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!

2014.17 | starbucks pre-ordering

660-Denver_Drive_ThruRecent news indicates that Starbucks will add order ahead capability to their mobile solution. I’m a daily user of the mobile payment app and even use Pebblebucks, but Starbucks may find mobile pre-ordering a more challenging system to implement.

Pre-ordering sounds great on paper and I think it can work in some environments but coffee represents some challenges.  Here are a few details that would need to be clarified:

  • What is fulfilment process? Order printer, kitchen display, other?
  • How are orders prioritized? If there is a line of customers in the store waiting, does the barista make the coffee for the absentees first?
  • When are ordered drinks made in relation to pickup time? Ice melts in cold drinks and hot drinks can cool quickly.  That’s a complicated equation for a barista with a long list of drinks to make from the till in the store.
  • How will queues be arranged in stores? Many stores are already short of real estate. Is there a separate queue or do they enter the same as everyone?
  • How do customers validate their order and take it away?
  • What happens if customers miss their pickup time?
  • How will customers and store staff be notified of the process change?  Will it require alterations to the store?  To current standardized processes that have been in place for years?

Starbucks are certainly working through the details but it will require a serious assessment of their current in store fulfilment processes. The questions above only scratch the surface.  Adding pre-ordering is a significant change to the system which will require the acceptance of new processes by both store staff and customers.

Panera Bread’s Founder and CEO Ron Shaich is embarking on just such a process and is doing the necessary legwork to change the business at the operational level. This is the right approach of Starbucks is committed to pre-orders. The right setup will require significant testing and adjustment.  Tacking a mobile ordering tool on the app is just the tip of the iceberg.  It’s the behind the scenes work that will have this system sink or swim.

From my perspective, there are too any places where pre-ordering can go wrong.

At a grocer I worked with, a kiosk was installed by the deli counter for ordering sliced cheese and meats. The concept was to enter your order and then complete your shopping through the rest of the market and return later with a ticket to pick up the order.  Instead of waiting in line, shoppers could shop while their order was assembled and pick up their deli order just prior to checkout.

What happened in reality is that shoppers saw a queue at the deli counter, walked over to the kiosk, entered an order, printed a ticket, and then walked to the deli counter and demanded their order from staff that were already slammed and getting order requests from two separate systems. This ended up displeasing staff, the kiosk users and shoppers who had waited in the ‘traditional’ line. Beyond these concerns, there was no obvious ROI from such a solution.  They didn’t buy more meat.

There was and is nothing wrong with the technology.  The technology is the easy part.  The system just didn’t fit the store without changing processes and customer expectations and making that plain to all parties.   Without complete commitment to a new paradigm by all parties, the result will be failure.

Imagine you walk into a Starbucks that is slammed with customers.  There is a long line and a 10 minute wait.  With this new system, how many people are going to see the queue, pull out their mobile and try to order with that to skip the queue? With the number of users Starbucks have for their mobile app, many people will certainly attempt this. If it works, it’s unfair to those in line. If it doesn’t, they may place a second order, putting strain on an already overloaded system.  Either way, it now adds thought to the process. Do I order ahead on the morning commute or just go in the store.

For any new system to flourish, there must be value to the retailer and to the customer. Whether there is value to both here remains to be seen. Customers may get their coffee faster, but if the process falters it could slow the whole store system. Will Starbucks sell more coffee? I’m not sure that pre-ordering will drive more sales.  Pre-ordering complicates the store system with what could be little upside to stores or customers.

photo-2-250x375If Starbucks wants to improve the process for stores and clients, they should consider ways of speeding transactions without making major changes to its fulfillment process which works fine as far as I have seen.  Ordering and order entry at Starbucks can range from the simple to the complex. Some customer get a Tall Pike Place.  Done.  Some customers ask for coffees with 6 adjectives and it takes baristas many keystrokes to enter.  Even simple orders require many keystrokes.  I order a very simple drink and always need to wait while the barista enters my order – though the staff at my store even have my order memorized.  It takes 10-15 touches to enter the order.  I’ve watched.

Consider an alternative to pre-ordering to kill the line.

