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ASSESSING YOUR RETAIL STORE TECHNOLOGY SERVICES

Questions To Avoid Pitfalls And Develop Best Practices

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Retailers continue to upgrade and evolve store technology to create memorable shopping experiences for customers. “While the store isn’t going away, it’s about to get a whole lot more connected, mobile and smarter,” according to Boston Retail Partners.1 But as store technologies are implemented, many retailers have neglected to upgrade the essential store technical services that will enable these devices to operate at peak efficiency, and therefore fully deliver on their value. The mandate to create compelling store experiences is driving retailers to add new store technologies, such as kiosks, digital signage, 3D printers, traffic counters, IoT sensors, and even virtual reality (VR) and augmented reality (AR) equipment. When it comes to point of sale (POS) hardware, retailers are actively exploring systems ranging from traditional fixed units to self-checkout, no-touch checkout and mobile solutions that provide a speedier and more convenient experience for customers. In every case, retailers are under pressure to leverage these devices to create seamless, engaging and personalized experiences that drive revenue and keep customers coming back.

5 Key Store Technical Services Questions To Ask #1 Does our IT operation use devices and equipment from multiple external vendors that only support their own technologies? Every new store device comes with its own maintenance and support requirements. When different vendors are involved, store personnel must navigate a maze of options to get help. No one vendor has direct accountability for the health, effectiveness and cost efficiency of the holistic store IT environment. A trouble ticket often will include multiple vendors that must work

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Delivering these unique, compelling experiences depends on store technology that is reliable, available, high-performing and secure. That doesn’t happen without top-notch, right-sized technical support services. Retailers’ proliferation of devices, software applications and peripherals also adds multiple vendors and complexity to maintenance and support services. Cost inefficiencies can creep in each time a new vendor partner is added. Streamlining the number of support vendors required to service this equipment frees up in-store teams so problems don’t get overlooked, thus putting availability at risk. The cost of technology downtime is considerable, according to a 2016 survey conducted by Information Technology Intelligence Consulting (ITIC). As many as 98% of all types of organizations reported that the average cost of just one hour of downtime was more than $100,000, and 81% said the cost exceeded $300,000. Retailers should ask key questions about current in-store technical support services, look ahead to new devices that will be coming online, and find out if they are optimizing support and maintenance operations and employing best practices.

together to resolve the issue simultaneously or in sequence. Each step and complication increases time to resolution, and impacts revenue and customer satisfaction. However, these inefficiencies can remain hidden because different technologies often fall into different internal silos. While the POS group might fall under Operations, in-store kiosks might be overseen by Marketing.

Organizations are increasingly moving from siloed IT services to a consolidated approach according to CIO Magazine.2 “Digital transformation is driving demand away from compartmentalization and silos of service delivery and toward frictionless integration,” David J. Brown, global head of KPMG’s Shared Services and Outsourcing Advisory, told CIO.

Each one may be posting positive metrics about the health and maintenance of the devices within their own domain. However, without a holistic view, inefficiencies across the full range of store device support may be hidden, leaving the organization unable to exploit economies of scale. Similar issues occur in procurement.

To avoid inefficiencies and leverage economies of scale, a growing number of retailers are consolidating store technical support services under a single IT services provider. When technology is acquired from one vendor, negotiations can take place with economies of scale in mind.

Boston Retail Partners, Future Store Manifesto - 2016 Scorecard, 2016 CIO Magazine, 7 Hot IT Outsourcing Trends - And 7 Going Cold, 2017

5 Questions To Avoid Pitfalls And Develop Best Practices

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When equipment or software issues occur, a single call can get the ball rolling to properly diagnose and fix the problem. Combining service calls for multiple issues minimizes truck rolls and restores devices to service faster, preserving the revenue stream and fully enabling the retailer’s unique brand experience. #2 Does our maintenance strategy optimize the life of our hardware investments and increase availability of that hardware in stores? Retail stores are rough on technical equipment — imagine fluid spills, dust, lint, paper and merchandise piled over fan vents. These conditions shorten equipment lifespans, driving up capital investment costs for early replacement. Poorly maintained equipment also tends to fail at peak times, negatively impacting revenue and customer service. One way to extend the lifespan and availability of equipment is a coordinated, proactive preventive maintenance strategy managed by a single vendor. When one company is in charge — and accountable — it has every incentive to apply best practices that maximize uptime, resource efficiency and equipment life. For example, a single service group can get crews to every store in advance of the holiday shopping season to perform “wellness checks” of all store equipment, regardless of the original supplier. An experienced technical services provider can continuously improve prevention strategies, even for new devices, by gleaning insights about which regimens extend lifespans past normal expectancy, and applying those lessons proactively in other stores.

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#3 Does managing multiple vendor relationships require too many valuable in-store, help desk or management staff resources? Does confusion about problem ownership and accountability prevent the rapid resolution of technology issues in stores?

from needing to manage vendors who might dodge accountability and point fingers at one another. Malfunctioning technology drives away customers. Service failures are viewed as a significant determinant of customer dissatisfaction and switching behaviors, according to a recent survey.3 Every service encounter is the “Moment of Truth” from the customer’s perspective.   #4 How can we ensure that existing and new technologies are maintained at the highest level of availability while relying on multiple providers with different service level agreements (SLAs)?

