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Point-of-Sale Software

Posted on: Sunday, 26 March 2006, 03:03 CST

By Fleenor, D Gail

Software companies answer marketer's requests to bring advancements that will save and make money in a time of low margins and high competition

JUST AS LOW FUEL MARGINS AND COMPETITIVE markets have brought a myriad of changes to convenience stores and fueling sites, these same factors are affecting the design and development of point-of- sale software. Marketers are demanding more innovation in POS software to allow them more options for capturing dollars while looking for ways this same software can save money in training and theft deterrence. Companies are following requests of marketers for software enhancements that will provide clues to tracking potential revenue through reports based on store sales data.

"We are listening to retailers and designing software to improve margins and store performance," said Kirsten Paust, manager of POS Systems for Greensboro, N.C.-based Gilbarco Veeder-Root. Issues being addressed in POS advancements go directly to the bottom line. Employee theft deterrence, lessening drive-offs, easier-to-use software, requiring less training time and fewer cashier errors, are just a few of the innovations POS software companies are touting. Seamless integration of all software and hardware ranks high on marketers' wish lists since using existing systems can translate into a smaller investment when upgrading to new POS software. "Palm POS runs on any Windows PC system with sufficient system resources. Our software is hardware independent, it is not tied to the terminals we sell," Melissa Fox, retail solutions manager for Arlington, Texas-based Pinnacle Corporation, said.

Marketers continue the search for ways to draw customers from the pumps and into the store to tempt them with higher-margin items. Dresser Wayne offers software that can promote high-margin items at the gas island according to Tom Chittenden, systems product manager for the Austin, Texas-based company. "We're giving marketers tools to drive customers inside through couponing, price roll-backs at the pump and targeted specials. For example, customers can be offered free coffee in the morning with a 10-gallon purchase during a set time, on a set day." Once the customer is in the store for free coffee, they may pick up a Danish or doughnut or another high- margin impulse item. Looking at what is selling in a particular store, and what isn't, can point out opportunities to increase revenue. "Retailers want better data integrity," said Robert Randelman, senior director of business development for Clearwater, Fla.-based VeriFone. "They want to manage data better in an effort to lower inventory costs and sell items more successfully and profitably."

The following are capsules of the latest advancements and enhancements in POS software as cited by four of the market leaders. These capsules are not meant to be complete descriptions of manufacturers' products. For more information, please visit company Web sites.

DRESSER WAYNE

Easier lottery ticket sales and enhanced combo discounting are the latest features of Nucleus, Dresser Wayne's POS software. An interface to the GTech lottery server allows lottery tickets to be processed and sold through Nucleus without cashiers leaving the point of sale. Also new is enhanced combo discounting to allow retailers to give discounts to customers based on qualified purchases. "A customer can purchase a car wash and get so many cents off at the dispenser - the price rolls back at the pump. Also, with this new Nucleus enhancement, marketers can sell any item, do couponing or do time-of-day promotions, all at the dispenser. Nucleus offers a complete solution from pumps to the POS," Chittenden said.

Dresser Wayne's Nucleus

Nucleus is based on Windows XP and is an open system that uses "off the shelf" products and PC components. "We don't use proprietary components for Nucleus. This makes it easier to manage and service locations," Chittenden said. The POS software is constantly updated with the latest features, which are delivered remotely via the network connection and lessens downtime.

Push technology, the process of "pushing" certain items to category managers without the need to search the price book, is entering the POS software arena. Nucleus can handle "push technology," according to Chittenden, through its suggested selling configuration. The cashier would be prompted by the POS to mention select items to customers who are purchasing flagged items. This feature will automate specials and promote cashier interaction with customers. Wayne is now focused more on "Mom and Pop's," than in the past, Chittenden said. "With Nucleus, we offer two hardware configurations. The first is less expensive and is a counter-top solution. Just plug it in, flip the switch and you're up and running. It offers the same features and benefits such as touch screens, but everything is controlled from the point of sale. We have made Nucleus more robust in functionality for smaller retailers." The second configuration is server based with cash registers up front and a server in the back office where the manager does promotions. Wayne touts its touch screen technology as the "fastest and easiest" to use stating in specs that "the graphical user interface will 1 have a new employee up and running in no time."

GILBARCO VEEDER-ROOT

Theft deterrence and detection is one of the latest enhancements to Gilbarco Veeder-Root's point of sale software, Passport. "We've spent a lot of time on employee theft control," Paust said. "We have reports that can track employee behavior such as a cashier statistics report. It gives the manager flexibility in managing cashiers and also allows for cashier rewards for good performance, such as an increased level of responsibility." Passport now allows "blind balancing" of tills; cashiers enter till totals without knowing the calculated totals. This feature frees the register by allowing money countdown in the back room.