  • If orders require many keystrokes and many users order the same thing again and again, why not automate the order entry?  Starbucks has more than 10 million users for their mobile app.  Users are trained to use the app to pay.
  • Why not build a drink builder that allows users to configure and save drinks within the app?
  • Use the Starbucks app to configure a drink as it used to do.
  • The app generates a unique id barcode that repesents that drink order.  The code is saved on the phone for repeated use.
  • Customer scans their mobile at the POS on currently installed scanner to order.
  • The barcode can be a string that the register recognizes as the full drink with all foams, soys, non-fats, whatever.
  • The point of sale system is populated with the drink details and the barista can confirm with the customer instead of tapping 15 times.
  • Avoiding entry would save precious seconds off of many transactions, and increase throughput.
  • Avoiding entry by barista could also enable consumers to order something different than their usual without having to figure out how to order it and go through the translation discussion with the barista.
  • Users could share their codes with friends and save them in their own apps so that we can order for them correctly.
  • Don’t these guys know my name?  With a bit of customization the customers name can show on the screen so we don’t see any more of those cups with the crazy names on them, speeding the pickup process.

Pre-ordering could work, and I am hopeful that Starbucks will find the magic formula to make it so, but I’m not yet convinced that this will make lines shorter.  It doesn’t look like a simple path, but kudos for trying something new!

Simple is good.  Even if something isn’t simple on the back end, it must appear that way to clients.

2014.16 | google indoor maps

CaptureOn a recent trip to Yorkdale Shopping Centre in Toronto, I noticed that Google Maps indicates the stores within the building directly within the online version of maps as well as within the iPhone mobile app. The functionality is enabled by the Google Indoor Maps Program.

I prefer not to install retailer or mall specific apps solely for location finding. They clutter mobile home screens with rarely used apps. It makes more sense for shoppers to get this data where it belongs and where users look – in maps – online or within a map app on their mobile.  Providing maps this way removes the barriers to getting what shoppers want – the location of the store they wish to visit.

Picture2The indoor maps work pretty well, though on the mobile it can be a bit finicky to zoom correctly to get the store name to reveal itself. Users can touch a pin to show current location in the building. For multi-level shopping centres you can also select the level via a handy popup. Check this out at The Eaton Centre in Toronto in Google Maps as an example.

This is a tremendous offering from Google for retailers. As part of the Google Indoor Map Program, the facility owners control the indoor map, which makes the most sense as it puts the ability to update the information in the hands of those who have control of what is in the building and have a vested interest in ensuring the data is accurate.

All shopping centres should upload store details as a service to their tenants. All retailers should demand this service and ensure that their stores are represented correctly.  Shoppers should demand this service from retailers and shopping centre landlords.

The biggest challenge to wayfinding solutions is keeping the data current. Wrong location data represents lost sales and shopper frustration and retailer’s real estate teams should keep a close eye on their store sites in shopping centres to ensure the data is current. Oversight is bound to vary by facility.  Google Streetview can become dated depending on the location as stores change, which they do frequently.  Updating floor plans is more easily completed and where shoppers are likely to look.

Google also ups the ante with Google Business View – the ability to show the inside of the stores, like Google Streetview for the insides of buildings.  This seems more oriented at unique individual shops versus retail chains, but may be a way for retailers to bring some traffic in to unique flagship stores or new banners or concepts.

If Google wants to take these maps to the next level as I expect they will, expect Google Now to give shoppers a list of chain stores in the mall to visit based on their email messages and receipts in Gmail. No need to download store site or mall apps. A deeper step would be to enable a Google Card to show emails from the Gmail account divided into offers and transactions so that users can consider deals or have transaction details available for returns from their most visited retail establishments, and allow users to pull up info quickly and easily and have it ready before they know they need it.

Associate facing devices in stores could also leverage the indoor maps so that store staff can assist shoppers with directions. Department stores may even wish to have various departments mapped within the store to fully direct shoppers.  Google Indoor Maps represents ‘free’ IT infrastructure for retailers that should not be overlooked.

Accurate location data makes life easier for a segment of the population who are often high value clients and this data will soon be expected by the general population.  Get those stores on the maps and share the news with shoppers!

2014.15 | disney magicbands

Disney-MagicBandI’ve seen the future of payments and personalization and it is already in place at Disney World.  The MagicBand program is relatively new but represents what so many of us have wanted for so long – an end to wallets, cards.

In preparation for my recent vacation to Disney I was aware that the MagicBands were part of the deal with the resort vacation booked, but it wasn’t until our arrival that it became clear what a game changer these relatively simple devices really are.  I had used similar wristband technology at Great Wolf Lodge many times over the years, but this implementation was far more immersive and impressive as it would need to be, given the scope of Disney’s properties.

