoption.
  • Implementing readers to read these tags instead of barcodes would require a replacement or at least an upgrade to current reader infrastructure.  An ROI is needed to change/add that infrastructure to include RFID readers.
  • While libraries have basic flat items, other retail environments have all sorts of uniquely sized and shaped items that may not lend themselves well to a standardized rfid reader environment.  For unusual items, a handheld RFID reader could be used, but if it was, what’s the difference between holding that RFID reader to a tag and scanning a barcode as is done today?  Not much.
  • Would there be a throughput advantage?  For smaller transactions, it is very unlikely.  Cashiers and even customers scanning themselves can scan a few items relatively quickly.  For smaller transactions, tendering is generally the longest part of the transaction and not the scanning.  For larger transactions, there may be some throughput advantage, but it would take time for retailers and consumers to develop the trust that the system would capture all of the items accurately.  Also, many customers like to validate their purchases and their prices as they are scanned.  Much of the throughput advantage of an instantaneous cart total could be lost by questions and validation afterward.
  • Weighable items would need to be either pre-packaged or separated for checkout.  Weighables couldn’t just be left in the cart for reading.
  • Unlike a library, the items that a consumer buys can’t be “checked out” as they are not unique in the store.  An antenna at the front of the store placed for security can’t identify items as valid to pass or not.  It’s unclear how security would work with RFID tags.  I’ve heard of more sophisticated and more costly RFID tags that can be de-activated on scan, but then what if a client changes their mind after the transaction or returns an item?  Does it need to be retagged?  How does one “print” a new tag for an item?  If RFID can’t be used for security, then EAS would be needed as well.
  • What about bulk items that are tagged with paper tags today?  What about low value and small items like greeting cards?

As with all solutions in a retail environment, there must be a benefit for both the consumer and the retailer for a solution to be implemented successfully.  It’s possible that the RFID self-checkout could get to that point if retailers can leverage the operational benefits on the back end first and push it to the front end.  Then it will take customers and retailers getting comfortable with wheeling a big basket of groceries up to a reader and taking that price as correct.

A lot of stars have to align for an RFID self-checkout to come our way, and if they do it will probably take some time.  Maybe next NRF.

2015.01 | mashgin

CaptureA new technology from mashgin promises to simplify the cafeteria line. Clients set their food on a scan table and the system identifies all of the food items with an imaging system, looks them up in a product base, calculates the total and charges the client automatically.

From the video demonstration, mashgin’s simplicity should make it a winner with customers. The concept works fast and simply, as it would need to do in this challenging retail environment. There are a number of factors which will influence this concept’s success as a full blown product.

Price – A POS for this type of environment is relatively inexpensive and can probably be had for $1000 – much less if a simple ECR is used. If this device can be had for that price range it could certainly be a winner. If significantly more expensive, it may be tough to win over cost conscious operators.

One could argue that a cashier could be removed from the equation to drive a huge ROI, but it will require a huge leap of faith for an operator to believe that all clients can be trusted to place all items on the scanner. The fear of shrink will probably mean a longer timeline to remove a cashier.

Another potential selling point is utilizing multiple devices with one cashier overseeing them as is done with self-checkout implementations. This is a more viable argument and potentially a better use of the cashier resources.

Payments – My experience with small transactions is that the longest element is tendering, and not scanning. While that seems counter-intuitive, tendering is never completed with a simple universal system in the real world. People pay with cash, credit, debit, and mobile devices now.

It will be important to incorporate payment into the system in a simple way that keeps flow moving.  The concept solution shown assumes a mobile solution or use of a credit card with an MSR slot.  Apple Pay or NFC cards could work well here. The the MSR card reader slot should be eliminated – that will need to be updated to as EMV is adopted in the US and many international markets.  My personal preference is to use an NFC card for food service payments so I can avoid entering a PIN.  Expect US fast food organizations to embrace NFC, beacons, or other options more fully once PINs become more common and a simple swipe of a credit card is replaced by people having to enter a PIN at POS; slowing the queues.

CaptureCustomer Choice – While the system appears entirely intuitive, there’s always a subset of clients that will struggle or reject self service. Some accommodation will need to be made to serve those that don’t wish to use self service. Some customers consider fast service to be good service, while others prefer the human touch. Ultimately the customer is right. Operators will not want to eliminate any potential revenue sources and will want to support any clients that want to eat.

