Keane Insight

Turning point-of-sale into point of service

VENDOR ACCENT

The right POS technology can help you improve productivity and customer satisfaction, says Ajay Gidh.

Yesterday’s whirring, bell-ringing machines have become sophisticated computer-based point-of-sale (POS) systems that are the front end (if not the heart and soul) of most retailers’ store operations. Modern POS systems range from inexpensive, limited-function electronic cash registers to powerful, software-driven workstations that may include bar code scanners, consumer information displays, receipt printers, electronic payment terminals and other peripheral devices. Many POS systems are networked to in-store computers which, in turn, may be linked to enterprise computers at a headquarter’s location. The choices are many, and retailers planning to upgrade or implement a store automation solution face a host of decisions.

Where to begin?

Almost any computer user will quickly testify to the importance of the software selection process. After all, software is the ‘central nervous system’ of a total computer solution. So choosing the POS software that best fits your business needs is the obvious first step.

Major retail technology vendors usually offer complete solutions—software as well as hardware and services. Most of these vendors develop or brand their own software for widely used solutions such as supermarket checkout or department store POS. However, for more specialised retail segments (for example, apparel stores) technology vendors often partner with independent software providers who have in-depth experience and expertise in this type of enterprise.

Many POS software packages today also include a variety of backoffice, or management programs (e.g. staff scheduling, sales analysis, merchandising, cash management). If you own a franchise operation, you may also find that your franchiser provides or recommends software packages designed to fit your business.

In most cases, a software provider or system integrator will suggest or offer a total system, including hardware. Take care, however, that POS hardware isn’t an afterthought or a decision made in isolation from POS software selection. The right hardware-software combination can help you turn the point-of-sale into your point of service—where customer transactions are transformed into long-lasting customer relationships.

A personal computer (or a ‘PC on a cash drawer’) might meet the POS hardware needs of some businesses, but others may decide their transaction. Or they may find a PC can’t take advantage of certain retail peripherals or POS software features (e.g. easy-to-learn-and-use touch screen applications).

What to look for

Let’s take a closer look at the hardware components of a POS system, and some key evaluation criteria, starting with the POS workstation, or terminal.

Your POS workstation should offer strong investment protection:

• Does it employ ‘open’ technology, based on widely accepted standards, so you can choose from a large selection of peripherals and software, regardless of vendor?
• Is it scalable? That is, can you easily expand the terminal’s memory and data storage capacity. So your POS system can keep up with your growing business?
• Does it provide industry standard connections (often referred to as ‘interfaces’) that allow you to easily attach best-in-class retail peripherals?
• Are you assured of responsive and readily available support from a reliable POS vendor or service provider?

Cost of ownership is as important as acquisition cost:

• Has the workstation been engineered and tested to meet the demands of a harsh retail environment, to help reduce the costs of downtime and maintenance?
• Does it have a durable impact-resistant cabinet? Will it stand up to shock, vibration, electrostatic discharge and corrosion? Operate under a wide range of temperature and humidity conditions?
• Does it have many moving parts that can wear out? (For example, some newer POS workstations are passively cooled, without fans, which expand placement options and reduce the possibility of airborne contaminants entering the system.)

Expect a high level of retail integration:

• Does the workstation provide a generous allocation of ports for connecting retail peripherals such as a cash drawer, receipt printer, customer display or magnetic stripe card reader?
• Has it been tested in multiple configurations—with different combinations of peripherals and software—to be sure all the components of your system will ‘play together’ in harmony?

Consider the ‘footprint’ of your POS workstation:

• Can it be easily placed within the existing counter area without requiring checkstand redesign?
• Does it maximise merchandising opportunities at the point-of-sale?
• Does it make good use of space without limiting peripheral choices or expansion options?
• Are cables ‘well-managed’ or will your customers see a jungle of wires?

Getting in touch

Instead of the traditional PC or cash register style keyboard, a growing number of POS solutions take advantage of a colour touchscreen for the cashier interface. With well-designed software, touchscreens can provide a simple, easy-to-use way for cashiers to handle just about any transaction—reducing training time while improving productivity and customer service. The touchscreen user interface is popular in the hospitality and convenience store industries and is rapidly gaining acceptance in other retail vertical markets.

Some businesses choose to combine other options with their touchscreen POS. For example, full motion video and integrated stereo speakers (or optional headphones) provide a multi-media platform that allows these workstations to be used for Web- or computer-based training during non-business hours. Or, with a swivel base, your associates can use the workstation to review services or products with their customers.

Other POS hardware components

Bar code scanners enable you to collect detailed data regarding products that your customers purchase—information that can be used for inventory management, merchandising and marketing decisions. Successful retailers use this information in data warehousing applications to fine-tune store assortments and help assure that consumers find the products that they want on the shelves, when they shop.

A quality scanner with a strong track record for reading bar codes on the first try will speed a retailer’s checkout and naturally lead to cashiers who are more comfortable and less frustrated with the scanning task. A pleasant cashier will transfer this positive energy to customers.

On the customer side of the counter, most POS workstations are available with a choice of customer displays, ranging from simple one- or two-line read-outs to full colour screens that display Web-based color graphics. The latter devices allow your customers to learn more about your store, merchandise, or special promotions—at the same time they are viewing details of their transaction.

Electronic payment peripherals enable you to readily and efficiently handle credit and debit card transactions. Included among these devices are terminals designed to not only process electronic forms of payment but to also capture signatures electronically. A signature capture terminal incorporates a credit/debit card reader, provides a means to enter a PIN number, and includes a display for other customer input (e.g. for market surveys) and graphics-based advertising.

Retail POS printers, especially thermal printers, are designed to deliver fast, quiet printing of receipts and paper forms at your point of service. A quality thermal printer can positively impact your store productivity through intelligent design and operator-friendly features. Because of their speed, thermal printers can produce a record of most transactions in only a fraction of a second. This makes it possible to add information and graphics, such as your logo, to the customer receipt, or to print multiple receipts for credit authorisation or for coupons/rebate offers/gift receipts, without adding time to the transaction.

Enhancing customer relationships

Consumer interaction is where it all begins, and your point-of-sale is a primary point where those interactions take place. A well-designed and carefully planned POS solution can help you take advantage of the latest software, protect existing investments, make the most of valuable counter space and quickly turn new hires into productive employees. You’ll improve selling productivity and checkout processes while increasing the level of service you provide to customers.

The author is Managing Partner, Retail Solutions Division, South East Asia. He can be reached at ajay.gidh@ncr.com