Retailers Offering Curb Side Pickup, BOPIS, or Delivery could be in for a Shock (in a very bad way)!

So, I was just made aware of something not good about offering curb side pick, buy online pickup in store (BOPIS), or delivery. Basically, the company that handles your processing/merchant services account may immediately terminate your contract with them if they find out that you are offering curbside pickup, BOPIS, or delivery.

It boils down to the stipulations in your merchant services agreement. If it does not include curbside pick up, BOPIS, or delivery, then you are in breech of contract. This means that there is just cause to terminate the contract and you will lose the ability to accept payment by credit or debit card (with little to no warning).

Some common questions and advice:

1. Seriously? Would the merchant services companies really do this? Yes - this information came directly from merchant services companies.
2. How much notice would I get that my account is being terminated? In my experience, normally one business day but it could be more or less depending on which company handles your merchant services/credit card processing
3. How would they even know that my retail store is offering delivery, BOPIS, or curbside pickup? If you have a local salesperson, they may notice what you offering (but may or may not say anything). The biggest danger is if you receive a charge back / dispute - then they will know for sure if the consumer states that the transaction was done curbside, BOPIS, or via delivery and not in store card present.

My Advice:

1. Review your merchant services agreement / contract to see if delivery, BOPIS and curbside pick up are allowable. 
2. If you are not sure, then contact the company or your salesperson directly.
3. Use Square for processing sales that are not traditional in store card present transactions. Square appears to be more flexible when it comes to non-traditional sales transactions (but double check the agreement / contract to play it safe).

One other thought:

Your risk also appears to be related to what types of products you sell. For example, a retailer selling age restricted products (eg: tobacco or alcohol) appears to be in more danger than a retailer selling yarn

I'd appreciate any comments, questions or feedback on this topic! You can reach me at kevinantosh@gmail.com or 208-340-5632

Brand Keys 2017 Holiday Shopping Survey

Brand Keys 2017 Holiday Shopping Survey

Finds Increase in Consumer Spend Doubles YOY

NEW YORK, NY October 30, 2017 – A robust stock market and high levels of consumer confidence have coalesced to double the increase in anticipated 2017 holiday spending over 2016. “Generally good economic news has consumers signaling a 4% increase in their holiday spend this year to an average of $936 per household,” said Robert Passikoff, founder and president of Brand Keys, Inc.www.brandkeys.com, the New York City-based brand loyalty and customer engagement research consultancy that conducts the annual survey.


Earlier & Earlier Shopping = The New Normal for the Winter Holidays
Consumers are making decisions and plan to shop even earlier than in previous years. “Retailers have recognized shifts in the consumer shopping paradigm, and will again try to capitalize on them by kicking off Black Friday-like sales even earlier than in previous years,” Passikoff said.


According to the 11,625 shoppers who participated in the 2017 Brand Keys survey, despite larger spends consumers have adopted new shopping patterns when it comes to the holidays and calendar events, particularly the winter holidays. “This is an incredibly important shift,” said Passikoff. “It means that a ‘season’ that represents nearly 25% of the retail industry’s total sales, is spread out – conservatively speaking – over a four month-plus period even though the ‘Winter Holidays’ have traditionally been defined as the 61 days of November and December. It may work that way on the calendar, but not in successful retailers’ marketing strategies!”


Black Friday Turns Gray, December Is More Seasonal and Traditional
Consumers have begun holiday shopping earlier and earlier. Last year 41% of consumers reported shopping before Black Friday. This year that number has increased significantly, with just over half the consumers (51%) reporting they had already shopped or intended to do so before Black Friday, a shopping period known as ‘Black November.’ “Super Saturday has overtaken Black Friday in actual sales,” noted Passikoff. “So while Black Friday represents a retail raison d’être, it is fast becoming a relic of twentieth century retailing.”


“Marketers have taught, and consumers have learned, that deals abound year-round,” Passikoff noted. “This has resulted in earlier shopping and the knowledge that deals are likely to only get better as Christmas approaches.”


As a result, a smaller percentage of consumers (20%, down 5% YOY) have indicated they are actually shopping on Black Friday. Twenty-nine percent (29%) of respondents indicated that they will holiday shop in December, the largest specific shopping period identified by consumers in the 2017 Brand Keys survey.