Fraud / Incorrect Reads – The system will require monitoring to avoid shrink. What if two bars of chocolate are set one on top of the other so that the imager sees only 1 item and charges for one? What if the organic coffee is purchased instead of regular? A cup of coffee looks like a circle of black liquid to the imager – it’s impossible to tell without asking the customer or watching them.

Operations – Even though the system works quickly how the flow works in the restaurant environment will require some significant consideration. How many units should be used? Where should they be placed? How many attendants are needed and how are they best deployed? How are exceptions like a system reading a plate incorrectly or an item missing from the image database? How should the queue be arranged for best use of space and simple flow? What if customers have coupons or vouchers or some other discount?  How are the units updated?  Where does the database reside?  Is it simple for local staff to amend and update the product base?

While its certainty not fair to expect a fully developed system from a concept video, it’s important to think through the entire transaction. This concept has much in common with other self service concepts and the issues above are common to all.  All of the issues above are certainly addressable with some thought and an operator devoted to working through the solution with mashgin. I would happily use this sort of technology and look forward to seeing a fully developed iteration in a cafeteria line in the future!

2014.22 | findbox | robots

findbox – If you’ve ever gone to a big box DIY store with a strange looking screw or bolt in hand, comparing your piece to those in little tiny drawers, findbox is the tool for you.

Findbox is a fixture mounted screen with a camera and image recognition software.  Shoppers place their item on a platform under the camera, and the system completes an image search for the item on the platform.  The system will then display a photo, name and product id of the item if it is in stock at the store.  The system also has the ability to provide shelf tags that can flash a light on the shelf to indicate where the hardware item is located in the aisle.

findboxAs a shopper who has searched for small unusual items countless times, this sounds like a wonderful concept and one I would welcome in my local DIY store.  Finding someone to help you with one screw is a bother for both parties.  If a system can do this quickly and easily, I’m all for it.  If it’s accurate, it will probably also save me trips as ideally it’s better at this than I am.

Findbox also enables retailers to own the search results enabling them to highlight found items based on whatever parameters suit their model – margin, product fit, or whatever they wish.  The retailer could also look at what is most commonly being searched on the device, and if there are commonalities, that information could be used to modify the display for ease of search, or even highlight other potential sales opportunities for related items for nearby placement.

For the right situation, this solution provides benefits to both retailer and shopper.  The retailer can ideally provide a higher level of service for more shoppers with no change in staff, and provide a service at the shoppers convenience to help them find what they need.  There is data to be gathered and potentially used for benefit.

The shopper minimizes search time and frustration and avoids the need to find staff to ask a question unless they wish to do so.  The system could potentially recommend alternative or related items they may require to finish their job and save them a trip as well.

findbox find by lightOne wonders if this solution could be taken another footprint, with an app for devices so that users can take a photo of the item and be provided details on local establishments that can supply the item.

Perhaps the logic of the solution can be provided as an API for DIY retailers to include in their own apps.  While retailers like Amazon have offered this capability for some time for Books, DVD’s, and more, I’ve not seen it for identifying hardware items.

Contractors who regularly visit DIY retailers may find this to be another useful item on their mobile device to save them time.  Virtually no shopper is going to type in a long description full of fractions and measurements to see if it is on hand at a store, but taking a picture to find something unusual would be a great way to narrow the search and save DIY regulars time and effort.

robots – Lowes certainly took the mission of finding that unusual hardware item to heart with a novel twist.  The Lowes innovation team and Fellow Robots have deployed a robot assistant in one of their California based Orchard Supply Hardware on a trial basis. The robot has the ability to capture an image of an item that a customer brings to the store, identify it, and then direct the shopper to the right location to find the item they need.

lowes-robot-1This search model takes the process a step further by having a robot greet shoppers, ask them if they need help and then lead them right to the spot where their item is located.

