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What Target Should Have Done Amid Massive Register Failures

RIS News – For two days in a row this weekend, Target experienced separate incidents which impacted registers and lines at the national retail chain.
“For a retailer the size of Target, with the volume of transactions they conduct on the weekends, this was quite a significant outage with both short-term financial implications and longer-term customer service concerns,” BRP’s SVP and practice lead Ryan Grogman tells RIS.

On Saturday, an outage was the result of an “internal technology issue that lasted for approximately two hours,” Target said in a statement the same day.

“Communication is always key when it comes to customer service during a crisis or issue: let customers know there is an issue, explain what that issue means, and provide them updates on when the issue will be resolved,” Grogman advises. “There were reports from some Target stores that associates handed out snacks and drinks to customers who were waiting out the outage, which is a terrific example of trying to own the narrative. All shoppers deal with technology issues in their own life, so the more that Target can own up to the issues and work with customers as opposed to creating a divide, the better.”

“Another example that Target could have followed would be to offer the in-store customers with coupon codes for a percent off their next transaction, as a gesture for the inconvenience as well as a way to entice them to return and refill their shopping carts. Finally, because it seemed that Target’s buy-online-pickup-in-store functionality was not impacted, Target could have taken advantage of a tremendous opportunity to work with customers on their devices or via in-store computers to create online accounts and walk them through the omni-transaction in person.”

Read Full Article: What Target Should Have Done Amid Massive Register Failures

State of payments in luxury – Luxury Memo special report

Luxury Daily – Payments in the luxury business have drastically changed since the retail revolution, leading even the oldest houses to incorporate new ways of transactions. A cashless society is becoming more conceivable, as digital solutions allow consumers’ smartphones to act as their wallets and financial services providers work on greater security for credit cards. One of the best-known disruptors in payments is Amazon, with its cashless bricks-and-mortar experiment, but many others have innovated and adapted to completely new ways of paying in the quest to make a frictionless experience for shoppers.

“Current payment trends in the retail industry continue to be born out of a combination of removing friction from the customer experience while also providing enhanced overall payment security,” said Ryan Grogman, senior vice president and practice lead at BRP, retail consulting firm. “Specific efforts in support of these trends include ongoing replacement of legacy fixed payment terminals by retailers, continued mobile wallet adoption, further separation of payment card information and processing from the POS solution itself, and growth in the area of omni-tokens, a single payment token to be used across all sales channels for a given retailer.

“Additionally, for ecommerce payments, many retailers are trending towards the use of hosted checkout pages such as PayPal, Visa Checkout, Mastercard’s Masterpass, Vantiv, etc., which reduce the exposure to sensitive payment data while still providing an integrated, seamless checkout experience,” he said.

Top 5 trends in payments in luxury

  • Mobile pay
    Solutions that make it easier for shoppers to check out are growing in sophistication through smartphones.
  • One-click checkout
    Digital payment platforms are focusing on reducing the need to continually input payment information for faster checkout.
  • Conversational commerce
    Payment through messaging applications is becoming more popular as consumers find it more natural to communicate while paying.
  • Bitcoin and cryptocurrency
    Last year’s buzzword was bitcoin, as the currency increased in value and luxury retailers accepted it as a form of payment.
  • China’s impact
    Chinese affluents’ use of technology is making its way to the Western luxury business.

Read Full Article: State of payments in luxury – Luxury Memo special report

BRP Report Identifies Tokenization as Top Retailer Priority

Store Brands – A new study indicates that retailers are having varying success providing the shopping and payment options customers want.

According to “Special Report: Security” from Boston Retail Partners (BRP), retailers are lagging in implementing a single-token payment security solution across the enterprise. Tokenization enables retailers to remove sensitive information from the network by substituting payment card data with a token which is used as an identifier, but has no exploitable value or meaning. In addition to the increased security offered by tokenization, it is also key to enabling a shared cart across channels.
BRP analysis shows that only 38 percent of retailers have implemented a single token solution, and a mere seven percent offer a shared omnichannel cart. Yet 56 percent of customers want access to a single cart to shop across channels and be able to reach their cart via phone, computer, or in the store.

“Tokenization is a top priority for many retailers, as it improves the security of sensitive customer payment data,” said Ryan Grogman, senior VP and practice lead, BRP Consulting. “Tokenization technology is also valuable as a foundation to enable a seamless experience for consumer returns, customer profiles and electronic shopping carts that need to retrieve data across channels.”