As the smartphone combines functions like telephone, address book, camera and more into a single very useful multi-purpose device, these bracelets provide a single device to simplify your vacation experience by providing a room key, payment device, and ticket and much more all in one device.

My family and I stayed at the Disney Yacht Club resort on a Club Level.  On arrival, we were met and led to the Club Level and the concierge provided us MagicBands and instructions.  The MagicBands were the colour of our choosing and had the names of each family member on the inside.  The concierge explained that the MagicBands would take us directly to the club level by scanning the bracelet in the elevator on a special pad.  They also acted as room keys.  Everyone in the family can use the bands to gain entry to our room.  The bands are also scanned for access to the pool area as that particular themed pool is for the use of resort guests only.

The bands are used for payment as well at all on-site food and shopping locations.  I had pre-set a PIN established for payment online prior to check-in – it could be the same for the whole family or unique by family member.  Those under 10 cannot purchase with their band – logical as they are most likely to lose them.  Pinpad like devices are used at payment counters.  For restaurant service, iPod touches with sleds are used to scan the bands and accept pin entry.

IMG_4983The bands also act as  your ticket to the resort and are programmed with your dates and ticket permissions.  First time entrants scan a fingerprint with their band that is checked on each subsequent entry.   They are also used to validate FastPass+ entries – your pre-booked access to popular rides.  Visitors pre-book their fastpasses online or on the Disney app, and scan their bands during the approved times for their rides and are provided access to the rides as booked.  The Disney staff also see the wearer’s name as my daughter found out when she was greeted by name on her first entry to Magic Kingdom.

My favourite part of the MagicBand was the connection to PhotoPass.  As part of our package, I purchased a Memory Maker package which gave you online access and download permissions to all of your photos taken by Disney photographers at the parks.  Instead of giving or scanning a photo card, the photographers scanned your MagicBand.  The real magic of this element is that photos on the rides are automatically added to your online account.    You get on the ride, you see your photo on the screens at the end, and then you can go online and see your photos and download them –  no waiting, no extra charge, no silly frame or print.  You get relatively high resolution image files of your ride that you can then use as you wish.

As someone who works in retail, I have a tremendous appreciation for how much work all of this represents.  Connecting all of these systems and making it appear flawlessly interconnected represents an incredible effort of connecting data, devices, and operational changes to make this happen, and it works very, very smoothly.

In order for solutions like this to work for transactions, they have to be very simple, and they have to work quickly.  The MagicBands fulfill this promise by working quickly by holding the wristband against a giant circle with a mickey logo and the entry of a PIN.

IMG_4980-002In order for solutions like this to be embraced, there must be a benefit to the retailer and to the shopper.  The MagicBands fulfill this requirement by providing convenience to the shopper who no longer needs to carry their wallet, worry about various room keys, cards, or barcodes, and just wears a very unobtrusive bracelet.  Disney surely gains throughput increases for rides by getting away from having to print and check FastPass tickets, and probably increases spending as shoppers are increasingly separated from the dollars and cents of their transactions by merely tapping a wristband instead of looking at the money they pull from their pocket to pay for souvenirs and snacks.  Disney has also effectively enabled full tracking of every purchase, and the entire path that visitors take through their entire stay, allowing them to further

Also, not missing a single opportunity to sell the Magic, Disney now sells all sorts of charms and covers for the bracelets as well.

I can only suggest a few small opportunities for improvement to this impressive system, though I’m certain these improvements are probably on a roadmap somewhere and are yet to be implemented and are not fundamental shifts:

  • wpid-13-Disney-0826-093428-172When paying at a restaurant, on scan of bracelet and entry of pin, there is no opportunity to enter a tip for your server. That functionality is standard on bluetooth pinpads in Canada at restaurants, so should be relatively easy to add.  Even if tip was already included in price due to the size of the party, the wait staff still brought a paper receipt to sign.  This resulted in being chased down by a server for a signature on at least one occasion.  Entering a PIN and signing felt superfluous and even confusing, as entering a PIN and scribbling a signature should amount to the same thing.
  • The connection to the web and mobile app was impressive.  Free wifi in the park made it easy for international roaming visitors to get good coverage to use the apps to book FastPass+ times.  The first time I used the PhotoPass service was on Space Mountain and I was uncertain of whether I had to identify my photo or not.  Staff at the ride indicated photos would automatically go to my account.  Skeptical, I stayed at the site, pulled up the website for PhotoPass on my mobile and was amazed to see the Space Mountain photos show on the the PhotoPass website within minutes of getting off the ride.   While I could see the photos on the website, zooming was awkward as the photopass site was not built for mobile.  It would be great if the mobile app had a section for photos as well, and even notification of photo additions.
  • Electronic receipts would be a great addition to the mobile app and website.  Getting a paper receipt over many days seems wasteful, but keeping a running tally of your resort bill would be helpful.