“Deals notwithstanding, shopping on Black Friday and in December itself has become more of a traditional, seasonal thing families can do together,” noted Passikoff. “It’s a habituated behavior that grabs consumers when Jack Frost nips at their noses and Santa Claus is coming to town, despite the fact that 71% of their shipping has already been completed!”


When it came to time periods consumers will holiday shop, they reported the following (percentages in parentheses indicate changes from 2016 data):


Before September: 6% ( +2%)
September: 7% ( +2%)
October: 16% (+5%)
November (before Black Friday): 22% (+1%)
Black Friday 20% (- 5%)
December: 29% (- 5%)


Where They’ll Shop –Online and Off
Virtually all consumers interviewed (98%) are buying online again this year. “It’s no secret that brick-and-mortar retailers have had more difficult times engaging customers over the past five years,” said Passikoff. “They’ve been trying to forestall the online assault with ‘better’ reward programs and low-lower-lowest pricing schemes, but consumers are on to that. Online has become the default venue for browsing, promotions, price checking and, ultimately, buying holiday gifts.” Consumers again intend to use multiple venues to shop this year:


Store Type 2017 % change from 2016


Discount Department Stores 95% ----
Specialty & Apparel Stores 75% +30
Traditional Department Stores 73% - 10
Electronics 25% + 5
Price Clubs 24% + 4
Sporting Goods Stores 18% - 2
Outlet Stores 15% + 5


Catalogues (8%), are down again another 2% from last year. “If a consumer can pull up the same content on a computer, a tablet or a smartphone, they regard hard-copy as redundant,” Passikoff remarked.


What They’ll Buy


Consumers indicated the following categories where money is going to be spent. Changes from last year appear in parentheses:


Clothing and Accessories 85% (+5%)
Personal Care Products/Spa 55% (+5%)
Electronics/Phones/Computer 48% (- 2%)
Kitchen/Cookware 45% (+3%)
Toys 30% (+10%)
Food and Wine 26% (+6%)
Jewelry 25% (+5%)
Books 15% (+ 5%)
Sporting Goods 10% (- 2%)
Home Décor 10% (+ 5%)
Tools 10% (-----)


Gift Cards Are (Again) Ubiquitous
Gift cards have become as universal as sending greetings in one form or another, with nearly everyone indicating they’ll buy at least one this year (95%).


Value, Convenience and Shopping Ease Are the Best Retailer Gifts
Just as in holiday seasons past, value is paramount for all platforms. Consumer expectations regarding outreach and convenience are up again. Expectations for the shopping experience for brick-and-mortar retail are also up again,” Passikoff said. “Retailers that can provide a sense of consumer comfort, confidence and shopping ease will see better bottom lines.” Free shipping and returns, order online-pickup-in-store or ship-to-store options will have holiday shoppers’ attention again this year.


Brand Keys (www.brandkeys.com) is the only research consultancy that specializes in customer loyalty and consumer emotional engagement metrics that accurately predict future consumer behavior. These measures enable companies and brands to anticipate shifts in what has become a more digitally driven and rapidly changing marketplace.



Contact: VISIBILITY

Len Stein

cel 914 527 3708

Lens@VisibilityPR.com

Retail Realm Conference, RMH Central Launch, & Dynamics 365 for Retail

So much packed in to just 3 days with the upcoming Retail Realm Partner and User Conference! Besides the usual conference activities, there are 2 big things happening that I'm really excited about:

1. Launch of Retail Management Hero Central
2. More details on Microsoft Dynamics 365 for Retail

This is going to be a great conference - especially for Microsoft Dynamics RMS HQ users who are looking at low cost direct migration options for RMS HQ.

More information and registration details can be found at http://www.rrdisti.com/news/retail-realm-announces-2017-global-retail-technology-conference

You can reach me at 208-340-5632 or kevinantosh@gmail.com with questions.

