step up the in-person experience by forrester

A Forrester Consulting

Thought Leadership Paper

Commissioned By Revel Systems

April 2016

Step Up The In-PersonExperienceAdvanced POS Empowers EmployeesTo Delight Customers And OptimizeRetail And Restaurant Operations

Table Of Contents

Executive Summary ...........................................................................................1

In-Person Digital Experience Is A Hallmark Of The Age Of The Customer 2

Insufficient Technologies Don’t Empower Employees To ProvideExcellent Experiences .......................................................................................3

Subpar Integrations Limit Point of Sale’s Potential As A System OfEngagement ........................................................................................................4

Advanced POS Is The Heart Of In-Person Digital Engagement...................7

Tablet-Based Systems Are A Compelling Option For Advanced POSSystems ...............................................................................................................8

Key Recommendations ...................................................................................11

Appendix A: Methodology ..............................................................................12

Appendix B: Supplemental Material ..............................................................12

Appendix C: Demographics/Data...................................................................13

Appendix D: References..................................................................................13

ABOUT FORRESTER CONSULTINGForrester Consulting provides independent and objective research-basedconsulting to help leaders succeed in their organizations. Ranging in scope from ashort strategy session to custom projects, Forrester’s Consulting services connectyou directly with research analysts who apply expert insight to your specificbusiness challenges. For more information, visit forrester.com/consulting.

© 2016, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited.Information is based on best available resources. Opinions reflect judgment at the time and are subject tochange. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impactare trademarks of Forrester Research, Inc. All other trademarks are the property of their respectivecompanies. For additional information, go to www.forrester.com. [1-VZRJQX]

1

Executive Summary

Your customers have changed. They are armed with moreoptions than ever before and attuned to your ability to meettheir needs anytime, anywhere, and on their terms. It’snever been harder to please retail and restaurantcustomers, and the consequences of not doing so havenever been more severe. What does it take to meet today’scustomer expectations? And how can retailers andrestauranteurs empower their employees to do so?

In December 2015, Revel Systems commissioned ForresterConsulting to evaluate the current state of in-person digitalexperiences at retailers and restaurants, what challengesthese businesses face delivering great experiences, andwhat technological gaps prevent them from leveraging latentdata sources to delight customers and improve operations.Forrester developed a hypothesis asserting that the use ofan advanced point-of-service (POS) system — an evolutionof the capabilities of traditional point-of-sale systems, oftenmanifested in newer form factors and deployment models— that mimics systems of insight and systems ofengagement will improve customer experience, empoweremployees, and increase the efficiency and performance ofoperations.

In conducting 150 in-depth surveys of both in-store and in-restaurant digital experience decision-makers at firms withat least 25 locations in the United States, Forrester foundthat businesses with tablet-based POS implementations arebetter able to serve customers, empower employees,optimize operations, and leverage new data sources.

KEY FINDINGS

Forrester’s study yielded six key findings:

› Digital engagement must be coupled with empoweredemployees to deliver excellent customer experiences.Most survey respondents cited the importance of infusingdigital capabilities into their physical locations in order toimprove store or restaurant operations and customerexperiences, and most of these respondents believe afailure to adapt to new customer expectations wouldthreaten their business’ viability. When we askedrespondents which factors are most important forproviding excellent experiences, we found that digitalcustomer engagement, up-to-date digital technologies,and knowledgeable and helpful employees rounded outthe top three.

› Businesses struggle to provide excellent in-store/in-restaurant experiences. More than half are challengedto overcome roadblocks preventing businesses fromdelivering excellent experiences. Only 50% of retailassociates and 44% or restaurant employees have agiven customer engagement capability we asked about.

› Insufficient POS integrations plague retail andrestaurant chains. Only 45% of retailers and 44% ofrestaurants, on average, have a given back-end systemintegrated with their POS — severely restricting thefunctionality that frontline employees need to servecustomers and optimize operations. Most respondentscited such integrations as either too costly or complex tobother with.

› Businesses seek empowering, integrable advancedPOS systems. Reliable, easy-to-use POS systems arestandard requirements, but firms also require thatsystems be integrable and have a clear value proposition.Restaurants ranked integration with outside systems asthe No. 1 quality for an advanced POS system, while bothrestaurants and retailers included a sound integrationstrategy in their top five qualities. Retailers are particularlybullish on the need to educate customers on the value ofadvanced POS and interaction with empoweredemployees, citing it as the No. 2 most important quality.