Retailers, Payments Processors, Credit Card Companies and any party interested in enabling next generation payments should definitely study this environment.  As Starbucks did with their mobile payment solution, Disney have looked at their own closed environment and leveraged current technologies and implemented them into their operation to suit their needs.  While it’s a closed environment, there are some really intriguing lessons I took from this experience.

  • Removing wallets, cards, and even mobile devices from the transaction made it incredibly easy to pay.   Holding up your wrist is dead simple, and people caught on quickly.  I would use a bracelet to pay everywhere if I could.
  • Using the wrist band to buy is like one click purchasing at Amazon.  Like the one click, it’s so easy to buy it’s dangerous to your bank balance.
  • PINs are important.  If Disney can read my wristband and connect my family’s band to mine on a ride, they did it from a distance.  If they can read it from a distance, bad guys probably can as well.   Disney can control their environment well.  That may be more difficult in the real world outside of Disney, but the risk is no more than with cards, really.
  • Wearables may be more useful that I initially thought.  Using something convenient on your person to pay like a ring or bracelet or watch could be customized to the user and play a very useful role while removing the wallet from your pocket.
  • It’s possible to provide an electronic ID used with a wristband.  Disney brought up our names and approval to enter parks and save money.  Scanning that bracelet can just as easily pop up your image and details for drivers license, age verification, etc. Requiring ID has always been a challenge to removing a wallet completely.
  • Keeping the technology out of the way made it so simple to use that the focus of users was completely on their experience and not paying or getting access.

Much like the Starbucks mobile solution, the Disney MagicBand is not a panacea.  While it’s not for every situation, it was a fascinating experience to see it work, and to consider how elements of the solution could be used outside of a closed environment.  I applaud Disney for taking the initiative of connecting the wristbands to so much functionality and hope to see the learnings drive similar solutions elsewhere!

2014.14 | yo | modiface | buy it now

Photo 2014-07-04, 8 39 44 AMyo – In the age of texting and electronic communication, many of the phone calls we still make and take are not optimizing our time.  Why do we still wait for a phone call from a mechanic to tell us our car is ready?  When the call come, nobody answers, and now there is a voicemail that says: “Your car is ready”.  This process has way too many steps for both parties.  Wouldn’t it easier to just get a text?  At the same time, we don’t want to share our mobile number with absolutely everyone.

Yo is a ludicrously simple service.  Install it on your phone and you can send one message that says Yo to a selected user(s).  That is all.  Famously, the World Cup has an account that will send a Yo every time a goal is scored.

The service reminds me of days when long distance actually cost money and one of my room-mates in university used to call his parents when he got to the dorm from home after a long drive and let the phone ring at his parents twice.  They knew he was home and no long distance charges incurred.  Yo is similar – a message service where both players already know what the message is and a very simple vehicle is in place to support the message.

On the surface this seems silly and far too basic, but effectively it puts into place an arm’s length notification engine.  You tell your dry cleaner your yo handle, and when your stuff is ready, you get a Yo notification that pops up on your phone.  No spam, no additional mailbox, no app for every retailer, nobody knows your mobile number, and it’s a one on one message as opposed to a broadcast.  Retailers don’t need anything other than a pc or mobile device and a handle.  Simple is good.

While the system only says yo right now, nothing stops Yo from building additional standard statements beyond yo -service complete, pickup ready, it could be anything.   Social media service Path has already implemented a service called Pathtalk to enable texting with businesses, but it requires retailers to maintain yet another social media service.

Texting is so prevalent, that notifications by text for retail services must happen. It’s just a matter of when and how.  Yo is but one candidate that shows promise.  It is simple and avoids the trap of  yet another social media channel.  Watch for it.  It might be yet another button on a retail station or mobile device in the future.