Ransomware: What It Is and What To Do About it

Must read for any retailer with information specific to explaining Ransomware as well as what steps to take to prevent Ransomwear. This is an official government publication that can be found at: https://www.us-cert.gov/sites/default/files/publications/Ransomware_Executive_One-Pager_and_Technical_Document-FINAL.pdf

Critical Deadline for First Data, SHA-256, and Microsoft RMS

A quick reminder that if you are using First Data for merchant services along with the Microsoft Dynamics RMS software that the deadline for being SHA-256 compliant is December 28th, 2016 (next week!).

If you have not yet taken steps to replace outdated credit and debit card processing equipment, it needs to be taken care of now as First Data has indicated that they will not allow processing via Datawire starting December 29th, 2016.

If you are unsure, it would be smart to contact your First Data merchant salesperson and/or your Microsoft Dynamics RMS Partner to confirm that your system is SHA-256 compliant.

The most common situation involves still using "old school style" credit card swipes that connect to a USB port or use a keyboard wedge style interface.

The good news is that there are multiple solutions to upgrade to SHA-256 compliant equipment AND still use the Microsoft RMS software. These options may include using a separate payment terminal or installing Card Defender for Microsoft RMS.

As always, contact me at 208-340-5632 or kevinantosh@gmail.com - I do work for a Microsoft RMS Partner so I can offer advice and solutions.

Two RITE Customers Win Awards

Congratulations to RITE customers BC Liquor in Brooklyn Park, MN and Liquor Hutch in Hutchinson, MN who both won awards from Stateways Magazine!

BC Liquor in Brooklyn Park won in the Best Technology Innovation category and Liquor Hutch in Hutchinson won in the Best Consumer Education category as part of Stateways Magazine Best Practices Awards.

Both of these retailers use the Microsoft Dynamics RMS point of sale software in their business and rely on RITE for sales and support of their point of sale systems.

Kudos on a job well done to both of these retailers!

Full issue of the magazine can be found here (page 12 has the awards): http://read.dmtmag.com/i/752490-stateways-november-december-2016

The 2016 Brand Keys Loyalty Leaders List

Digital Brands and Online Access Define Loyalty For Consumers

Google, Amazon, Apple, Netflix, Facebook and YouTube Lead

NEW YORK, NY October 19, 2016 - More than a third (35%) of the 2016 Brand Keys Loyalty Leaders List is represented by digital technology, social networking brands, or brands that facilitate digital tech or social networking was the key finding in the 20th annual survey conducted by Brand Keys, Inc., the New York-based brand and customer loyalty and engagement research consultancy. The shifts in loyalty leadership have been monumental this year," said Robert Passikoff, Brand Keys founder and president.


“Digital brands represent the lion’s share of this year’s list, also commanding the most spots among the top-20 loyalty leaders, accounting for 80% of that portion of this year’s Loyalty Leaders,” noted Passikoff, “With some digital brands showing up as Loyalty Leaders in multiple categories.”


Digital Brands Work Harder For Loyalty
“It appears that digital brands work harder and create higher levels of emotional engagement – the ability for a brand to be seen as meeting consumers’ expectations for their Ideal, in whatever category the brand competes. Today emotional engagement is the predictive, real-world yardstick for loyalty, market share, and profitability,” said Passikoff. “Want to know what consumers are going to do? Measure real loyalty and emotional engagement and you can know for sure.”


2016 Top Digital Loyalty Leaders
Numbers in parentheses represent rankings among the top 100 Loyalty Leaders.


1. Google (search, #1)
2. Apple (tablets, #3)
3. Netflix (streaming video, #4)
4. Facebook (social networking, #5)
5. Apple (smartphones, #6)
6. Amazon (tablets, #7)
7. YouTube (social networking #8)
8. WhatsApp (social networking, #10)
9. iTunes (video streaming, #11)
10. PayPal (online payments, #12)
11. Samsung (smartphones, #14)
12. LinkedIn (social networking, #19)
13. Twitter (social networking, #23)
14. Instagram (social networking, #27)
15. Apple (computers, #29)
16. Kindle (e-readers, #30)
17. LG (smartphones, #31)
18. Acer (tablets, #32
19. iTunes (online music, #34)
20. Samsung (computers, #41)
21. Hulu (video streaming, #46)
22. HBO GO (streaming video, #63)
23. Line (social networking, #72)
24. iMessage (instant messaging, #74)
25. AT&T Wireless (wireless, #75)
26. theSkimm (messaging, #76)
27. Google Play (online music, #80)
28. Google Wallet (online payments, #80)
29. Google+ (social networking, #86)
30. Verizon (wireless, #88)
31. Pinterest (social networking, #89)
32. Spotify (online music, #90)
33. Microsoft (computers, #91)
34. BuzzFeed (social networking, #95)
35. Tumblr (social networking, #98)