› Advanced, tablet-based POS systems appeal to in-person digital experience decision-makers. Eighty-seven percent of respondents said they are drawn totablet-based POS systems so that they can empoweremployees to better serve customers, and 85% areenticed by their ability to do so at a lower price point thanwith traditional systems. The opportunities to collect newor expanded insights on customers, operations, andproducts also have a strong pull, having been cited by86%, 84%, and 83% of respondents, respectively.

› Retailers and restaurants alike see significantimprovement from tablet-based POS strategies. Onaverage, 89% of retail respondents with a tablet-basedPOS system reported at least moderate improvements tometrics, including upsell/cross-sell, conversion rates,customer satisfaction, and omnichannel capabilities.Similarly, an average of 80% of restaurant respondentswith a tablet-based POS system saw at least moderateimprovement to metrics, such as improved synergybetween the back and front ends of the house, increasedaverage transaction value, and an increase in the amountof tips given to employees.

2

In-Person Digital Experience Is AHallmark Of The Age Of TheCustomer

Today’s connected consumers, armed with moreinformation than ever before and accustomed to instantgratification, have fundamentally flipped the power dynamicbetween themselves and the businesses they patronize. Forbusinesses to win, serve, and retain customers,competently and reliably providing quality goods is nowtable stakes. Businesses must prioritize delivering excellentexperiences that set them apart from the competition andmeet the higher expectations of customers. The gravity ofthis imperative cannot be understated: 81% of the decision-makers we surveyed believe that a failure to adequatelyadapt to new customer expectations would threaten theircompanies’ very existence (see Figure 1).

Restaurant and retail chains are perhaps most affected bythe rise of digitally savvy consumers. How has this changehad an impact on how these companies do business, andwhat are they concentrating on as they look to the future?

Our survey revealed that:

› Digital experience isn’t complementary to customerexperience — it’s central. When asked what qualitiesare most important for in-store or in-restaurant customerexperience, the greatest number of the decision-makerswe surveyed cited the ability to engage customersthrough digital channels and up-to-date technologies, anda whopping 93% agreed that it is important to infusedigital capabilities into physical locations to improvecustomer experience. Eighty-nine percent went a stepfurther by saying their digital channels are now viewed asextensions of their physical locations, rather than asseparate entities. As a result, 90% are working to createmore digital experiences in their stores and restaurants.

› Digital technologies and savvy, empoweredemployees go hand in hand to deliver great customerexperiences. While digital imperatives constitute the No.1 and No. 2 most important qualities for in-personexperiences, knowledgeable and helpful employees are aclose No. 3. The majority (65%) of retailers we surveyedagreed that their associates are now expected to beexperts on all products and items, regardless of whether

FIGURE 1Technology Has Fundamentally Altered How Retailers And Restauranteurs Serve Their Customers And RunTheir Businesses

Base: 150 in-store/in-restaurant digital experience decision-makers at firms with 25-plus locations in the USSource: A commissioned study conducted by Forrester Consulting on behalf of Revel Systems, February 2016

57%

54%

54%

56%

52%

42%

37%

39%

39%

34%

37%

39%

It is important to infuse digital capabilities into physicallocations to improve store operations

It is important to infuse digital capabilities into physicallocations to improve customer experience

The adoption of smartphones has fundamentally raisedcustomer expectations of how we run our business

We are creating more digital experiences in-store/in-restaurantdue to the raised expectations of digitally enabled customers

Our company’s digital channels are viewed as an extensionof our physical locations, rather than as separate entities

A failure to adequately adapt to new customer expectationswould threaten our company’s viability

“Please indicate your level agreement with the following statements regarding shifting customer expectations.”(Answers of agree and strongly agree)

Strongly agree Agree

3

or not the product is sold in-store or online. Most of theseretailers described the role of associates as havingevolved to be broader in scope (63%) and more advisoryand “on-demand” (52%) in nature. Accordingly, 53% ofretailers said that associates need increasingly robustinsights in order to effectively do their jobs. It’s nosurprise, then, that 94% of retailers see in-store digitalcapabilities as important not only for customer experiencebut also for store operations. This sentiment isn’t justlimited to retailers, however: Even more restauranteurs —96% — believe digital capabilities are needed to improverestaurant operations.