[Update: If you want to get uber geeky with Yo, it has an IFTTT channel so that users can turn on AC, text someone automatically or turn on the lights and more.]

modiface2modiface - It follows that if a retailer has a great product, then letting shoppers try it out is a great strategy.  Selecting makeup colours is a challenge, and while I’m not a consumer of cosmetics, demo makeup appears time consuming, and relies on the opinions of strangers.  Anyone who has walked through a cosmetic section of a drugstore has also wondered who really puts those lipstick demos on their actual lips. Using those seems like a real life game of roulette.

These challenges can now be eliminated.   Sephora has teamed with augmented reality provider modiface to develop a solution that lets shoppers try out numerous new colours of makeup without the time and effort of actually applying it in store.  Shoppers stand in front of a screen with a built in video camera and a palette of colours.  Shoppers can select various facial options, such as eyes and then select various colours to see how the cosmetic colour would look on your eyes.  The screen shows full motion video and the shoppers can tilt their head from side to side to see how they look in real life.

The video on this solution appears much smoother and more realistic than all of the clothing apps that allow shoppers to “try on” a virtual outfit in a magic mirror.   This app is a great use of augmented reality and even if it doesn’t sell more cosmetics, it has to improve shopper satisfaction with purchases.  Put it on a tablet as well, and it could also speed up the selling process for cosmetic selling associates.

firefly buttonbuy it now - Actual purchasing on the phone may pick up given the full court press in place from many key players in the mobile selling spectrum.

  • Amazon Firefly – Amazon’s new mobile device called the Fire has a function called Firefly that uses image recognition technology to look for items on the Amazon store.  Take a picture with your mobile device, or capture an image on the screen and press the Firefly button to link to the Amazon store.
  • Twitter Buy Now – Some twitter users  have reported seeing a Buy Now button on selected post.  While it is uncertain at present whether this is a feature or an experiment, this is a great monetization option for twitter, and a time save for users who may wish to purchase or add items to basket for futures depending on the retailer.
  • Snapup - Similar to the Firefly option above, upcoming app Snapup allows users to take screenshots from their iPhone and use the image to search through 1000 sites to allow an online mobile purchase.

As the channels continue to split, it’s going to become increasingly challenging for retailers to establish interfaces to all of these points of purchase, and it will also become important to track them and understand where the business comes from.  There is lots of opportunity, but it will be challenging to keep track of it all.

 

2014.11 | using icons at pos

Retail-shop-iconFashion and specialty retailers with strong brands are increasingly global with stores in many countries, and employ associates with varied demographics and many languages and cultures.

At a recent meeting with a fashion retailer, the question of icons for use with POS User Interfaces arose.  POS is used in many languages, and they inquired as to the possibility of icons on function buttons instead of text.   Icons are certainly available and we have utilized them for implementation, but the question made me consider icons and how we use them.

Touch POS is relatively new to many fashion retailers and is FINALLY poised to become the norm and take over the realm of keyboards and function keys in tier 1 department and specialty stores.

To fully enable touch as an interface, the concept of using icons seems a reasonable path.  Minimizing translation of languages is ideal to simplify deployment across an enterprise and simplifies support, training and more.  We changed from text to images on labels on self-checkouts a number of years ago to indicate where shoppers should place notes, coins and receive receipts.  This change was in response to the increasing demand for self-checkout in international markets.  The move to symbols instead of text made the systems easier to use and simplified configuration of new systems as there was only one option for labelling instead of one for each language.

The main challenge with symbols and icons is whether they drive universal understanding in real life.

Consider the icons on your mobile device.  Mobile devices bring together an incredible range of functionality previously fulfilled by many different devices in the past, and those devices are represented on mobile devices as icons – phone, clock, camera, music, movies, television, settings and more.  The icons used to represent those functions are representative of those devices.  The images are relatively well understood by a majority of users who would use the devices.  While devices and software vary, the icons are relatively common.   The phone functions are represented by a phone handset, clock by a rotary analog clock, camera by a DSR camera, music by a music notes, movies by film reels or a clapperboard, television by an old CRT television and settings by gears.

126652-1280For those of us who have lived in both the pre-internet and internet eras, these are easily recognizable, but technology is changing that.  Today’s children don’t use a rotary phone with old style phone handset, look at analog clocks or at old CRT televisions.  They know the icons because they have learned from their parents what those icons represent.  Even newer icons fall victim to this ongoing change.  The original iPhone had an iPod icon instead of music.  That only existed for a few years, and it won’t be long until children ask what that image even is, as iPods with a clickwheel fall into history.

Technology is rapidly driving all of the traditional devices with their recognizable shapes to all be a rectangular slab of glass – not terribly useful for an illustrative icon.