Read Full Article: BRP Report Identifies Tokenization as Top Retailer Priority

How retailers can meet consumer expectations

StoreBrands – A new study indicates that retailers are having varying success providing the shopping and payment options customers want.

According to “Special Report: Security” from BRP, retail consulting firm, retailers are lagging in implementing a single-token payment security solution across the enterprise. Tokenization enables retailers to remove sensitive information from the network by substituting payment card data with a token which is used as an identifier, but has no exploitable value or meaning. In addition to the increased security offered by tokenization, it is also key to enabling a shared cart across channels.
BRP analysis shows that only 38 percent of retailers have implemented a single token solution, and a mere seven percent offer a shared omnichannel cart. Yet 56 percent of customers want access to a single cart to shop across channels and be able to reach their cart via phone, computer, or in the store.

“Tokenization is a top priority for many retailers, as it improves the security of sensitive customer payment data,” said Ryan Grogman, senior VP and practice lead, BRP Consulting. “Tokenization technology is also valuable as a foundation to enable a seamless experience for consumer returns, customer profiles and electronic shopping carts that need to retrieve data across channels.”

Read Full Article: How retailers can meet consumer expectations

BRP Report Identifies Tokenization as Top Retailer Priority

Convenience Store Decisions – Only 38% of retailers have implemented a single token solution across the enterprise. Tokenization offers increased security and enables a shared cart across channels, according to a report by retail management consulting firm BRP. BRP’s SPECIAL REPORT: Security says that retailers must continuously reexamine their policies on customer payment and personal data as new dangers emerge that require enhanced security measures.

Tokenization enables retailers to remove sensitive information from the network by substituting payment card data with a token, which is used as an identifier but has no exploitable value or meaning.

“Tokenization is a top priority for many retailers, as it improves the security of sensitive customer payment data,” said Ryan Grogman, senior vice president and practice lead of BRP. “Tokenization technology is also valuable as a foundation to enable a seamless experience for consumer returns, customer profiles and electronic shopping carts that need to retrieve data across channels. What began as a solution to remove payment card data from a retailer’s environment has found additional value in substituting Personally Identifiable Information (PII) to help drive omni-channel use cases. We continue to see improved security practices across the retail industry in efforts to thwart malicious attacks and remain compliant with regulations, but this is a never-ending challenge.”

Read Full Article: BRP Report Identifies Tokenization as Top Retailer Priority

Study: Do retailers meet customer shopping and payment expectations?

Chain Store Age – A new study indicates retailers are having varying success providing the shopping and payment options customers want.

According to “Special Report: Security” from BRP, retail consulting firm, retailers are lagging in implementing a single-token payment security solution across the enterprise. Tokenization enables retailers to remove sensitive information from the network by substituting payment card data with a token which is used as an identifier, but has no exploitable value or meaning. In addition to the increased security offered by tokenization, it is also key to enabling a shared cart across channels.

BRP analysis shows that only 38% of retailers have implemented a single token solution, and a mere 7% offer a shared omnichannel cart. Yet 56% of customers want access to a single cart to shop across channels and be able to reach their cart via phone, computer, or in the store.

“Tokenization is a top priority for many retailers, as it improves the security of sensitive customer payment data,” said Ryan Grogman, senior VP and practice lead, BRP Consulting. “Tokenization technology is also valuable as a foundation to enable a seamless experience for consumer returns, customer profiles and electronic shopping carts that need to retrieve data across channels.”

Read Full Article: Study: Do retailers meet customer shopping and payment expectations?

Only 38% of Retailers have Implemented a Single Token Solution Across the Enterprise, According to New BRP Report

Tokenization removes sensitive information from the network, improves security and enables a shared cart across channels

Boston, MA – April 3, 2019– According to BRP’s SPECIAL REPORT: Security, retailers must continuously reexamine their policies surrounding customer payment and personal data. Every day, new dangers emerge and enhanced security measures are necessary to adequately defend against these malicious attacks. A single security breach is enough to deal a crippling blow to many companies.