› Point of sale is core to digital experience initiatives.Many established and emerging technologies can play apart in orchestrating excellent in-store and in-restaurantexperiences, but only a certain few take starring roles.According to Forrester data, retailers ranked point-of-salesystems as tied with omnichannel fulfillment for the No. 1planned digital technology investment for 2016, with theirmobile point-of-sale counterparts a close.1

Insufficient Technologies Don’tEmpower Employees To ProvideExcellent Experiences

Delivering on new imperatives to engage and delightcustomers through digital means — and empoweringemployees to do so — is easier said than done. Thedecision-makers we surveyed cited plenty of struggles thatkeep them from meeting customer expectations, with ourstudy indicating that:

› Without the right technology, restaurants andretailers struggle to provide excellent customerexperiences. Fifty-nine percent of our surveyrespondents admitted that lacking the right technology toexecute on their vision is a roadblock to providingexcellent in-store or in-restaurant experiences (see Figure3). This deficiency manifests itself throughembarrassments such as an inability to providepersonalization (63%), difficulty ensuring the security ofpayments (62%), inadequate inventory across locations(59%), and difficulty bridging channels (57%).

› A lack of modern customer engagement capabilitiesholds employees back. Sixty-four percent of retailers wesurveyed conceded difficulty in enabling their associateswith the right capabilities to optimize customerexperience. For retailers, that translates into an average

of only 50% of customer-facing associates having in placeone of the 12 capabilities we asked about (see Figure 4).For example, one-third of retail associates can’t checkinventory at other locations, and half or fewer haveaccess to customer purchase history, the ability to provideitem recommendations, or the ability to providepersonalized offers or discounts that can boost revenue.

For restaurants, the picture is even grimmer. Fifty-fourpercent of restaurateurs we surveyed said they havedifficulty enabling their employees, and an average of only43% of customer-facing employees have a givencapability we asked about. In fact, not a single capabilitywe asked about is in place at a majority of restaurants.(see Figure 5).

FIGURE 2Digital Engagement Via Up-To-Date TechnologyAnd Knowledgeable Employees Is Essential

Base: 150 in-store/in-restaurant digital experience decision-makers atfirms with 25-plus locations in the US(multiple responses accepted)Source: A commissioned study conducted by Forrester Consulting onbehalf of Revel Systems, February 2016

44%

41%

38%

31%

29%

26%

26%

23%

22%

19%

Ability to engage customers throughdigital channels to fulfill needs

Up-to-date in-storetechnologies

Knowledgeable and helpfulassociates/employees

Assurances of security

The ability to find or orderitems quickly

Competitive prices

Rapid checkout

The store or restaurantis engaging

Availability of items

Seamless access toloyalty programs

“What qualities are most important for an excellentin-store or in-restaurant customer experience?”

4

Subpar Integrations Limit Point ofSale’s Potential As A System OfEngagementLegacy point-of-sale systems, having traditionally servedtransactional and system-of-record purposes, are now beingseen by businesses as systems of engagement at the heartof how employees interact with discerning customers.Forrester recognizes this shift by calling such systemspoints of service (POS), a term that better recognizes theirenhanced purpose.

But firms can’t just repurpose legacy systems to fulfill thesenew duties. Instead, such systems must have significantlyenhanced functionality that provides a truly holistic view ofthe customer, as well as a myriad of back-end systems thatplay a role in serving him or her. Our survey data suggeststhat most retailers and restaurants haven’t embraced suchan approach:

› Insufficient POS integrations fail to empoweremployees to become the shepherds of in-store andin-restaurant experiences. The POS is the central pieceof technology for retail and restaurant employees. So ifemployees require more insight to fulfill their evolvedduties, it follows that seamless integrations between aPOS and other data-rich systems should be nothing shortof standard. According to our survey data, however, theseintegrations remain novelties at most retailers andrestaurants. An average of only 45% of retailers and 44%of restaurants have a given system integrated with theirPOS (see Figure 6). The result is that, for manyemployees, critical data on customers, products, loyaltyprograms, and web content, among other types, is absenteven when it can play a critical role in meeting acustomer’s expectations.