This year Brand Keys examined 635 brands in 72 categories. Digital was represented by fifteen categories and 140 brands so there’s tremendous competition for the top 100 rankings. “Digital has become the defining category for consumer outreach and emotional engagement,” noted Passikoff. “And it shows up by the names on this year’s list.”


Category Loyalty Leaders. Digital and. . .
Digital technology, social networking brands, and brands that facilitate digital technologies and social networking had the most Loyalty Leader brands, and represented 35% of this year’s list. But other categories were well-represented by Loyalty Leader brands, and included:


• Retail: 17%
• Beverages: 9%
• Automotive: 8%
• Cosmetics: 8%
• Financial: 6%
• Restaurants: 6%
• Travel: 4%


Changes in Digital Loyalty
Loyalty and emotional engagement are leading-indicators of consumer behavior toward a brand. Axiomatically, the better consumers behave toward a brand, the better the brand does in the marketplace, which ultimately shows up on brands’ bottom lines. This year, among digital brands the greatest loyalty gains among consumers was for LG (+15 to #31). Google moved up 5 places to this year’s #1 spot and Amazon moved up 6 spots to the #2 ranking. In the smartphone category, Apple was down 6 places from the #2 rank last year to end up this year’s #7 Loyalty Leader.


The bottom line is, no matter the category, the brands that understand that real emotional connections serve as surrogates for added value have succeeded again. “And brands that have made loyalty and emotional engagement a strategic priority” noted Passikoff, “always show up high on the Loyalty Leaders list and always appear at the top of consumers’ shopping lists.”


Methodology
Brand Keys Loyalty Leaders analysis was conducted in September 2016 and includes assessments from 42,792 consumers, 18 to 65 years of age, from the nine US Census Regions, who self-selected the categories in which they are consumers and the brands for which they are customers. Seventy-five percent (75%) were interviewed by phone, 20% via face-to-face interviews (to account for cell phone-only consumers), and remaining consumers assessed categories and brands online. The 2016 Loyalty Leader assessments examined 72 categories and 635 brands.



Unlike economic use models, which rely heavily on historical data and profitability conjecture, the Brand Keys Loyalty and Engagement Model and rankings are 100% consumer-driven, and are predictive, leading-indicators of brand and corporate profitability. “The good news is that brand loyalty is understandable. The better news is, it can be quantified and predicted,” said Passikoff. “And, today, knowing what’s coming down the road from a category and competitive perspective is an extraordinarily powerful advantage that brands should'n’t really pass up.”

RITE Wins Award

Wow - so for the second year in a row that Retail Information Technologies Enterprises (RITE - Sartel, MN, Dallas, TX and Boise, ID) has won the Circle of Excellence Growth Award as part of the annual Retail Realm and Microsoft retail technology conference. As one of the largest Microsoft RMS, HQ, Dynamics AX, Retail Realm Essentials, and Retail Management Hero (RMH) Partners in the United States, RITE is committed to ensuring that customer service is not compromised by growth.

2016 Back-to-School Consumer Spending Gets a D+

Study Conducted July 29- August 12 2016 Back-to-School Consumer Spending Gets a D+ Anticipated Spending Only Up 4% in Brand Keys Survey More Than Prices Affect Back-to-School Spending: 73% of Consumers Uncertain About the Future

NEW YORK, NY August 15, 2016 – The 2016 back-to-School spending report card for households with school-age children (pre-school through 12th grade) indicates that parents do not plan to spend significantly more this year. consumers signaled only a 3.9% increase, with an anticipated average spend of $675.00 (versus $650 in 2015), according to the 22nd annual survey conducted by Brand Keys (www.brandkeys.com), the New York-based brand loyalty and emotional engagement research consultancy.