This is an incredible concept, and like all technology solutions in retail , there are many operational challenges to overcome:

  • Wayfinding is always challenging within the ever changing footprint of a real life retail store.  It will be important to ensure that the data here is 100% accurate on location of products and that any planogram changes are immediately passed to the system that informs the robots.   The first time the robot takes shoppers to the wrong item, they will ignore the robot for future visits.
  • Some shoppers will not want to interact with a robot for whatever reason.  This isn’t a problem, but needs to be understood and accepted.  Retail is all about choice.  Store staff need to acknowledge this solution isn’t for everyone. They should encourage usage to those who wish to use it.  It is important that the staff support the use of the robots in the stores or they will fail.  This is key.
  • Ruggedization is always a challenge in retail and hardware retail is particularly challenging based on the dirt and types of projects supported.  All technology in a retail environment requires some ongoing care and feeding for optimal usage.  Solutions with moving parts are particularly subject to failures and require ongoing maintenance.
  • Ongoing support of the robots for store staff will need to become part of the daily regimen.  Ideally the robots can recharge themselves at a station like a Roomba, but staff will need to regularly ensure that the units find their way to charging stations correctly and validate that they are still in good working order from time to time.

Whether shoppers are ready for robot assistants remains to be seen, it may be a novelty, or it may become common in the future.  Either way, it’s great to see new concepts like this being tested in retail!

All channels for retailers are viable from my perspective as long as they provide benefit to retailer and shopper and have an ROI acceptable to both.  I for one, welcome our robot overlords, and look forward to one day interfacing a point of sale engine to one of these robots so that they can complete the entire transaction and have us out the door to our self driving cars as soon as possible.

2014.21 | poynt

With so much re-invention focus on payment with the likes of Square, Google Wallet and Apple Pay, it’s no surprise that someone in silicon valley decided to take a run at updating the old school point of sale payment terminal. Poynt is the iPhone to the traditional point of sale pinpad’s Blackberry.  It will be interesting to see if it takes off in the same way that the iPhone did. Poynt’s device is certainly different than it’s more traditional competitors in looks and basic utility.  The unit has a sleek contemporary look that utilizes an android tablet and has no physical buttons for pin entry.  Like other newer units, it has all the standard payment interfaces – MSR, EMV, and NFC – but also adds a PoyntQR/barcode imager and a bluetooth antenna.   Poynt also has a basic built in point of sale software solution, and a Software Developers Kit to allow others to build applications that can run on the platform. On the plus side, Poynt certainly has a look that retailers can embrace.  It takes point of sale pinpad terminals away from the spongy buttoned senior citizen’s calculator look to a software based, touch driven, futuristic device.  Every base is covered with payment options with all of the capabilities included on the device.  All of this is positive for the right application. For high volume retailers, this may not be the right device.

  • With two screens, the device appears to be designed for an interaction sitting on top of a counter that starts with the store associate entering data on the device and then passing it to the customer for payment entry.  This is sub-optimal for a high volume retail environment where every motion counts.
  • The device does not appear to have any security mounting options beyond a kensington type lock interface.  Given the need/desire for tier one retailers to mount devices on checkstands, selfcheckouts and more, the device cannot be mounted in stores with certainty that it won’t be stolen for attempted security incursions.
  • Touch screens are still an experiment for payment terminals in North America.  Shoppers are accustomed to buttons for pinpads.  Shoppers at tier one retailers are more than just twenty something hipsters in New York ordering cronuts who want to try the latest thing.  Most shoppers at high volume retailers want to get through the line.  Our moms need to know how to use this thing and get through the line in seconds.  This is certainly less and less of a problem as time passes, but the issue is still worth noting depending on the target market of particular retailers..
  • Pinpads take a lot of abuse in retail.  Mobile phones and tablets are replaced by consumers every 3-4 years.  Tier 1 retailers often target keeping devices for 7-12 years.  Can these devices last this long?  Certainly the software aspects mean that the devices can be updated over time, and looks can even be changed over time.
  • Most of the traditional calculator looking pinpads have some sort of privacy shield.  This device has a screen that is quite large that may be difficult to use without sharing your pin with the entire staff and entire shopper population.

This is not to say that Poynt was even built to deal with these challenges.  Poynt is solely a better looking device that enables every type of payment interface possible.  Selling payment terminals is a messy business.  As articles on this device point out, payment device vendors need to convince payments processors and banks, and to a lesser extent retailers, and not consumers, that their devices are worthy of certification and usage at point of sale. Poynt raises the bar and provides a fresh perspective, and for that alone, it is worthy of consideration.  While other articles seem to focus on the old school nature of pinpads on the market, in Canada, there have certainly been changes in recent times with the move to EMV to newer sorts of pinpads like those provided by organizations like NBSPS that have features like sleek good looks and audio prompts. EMV requirements in the US means that timing is good for new devices, and Poynt should take advantage of that change.  No matter whether Poynt takes off or not, it certainly provides other vendors the opportunity to change the paradigm that embodies the conservative payments industry.  I can’t wait to use a touch screen pinpad.  Expect it to become common sometime soon.