When store technologies malfunction, an in-store or help desk associate must take action immediately. When problems involve several different products, that person must contact each vendor for support. They must coordinate between providers, each working under different service level agreements (SLAs) and response-and-resolve criteria. If they choose the wrong one, it adds days to the wait for resolution.

New vendors and SLAs come along with new technologies, and managing multiple SLAs, each with different terms and definitions, is complex. Further, many SLAs are not tailored to a given retailer’s needs. A 40-lane grocery store, for example, does not need all lanes on four-hour service contracts 24/7/365, but it might need a subset covered at that level throughout the year and more during seasonal rushes. The result is that many retailers are over-buying for some support SLAs and under-buying for others. When SLAs are managed separately, retailers also miss the economies of scale that could come from consolidation.

An important part of many retailers’ revamped brand experience is the attentive service of store associates. Removing the burden of making technical assessments of device failures from store personnel frees them to focus on the customer. This also prevents them

A single vendor taking a holistic view can not only ensure the right products are covered at the right level, but also safeguard system interoperability and uptime, so a change to one system doesn’t put another one out of commission.

Handbook Of Hospitality Marketing Management, Chapter 11: Customer Satisfaction, Service Failure, And Service Recovery; Anna Mattila and Heejung Ro, authors

5 Questions To Avoid Pitfalls And Develop Best Practices

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The vendor can ensure that old and new technologies are properly integrated to provide seamless operation. As new technologies are introduced, a single technical support provider can act as a trusted advisor, providing valuable insights on SLA terms and services appropriate for the use case and store footprint. The ability to acquire and manage IT services and products from internal and external providers is an essential capability to drive successful business outcomes, according to Gartner.4 “Vendor management continues to increase in importance, requiring IT vendor management leaders to optimize spending while responding to near real time demands to facilitate the delivery of innovations while balancing risks and performance.” #5 Do our store managers have good working relationships with approved vendor technicians? Do those technicians maintain the high level of training, certification and professionalism your store investments deserve? As retailers increasingly rely on an array of store technologies to function, it’s critical that the technicians servicing their equipment offer both the technical skillset and professional approach that ensure issues are addressed quickly, efficiently and securely, in a proactive versus reactive way. A growing number of technology vendors are turning to third-party contractors to perform on-site technical support.

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For a retailer with many locations or end points driving a high volume of calls per month, even a 1% failure rate due to non-professional, poorly trained technicians without adequate background checks could spell disaster. It may even run counter to protocols around PCI and other processes designed to keep data secure. It’s essential that IT service technicians have the proper training or clearance for these issues. Professional service technicians are directly employed, badged and trained technicians versus contracted technicians. They arrive in professional attire with repair part in hand, check in with the store manager, validate the store issue, communicate with support staff as needed, repair the device to working specifications within the retailer security guidelines, take photos to validate resolution and close the ticket with manager sign-off. The technician brings professionalism, knowledge and experience specifically in retail technology thanks to the IT support company’s investment in its employees — thorough and regular product training aligned to the technology in the coverage area, outstanding employer satisfaction and retention rates, and modern tools and capabilities to enable the employee to provide great service. With a single point of contact from a single service provider, not only will the vendor technician develop in-depth knowledge of each store’s unique environment, but will also build a trusted relationship with store employees.

Gartner, Top Challenges And Must Do’s For Technology Sourcing, Procurement And Vendor Management Leaders In 2017, 2016

Adopting A Best Practice Approach To Technical Support Services When store technologies are working at peak performance, retailers are in a better position to provide enriched customer shopping experiences. A best practice to reduce risk, ensure uptime, and realize cost and time saving is to work with a single vendor to provide wall-to-wall service and support for all in-store technologies, regardless of equipment manufacturer. By consolidating retail store technology support and maintenance services to a single, skilled and experienced vendor, retailers can: •E  njoy the savings of economies of scale •E  xtend the life of store technology •F  ree store associates from service and support tasks so they can serve customers • Increase customer satisfaction and engagement

Toshiba Client Services offers comprehensive service and maintenance solutions from a single source that provide the tools and retail expertise to give your business an advantage in the market. Using exceptional technicians and innovative technologies, Toshiba offers flexible, reliable, cost-effective maintenance support for your multiple-vendor environment. When day-to-day issues arise, we are wellequipped to handle them — swiftly and seamlessly, 24/7. Better yet, we work to resolve many problems before they have a chance to occur, minimizing your downtime and increasing shopper satisfaction. We are dedicated to providing you with client services that enhance the way your business operates, so your store investments can deliver a brand experience that wows customers and drives revenue. 5 Questions To Avoid Pitfalls And Develop Best Practices

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Toshiba is the global leader in Brilliant CommerceTM, enabling retailers to deliver engaged shopping experiences, gain actionable insights and provide frictionless checkout. To learn more about our innovative commerce solutions and services that are changing the global retail landscape, visit toshibacommerce.com or engage on Twitter @toshibagcs 919.544.8427 [email protected]

5 Questions To Avoid Pitfalls And Develop Best Practices

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