FIGURE 3A Variety Of Technical Challenges Prevent Retailers and Restaurateurs From Providing The ExperiencesToday’s Customers Expect


66%

64%

68%

64%

66%

59%

61%

58%

56%

57%

58%

56%

58%

50%

54%

46%

60%

52%

56%

56%

46%

42%

Inability to provide personalization

Challenges with ensuring the security of payments

Challenges with properly training associates

Difficulty enabling associates with the right capabilities

Lack of the right technology to execute on our vision

Difficulty maintaining adequate inventory across locations

Inability to keep up with capabilities of our competitors

Difficulty bridging channels (e.g., online, mobile)

We don’t have the right staff

Customer privacy issues

We don’t have the right processes in place

“To what extent do the following prevent you from providing excellent in-store/in-restaurant experiences?”(Answers of a lot or moderately, sorted by mean value)

RetailRestaurants

5

› POS integrations are seen as too costly or complex tobother with. For the majority of respondents, a lack ofPOS integration with complementary back-end systemsisn’t due to a belief that such connections aren’t valuable.Rather, an average of 54% of respondents with nointegration between their POS and one of 16 othersystems we asked about said it was due to such anintegration being either too costly or too technicallycomplex (see Figure 7). Still, significant shares ofdecision-makers without integration failed to see how itwould help their business, including 24% who don’t seethe value of POS/task management integration and 29%who said the same for a link between POS and webcontent management. One-fifth of these respondentsdon’t even see the value of POS integration with theirinventory management system.

FIGURE 4Only Half Of Retail Chains Have A Given DigitalExperience Capability, On Average

Base: 100 in-store digital experience decision-makers at firms with 25-plus locations in the USSource: A commissioned study conducted by Forrester Consulting onbehalf of Revel Systems, February 2016

39%

45%

45%

47%

48%

48%

50%

50%

51%

52%

59%

66%

Clienteling

Access to customerprofile information

Ability to ship to customer(i.e., “endless aisle”)

Ability to cull long lines awayfrom the counter

Ability to provide personalizeddiscounts/offers

Access to customercontact information

Ability to provide itemrecommendations

Access to customerpurchase history

Ability to fulfill orders in-aisle

Access to product informationin-aisle

Ability to check inventory atother locations

Ability to check store inventory

“Which of the following capabilities do customer-facing associates at your stores currently have?”

FIGURE 5Fewer Than Half Of Restaurant Chains Have AnyGiven Digital Experience Capability

Base: 50 in-restaurant digital experience decision-makers at firms with25-plus locations in the USSource: A commissioned study conducted by Forrester Consulting onbehalf of Revel Systems, February 2016

32%

36%

38%

40%

42%

44%

44%

44%

44%

44%

46%

46%

Employee access to customerprofile information

Ability to proactively cull lines awayfrom the counter

Employee access to customerpurchase history

Web order-ahead functionality

Ingredient-level inventory information

Ability to reserve tables frommobile device

Ability to reserve tables from PC/laptop

Visibility of how long a table has beenin use by a party

Ability to customize/manage tablelayout on single screen

Ability to provide item recommendations

Mobile order-ahead functionality

Ability to fulfill orders tableside/away from counter

“Which of the following capabilities do customer-facingemployees at your restaurants currently have?”

6

FIGURE 6Most Retail And Restaurant Chains Don’t Have A Given Back-End Technology Integrated With Their POS


54%

56%

53%

54%

51%

45%

51%

42%

36%

37%

38%

43%

41%

32%

40%

39%

56%

40%

46%

44%

50%

38%

52%

50%

48%

34%

38%

54%

34%

36%

Inventory management

Customer relationship management (CRM)

Loyalty program

Order management system (OMS)

Analytics

Mobile application integration

Enterprise resource planning (ERP)

Product information management (PIM)

Accounting

Task management

eCommerce

Campaign management

Product recommendation engine

Payroll

Human resources/employee management

Web content management

“Which of the following third-party systems are integrated into your POS?”(Sorted by mean rate of integration)

RetailRestaurants

FIGURE 7Most Retailers And Restauranteurs Believe POS Integration Is Too Costly Or Complex

Base: 74-93 in-store digital experience decision-makers at firms with 25-plus locations in the USSource: A commissioned study conducted by Forrester Consulting on behalf of Revel Systems, February 2016

26%

28%18%

20%

8%

“Which of the following prevent you from integrating a third-party system with your point of service?”(Average of responses for individual technologies)

Integration would be too costlyIntegration would be too technically complexWe don’t know if integration is possibleWe don’t see the value of integrationDon’t know

