Innovative Retail Technologies

SEP-OCT 2016

Innovative Retail Technologies (formerly Integrated Solutions For Retailers) is the premier source for innovative yet pragmatic technology solutions in the retail industry.

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of CEOs and 65 percent of CIOs said yes. That's a pretty confident response from a cohort of executives who don't place a high priority on championing collaboration between these disciplines. For their part, 85 percent of LP/AP directors recognized the importance of a close working relationship with merchandisers and marketers. In the spirit of collaboration — and to test the long-held premise posed by vendors of video surveillance solutions — we asked our audience what shared value their video surveillance solutions were bringing to the organization. Thirty-nine percent of CEOs said their video surveillance infrastructures were contributing to labor allocation decisions. Yet again, the LP/AP crowd begs to differ. Nearly 70 percent of LP/AP directors say video systems are being leveraged to inform labor allocation. Closely related to labor allocation, 62 percent of LP/ AP directors indicate that their video surveillance infrastructures are driving traffic-counting intelligence, as opposed to just 32 percent of CEOs. Both roles agree that the much- ballyhooed promise of consumer demographic intelligence touted by video solutions providers has yet to take hold. Less than a third of our sample reported tapping video analytics for demographic intelligence. The Bigger Value Of Interdepartmental Communication The big story coming out of our survey of LP/AP directors, CIOs, and CEOs isn't what security solutions they're implementing, nor is it the loss prevention and data security challenges they face. It's the Abbott and Costello-like skit that's playing out as retail execs scramble to plug all the holes in their physical and logical infrastructures — and keep one another informed of their progress along the way. Securing retail — from stores to payments infrastructures to servers at home and in the cloud — is no simple task. Thanks to the enterprising criminal element and the constantly moving targets we know as security standards, it's not even formulaic or prescriptive. It is, however, incredibly necessary, and its success does take a village of C-level execs and LP/AP/security professionals working congruously toward a myriad of goals. As congruity goes, our survey exercise reveals plenty of opportunity for improvement. 21 Security 2016 Peak season is a very challenging time for retailers, especially when it comes to fraud. High sales volumes, new products, and changing fraud patterns can significantly impact your bottom line, not to mention the headaches they cause. And retailers now have another layer of complexity to deal with after the introduction of EMV/chip technology last year. As in-store precautions are strengthened, retailers need to be more prepared than ever for fraudulent purchasing to move online. Using common-sense fraud prevention strategies that sometimes reject legitimate orders and subsequently reduce overall sales should be re-evaluated. Here are some tips to help maximize your profitability while minimizing fraud risk this holiday season: • Communicate sales and promotions with your fraud team. Large volume increases can wreak havoc on fraud systems and create backlogs in order processing. Understanding when these are coming will help you prepare. • Develop risk strategies for hot products to accommodate high demand. New products can cause significant fraud losses. • Hire and train additional fraud analysts now to maintain timely approval rates and reduce customer friction. • Mine your data to find the riskiest times of day for fraud and staff accordingly. • Conduct order post-transactional analysis in order to optimize your fraud rules, enabling you to build a better fraud mousetrap. While the majority of orders during peak will be legitimate, fraudsters know that increased volume makes it easier for them to hide. By following these tips to ensure high approval rates and minimal customer friction, you'll be able to reduce your fraud liability during peak season. By Stefan Weitz, Chief Product and Strategy Officer Radial How To Manage Your Fraud Risk And Increase Profitability During The Holiday Shopping Season Collaboration among LP/security professionals and other disciplines, such as merchandising, doesn't occur organically in most organizations. C-level champions must cultivate it.

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