While this may sound like hyperbole, consider that the children that grew up without these old school devices are moving into retail.  Children born near the turn of the century are now eligible to enter the retail workforce, and it is important to consider their understanding as well as that of pre and post internet users.  POS providers and retailers need to ensure whatever icons are put in front of their users will drive understanding and ease of use.

POS also has a much different range of functions than a standard mobile device.  Users of a POS device have to be able to support administrative functions, item lookup, gift receipts and returns, suspend/resume transactions, tendering, discounts, clocking in and out, locking and unlocking the POS and much more.

Many of these items are accommodated with old fashioned icons as has been done with mobile phones.  Some obvious examples include:

  • administrative functions = gears
  • item lookup = magnifying glass
  • returns / gift receipts = a giftbox (box with a bow on top)
  • discounts = price tag with $ / % on it
  • suspend / resume = a yield sign or open hand
  • tendering = cash, coins or a credit card
  • clocking in/out = a timeclock or clock
  • locking / unlocking = padlock

Some of these icons are more self evident than others.  For those of us that use a system every day, the icons make complete sense.  For new users they can be baffling – particularly if they are not familiar with the functionality in question – suspend / resume can be challenging for example, as an open hand can mean many things, and suspending a transaction is probably not something that inexperienced staff new to the workforce will know without some training.

Now consider the international aspect of the icons above.  My experience with Canada and the US is that these icons will be recognizable, but what about Asia?  What about South America?  Cultural differences are likely to be discovered with international implementations.   Even if globalization drives consistent symbology, using images of notes, coins and pricetags will need to vary by region – $, £, ¥, € should all be used to correctly represent tendering.  Even credit cards are changing – an image of a magstripe already seems old fashioned in many countries as an icon.

From a usability perspective, the use of both icons and text on function buttons makes the most practical sense for POS.  It enables new users by providing context to new icons. It enables experienced users by giving them a shorthand to recognize the functions they want at a glance.  Where it is not possible due to screen real estate to show both text and icons, the ideal option is to enable the user to select which they would like to use via a simple toggle.  Having a text tip pop up if users leave their finger on an icon is another useful option.

While removing text translation from all buttons would be a benefit, usability and understanding outstrip that benefit if the collective benefit of all the users in a tier one retailer chain are combined.  In fact, adding the text to the buttons can be an enabler – driving consistent terminology at the retailer for various functions to ensure simple consistent associate and shopper communication.

With respect to the icons selected, the quantity of icons being generated has never been greater – witness the expansion of icons in the emoji world – there is no right answer.  While ISO has graphical symbol standards for many things, retail POS does not appear to be covered in their standards.   NRF’s ARTS may be a good place for all providers and retailers to focus on standard icons that would benefit the retail industry in general.  If not, expect the collective power of the Internet to drive new and interesting icons for standard items and features that everyone can understand.  The icons may change, but touch is here to stay.

2014.10 | mink | #amazoncart | google shopping express

mink makeup printerMink - 3D printing isn’t just for plastic toys.  Mink is a makeup printer that allows any colour to be printed on to makeup substrate so that home users can prepare their own favourite colours.  Instead of being limited to colours that are pre-made and ready in store, shoppers can build whatever they want on demand.

It’s obviously early days for this technology, but retailers generally have better results when they to recognize disruptive technologies like this early and either get on board or find something that accomplishes something similar.    This is the same story as mp3 and eBooks all over again as immediate gratification will make the status quo of purchasing pre coloured makeup less convenient.

It will be interesting to see the real solution itself and how easy it is to use.  A pretty white box looks nice and simple, but for a solution like this to fly it has to be dead simple.  As is the case with regular printers, they will obviously run out of substrate or colour just when it is needed most.  Having automatic fulfillment would avoid such issues. Retailers should be moving towards open and connected systems to enable automatic replenishment for clients.  Connecting a system like Mink to an ecommerce subscription service or standing order for automatic fulfillment online with the printer ordering its own supplies will be key to its success.    Expect an Amazon plug-in sometime in the near future.

amazoncart#amazoncart – As the retailer of every channel but a store (so far), Amazon recently expanded its ever growing list of channels it makes available for consumers to interface with them.  The newest is #amazoncart, whereby if twitter readers see a product that they like, they can reply to a tweet with a product link with the hashtag #amazoncart, and the item will be automatically added to their Amazon shopping cart online.