Consumers Uncertain About More Than The Economy

When asked reasons for the small increase in anticipated back-to-school spending, nearly three quarters of respondents (73%) mentioned a feeling of “uncertainty,” “anxiety,” and “unpredictability,” with only 18% mentioning “the economy.”

When pressed to explain the causes of these feelings, consumers mentioned the upcoming Presidential elections (58%), income/wealth distribution (47%), crime and violence (44%), unemployment (30%), race relations (22%) and a general feeling of insecurity related to terrorism (19%). “Apparently it’s not just consumer confidence in the economy,” noted Robert Passikoff, Brand Keys founder and president, “It’s a lot more than that.”

Anticipated Category Spend Generally Unchanged

Average anticipated spending in all major back-to-school categories – with the exception of the tech category, where “the replacement cycle has kicked in,” noted Passikoff, were generally unchanged versus last year:

Clothing: $278.00 ( + 3%)
Shoes (athletic & dress) $125.00 ( + 5%)
Supplies $ 92.00 ( + 2%)

Computers/Electronics/
Tablets/Smartphones: $180.00 (+20%)
Books/Study Aids $ 20.00 (–10%)

Parents are taking a harder look at what their children need for back-to-school, “but there’s no way to get around children’s growth spurts or the need for technological upgrades,” said Passikoff,

Methodology

The survey included assessments from 7,580 households drawn from the nine U.S. Census regions. Interviews were collected by telephone and central location intercepts (to account for the surging number of cell-phone only households) over the period July 29th through August 12th 2016.

Online is Consumers’ Shopping Default –
Department Stores are Preferred Retailers

The breakdown of ‘preferred’ retail categories versus last year’s indicates an anticipated use of all retail platforms. The biggest increases in the choice of where to buy appeared in Department Stores (+10%) and Office Supplies (+5%). “Department stores have been battling the consumer shift to online with lots of deals,” noted Passikoff.

Catalogs were down again in mentions, “but that shouldn’t surprise anyone,” said Passikoff. “Consumer purchases have shifted from print to digital and online has, of course, been growing every year and has become consumers’ shopping default mode.” Virtually every consumer interviewed (99%) indicated they were using online for back-to-school buying.

Online 99% (+ 4%)
Discount Stores: 98% ( –1%)
Department Stores: 65% (+10%)
Specialty Retailers 50% ( –5%)
Office Supply: 40% (+ 5%)
Catalogs 7% (- 13%)

This year, Brand Keys’ top 10 lists of the most popular retail brands includes Kohl’s, with Apple stores being pushed to #11. Walmart moved to the #1 spot ahead of Target (last year’s #1 retailer). Macy’s fell from #3 to #5, reflecting ongoing difficulties the retailer has had over the past year.

For etail brands, Apple.com is #3, “reflecting the shift in shopping from traditional stores to digital,” noted Passikoff. Sears.com replaced Nike.com in this year’s top 10.

The top 10 retail brands consumers indicated they intended to shop this yea:

Retail E-tail

1. Walmart Amazon.com
2. Target Walmart.com
3. CVS/Walgreen’s Apple.com
4. Best Buy Target.com
5. Macy’s Staples.com
6. TJ Maxx Macys.com
7. Kohl’s Bestbuy.com
8. Sears Gap.com
9. Footlocker Sears.com
10. Staples Overstock.com

Nearly 55% of consumers indicated they had already stockpiled necessities and supplies for the first day of school before August, up 18% over last year. Another 30% indicated they would wait for ‘Summer Sales.’ The remaining 15% are waiting until the last minute. “Retailers have spent nearly two decades teaching consumers they can get things cheaper or for better value if they wait a little longer, and when it comes to back-to-school, consumers have been fast learners,” said Passikoff.

“Value, of course, isn’t just about pricing, it’s about brand differentiation, and brand engagement,” said Passikoff. And, this year, apparently, more fundamental issues. Retail brands that can emotionally engage consumers are seen as surrogates for added-value and those will be the brands that benefit most. “Consumers not only believe that, they behave that way in the marketplace.”

“These days, providing more than just low-lower-lowest prices is a fundamental lesson all back-to-school retailers will need to cram for if they hope to pass with flying colors,” said Passikoff. “And increased same-store sales.”

