Retail POS Technology Transformation High on the Agenda for Top Performing Retailers

Sixty-Six Percent (66%) of Top Performing Retailers Are Using POS as a Marketing Tool to Revive Ailing Stores and Reduce POS Total Cost of Ownership


BOSTON, MA--(Marketwire - July 8, 2009) - Recent research reveals that the recession is turning focus back towards store POS efficiencies and total cost of ownership. Seventy-three percent (73%) of retailers rate themselves below, or at best sub-par, on their current point-of-service or point-of-sale (POS) capabilities, according to the Aberdeen Group report, "POS to Profits: Reviving Best-in-Class Sales and Service in Retail Stores." The research from Aberdeen Group, a Harte-Hanks Company (NYSE: HHS) details the business benefits derived from upgraded POS performance and cost optimization.

According to Aberdeen data, as a means to augment POS performance with an eye on costs, industry's top performing retailers are more than twice as likely as all others to consider modular improvements, deployment, and ongoing service costs as a key criteria for POS upgrades. Given the expansive list of options to upgrade POS operations, such as data management, help desk support, feedback management, rapid response, and ongoing software management, it seems logical that top performing retailers are keen to understand how these capability upgrades will benefit the organization, both currently or in three, five, or ten years.

"Top performing retailers are establishing highly specific implementations cost criteria plans, as well as short- and long-term benefit lifespan analysis when managing the technology supplier selection process," comments Sahir Anand, chief author and retail research director, Aberdeen. "Besides rapid configuration and integration with other systems, one of the ways to justify continued spend on POS is to convert it into a marketing tool that increases customer traffic into stores."

Aberdeen has found that 66% of top performing retailers are focusing on the POS as a marketing tool to justify the TCO behind the next phase of technology improvements. To achieve this objective, Aberdeen has found that these retailers are negotiating two major challenges. First, these companies overcome the hurdle of developing an internal mandate and agreement amongst teams involving store operations, marketing, merchandising, and IT, so as to enable such improvements in a rapid manner. Second, any modular improvement at the POS must guarantee secure corresponding data management processes. Fortunately, the retail industry's top companies are cognizant of optimum POS data access, extracting business value and consumer insights from such data, and storage measures under payment card industry data security standards (PCI-DSS) and other consumer privacy guidelines.

"These challenges notwithstanding, converting POS into an effective consumer marketing tool at an affordable cost that continues to provide a sustained level of customer focus is a dream come true for any C-level executive in retail," says Greg Belkin, co-author and research analyst, Aberdeen.

A complimentary copy of this report is made available due in part by the following underwriters: eSENSE Retail, K3 Retail, and Epicor. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=5890.

For additional access to complimentary Retail Research, please visit http://research.aberdeen.com/index.php/-retail

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748.

© 2009 Aberdeen Group, Inc., a Harte-Hanks Company
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Contact Information: Media Contact: Sahir Anand Research Director Aberdeen Harte-Hanks (617) 854-5271 sahir.anand@aberdeen.com