Point of Sale Experiences are Changing in the Luxury Retail Segment
Luxury retailers are continuously making technology investments to enhance the consumer experience, be it online or at physical stores. Consumer satisfaction in the luxury retail segment is strong but brands are evaluating how to improve point of sale (POS) experiences in stores. Brands are now considering new ways to use POS tools for in-store checkout, personalization, hybrid customer checkout, and how to ensure data security for mobile transactions.
Mobile POS Devices for Checkout
Simply put, the luxury retail segment caters to high-end shoppers. “Clienteling” has been around for years in the luxury segment, where a sales associate is assigned to a specific client. Now, retailers are equipping sales associates with mobile POS devices to process payments for customers. This new value-add service goes a long way in adding brand loyalty. In 2022, 20% of all transactions are now carried out on the move in stores, according to McKinsey. Plus, sales associates with POS devices can find inventory, process returns, and manage orders to help produce frictionless experiences for customers.
QR Code Innovation and Personalization
Consumer preferences and drivers are reshaping the retail landscape. Nearly 40% of all shoppers have switched brands or retailers during the pandemic, and more than 80% have new shopping behaviors, according to McKinsey. Retailers are using QR code tools to provide more in-store information to consumers. QR codes offer an inexpensive way for retailers to provide additional information to shoppers. Moreover, retailers can gain more information on their client and that can pave the way for more personalization at the store.
Buy Online, Pick Up in Stores (BOPIS)
Retailers are keeping an eye on the buy online, pick up in store services (BOPIS) trend that emerged during the pandemic. This holiday season, “39% of shoppers are expected to use BOPIS to account for 50% or more of their shopping,” according to a report by Bluedot. Plus, shoppers in higher-income households are also more inclined to use this purchasing option. It’s a great fit for luxury retailers, as it broadens clienteling services and offers a modern value-add.
POS and Sensitive Customer Data
Luxury retailers are very sensitive to data security when it comes to their clients and most businesses use antivirus software on all POS systems used in stores. But this is not enough. Many retailers have moved away from credit card swiping and moved to EMV payment technology, chip-enabled cards, which offer more data protection. Older POS credit-card swiping terminals are vulnerable and bad actors can download malware to POS systems. Other data security prevention activities include adding antivirus and malware software protection to all handheld devices connected to in-store networks, checking for skimmers and cables with POD terminals, strong passwords, and setting up strict data permissions for users.
With favorable business conditions for luxury retailers, POS technology investments continue to grow. Easier shopping options, frictionless checkout, and secure transactions are proving that physical retail stores are a solid foundation for luxury retail brands.
The Retail Transformation Has Started and ArcherPoint Can Help
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