Passport is based on Microsoft Windows XP technology with an ergonomie touch screen that is easy for cashiers to operate. "The system is so intuitive that cashiers can start without training. Our c-store POS was built on a grocery store system, which allows more features including combo pricing, grocery-store-type pricing and theft control," Paust said. Gilbarco Veeder-Root's Passport POS does not support complete push technology on its own but offers this option through its partnership with PDI on back-office software. However, Paust said the Passport system can do item level category management if there's no back office. Promotions can be set and/or combo pricing put in place. Passport also provides access to a simple report on sales with a comparison to historical sales. The system supports any back-office software.

Passport features have been designed to alter customer- purchasing behavior, according to Paust. For example, as fuel prices rise, premium sales typically dip. Passport allows the marketer to give a discount if the customer buys premium or maybe a car wash, both high-margin items. The system promotes the use of card-type payments also. Branded retailers can encourage use of a branded card by setting a discount for cents off per gallon with card use.

Pinnacle's Palm POS

System problems and updates can be solved remotely with no wait or dispatch costs to the site with Passport 1000. Through the use of a dedicated telephone line at the site, technicians can dial in and fix problems. Gilbarco Veeder-Root gears systems to customer needs, ranging from a basic system to more complex. "We have removed the need for a CPU or server in the back room. One register at checkout is both a cashier and manager station, secured by password. The manager can do item level analysis from this terminal, which helps keep management out front with customers," Paust said.

Gilbarco Veeder-Root's Passport

PINNACLE

Pump authorization, loyalty program capabilities and an updated graphical user interface are the latest enhancements of Palm POS from Arlington, Texas-based Pinnacle Corporation. "Our pump authorization functionality, LoyalPass, is designed to combat drive- offs, a huge problem for marketers," Fox said. "With this theft- deterrent technology, a card such as a loyalty card is tied to authorization at the pump to pay inside after pumping. For example, using Loyalink, our loyalty program, the marketer would have all customer information needed if a drive-off occurred because a driver's license is needed to apply for the loyalty card," Fox said. At the time of this writing, Pinnacle was beta testing its loyalty program. The server-based system allows loyalty awards to be delivered in real time and supports other payment network loyalty systems.

Pinnacle has changed its graphical user interface to a "less windows looking" format, which is more up to date, according to Fox. The company received PCAT certification in October 2005, for its XML journal transaction document and will be supporting this in its latest version of Palm POS. This will enable different security camera DVR companies to interface with the system and make it easier for these companies to get transaction data from the POS.

Pinnacle has a totally integrated solution from POS through accounting, but each piece such as P\OS is not dependent upon another piece. According to Fox, with this open-system architecture, Pinnacle's system can interface with other system software such as PDI's back-office software.

Pinnacle does have push technology in place, according to Fox. A price book application sends information to the POS at the store level to set up promotions such as items that should be sold with other items. The system can also produce over 50 different sales analysis reports, which can be altered according to needs.

VERIFONE

Recent advancements in VeriFone's Sapphire POS software include energy communications awareness notifications such as Amber or weather alerts directly to the point of sale, integrated loyalty and new electronic sign interfaces. Also new is a common network interface, which can be used regardless of POS, allowing different devices from different manufacturers to be used together. VeriFone continues to use mass customization so that retailers can configure systems for their specific needs, according to Randelman. VeriFone's Sapphire Standard XML can be "used by anyone in any situation" and includes the ability, with separate data sets, to measure specials, store traffic and maintain security by only granting access to specific areas as needed.

VeriFone uses a data set common to all applications. "The average VeriFone user is multi-branded in equipment so VeriFone's common data interface works across virtually all applications," Randelman said. Because VeriFone's POS works on any brand and any pump, a marketer could buy some locations and use the same POS to save money initially rather than be forced to immediately change out dispensers, according to Randelman.

When asked if push technology is available from VeriFone, Randelman said data can be sent to stores for decisions through a bidirectional link, and that the Sapphire and Topaz systems have the ability to send forms or lists to store level, which can be used for listings of promotional products or current specials. VeriFone has a common data interface with more than 30 back-office software companies for category management promotions. Sapphire also has the ability to do combos.

"We focus on having the best collection of peripherals and vendor partners," Randelman said. "VeriFone is getting out of reactive management and becoming more involved in proactive management in regard to data and working closely with our partners." On the horizon for VeriFone: the ability to have a "richer experience" for customers inside the store at the PIN pad or a kiosk by capturing the attention of customers to sell things other than gas. Also, upcoming, Randelman said, is the second wave of RFID, like Mobil Speedpass. He thinks MasterCard, Visa and American Express will join in RFID and these PIN pad features will be supported in Sapphire POS.

Copyright Adams/Hunter Publishing, Inc. Mar 2006

Source: NPN, National Petroleum News

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