2016.05 | Paper, Plastic, Neither?

It’s taken decades for us to get this close to the paperless office. Paper will probably never go away completely, but over the years the usage of paper and copies in my work has diminished exponentially. I rarely print anything. I prefer to store and send all information electronically. Electronic information is much quicker to share, easy to search, and easy to carry.

But has this movement to electronic information reached retail consumers visiting stores? It has, but not to the same degree that many of us experience at work and at home.

I recently visited a specialty shop to buy some tea, and encountered a familiar experience. I was offered the opportunity to join a loyalty club and I’m glad to do that for a discount, however, the method of enrollment was to scan and give me two plastic cards. One card for my wallet and one for a key ring. I accepted them and then took both of my paper receipts; one for my transaction and one for the debit/credit transaction. I then promptly threw away the paper receipts and, after registering my cards, dutifully scanned them with Stocard and filed them.

I accept that one plastic card and one (or two) paper receipt(s) aren’t going to fill up a landfill, but consider the millions of transactions that take place every day. We generate and track all of the data electronically, but instead of sharing it electronically, we print it off and hand it to a customer so that the vast majority of them can promptly throw it away or lose it.

thd receiptWhy do we still print receipts? Let’s consider the arguments I’ve heard over the years:

  • Customers like to check their prices and discounts. This is 100% true – particularly in grocery for a certain subset of budget minded customers. These customers want their receipts and they study them carefully.  They should have them. Retail is all about enabling choice, and this may be a group that will always want paper, however, it is arguable that they have never been provided a better alternative. A subset of these people will accept an electronic receipt if we can supply it quickly enough after the transaction and enable capability paper can’t provide.
  • Loss Prevention teams prefer customers to have bags and paper receipts. It’s obvious that this would make policing in challenging shrink environments easier. Consider another angle. Loyalty customers should receive perquisites, and not having to take a paper receipt is one I enjoy. All transactions are recorded electronically, and with the increasing proliferation of mobile devices in the hands of store associates and shoppers, it should be a simple matter to look up the customers receipts on a store or personal device and validate the date, time, and items on a transaction if required.
  • Retailers are required to give a receipt by Interac / Payments Processor / Credit Card Company. I don’t have a definitive answer on this item through the research I’ve done online (message me if you know!), however, it is certain that no paper receipt is required for eCommerce transactions which are a growing segment of retail purchases. I have also personally made a number of transactions at retailers where I opted for an electronic receipt and no paper receipt was printed, so it is possible.
  • Returns require a receipt. In today’s environment, all retailers should have a centralized database of transactions. We’re no longer relying on our cashiers to validate a real receipt versus a counterfeit receipt or whether a customer is potentially returning items dishonestly. Receipts are not required – transaction ids are required, or even better – the customer’s unique identifier to look up their past transactions. Data is what is needed.  Not paper.

The bottom line here is that paper should be optional.  If customers want it, it should be available. If they don’t want it, there is no need to print it. Every retailer and restaurateur is constantly looking for ways to save any costs.  Any budget cut significantly should help a retailers bottom line. If 25% or 50% of a paper budget for a year is removed it’s an improvement. Take the opportunity to enable an shopper opt-in no receipt option on POS or non-integrated pinpad terminals, and if processes are enabled correctly, the retailer’s knowledge of the shopper’s data will make the experience seem simple and seamless, just by scanning an id from a mobile device.  No paper, no card and no wallet needed

So what about the loyalty card? Why are pieces of plastic still distributed?  In the past, it enabled providing a quickly read and convenient MSR card. It enabled quick enrollment and provided the retailer with a desirable place in a customer’s wallet with their cash and credit cards.  Their logo was visible, and if the customer wanted points and discounts they had to carry that card and look at that logo.

simonsWe now live in 2016, in the world of smartphone proliferation. We live in the world of Apple Pay, Apple Wallet, Android Pay and Stocard. We live in a world with hundreds of cards and loyalty programs – more than can fit in a physical wallet.  Scanner-Imagers have replaced MSR readers. Mobile based electronic

It’s important to capture shoppers at the time of purchase, and while like paper receipts, plastic loyalty cards should be available, why give one to all shoppers to throw away? Once again, they cost money; why throw anything away if it’s not necessary. Why not enroll shoppers electronically at the point of purchase? Electronic loyalty cards provide benefits beyond plastic cards:

  • Shoppers sometimes forget to bring their wallet or plastic loyalty card with them.  Shoppers bring their mobile devices everywhere.
  • Apps and Mobile Wallet cards can have geofenced capabilities to allow apps to be brought up on the mobile device with a shortcut at the bottom of the screen on iOS devices – a similar position to that cherished in the wallet in the past.
  • Point totals can be shown directly on the card if enabled in Apple Wallet or Android Wallet or other apps, allowing shoppers to know their balance and potentially increasing their purchases in store before point of purchase.
  • Rebranding can be completed electronically instead of deploying new cards.
  • Pairing apps and electronic store cards allows a single touchpoint on mobile devices for interaction with customers.  A single app can allow opt-in promotions for loyal and dedicated shoppers, and they can identify themselves with that same device.

There are multiple ways to enable electronic enrollment. Some shoppers are likely to enroll online before visiting the store.  I use a password and identity manager that will autofill forms on any device I own to avoid constantly entering the same person details. Simons, for example, allows shoppers to enroll for their program online and even show the barcode on screen from the mobile website.  For those shoppers that enroll in the store, a loyalty id can be generated electronically and connected to an email address for the shopper to add their details later. Other creative solutions like tapping an NFC tag to connect to an enrollment engine are also available from organizations like Mobilpoint.

For the ongoing use of loyalty cards, it’s easiest for shoppers to use Apple Wallet or Android Pay for retailers that support it and Stocard for those that do not.

For those that want it, there is nothing wrong with paper or plastic.  Retail is all about enabling choice; yet there is no reason for paper and plastic to be the default.  There are lots of use cases to justify the electronic path and move the receipt and card options out of wallets and into the electronic world.

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