The impact that evolving consumer expectations have on retail is undisputed. The rise of digital-native consumers beginning their careers and building buying power is driving retailers to meet the growing demand for modern in-store experiences. Furthermore, the era of the new, savvy consumer is converging with growing urgency to increase operational efficiency. Labor shortages, high employee turnover rates, rising costs, and fierce competition are forcing retailers to find ways to control costs while ensuring quality of service and protecting the bottom line.
The answer often lies in technology, if implemented properly. Dominant retail technology trends aimed at enhanced CX, and operational efficiency include:
- Integrated apps
A survey by mobile app experience company Airship found that 78% of consumers regularly use retailers’ mobile apps. However, the trend is to move from single-purpose apps to create one multi-functional app. These “super apps” encompass online shopping, ordering for delivery or in-store pickup, loyalty rewards programs, payment, and notifications, whatever consumers need for a convenient shopping journey. Furthermore, since more consumers use their smartphones to engage, the app gives them a mobile-friendly interface and improved user experience compared to using a webpage on a phone.
The trend is evidence that retailers are serious about meeting consumer demands for unified commerce. However, it can also positively impact operational efficiency. Giving shoppers more autonomy frees employees to focus on the most complex tasks and may even decrease the retailer’s labor demand.
- Value-added applications
Understanding the need to compete on experience, retailers are enhancing checkout processes with greater flexibility and personalization. One option is to expand payment devices’ functionality to accept a broader range of payments, including alternative payments like buy now, pay later (BNPL) and cryptocurrency. Innovative retailers are also running business applications from their payment devices to create seamless engagement when customers use loyalty rewards, gift cards, or scan a QR code to redeem a promotional offer.
Android-based payment platforms make it possible to expand the functionality of payment devices while maintaining the robust security necessary to comply with the Payment Card Industry Data Security Standard (PCI DSS). With this flexibility, retailers can differentiate their businesses with unique processes that delight customers and earn their loyalty. They can also streamline workflows to enhance employees’ productivity and performance.
- Biometric payments
Retailers are exploring the advantages of biometric payment solutions for state-of-the-art payment functionality. These systems link cardholder data to authorized users’ palm vein, facial, or iris scans. Biometric payments are quick and easy for consumers; however, they benefit retailers in several ways. First, they mitigate fraud. It’s virtually impossible to trick these systems with a counterfeit scan. They also give retailers the option to provide a hygienic way to authenticate payments. Finally, biometric payments are a high-profile way for a brand to communicate that it is on the leading edge of technology and committed to providing convenient, secure checkout experiences to its valued customers.
- Unattended payments and self-service
A survey by media outlet PlayUSA found that self-service is the preferred purchase method for Gen Z and millennial consumers, and their older peers are also turning to kiosks rather than sales associates more often. Self-checkout and other types of self-service systems make shopping faster and more convenient. If a customer has only a few items, they can skip the line and check out independently.
Designing self-service solutions correctly is vital to minimize shrinkage and loss while also optimizing user experiences for customers at all levels of comfort with technology. However, when retailers perfect self-service in their operations, it can result in greater customer satisfaction and enable labor reallocation from the counter to other critical tasks in the store.
- SoftPOS
SoftPOS, also known as tap to phone or tap on mobile, is emerging as a practical solution to augment traditional countertop payment device deployment. Because this payment technology is software- instead of hardware-based, SoftPOS allows retailers to accept contactless payments directly on a handheld computer, tablet, or smartphone. It can augment traditional terminals for use cases such as home delivery, pop-up stores, and a backup for peak traffic times, reducing cost and maintenance.
SoftPOS gives retailers an easier path to equipping more employees with mobile point of sale capabilities, increasing customer engagement effectiveness and operational efficiency. With mobile devices and SoftPOS, electronic company service teams can accept payments during onsite visits, retailers setting up holiday pop-up stores can use them as their point-of-sale systems, and employees can provide in-aisle assistance day to day for line-busting. SoftPOS also gives retailers an alternative to a spares pool for countertop terminals that need repair.
Stay on Trend with Retail Technology
Upgrading to cutting-edge technologies and digitizing processes allow retailers to meet many of today’s challenges. Technology that manifests the marriage of customer experience and operational efficiency enhancement will empower retailers to collect and use data for both hyper-personalization and granular operational control. It gives shoppers the autonomy they crave and frees employees to focus on complex and critical tasks. It supports sticky customer relationships and revenue growth. Furthermore, implementing scalable and extensible solutions allows retailers to adapt when technology advances and consumer behaviors continue to evolve.
Although each retailer must ultimately answer the build-versus-buy question, many excellent, purpose-built solutions are available to create integrated apps, add value-added applications, biometric payments, self-service, and SoftPOS. Explore the options, identify which offers the most value, and put a plan in motion to meet customer expectations and maximize margin today and tomorrow.
The author, Peter Stewart, is the Executive Vice President, North America, at Ingenico Group.