“Tokenization is a top priority for many retailers, as it improves the security of sensitive customer payment data,” said Ryan Grogman, senior vice president and practice lead, BRP Consulting. “Tokenization technology is also valuable as a foundation to enable a seamless experience for consumer returns, customer profiles and electronic shopping carts that need to retrieve data across channels. What began as a solution to remove payment card data from a retailer’s environment has found additional value in substituting Personally Identifiable Information (PII) to help drive omni-channel use cases. We continue to see improved security practices across the retail industry in efforts to thwart malicious attacks and remain compliant with regulations, but this is a never-ending challenge.”

Tokenization enables retailers to remove sensitive information from the network by substituting payment card data with a token which is used as an identifier but has no exploitable value or meaning. In addition to the increased security offered by tokenization, it is also key to enabling a shared cart across channels.

Retailers’ capabilities for a shared cart across channels are behind consumers’ expectations. According to the BRP Consumer Study, 56% of customers want access to a single cart to shop across channels and be able to reach their cart via phone, computer, or even in the store, yet only 38% of retailers have implemented a single token solution to enable this feature. While some retailers are on the path to offering this service by implementing a single token across the enterprise, only 7% of retailers offer this shared cart concept.

BRP’s SPECIAL REPORT: Security is based on findings from the BRP Consumer Study and the 2019 POS/Customer Engagement Survey and offers insights into how retailers are progressing with their security efforts to protect consumers’ payment and personal data.

The SPECIAL REPORT: Security highlights:

PAYMENT SECURITY:

  • Customer expectations: 33% are likely to allow retailers to save credit card details if it eases the checkout process
  • Retailer capabilities: 61% have implemented end-to-end encryption to offer customers greater security of their personal and payment data

PERSONAL DATA:

  • Customer expectations: 50% are likely to allow retailers to save personal details if it eases the checkout process and allows for more personalized offers
  • Retailer capabilities: 38% have implemented a single token solution across the enterprise to offer customers greater security of their personal and payment data

MOBILE WALLET/PAYMENTS:

  • Customer expectations: 38% are likely to choose a store if it offers mobile wallet/payments
  • Retailer capabilities: 59% offer mobile payment acceptance

To download BRP’s SPECIAL REPORT: Security, visit:

https://brpconsulting.com/download/2019-special-report-security

The special report platinum sponsor is TSYS, the gold sponsors are Aptos, Diebold Nixdorf, ECRS and Fujitsu, and the silver sponsor is STORIS.

About BRP

BRP is an innovative retail management consulting firm dedicated to providing superior service and enduring value to our clients. BRP combines its consultants’ deep retail business knowledge and cross-functional capabilities to deliver superior design and implementation of strategy, technology, and process solutions. The firm’s unique combination of industry focus, knowledge-based approach, and rapid, end-to-end solution deployment helps clients to achieve their business potential. BRP’s consulting services include:

Strategy | Business Intelligence | Business Process Optimization | Point of Sale (POS)
Mobile POS | Payment Security | E-Commerce | Store Systems and Operations | CRM
Unified Commerce | Customer Experience | Order Management | Networks
Merchandise Management | Supply Chain | Private Equity

For more information on BRP, visit http://www.brpconsulting.com.

What are Retailers’ Top Customer Engagement Priorities for 2019?

As retailers look for ways to differentiate in today’s highly competitive market, customer engagement strategies like personalization, mobile experience and real-time retail are critical components for optimizing the customer’s shopping experience. In fact, according to the recent BRP Consumer Study, 79% said personalized service from a sales associate was an important factor in determining at which store they choose to shop. Retailers understand the importance of personalization as 53% are focused on this for 2019, according to the 20thAnnual POS/Customer Engagement Benchmark Survey.

Retailers understand the imperative for change, as 94% of retailers, up from 81% last year, have indicated that they have or plan to implement a single unified commerce platform within the next three years. “It is time to reimagine the customer engagement model as yesterday’s retail is dead, and agility is paramount as retail continues to rapidly evolve,” said Brian Brunk, principal at BRP. “Key to this agility and transformation is a single commerce platform. Victory belongs to the agile.”

“As customer expectations for an increasingly customized experience increase and evolve, retailers are adopting new ways to identify customers and personalize their shopping journey,” said Perry Kramer, senior vice president and practice lead at BRP. “Retailers continue to offer more mobile services from a consumer-facing and associate-facing perspective that include personalized recommendations, loyalty rewards, coupons, discounts and promotions. It is also interesting to note that 63% of retailers plan on having the ability to use a customer owned mobile device as a POS device within three years.

