In: Accounting
Finish Line is a clothes and shoe retailer with over 640 locations in malls across the United States. In late 2012, Finish Line was about to unleash its new in- store POS technology to engage more shoppers. Although Finish Line was initially criticized for the timing of the rollout, director of store applications and delivery, Rob Baugh, knew from the start it was going to be a home-run. From previous research conducted by the National Retail Federation, Finish Line knew an astounding 95 percent of retail purchases were still occurring in physical stores. Thus, an opportunity awaited retailers that could engage more customers to make more in-store purchases. Baugh knew the goal of the POS system was to provide service to the customer, when the customer needed it. Before Finish Line could make any technological improvements, it required network upgrades and additional wireless access points. Mobile receipt printers were placed throughout stores to aid sales associates performing mobile POS transactions. To leverage the opportunity at hand, Finish Line implemented a mobile POS system to aid and engage shoppers through their entire in-store shopping experience. To enable mobile payments, it upgraded its POS system to a platform from MICROS Systems and implemented a customer engagement solution from VeriFone. Their new electronic payment options included magnetic stripe and PIN-based debit/credit cards, chip- enabled smartcards, and mobile payments. The multimedia processors were high-speed, color, and supported full-motion video for additional shopper appeal. iPod Touch devices used Micros’ MyStore application and VerFone’s PAYware Mobile Enterprise software, which supported all device transaction functionality. High confidence in the success of the new system led to a 36-store, 3-month pilot program from May to August. Each store featured five mobile devices that could process a variety of business activities. Customers appreciated using the mobile POS units to interact with sales associates. The overall results of the pilot were very positive and one month later, the positive results led to a companywide roll-out, right before the crucial holiday season. Finish Line issued five devices per store and added barcode scanners to allow users to conduct price checking and inventory management processes. Transactions completed on the mobile units are sent through the retailer’s centralized system to consolidate its sales and inventory data. Finish Line’s new POS system and mobile payments acceptance has changed its in-store shopping experience. Finish Line did its research and pursued an opportunity to change instore consumers’ shopping experience and put the customer first. Thinking About the Case 1. Why do retailers want to provide customers with more product/service information when they come into a retail store? 2. How does Finish Line put the customer first? 3. Why is it important to monitor the results of newly implemented technology, even when it is previously deemed successful? 4. Would you be more inclined to shop at Finish Line or one of their competitors, and why?
Ques 1. Why do retailers want to provide customers with more
product/service information when they come into a retail
store?
Most purchases remain in a traditional physical store model even
though the most of the sales are done thorugh online model.
Customers want in-person service they can’t get online. This is
crucial to differentiating your store from the one-dimensional
online shopping experience.
The organization wanted to expand the in-store experience different
than customers have received in the past.
Retail locations that are visually attractive and appealing are a
big draw. Sensory experiences can take opposite forms.
Consumers may feel more engaged with the new information provided
and purchase more items by making the shopping experience more
personal and informative.
Customers love attention and being treated as if they are the most
important customer. When a sales rep comes over to show them a
30-second video on a product they are thinking about purchasing,
the customer will be more inclined to buy. If the customer leaves
empty-handed, the retailer loses.
A knowledgeable consumer may reduce their in-store time to purchase
a product. The additional information and service provided by
Finish Line could increase customer loyalty and, therefore, create
a lock in with the customer to patronize the retailer for the
customer experience value. Ultimately, leveraging the convenience
factor.
Ques 2. How does Finish Line put the customer first?
In search of a connected in-store experience, Further evidence of
the neglected in-store experience emerged when consumers around the
globe were asked to identify which shopping channel needed the most
improvement. This year, the top answer, was the physical store.
Close behind was the integration of store.
the survey also makes clear that pouring more money into physical
stores to fund yesterday’s customer experience solutions isn’t what
consumers want. Instead, they expect stores to meld the digital and
the physical into a cohesive whole. They want a technology-infused
in-store experience that allows them to access services via their
mobile devices before, during and after shopping at the local
brick-and-mortar outlet.
Finish Line did its research and pursued an opportunity to change
in-store consumers’ shopping experience and put the customer
first.
By researching the value of a customer’s in-store experience.
What does the customer want?
What do they find enjoyable about an in-store
experience?
What do they NOT find enjoyable about visiting the
store?
Finish Line gained additional insight on their customers by
gathering research and knowledge as such. They did not design the
new information technology system in a vacuum, but by compiling a
solid understanding of customers’ wants and needs. Thereby, linking
the new technology’s functionality directly to customer
value.
Finish Line implemented a mobile POS system to aid and engage
shoppers through their entire in-store shopping experience. Each
store featured five mobile devices that could process a variety of
business activities. Customers appreciated using the mobile POS
units to interact with sales associates.
Ques 3 Why is it important to monitor the results of newly
implemented technology even when it is previously deemed
successfully?
Evaluation and monitoring systems can be an effective way to:
1-Provide constant feedback on the extent to which the projects are
acheving their goals.
2-Identify potential problems at an early stage and propose
possible solutions.
3-Monitor the accessibility of the project to all sectors of the
target population.
4-Monitor the efficiency with which the different components of the
project are being implemented and suggest improvements.
5-Evaluate the extent to which the project is able to achieve its
general objectives.
6-Provide guidelines for the planning of future projects
7-Influence sector assistance strategy. Relevant analysis from
project and policy evaluation can highlight the outcomes of
previous interventions, and the strengths and weaknesses of their
implementation.
8-Improve project design. Use of project design tools such as the
logical framework results in systematic selection of indicators for
monitoring project performance.
Ques 4 Would you be more inclined to shop at finish line or one
of their competitors and why?
Finish Line offer the best selection of premium brands and
styles--delivering a relevant product assortment that connects with
their customers' dynamic lifestyle. This premium experience, is
driven by quality and not price.
They create a premium presentation in-store and online by telling
fresh, compelling stories about the brands, categories and styles
they carry. By creating an engaging environment, they help the
customer easily navigate through our great selection and find the
product that is right for them.