While not the right strategy for every retailer it is an interesting attempt by Amazon to strengthen their already extensive hold on default online shopping cart online.  If a shopper has an item in a retailer’s online cart, odds are good they will complete a purchase for that item, or at least have to remove it from the cart.  Allowing this functionality also allows Amazon to quietly capture the twitter account of their clients – which can be mined for more information on how often this strategy results in a sale, or to leverage big data solutions to improve other product recommendations.

This is potentially a great tool for Amazon devotees, but for products that aren’t carried by Amazon (yes, those exist, especially outside of America) and if shopper preferences skew to other retailers, there are many other ways of tracking items that don’t require sticking them into a cart.  Not all great items are found on twitter, but for shoppers using twitter, the web, or even an aggregator like Zite or Flipboard, shoppers can easily add items to services like Evernote, Pinterest and even Pocket to track shopping lists.  No need to remove from a cart.

google-expressGoogle Shopping Express – Google recently opened the gates on an Amazon Prime type offering called Google Shopping Express where shoppers can order items online for immediate same day delivery from retailers including Costco, Target, Walgreens, Whole Foods and more in Manhattan, Los Angeles, San Francisco, and San Jose.    The service is available online or via iPhone and Android apps.

Initial reviews and reviews for the apps indicate that the service works very well and is either free or very very inexpensive.  The service is reminiscent of Kozmo.com, a well known dot.com bubble company established to provide this very same service that expired in 2001.  That service suffered under the high cost of providing this service on low value items, but they obviously did not have the Google machine behind them.

The question that arises is whether Google will provide this service at a loss, charge clients a commensurate amount for the service, or find another way to finance it within other elements of their business.  There are a wide array of options they could investigate moving forward.  What current retailers need to carefully consider and be ready to move on is if Google mines all the data for items shoppers may want delivered in this paradigm and then decides to stock them on their own and fulfill them to shoppers directly.

2014.09 | worn on tv | beacon sunglasses | emoji search

As Seen on TV

Worn on TV - Showing that alternate channels and affiliate sales continue to expand as alternative sales opportunities for retailers, Worn on TV lists clothing and accessories that are showcased on television shows.   Visitors to the site can search by show, by episode and even by character.  It is not evident how the site is validating the clothing shown – whether it comes from the network, the service or is crowdsourced; but it’s a novel idea, and you have to expect that they are capturing some revenue by sending traffic to the retailer’s eCommerce sites.

From a retailer perspective, a site like this represents a tremendous opportunity to sell fashions in an understated manner without relying on commercials that are being avoided via DVR by most people anyway.  Retailers would be wise to track how many hits they are getting from the sites, and even by show to understand where their clients are coming from so that they can best showcase their fashions on the shows driving the traffic.  Making this data actionable, sales staff enabled with tablets and access to this site could potentially drive more product by understanding clients taste and leveraging the publicity from the show as shopper profiles are connected.

tzukuriBeacon Sunglasses – While those of us in retail technology are focused on using beacons for unique retail experiences, Tzukuri are putting iBeacons directly into their sunglasses.  Much like many card based bluetooth tools that will tell you when you leave your wallet behind by sending an alert to your mobile, these specs will send a notification from a built-in solar powered beacon to your iPhone via iBeacon when you get more than 16 feet from them.  An app can then later tell you where your iPhone was last in contact with them so you can return and pick them up.

Leveraging beacons in sunglasses is a novel and practical idea; who hasn’t left sunglasses behind at some point.  Stepping beyond the ability to locate lost frames, with beacons built into the glasses and central profiles kept on clients, retailers could now even leverage the beacons on the sunglasses to identify shoppers who come into their store – even if they don’t have their mobile device. To take advantage of these sales and customer service opportunities, retailers will need to be nimble in building out the data fields required in upcoming versions of their client profiles and consider how to interface all of these identifiers to staff working at stores.

yelp emoji searchEmoji Search – Yelp recently updated their mobile app to allow searches by emoji. Instead of having to search for wine, for example, by typing the word wine, users of yelp can now type one character – the wine glass via the emoji keyboard on an iphone – to search on wine.  While searching via emoji seems a silly idea on the surface, it represents an understanding of a certain subset of users that use their app.  Emoji entry avoids the annoyance of typing on touchscreens or waiting for Siri to look.  It’s a fresh, simple idea, and drives users to approach the app with a different perspective.  It’s also another way of providing shoppers choice – a key function in today’s endless sea of options.

 

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