win with honeywell: trends in retail scott tubbs director, retail strategic accounts bob grabowski...

Win with Honeywell:Trends in Retail

Scott Tubbs

Director, Retail Strategic AccountsBob Grabowski

Retail Alliance Manager

Honeywell Proprietary

Honeywell.comà

2

Document control number

Agenda

• Retail Overview• E-Forms Fill• Cordless Scanning• GS1 Databar • Mobile Retailing

– Mobile Couponing– Mobile Payments

• RFID


Honeywell.comà

3


Retail IT Spending Forecasts

• Retailers maintaining long-term technology investment plans• Spending driven by:

– Rapidly evolving security standards – Demands for highly efficient and customer-friendly technology

Source: VDC 2010 Mobile Device Offering Report

Retail IT Spending Retail Mobility Spending

Source: ABI Research


Honeywell.comà

4


Retail & E-commerce Growth

Monthly U.S. Retail Sales & Consumer Sentiment Quarterly U.S. Retail & E-commerce Sales

Retail spending flat among most consumers• High income consumers increased spending in April

Sales and consumer sentiment have both increased from their lows in Q4 2008• Nov 2008 Consumer Sentiment = 55.3• Dec 2008 Retail Sales = $336B

E-commerce now represents an all-time high 4.1% of total retail sales in the U.S.

Average quarterly E-commerce sales growth rate since Q1 2009 is 3.2%


Honeywell.comà

5


Cross-Channel Alignment

• Plentiful consumer shopping options:– Brick & mortar– Online– Mobile

• Smartphones drive mobile commerce and mobile comparison shopping

• Social media networks open new avenues for loyalty and marketing

Develop appropriate multi-channel strategy for your target customers

E-Forms Fill


Honeywell.comà

7


Types of Forms in Retail

• Membership Application– Wholesale clubs, spas, gyms, etc

• Loyalty Card Application– General retail industry

• Instant Credit Application– Retailers with company-specific credit card programs

• Returns Processing– General retail industry

• Warranty Registration– Electronics retailers and other high value retail

• Pseudoephedrine Tracking– Pharmacies/drug stores

• Age-Restricted Sales– Liquor stores, convenience stores, grocery stores, fire

arms

Customer contact information is repeatedly captured for multiple purposes


Honeywell.comà

8


What is an “e-Form”?

• Paper Form– Printed paper form– Handwritten completion, typically

by customer– Often keyed into an electronic

system in batch processes– Field content cannot be controlled

Electronic Form (e-Form)Paper Form

• Electronic Form (e-Form)– Computer-based form– Electronic completion, typically by

cashier or customer service rep– Data entered real time into

backend database– Field content can be electronically

controlled/validated

Paper forms are often hand-keyed at a later date, duplicating effort


Honeywell.comà

9


Scanner Parsing vs. Host Parsing

Additional SW on host system No Yes

SW Integration required No Yes

E-Form Modification No Yes

Jurisdictional Updates Scanner firmware New parsing SW revision

Deployment of Updates Push new scanner firmware; or Scan bar code sheet

Push new parsing SW

Solution Cost One time purchase w/scanner Annual license fee

Scanner Parsing Host Parsing

Scanner parsing can integrate without any host software changes

POS Application

@AAMVA10093001DL00270194DAQ999000680DAASAMPLE,SUSAN,DAGP.O. BOX 1272 ROOM 2120DAILITTLE ROCKDAJARDAK72205 DARD DAS DAT DAU511DAW120DAYBR DAZBR DBA20031212DBB19701212DBCFDBD20020226

Parsing Middleware

POS Application

Susan Sample,12/12/1970

POS Application Parsing Middleware


Honeywell.comà

10


EasyDL vs. Competitive Offerings

Multi-code programming Single-code programming PC GUI programming AAMVA/ANSI Formats Non-AAMVA/ANSI Formats Encrypted Data (NC/GA) Common Separator Characters Unique Separator Characters # of Separator Characters Unlimited Unlimited <10

Date Formats User Configurable:mm/dd/yyyy, mmddyyyy,

mm/dd/yy, mmddyy, mm-dd-yyyy, mm-dd-yy

Non-configurable: encoded license format only

User Configurable:yyyymmdd, mmddyyyy

HSM EasyDL Motorola

EasyDL is the most versatile and complete solution on the market

Datalogic

Cordless Scanning


Honeywell.comà

12


Wireless Area-Imaging Scanner: Xenon™ 1902Highlights• Wireless Connectivity: Bluetooth Class 2, v2.1

radio, 33 feet (10m) range, reduced wireless interference

• Flexible Power Management: Limits radio power output, minimizes device interference

• Multi-point connectivity: Lowers TCO by allowing up to seven imagers to communicate to a single base

• Long-Lasting Lithium-Ion Battery: Up to 50,000 scans per full charge, ensuring maximum uptime