7

Advanced POS Is The Heart Of In-Person Digital Engagement

As our data has shown, there is a disconnect between whatretailers and restauranteurs know to be essential to winning,serving, and retaining customers versus the tools they havein place to do so. Indeed, many of these businesses saddletheir employees with the deficient and antiquatedcompetencies of legacy point-of-sale systems, rather thanproviding the advanced point-of-service systems today’scustomer expectations and competitive landscapes demandas table stakes. What constitutes advanced POS?According to our survey respondents, such systems are:

› Unwaveringly reliable. If a power outage occurs, are allopen restaurant tabs wiped clean? If a card processor’sdomain name server fails, is the customer attempting tobuy a sweater told she can’t do so? Customers can’t bebothered with technical difficulties that stand in the way oftheir objectives with your business. It follows logically thatexcellent system reliability is considered essential for anadvanced POS, with 31% of our overall survey sampleranking it in their top three considerations for successfuladvanced POS (see Figure 8).

› Integrable within broader technology stacks.Restauranteurs were especially bullish when ranking thetop considerations for a successful POS. They ranked the

FIGURE 8Advanced POS Must Be Reliable, Strategically Integrated, And Well Socialized With Employees AndCustomers


11%

9%

15%

4%

9%

9%

11%

7%

13%

10%

11%

9%

6%

11%

7%

Excellent system reliability

Educating customers on advanced POS and enabled associates

Ease of useDevelopment of a sound strategic plan around integration

of other technologiesIntegration of outside systems

All respondents

Rank 1 Rank 2 Rank 3



10%

11%

3%

17%

7%

9%

12%

17%

4%

11%

13%

9%

10%

7%

9%


Educating customers on advanced POS and enabled associatesDevelopment of a sound strategic plan around integration

of other technologiesEase of use

Having the right technical support/maintenance in place

Retail

14%

12%

14%

8%

6%

10%

14%

8%

8%

6%

8%

4%

6%

10%

12%

Integration of outside systems

Ease of use


The ability to maintain devices remotelyDevelopment of a sound strategic plan around integration

of other technologies

Restaurants

"What are the most important factors for successful use of an advanced POS system?"(Top five responses)

8

integration of outside systems as the most importantfactor, measured by both total placements in the top three(32%) and in rankings as No. 1 (14%). Restauranteursand retailers alike were in agreement on the importanceof a sound strategic plan for those integrations(mentioned by 28% of all respondents).

› Easy and empowering to use. If a shiny new devicedoesn’t provide immediate value to employees, or if it’stoo cumbersome to use in the midst of all their otherduties, it will only collect dust in the drawer by the register.Accordingly, our respondents ranked ease of use as anoverwhelmingly important quality for advanced POS, with28% of retailers putting it in their top three considerations(including 17% ranking it as No. 1) and restaurateursclocking it in at No. 2, as measured by total placements inthe top three (30%).

Ease of use is essential, but it’s not the entire puzzle.Survey respondents also told us it is critical to educatecustomers and enabled employees on the value ofengaging with new POS systems. Overall, education wasranked as the No. 2 consideration for successfuladvanced POS use (29%), and our retailer sample waseven more bullish, with 32% putting it in their top three.

Tablet-Based Systems Are ACompelling Option For AdvancedPOS Systems

The results of this study clearly indicate that advanced POSmust be easy and empowering to use in order to beeffective. That means it must be intuitive to not just theemployee but also the customer. Thus, form factor matters:Advanced POS functionality must be leveraged on the flyand on the customer’s terms (e.g., in-aisle or tableside).Tablet-based systems, therefore, offer a familiar mediumthat is able to delight customers, improve operations, andproject a modern image. We asked a series of questions torespondents who either currently use tablet-based POSsystems or are planning to implement them, and we foundthat:

› Tablet-based POS improves store/restaurantoperations at a lower price point. Eighty-seven percentof current or planned users of tablet-based POS systemstold us their decision was at least moderately influencedby the opportunity to empower their employees, and 85%were driven by their lower capital cost compared withtraditional systems. But implementations aren’t just drivenby price and customer expectations. At least 83% ofthese respondents told us their decision was also due to

FIGURE 9Retailers And Restaurateurs Turn To Tablet-Based POS To Enable Employees To Serve Customers AndCollect Insights At A Lower Price Point


50%

36%

50%

42%

39%

40%

43%

37%

50%

35%

43%

45%

44%

40%

Enablement of employees to better serve customers

Opportunity to collect new or expanded customer insights

Lower capital cost than traditional POS systems

Customers expect it

Opportunity to differentiate from our competitors

Opportunity to collect new or expanded operational insights

Opportunity to collect new or expanded product insights

“To what extent have the following factors promoted your company’s current or plannedtablet point-of-service strategy?”