2014.20 | coin vs plastc

The newly hyped Plastc sure looks a lot like Coin – both are electronic replacements for the plastic cards carried in the wallets of consumers.

Let’s revisit that product and see how it stacks up against Coin, especially given all of the recent hype around alternative payment schemes such as Apple Pay.

CaptureC O I N 

Coin raised some serious concerns for me when it was first revealed – from the original post.  Since that post, additional information is available from the Coin site and FAQ.  Here are the concerns I had with updates from Coin:

  • Acceptance – Retailers and their staff may have some qualms about scanning a relatively unknown black electronic device across their pinpads. Education will be needed for store staff to be confident that this is a valid technology to use for payment. If this is not achieved, everyone that spent $100 will be out of luck when they go to pay with their single card.

[UPDATE: The FAQ indicates that card branding and details will be visible on the screen of the card.  This should help with this challenge.  In the intervening year since Coin has been under consideration there have been so many new payment schemes that have popped up in the media that as long as a card scans, store staff will probably not question it too deeply depending on the transaction value and type.]

  • Fraud – What stops a Coin user from stealing cards and putting a number of them onto the Coin card to complete fraudulent transactions? Hopefully there are some measures to verify that the person scanning the card is the rightful owner of the card.

[UPDATE: The FAQ indicates that the card owner must have a card in hand in order to enter it into the database.  A mobile app takes an image of front and back and matches it to an MSR swipe.  The system also requests a temporary authorization on the card in an amount that must be validated by the user by looking at the account online.  That’s a clever move and reduces the potential of this card becoming a tool for fraud.]

  • Dishonest Store Staff – If one can easily flip through all my cards with the touch of a button, there better be a PIN lock on it to do that, otherwise you just gave a cashier in a restaurant ALL of your cards. Hit the button and swipe to capture all of the numbers. If they’re not dishonest, they may accidentally select the wrong card by selecting a button.

[UPDATE: There are no details I could find on the FAQ that indicate that there is a PIN lock to stop someone from sorting through all of the cards on the device, though there is reference to tap code that may serve this purpose.  As the device is swiped as an MSR, this would indicate that if you hand that card to a server in a restaurant and they take it to a POS to scan, they could theoretically scan all of the cards on the Coin device to capture all of the account numbers if they are familiar with it. While the device avoids the concern of being a fraud tool, it doesn’t really protect the user in the restaurant scenario any further than current 40 year old MSR technology.  As a consumer I would want to know if the tap code locks a particular card for use on the device.]

  • User Validation – How do stores validate that the user is who they say they are? Is there a signature on the back of Coin? Does it show the card number and expiry date on the screen? Is a Drivers license needed for verification every time?

[UPDATE: There are no details on the site other than the fact that the Coin will display the card details.  One can only assume that a cashier or server would ask to see your drivers license or alternative ID to see a signature for validation. Probably necessary to carry ID anyway, but it really negates the point of having a cool device for payment when users scratch a line onto paper to prove who they are.]

  • EMV – Consumers in many parts of the world outside of the US no longer use MSR cards, and we can expect the same in the US over coming months and years. I see no chip option available but perhaps that is a future consideration.

[UPDATE: Coin it its current iteration – not released yet by the way – will not support EMV.  This is a serious shortcoming that becomes more crucial over time.  As a consumer I see little benefit to purchasing a tool like this that will only be usable in some places when EMV takes hold.  Also: International markets can’t use this solution – that’s disappointing for us.]

  • Contactless – I like using the contactless feature of my cards to make my purchases quick and simple. No indication that coin has NFC capability

[UPDATE: No indication of NFC or other contactless capability.]

Some other interesting points that came available after the original post about Coin:

  • Coin uses low energy bluetooth connectivity is used to remind users that have left cards behind via their mobile device.
  • The device is supported via an app for both apple and android mobile devices.
  • The device uses a non-rechargeable battery targeted for 2 years of usage.  Mileage will vary.