• Remote MasterMind™ Scanner Management Software: Quick and convenient solution for IT administrators, manage all scanners in network from single remote location

Features:


Honeywell.comà

13


Wireless Benefits

• Increased Efficiency: – Reduced downtime associated with

replacing failed cables– No need to spend time orienting

oneself

• Added Working Range: – Wireless radio enables movement

of up to 33 feet (10m) from the host system

• Improved Safety: – No cables to trip over– No frayed wires

GS1 DataBar Sunrise


Honeywell.comà

15


GS1 DataBar Sunrise

2010 Sunrise: Produce Items• Impacts retailers who sell loose produce• GS1 recommends retailers begin to scan the GS1DataBar

bar code found on loose produce• Main financial benefit is shrink control via increased

accuracy of PLU transaction

2011 Sunrise: Coupons• Impacts retailers who accepts manufacturers coupons and

prints in-house coupons• GS1 mandates that by June 2011 coupons ONLY

incorporate a GS1 DataBar bar code• Main financial benefits are supporting multi-product

coupons designed to increase purchases and serialization to reduce fraud

2014 Sunrise: Perishables • Extends the adoption to perishable and healthcare items• Recommends retailer begin to capture attribute information

such as “sell by date”• Benefits are consumer safety and product traceability

Retailers are looking for clarity and guidance with GS1 DataBar

Mobile Retailing


Honeywell.comà

17


Mobile Retailing: The Fourth Channel

• Retailers investing in “cross channel” SW solutions– Consistent messaging and experience across

all consumer venues

• Mobile Retailing newest channel– Consumer facing Direct Marketing via Smart Phones– Mobile commerce / wallet– Employee facing Mobile POS/Clienteling– Complements general retail apps– Build better mobility ROI


Honeywell.comà

18


Industry Trends & Statistics

57% consumers would like to receive mobile coupons – Deloitte

100M forecasted users of mobile coupons by 2010 – Juniper Research

3Bn mobile coupons issued by 2011 – Juniper Research

1% redemption rate for printed coupons – CMS Inc.

5% redemption rate for mobile coupons – Juniper Research

$7Bn redemption value of mobile coupons by 2011 – Juniper Research

Mobile marketing is here. Are you prepared?


Honeywell.comà

19


In-Store Mobile Retailing Applications

In-Aisle Promotions Electronic Loyalty “Mobile Coupon” PromotionsMobile Payment

>100 million trees are used each year for paper coupons

2.8 million automobiles emit the same amount of carbon emissions created to dispose of paper coupons

Support the Green initiative, while improving your bottom line


Honeywell.comà

20


Electronic Loyalty Cards

Scanaroo www.scanaroo.com CardStar www.mycardstar.comWalletZero www.walletzero.comRoyalty Rewards www.royaltyrewards.comCodeBroker www.codebroker.com

How It Works1. Download app to phone2. Select store 3. Type enter loyalty number4. Present phone to cashier at checkout

Customer Benefits• Consolidate multiple cards in one convenient place• Increased savings by always having their card• No hassle: lost cards or oversized wallets

Retailer Benefits• Corporate image: Green and environmental• Reduced costs minimizing printed cards• Improved customer satisfaction

Customers are downloading and using these apps TODAY!

http://www.scanaroo.com/

http://www.mycardstar.com/

http://www.walletzero.com/

http://www.royaltyrewards.com/

http://www.codebroker.com/


Honeywell.comà

21


Mobile Payment & E-Gift Card

How It Works1. Unique ID created and linked to pre-paid account2. Unique ID encoded in bar code3. Bar code distributed to customer via phone4. Upon each transaction, scan bar code to debit the

account

Customer Benefits• Never forget your gift card at home• Reduced wallet size

Retailer Benefits• Corporate image: Green and environmental• Reduced costs minimizing printed cards• Improved customer satisfaction

Avoid the costs of printing 1000’s of gift cards per year


Honeywell.comà

22


Advertising – Text to Action

Demonstration: Text “Honeywell” to 78527 (Powered by CodeBroker, Verizon does not apply)

CodeBroker www.codebroker.com

CellFire www.cellfire.com

RocketBux www.rocketbux.com

How It Works1. Advertise with normal marketing methods

- Print, Web, billboard, TV, etc.