(Top seven answers of major or moderate factor)

Major factor Moderate factor

9

an enhanced ability to collect and apply new insights onproducts, operations, and customers that driveefficiencies and revenue (see Figure 9).

› Businesses can leverage rich POS data to improvestrategy and operations. Particularly when integratedwith back-end business technologies such as customerrelationship management (CRM) and labor managementsystems, modern POS systems are a hub of valuablestore operations and customer engagement insights. Thevast majority of our survey respondents recognize thiscritical role of their POS, with 86%, 84%, and 83% tellingus that the opportunity to collect new or expanded insightson customers, operations, and products, respectively, hadat least moderate influence on their decisions toimplement their systems.

› Retailers see tangible improvements to inventory,sales, and omnichannel metrics. Retailers with currenttablet-based POS implementations see notable impact toemployee management (93%) and customer satisfaction(85%). But these firms also see significant improvementto the bottom line through boosts in upsell/cross-sellconversion rates (92%), all-important omnichannelcapabilities (89%), and average order value (87%),among other factors (see Figure 10).

› Restaurants see marked improvement to the frontand back ends of the house. A strong majority ofrestaurants with tablet-based POS implementationscredited their systems with improved employeesatisfaction (85%) and customer satisfaction (82%).These businesses also reported improvements to not justback-of-the-house operations (80%) and front-of-the-house operations (78%), but also the synergy betweenthe two (84%) (see Figure 11).

FIGURE 10Retail Tablet-Based POS Users Report ImprovedSales, Employee, Customer, And OperationalMetrics

Base: 82 in-store digital experience decision-makers at firms with 25-plus locations in the USSource: A commissioned study conducted by Forrester Consulting onbehalf of Revel Systems, February 2016

56%

40%

41%

45%

43%

43%

46%

37%

52%

48%

43%

44%

44%

39%

Improved employeemanagement

Increased upsell/cross-sellconversion rates

Improved omnichannelcapabiities

Improved inventory tracking

Increased conversion rates

Increased average order value

Improved customer satisfaction

“To what extent has tablet-based technology impactedthe following at your retail locations?”(Answers of major or moderate impact)

Major impact Moderate impact

FIGURE 11Restaurant Tablet-Based POS Users ReportImproved Employee, Customer, And OperationalMetrics

Base: 38 in-restaurant digital experience decision-makers at firmswith 25-plus locations in the USSource: A commissioned study conducted by Forrester Consulting onbehalf of Revel Systems, February 2016

Major impact Moderate impact

52%

30%

54%

39%

30%

43%

30%

33%

54%

28%

41%

48%

35%

41%

Improved employee satisfaction

Improved synergy between thefront and back of the house

Improved customer satisfaction

Improved back-of-the-houseoperaitons

Improved front-of-the-houseoperations

Increased averagetransaction value

Increased amount of tips givento employees

“To what extent has tablet-based technologyimpacted the following at your restaurants?”

(Answers of major or moderate impact)

10

CLOUD IS THE GO-TO DEPLOYMENT MODEL FOR POS

Businesses of every size and industry have turned to cloud-hosted solutions for a variety of business applications andinfrastructure components for several years now. Oursurvey shows in no uncertain terms that POS deploymentsare not immune to this trend. In fact, 56% of respondentstold us they currently host their POS in the cloud, with anadditional 37% planning to do so. These respondents toldus they are compelled to host these systems in the cloudbecause of their potential to improve performance andreliability, unload responsibility for maintenance, and reducecosts (see Figure 12).

FIGURE 12Cloud POS Deployments Are Default For Restaurant And Retail Chains

Base: 139 in-store/in-restaurant digital experience decision-makers at firms with 25-plus locations in the US(percentages may not total 100 because of rounding)Source: A commissioned study conducted by Forrester Consulting on behalf of Revel Systems, February 2016

56%37%

3% 5%

“What are your plans to host your POS data/back-end system in the cloud?”

We already do thisWe are planning to do thisWe are interested, but have no plansWe are not interested

47%

50%

47%

50%

46%

37%

37%

41%

40%

45%

Cost savings

Increased agility/adaptability

Reduced maintenanceresponsibility

Performance improvements

Improved reliability

“You indicated that you either currently host or planto host your POS in the cloud. To what extent hasyour decision been influenced by the following?”