Contact: Visibility

Len Stein
lens@visibilitypr.com
914 527.3708

Mother's Day 2016 Spending Up 6%, Clothing and Personal Visits Show Greatest Growth

Via Visibility Public Relations - some interesting information on spending for Mothers Day 2016: Traditional Mother’s Day Gifts Get Lionesses’ Share-of-Wallet

NEW YORK, NY April 18, 2016 - There's a saying, "a sweater is something a child puts on when a Mother feels a draft," an apt turn of phrase since clothing has increased most as a Mother's Day gift-of-choice this year. Eighty-eight percent (88%) of consumers plan to celebrate Mother's Day 2016 and clothing is this year's big winner, according to the annual Brand Keys Mother's Day survey. 

Celebrants intend to spend on average $205.00 this year, a six percent increase over 2015. Men, following a long-standing tradition, intend to spend more than women, reporting an anticipated average spend of $228. Women reported an anticipated spend of $182. 

"Once again, tradition has trumped tech," noted Robert Passikoff, president of Brand Keys Inc. (brandkeys.com), the New York-based consumer loyalty and emotional brand engagement consultancy. "Cards, meals, and flowers have become 'price-of-entry' for the holiday. But when it came to more substantial gifts, clothing showed the greatest change from last year - up 10 percent." Jewelry was up too, by seven percent. Spending on tech related gifts was generally unchanged, with only 12 percent indicating that kind of purchase.

"More-and-more, Mother's Day encompasses a broader spectrum of relationships as it becomes a more universal celebration," said Passikoff, "The holiday celebrant range includes virtually everyone: moms, wives, step-moms, female relatives and friends, divorced and single-parent households. It crosses cultural, ethnic, and religious boundaries, making it a real opportunity for retailers - an occasion nearly everyone celebrates."

MethodologyAs part of Brand Keys’ annual Customer Loyalty Engagement Index, 6,133 men and women, ages 18-65 from the nine U.S. Census regions, were asked if and how they planned to celebrate Mother’s Day, with most consumers indicating multiple gift purchases. 

What Consumers Are Buying Mom

(Percentages in parentheses indicate changes from 2015 with a margin of error of + 2%).

2016 Percent Purchasing Change from 2015
Cards 95% ( --- ) 
Brunch/Lunch/Dinner 90% (+2%)
Flowers 85% (- 1%) 
Clothing 80% (+10%) 
Jewelry 59% (+7%) 
Spa Services 52% (+2%)
Gift Cards 50% (- 2%)
Books 19% ( --- )
Housewares/Gardening
Tools 16% (+1%)
Candy 12% (-3%) 
Electronics/Smartphones 12% (+1%) 

“Preferences for shopping venues reflect this year’s preference for more traditional gifts,” said Passikoff, “And remained generally unchanged from last year, with the exception of Department Stores, which were down six percent. Catalogues were down again this year by another four percent. Discount and Specialty Stores were at the top of consumers’ list of places to shop for Mom “because consumers regard them as ideal venues for apparel and jewelry,” said Passikoff.
.

Where They Are Shopping

Discount Stores 55% (unchanged)
Specialty Stores 50% (unchanged)
Department Stores 44% (-6%)
Online Stores 30% (unchanged)
Catalog 2% (-4%)

More consumers intend to “connect” with Mom with in-person visits, “likely due to lower costs of gas and air fares,” noted Passikoff. “Phone calls and online chats remain unchanged from last year, although it’s worth noting that given the ubiquity of smartphones, Mother’s Day has become one the most popular holidays to place a call.”

Phone/mobile 65% (unchanged) 
Personal Visits 22% (+7%) 
Online 11% (+1%) 
Cards 10% (unchanged) 

“Like many major gift-buying holidays, the majority of consumers (65%) indicated they are waiting to make their purchases until the deals shake out toward end of April and the beginning of May,” noted Passikoff. 

Another saying goes, ‘a Mother always has to think twice; once for herself and once for her children.’ “That said it appears that this year most consumers aren’t thinking twice about celebrating Mother’s Day,” noted Passikoff,

Contact: VISIBILITY