As a Canadian, Coin in it’s current iteration won’t work for me – it’s not targeted at international markets.  A US consumer may find it useful, though I have concerns about security and the real benefits.  Also in the currently prescribed video of an affable dude with a beard showing us the solution, Coin should really scrap the big wallet.  Do people who want a single card really carry a George Costanza wallet after they get this sleek new device?  I think not, but that’s just one voice.   All kidding aside, the Coin solution is intriguing.  Bringing something new like this to market is very difficult and they deserve full credit for pushing the idea; it’s certainly a credible concept.

P L A S T C

CaptureLet’s consider the same real world concerns for the newly unveiled – and yet also unreleased – Plastc.

  • Acceptance – Plastc has an e-ink screen that covers the bottom third of the front of the card.  This allows for graphics and details to be shown on the card that should lend it credibility when it’s used for payment.  That same e-ink screen is scannable with a barcode to allow the use of loyalty cards with it as well. Another point of consideration is EMV.  With future EMV capability, store staff have no reason to look at cards.  In fact, once consumers and staff are accustomed to staff NOT having to check signatures, the need for the laughable security measure of checking signatures becomes aggravating to staff and shoppers alike.  (Ask Canadians about visiting Gap Brand stores – a rare holdout that checks signatures – it annoys all.)
  • Fraud – Details are less specific, but the Plastc Wallet mentions the requirement of a facial scan and authentication.  Details of how cards are added are not provided at present.  The card shows an image of the cardholder, which should also be useful in minimizing fraudulent transactions.
  • Dishonest Store Staff – There is a PIN on the card, but the site does not provide details on whether the card is locked when cards are passed to staff.  That said, the card supports NFC and ships with a chip that will enable Chip and Pin / EMV in future, so there is less need to leave a card with a server or cashier, reducing the potential for card number capture.
  • User Validation – At release, signatures would be used.  Signatures could theoretically be stored on the e-ink screen, but there is no indication of signatures shown on screen.  Once again, with NFC and EMV options, the necessity of a signature is avoided, and the use of a PIN or just the NFC itself simplifies the validation.
  • EMV – The card has a chip to be activated later via a software update.  This is key for future proofing with EMV coming on the scene in the US in 2015, and opportunity for international usage.
  • Contactless – The card has contactless capability.   This avoids the need for signatures, enables small value purchases and reduces fraud compared to MSR options.

Other points:

  • Like Coin, Plastc uses Low Energy Bluetooth to alert users to cards left behind.   The card automatically locks if left behind.
  • An app is used to manage account information stored on the app.
  • Barcodes can be put on the screen and shown for scanning. This means that the Starbucks app could be enabled to work with it.
  • The NFC function could also be used for access doors to add additional card functionality
  • The Plastc card is rechargeable on a wireless charging pad. Entire lifetime is not indicated.

Both the Plastc and Coin cards aim to eliminate all of the cards we carry in our wallets, and both appear to have created the miraculous with such tiny hardware.  Both certainly represent viable options, but given the need for a chip in particular and contactless to a lesser degree, the edge goes to Plastc.  While some pundits may suggest that mobile programs like Apple Pay would supersede card hardware like this, but the complexity of payments is such that cards will not go away quickly and card solutions definitely fulfill a need for an interim solution to move us all to the mobile wallet.  It’s hard to say if consumers will shell out $100 or $150 for the convenience of cards like these, but one must wonder if the card companies may not eventually decide to fund such things.

2014.19 | shelfie | repack | #retailing

Photo 2014-10-06, 8 55 58 PMShelfie – Looking to reduce the disappointing out of stock experience we’ve all encountered at one time or another, the good people at DataCrowd offer the cleverly named Shelfie app for both iOS and Android to remedy the issue.

Shoppers who see an out of stock at a store take a picture of the items tag and empty shelf, upload it to the app and the GPS details and products in the image are used to notify the retailer.  Apparently DataCrowd will take steps to advise the retailer of their out of stock issue, who will ideally take steps to tweak their replenishment model to avoid the problem in the future. The shopper, for their trouble, gets points for reporting the shortages to use towards gift cards.

This is a great use of crowdsourcing.  Why not put a simple tool in the hands of the masses to collect data to drive useful insights.  It will be interesting to circle back and see how this project works out.