2. Call-to-action: Text keyword to short code3. Customer receives automated response with promotional offer4. Customer promo redemption at store

Customer Benefits• Selectively accept promo offers (“opt in”)• Easier call-to-action vs. website, phone or fax• Coupon always on your person

Retailer Benefits• Increased redemption rate, increases revenue• Allow customer to immediately react, increasing likelihood of success• Reduced costs with automated back-end• Environmental image

http://www.codebroker.com/

http://www.cellfire.com/

http://www.rocketbux.com/


Honeywell.comà

23


Direct Marketing to Mobile PhonesHow It Works

1. Consumer targeted (database)2. MMS/SMS sent to mobile phones3. Message: Bar code or link to promo code offering4. Customer: Presents code at checkout

Customer Benefits• Promos direct to phone• Easier redemption, always on your person

Retailer Benefits• Corporate image: Green and environmental• Reduced costs: Less printed paper• Increased sales: Higher redemption rates

Get promotional offers to customers faster and more effectively


Honeywell.comà

24


Mobile Marketing Value Chain

Right Customer Right Bar Code Right Scanner

Target a specific set of customers that have similar buying habits so you can offer the…

Right Promotion

To maximize redemption rates and increase sales by sending the…

Who will optimize the bar code for size and orientation on each unique mobile phone so that the…

That contains all the necessary information through the…

Can ensure the highest read rate and customer throughput.

Right Provider

. . . .

.

.

.

.

.

. . . . . . .

. . . . . . . . . . .

.

.

.

.

.

.

.

.

.

.

. . . . . . . . . . . . . . . . . . .

.

.

.

.

.

Retailer Marketing or Outsourced Agency Mobile Marketing Solution Provider Bar Code Scanner Manufacturer

This can result in an increase in redemption rate by 500%


Honeywell.comà

25


Mobile POS

• Settle transactions anywhere in store– Payment, returns, loyalty enrollment– Consumer convenience– Capture sales before customer reconsiders

• Add peak POS capacity, preserve floor space• Reallocate floor space from lanes to product displays• Integrate CRM / Clienteling

– Capture customer preferences– Assist store associate in selling– Settle payment immediately

• Big buzz among retailers– Mobile POS demos in great demand– Included in RFPs– Now early adopter phase


Honeywell.comà

26


9700 MSCR

• Durable 9700 mobile computer w/ MSR• Combination MSR & contact smart card reader

– Supports credit card transactions– Reads customer loyalty cards– Reads North American 2D drivers licenses– Applications beyond retail

Law Enforcement / First Responder Electronic Benefits Transfer (EBT) Access Control

– Easily snap fits onto bottom of 9700

• Compatible with Windows-based LOB apps• Several Honeywell ISVs migrating apps

– Magstar, PSS, Others

• Currently in beta, release in Q4 2010


Honeywell.comà

28


RFID – What Are Retailers Asking For?

A lot of interest, but little action at POS

RFID in RetailRFID in Retail

What we heard What we’re doing

Inventory Control is a key driver• Eliminating Inventory Frozen File• Automating inventory counts / Reducing

labor• Reducing Back-Stocks• Locating merchandise for customers

(size, etc.)

Honeywell RFID Handhelds• Prototypes with integrated RFID

for Dolphin® 9500 & 9900• Investigating custom integrated

6500 design

Item Tagging• Store-level tagging used in pilot is

costly & time-consuming• Source tagging is direction; start with

store-brand ready-to-wear since most is private label

RFID “Hang-Tag”• Combines dynamic pricing

adjustment with RFID• Automate store-level tagging• Partner is utilizing Honeywell IP

POS Integration• Stand-beside RFID inventory system

used in pilot• Long-term goal is integration with

scanner/POS

Scanner Integration• HSM is a leader in AIDC

scanning/ imaging• Identifying customers willing

to jointly invest in solution development

RFID at POSRFID at POS

Smartcard Payment• Increased security• Reduced fraud• Expedite transactions

NFC Mobile Payment• Increased security• Reduced fraud• Expedite transactions

Loss Prevention / Shrink• Patron Theft• Employee Theft• Sweet-hearting

Item Checkout• Queue reduction• Increase customer throughput• Reduce checkout area

Customer Loyalty• No touch• No hassle

Applications & Benefits


Honeywell.comà

29


• Size of antenna and tag correlate to read range

• Extended read range would require either:

• Significantly larger antenna within scanner, or

• Increased tag size on products

• Today’s technology limits feasible applications at the point of sale

• Size of antenna and tag correlate to read range

• Extended read range would require either:

• Significantly larger antenna within scanner, or

• Increased tag size on products

• Today’s technology limits feasible applications at the point of sale

Tier 1 Retail VOCTier 1 Retail VOC

RFID Limitations for Retail POS

Is item-level RFID practical at the point of sale?

1.5” x 1.5” Tag

4” x 1.75” Tag

1”

12”


Honeywell.comà

30


Questions?

Scott TubbsDirector, Retail Strategic AccountsTel: 973-890-9500 x3401Email: [email protected]

Thank You for your time!

Bob GrabowskiRetail Alliance ManagerTel: 631-239-6377Email: [email protected]

win with honeywell: trends in retail scott tubbs director, retail strategic accounts bob grabowski...

Documents

document control numberwhat

total retail sales

report retail

mobile commerce

mobile device

spending forecastsretailers

controlledvalidatedpaper

abi research honeywell