News

Mobile POS gets sales, customer satisfaction moving upward

Paul Vogt of Zebra Technologies examines several applications for MPOS systems, and how they can make a big impact on a retailer's bottom line.

March 12, 2006

Shorter checkout lines keep customers happy. Personal service builds loyalty among customers and boost sales. Yet retailers remain reluctant to invest in mobile point-of-sale (MPOS) systems, which have proven to reduce lines and improve service. MPOS remains a largely unexploited tool because of lingering misperceptions about capabilities, return on investment potential and security. These limitations often don't apply to today's MPOS systems and practices, which are delivering outstanding results for retailers around the world.

MPOS is much more than a temporary tool to use at peak times. Besides familiar line-busting applications, MPOS applications include assisted shopping, self-service shopping, self-checkout and temporary point-of-sale stations. The full range of MPOS applications provide value year-round, and don't require spikes in customer volume to be worthwhile.

Line Busting

Line busting is the simplest and least expensive MPOS application to implement. Store associates are issued mobile computers, bar code scanners and printers to pre-scan purchases for customers waiting in line. Customers are issued a barcoded receipt, so all the cashier needs to do is scan one barcode to record the transaction and collect payment. Customers may even have payment ready ahead of time because the line-busting receipt tells them the exact amount.

WHSmith, the largest book and magazine retailer in the U.K., reduced customer wait time by 50 percent with such a system. More importantly, WHSmith credits the application for a one percent increase in sales at locations where the system is in place.

Line busting helps retailers capture revenues that would otherwise be lost because of a customer's unwillingness to wait in a long checkout line. The WHSmith results show how decreased wait times can produce increased sales. The improved convenience from shorter lines also helps build customer satisfaction, loyalty and repeat business.

MPOS and line busting applications cost less to implement than construction and set-up of temporary POS stations, which also take away space that could be used for merchandise.

Self-service Shopping

Self-service kiosks can be used to assist shoppers in a way that is fun, high tech and interactive. Familiarity with web services has made such kiosks feasible and friendly for straightforward, quick inquiries. Self-service shopping promotes a relaxed atmosphere by allowing customers to access product information, check prices, browse merchandise, check on stock, request delivery, and so on, all at their own pace without engaging a store associate.

An office supply retailer uses touchscreen kiosks to help customers find and select toner and other printer media. After viewing product options and information, customers can print a list of compatible product names and serial numbers to purchase. Similar systems could be used to guide purchases of electronics and peripherals, apparel accessories, auto parts, home improvement project supplies and more. Printers at the kiosks can be used to create checklists, rebate forms, coupons, store maps and other materials. Self-sufficient customers enjoy a new level of control that promotes loyalty and increased sales.

Assisted Shopping

Assisted shopping also features mobile computers to provide merchandise information, but in this case store associates use these computers themselves and then have the opportunity to complete the sale on the spot.

International retailer Tesco has installed "Hot POS" carts that can be moved around the store to assist and process transactions where the customer needs help in departments such as apparel, electronics or other specialty sections of this mass merchandise store.

Assisted shopping builds customer loyalty because it increases interaction and gives retail staff more time to be a resource for customers. With mobile computers, store associates can stay at the customer's side to check back-room inventory, look up more detailed product information, and get information about complementary merchandise. Systems with payment processing ability provide the advantage of capturing the sale when demand is created. This is key: By taking payment and completing the transaction while assisting the customer, stores greatly reduce the risk the customer will change his or her mind and leave the store without buying.

Typical results from these MPOS applications include an increased customer conversion rate and higher revenues per sale.

Leverage wireless investments

MPOS applications can run independently, but usually interface with a central computer system through a wireless LAN connection. Real-time wireless connectivity ensures pricing and inventory information given to the customer is up-to-date. Retailers can also take advantage of wireless LANs to send alerts to associates, promotional messages to shoppers, create contests and other activities that promote interaction. The MPOS and promotional applications described above can all run on legacy in-store wireless networks. However, customer-facing applications require stronger wireless security to protect consumer privacy and credit card information. Fortunately, modern mobile computers and printers support the popular and powerful newer security protocols used to protect 802.11b retail wireless networks today, including WPA, virtual private networks (VPNs), LEAP and others.

Additional uses improve ROI

The same wireless networks, and in many cases the same mobile computers and printers used for MPOS, can also be used for shelf labeling, inventory management and merchandising applications. By going beyond MPOS and adding these applications, retailers can increase the use of equipment and improve ROI.

Increased sales provide payback

The benefits of MPOS go well beyond shortening lines at peak times. MPOS applications can create an innovative and exciting store environment that builds differentiation, customer satisfaction and loyalty. Those are benefits any retailer should have in stock.

Paul Vogt is Retail Practice Leader at Zebra Technologies, a leading provider of on-demand specialty printing solutions for business and process improvement. Zebra solutions are in place at thousands of retail locations worldwide for mobile POS, shelf management, inventory control and other applications.