A very brief look at the app indicates that the number of points that are awarded for reporting drive relatively small rewards.  The app store images show 100 points for one scan, and 10,000 points required for a $5 gift card. That’s 100 scans of out of stocks for $5. While a meager reward, it’s reasonable and a fair offer for what  a shopper would get for telling the store staff; which would be nothing.  While it’s not for everyone, there is definitely a coupon cutting crowd at the supermarket that would enjoy this game.

I fully expect that same coupon crowd to hit the supermarket at full tilt on late Saturday afternoon and fight the stockboys to take a photo before they replace the merchandise!  It’s a great idea.  Anything that has a chance to reduce out of stocks is a positive. via Springwise

CaptureRepack – One of the challenges with online shopping is that eco-conscious shoppers miss the opportunity to bring their own bag or eschew packaging all together.  While recycling all of that cardboard and plastic is a good answer, avoiding the waste is even better.

Repack has developed re-usable packaging and a system to use it for eCommerce retailers.  Shoppers pay a small deposit when they purchase an item from an online store.  On receipt of their products, they flatten the package and throw it back in the post for return to the retailer.  On receipt of the packaging, the retailer refunds the deposit.

While this seems a bit overdone, who among us has not received a huge box in the mail for replacement headphone earbuds or some other tiny item?  Given that many retailers also provide free returns, and services like Trunk Club have many boxes going back and forth, the idea seems like one with some merit – one that could protect shipped items and save the retailers some packaging costs if the items are done right. via Trendhunter

Capture#retailing – Always on the lookout for monetization avenues, Twitter has announced a couple initiatives that may be of interest to retailers looking to add twitter to their list of channels where their shoppers can purchase their merchandise.

Buy Button – In September, Twitter announced public access to a Buy button that certain retail and other partner would use in the Twitter mobile app. Twitter wants to make shopping on mobile devices simpler and say they will store your card details to make it easier to shop in Twitter after that first purchase, presumably by not having to enter the details again.  Frankly, there are so many parties trying to do this already – what with Apple Pay and Google and various others trying to do the same thing.  Not sure that they will get a lot of uptake just by saving a credit card  number.  Also – a buy button is just one click away from a mobile website link. Why does twitter need to put a special button?  Why would retailers with perfectly serviceable eCommerce platforms need a button when a link will do?  Especially when the retailer wants to provide their own unique experience and pull client details into the process.  This may work for musical artists to sell t-shirts – which seem to be a lot of the initial partners – but major players seem unlikely to do more than test the waters with this one.

Amazon Wishlist – Amazon never turns their back on an opportunity to sell through another channel.  Amazon has enabled shoppers to save an amazon item in a tweet to their item wishlist by replying to the item with the hashtag #AmazonWishList. While this one is handy, it seems like something only the most die hard twitter fan would want to use twitter as a way of adding items to their amazon wishlists.

While these are really great attempts at thinking differently and putting together interesting pieces, it would be very surprising if these were to take off in any really large volumes.  That said, who can say what will take off next?   Perhaps Snapchat will add buy buttons to Our Live Stories next.  Retailers can never tell where the next channel for business will arise.

2014.18 | iOS8 for retail

CaptureiOS 8 will be released this week.  Among many changes to the operating system for apple mobile devices, there are a number of changes that are worthy of consideration to retailers.

Apple Pay – The moment Apple Pay was released, a flood of POS providers showed their support and ability to enable Apple Pay on their platform (my own employer among them).  Apple are releasing the program in the US with support from a number of well known tier one retailers.  While there is no way of knowing whether showing an apple logo on the retailer’s door will get people to finally jump to a mobile wallet, it’s a good strategy to keep options open in the event it becomes a commonly requested payment method.

apple-pay-retailers-iphone-6-announcementRetailers in Canada that implemented new pinpads for EMV  over the past few years enabled NFC on those pinpads as a matter of course.  With that NFC capability, they should be well placed to enable Apple Pay when it becomes available in Canada.  US based retailers that do not currently have NFC capability and are working through EMV certification would do well to include NFC and Apple Pay integration as part of that process.    The incremental cost of enabling Apple Pay as part of an overall EMV effort is likely to be minimal.  While it would be optimal to deploy quickly to take advantage of consumer interest, EMV takes time and if the devices onsite do not have NFC capability, a deployment of new devices will be necessary.