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Key Recommendations

Forrester’s in-depth study of retail and restaurant digital experience decision-makers yielded several importantrecommendations:

› Pivot your POS from being a system of record to a system of engagement. Technology must go beyondrecordkeeping and must focus on customer engagement and employee enablement. This requires the C-suite toembrace digital transformation in their stores and restaurants and unlock new technology such as advanced POSto be the hub of customer engagement and associate enablement.

› Focus on the employee for a successful adoption. Technology investment will not be maximized if the role ofthe employee is not taken into consideration. Ensure that teams and individuals are properly trained on how toget the most out of new tools, and highlight the ways in which these tools will benefit their day-to-day roles.

› Step up to a new level of testing and optimization. Cash registers have been used in stores and restaurantsfor decades to track orders and inventory. Only recently has the pivot to systems of engagement and the birth ofa more advanced POS begun to take hold. It’s unlikely that organizations will know exactly how to deploy andoperate this new tech out of the box. An iterative, data-driven approach to deploying and optimizing advancedPOS technology is essential.

› Integrate with key enterprise applications. You cannot engage with customers if you don’t know anythingabout them. You cannot enable associates to sell beyond the aisle if you do not have inventory visibility across allstores, warehouses, and drop-ship partners. These integrations are no longer a “nice to have”— they are vital inmeeting the needs of customers in-aisle or at the table.

› Formulate a strategy to leverage POS data insights. An advanced point-of-service system is a treasure troveof data on your customers, products, and operations that, when turned into insights, can inform on ways to betterserve discerning customers and improve efficiencies. This rich data can also be combined with enterprise datafrom CRM, labor, and merchandising systems to create a holistic view of performance. To leverage this data tocreate actionable insights, you should first identify and prioritize your customer, product, and operations painpoints. Once you’ve done that, identify which data can provide guidance on where, when, and how to improveupon those shortcomings. Don’t be afraid to experiment, and ensure that you continuously measure the results ofyour efforts.

› Consider a cloud-based approach. Cloud-based store systems are no longer the future; they are firmlyestablished as go-to deployments. It’s no longer necessary to have a standalone POS that only interacts with aserver in the store or restaurant — you must ensure speed, scalability, and service while minimizing the time andcost spend on maintenance. Future store tech deployments will be in the cloud and working in real time, andretailers and restaurants need to prepare for this by ensuring the right infrastructure is in place to operate thesenew systems.

12

Appendix A: Methodology

In this study, Forrester conducted an online survey of 150 decision-makers for digital experience at retail and restaurantchains with at least 25 physical locations in the United States. One hundred respondents were from retailers, and 50respondents were from restaurants. The objective of the research was to evaluate where in-person (in-store or in-restaurant)digital experience falls on firms’ priority lists, what these firms are doing from a technological standpoint to provide excellentexperiences and what challenges they face in doing so, and how new form factors and capabilities of point-of-servicesystems fit into this dynamic. Questions provided to the participants asked what factors they need to provide excellent in-person experiences, what capabilities retailers and restaurateurs have to serve customers and improve operations, and whattechnologies they rely on or plan to implement. Respondents were offered small incentives, determined by their surveypanels, as a thank you for time spent on the survey. The study began in December 2015 and was completed in February2016.

Appendix B: Supplemental Material

RELATED FORRESTER RESEARCH

“How To Transform Your Retail Store,” Forrester Research, Inc., October 29, 2015

“Predictions 2016: The Digital Store Engagement Surprise,” Forrester Research, Inc., November 10, 2015

“The Business Case For mPOS Is Associate Enablement,” Forrester Research, Inc., April 23, 2015

“The Future Of The Digital Store,” Forrester Research, Inc., July 21, 2015

13

Appendix C: Demographics/Data

Appendix D: References1 Source: Forrester/Internet Retailer Q3 2015 Commerce Technology Trends Online Survey, Forrester Research, Inc.

FIGURE 13Respondent Profile


Retail67%

Restaurants33%

Industry

15%

35%

27%

23%

25 to 50

50 to 100

100 to 150

150 or more

Number of physical, customer-facing locations

10%

17%

37%

35%

C-level executive

Vice president

Director

Manager

Seniority

55%

31%

9%

5%

IT

Operations

Marketing

eBusiness/omnichannel

Department