BRP’s 20thAnnual POS/Customer Engagement Survey of top North American retailers offers insights into retailers’ current priorities and initiatives as digital and physical retail environments converge to facilitate a seamless experience across channels.

The key customer experience trends driving today’s initiatives are:

PERSONAL – Engaging the customer with personalized and relevant messaging is the key to customer loyalty

  • 79% of consumers said personalized service from a sales associate is an important factor in determining at which store they choose to shop
  • 53% of retailers indicate that personalization is one of their top customer engagement priorities

MOBILE – The pervasiveness and ease-of-use of mobile devices offers tremendous opportunities for retailers

  • 63% of consumers use their mobile phone while shopping in a store to compare prices, look for offers/coupons, check inventory availability, etc.
  • 49% of retailers indicate that the customer mobile experience is one of their top customer engagement priorities

SEAMLESS – Today’s customer journey crisscrosses channels, requiring the retailer to provide a seamless, personalized experience

  • 56% of consumers indicate they are more likely to shop at a retailer that allows them to have a shared cart across channels
  • 94% of retailers have or plan to implement a single unified commerce platform within three years, up from 81% last year

SECURE – Today’s retail environment requires security beyond retailers’ current focus on payments and networks

  • 50% of consumers are likely to allow retailers to save purchase history, personal preferences and personal details if it eases the checkout process and allows for more personalized offers
  • 61% of retailers have implemented end-to-end encryption to offer customers greater security of their personal and payment data

I encourage you to download the complete 20thAnnual POS/CustomerEngagement Benchmarking Survey:

https://brpconsulting.com/download/2019-pos-survey/

A special thanks goes to our POS/Customer Engagement Survey sponsors:  TSYS is the platinum sponsor, the gold sponsors are AptosDiebold Nixdorf, ECRS and Fujitsu, and the silver sponsor is STORIS.

As always, I appreciate your feedback on this report. Please share your comments and opinions below.

David

EMV is here to stay — but has it helped?

STORES – The din from the drum of the EMV mandate is not what it was three years ago. But the reverberations over compelling retailers to adopt costly new point-of-sale technology in order to accept new chip-based credit and debit cards — and the debate over whether doing so has reduced fraud — continue to ripple through the industry.

“The road to adoption of EMV in traditional POS has been painful,” Boston Retail Partners Senior Vice President Perry Kramer says, noting “many of the regulations were still being finalized as merchants were developing processes” to implement the technology. Retailers faced challenges such as customers learning to “dip” rather than swipe. And consumers complained that EMV transaction took longer than mag-stripe, although that issue was largely resolved through the card industry’s rollout of “quick chip” EMV technology in 2016, he says.

“What you see today is that the majority of the Tier 1 retailers have it in, and it is working very well,” Kramer says. But “there’s a broad user experience still out there with EMV, some of it being very good and some of it not being so good.” Many smaller retailers continue to struggle through the transition, Kramer adds. “This is due to a number of reasons including the cost of upgrading the software and hardware,” he says. “Change management and resource efforts required to make the changes continue to compete with other business priorities in a segment that has a very small resource pool.”

Read Full Article: EMV is here to stay — but has it helped?

With Mobile Pay, You Can Go Without a Wallet at Checkout

The New York Times – When you’re at the checkout line this holiday season, you could juggle your bags and dig into your purse or billfold for your credit or debit card. Or you could use that phone you’re already clutching, or that new smartwatch strapped to your wrist. Many stores now accept mobile wallets, a technology that lets customers make payments via smartphone or watch.

Still, many consumers are sticking with their cards due to concerns about safety or the familiarity of good old plastic. But if you’re ready to give mobile wallets a try, here’s what you need to know to get started.

WHERE MOBILE WALLETS WORK BEST.

HOW MOBILE WALLETS WORK.

MOBILE WALLET ADOPTION HAS STALLED.

Concerns about safeguards are another issue. Many consumers are more worried about the security of mobile wallet payments than traditional card payments, says Ryan Grogman, senior vice president and practice lead at Boston Retail Partners, a retail consulting company. But mobile wallets do have some security advantages over regular credit and debit cards.

HOW BANK INFORMATION IS KEPT SECURE.

Read Full Article: With Mobile Pay, You Can Go Without a Wallet at Checkout