It will be important for retailers to track where and how Apple Pay gains traction.  The area of focus may vary – hospitality and small transactions could be the sweet spot, but perhaps it will be popular with shoppers at luxury retailers.  Retailers should watch closely and ensure that their shopper’s preferences are fulfilled.

Photo 2014-09-15, 9 09 00 AMScan Credit Card for eCommerce – While much was made of the ability of scanning scan credit cards to add them to Passbook, the ability to scan credit cards into Safari for eComm purchases is also a nice addition.  As someone who makes eComm purchases on my mobile devices for items such as movie tickets, making a purchase is an effort.  Shoppers must TYPE their full name, credit card number, expiration date and card security code.  I have those memorized, and it’s still clunky to do on a mobile.  For some retailers one also must type in a verified by visa password.   If that whole process can be replaced by a scan from my phone, or an autofill from my safari keychain, it saves a whole lot of typing and removes obstacles from mobile purchases.  Retailers who enable this function are likely to drive more sales through their mobile channel with the removal of obstacles.

Capture2Location Based App Shortcuts – On earlier versions of iOS, Passbook provided a lock screen notification for Starbucks if you were in a store.  Passbook also provided a lock screen notification for a plane or movie ticket if the time for the ticket was approaching.  While this was a convenient workaround an unnecessary pin code entry, it also required some setting changes.  For Starbucks, users had to identify “favourite” sites that enabled Passbook to provide the lock screen notification for Starbucks payment.

iOS8 provides a non-Passbook lock screen shortcut in the bottom left of the screen based on your GPS location.  Users have noted that their iPhones with apps from Vons, Tesco, Starbucks and more  show an app icon in the bottom left of the lock screen.  When users swipe up on the icon at bottom left, the app is opened with out a PIN [Update: you still need your PIN to access the full app.  Passbook = no PIN).    While it may appear that beacons are at play, it sounds like it may be driven by GPS as some users had no connectivity at the time.  One user also indicated that a Costco icon showed at the bottom left even though they did not have a Costco app installed.

Retailers stand to benefit from reduced barriers for shoppers to use their mobiles once again.  Making an app easier to access while actually at the retail location is a great idea.  Providing a visual cue right on the lock screen is even better.  This access sets the stage to enable retailers to bring online and stores together with some unique functionality.

CaptureHey Siri! – The latest iteration of Siri allows users to access the personal assistant without having to push a button.  iPhones can now listen for users to ask for help.  Siri is also finally going back to its roots with integration to more services.  Siri is able to listen to songs for you with Shazam to find and purchase the name of the song/tv show/movie you are observing.

While Siri will be a great sales tool for Shazam and iTunes to sell it doesn’t help other retailers much on the surface, but it does indicate a possible door widening to integration with other services.   When Siri was originally launched, it connected to 45 services, but after Apple bought them, it connected to only 12.  The founders of Siri are working on another service – viv – that promises to take the personal assistant to another level – and ideally connect it to a plethora of services that can access it via natural language.

Retailers that can make their transaction engines available to channels like AI personal assistants will be exposing their products and services in a new way.

Privacy – In past iterations, mac addresses were easily harvestable from idevices by pinging them with a wifi signal.  In essence, ‘free’ consumer tracking was possible.  With iOS8, iDevices provide a pseudo MAC address until consumers actually establish a connection with the wifi network.  This means that retailers and other consumer facing organizations will need to track consumers via an iBeacon option or even through accepting a wifi connection with shoppers.

Making the MAC address data private is the right thing for retailers and shoppers alike.  All retail programs should be opt-in and retailers and all consumer facing organizations should be clear on data tracked, for what purpose, and allow shoppers the right to opt out of anything they are not comfortable with.  Selling is a two way street and being as honest and straightforward is possible will have the best returns in the long run.  Shoppers who are willing to provide their data for improved service are not hard to find, and everyone appreciates an honest trading partner.

CaptureIndoor Positioning –  Apples latest offering enables indoor maps and wayfinding to be more easily implemented by shopping centres and department stores.  Apple has made iPhone motion sensors available to their API.  With that API update and a more powerful processor, indoor systems can access phone data to make navigating large venues simpler.

Retailers that leverage any tool possible to provide access to their products and services make themselves more readily available to shoppers.

iOS 8 looks to be a landmark release with lots of new features and functions.

Check out a longer list of deep dive functionality, and please share any retail oriented features discovered at release!

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