LakeWest Group Annual Survey Reveals Customer Service as Top Priority for Retailers

Point-of-Sale technology provides avenue for success

LakeWest Group, the premier retail management consulting firm, recently completed its 3rd Annual POS (Point-of-Sale) Benchmarking Survey of the Top 100 specialty retailers. LakeWest Group found that retailers are focused on improving their customer service through efforts to better understand their most profitable customers and provide these customers with a "seamless" shopping experience. Forty-five percent of respondents indicated that gaining knowledge of their customers to offer improved customer service is their biggest priority over the next two years.     "Having a complete understanding of one's customer base is critical for a retailer to succeed in today's business environment," said Robert W. Antall, President of LakeWest Group. "Leveraging POS technology to do so can set a retailer apart from its competitors and result in a significant return on those investment dollars."

Understanding who the customers are, what they are purchasing, and how and where they are buying is an essential part of providing exceptional customer service. While many of the survey respondents are able to identify customers on a limited basis using their current POS technology, they are not utilizing this information to its fullest potential. Only 41 percent of retailers currently provide accessibility to any customer information at the POS terminal and many retailers have limited ability to track customers across stores and channels.

This may be due, in part, to the constraints of aging systems, as 45 percent of retailers have POS systems that are more than seven years old. Current POS applications offer enhanced functionality, providing retailers with a greater ability to analyze customer data through centralized look-up and enhanced communication between stores and corporate offices and, therefore, may provide the ability to increase customer service levels. An example is high-speed connectivity, through the Web, frame relay, or VSAT. This provides real-time transmission of sales and merchandise data and allows for easy exchange of information, arming sales associates with pertinent customer information. LakeWest Group's survey found that 65 percent of retailers are currently using or plan to implement Web-enabled technology. Added functionality, such as accessibility to the retailer's website from the POS terminal and the ability to order online from the store, is also possible with this type of technology and would provide a retailer with a significant advantage by integrating channel offerings to enhance a customer's shopping experience. Currently, only six percent of survey respondents provide store associates with the ability to access the company's website and 12 percent provide the ability to order online at the store.

By utilizing POS technology to its fullest capacity, specialty retailers can reap many benefits, including significantly raising their levels of customer service to offer a notable competitive advantage.

The complete survey findings and analysis can be obtained by contacting Sunita Gupta at LakeWest Group, (216) 535-4000 extension 310, or at sgupta@lakewest.com.

Survey Methodology
LakeWest Group surveyed the top 100 U.S. specialty retailers based on revenues as identified in Stores magazine (August 2001), as well as other specialty retailers. LakeWest Group received 35 responses in November and December of 2001.

About LakeWest Group
LakeWest Group is the premier management consulting firm dedicated to the retail and consumer products industries. With deep retail business knowledge and cross-functional skills, the firm delivers superior design and implementation of strategy, technology and process solutions. The unique combination of industry focus, knowledge-based consulting approach and rapid solution deployment helps clients achieve their business potential. Founded in 1990, LakeWest Group serves all retail segments and channels from its Cleveland (headquarters), New York, and Minneapolis offices.