Loss Prevention Research Council Announces Exclusive Content for Membership on Point-of-Sale Activation Solution

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Consumers, retail executives and loss prevention professionals respond favorably to Point-of-Sale Activation (PoSA) Solution in a recent test with 20 Walmart stores. Early results show a sales lift, reduced return rate and an overall improved customer shopping experience.

“The prospect of an effective, consumer-friendly, scalable digital solution like PoSA is an exciting prospect for retail loss prevention,” Dr. Hayes reported.

The Loss Prevention Research Council (LPRC) has released a series of reports detailing a recent study on the impact of the Point-of-Sale Activation (PoSA) solution from Digital Safety USA. PoSA scored very favorably in consecutive field study tests.

According to Dr. Read Hayes, LPRC director, “The LPRC is pleased to offer these reports as a significant benefit to our membership. Over the coming months, we will continue to review and evaluate each new integration of PoSA at the store level to provide our members with ongoing real-world, unbiased, scientific data on current loss prevention applications and methodologies.”

The LPRC has evaluated the PoSA solution from Digital Safety USA for the past three years, working with many different assets from a variety of categories including notebook computers, tablets, smartphones and speakers.

“The prospect of an effective, consumer-friendly, scalable digital solution like PoSA is an exciting prospect for retail loss prevention,” Dr. Hayes reported.

During the December 2016 holiday buying season, LPRC analyzed the results of 549 in-person surveys conducted by Walmart in the Gainesville, Florida Innovation Lab and at 20 Walmart test store locations. The intent was to understand the impact and benefits of the PoSA solution and its related identifying box-mark.

Executive Summary
Customers and store personnel responded very favorably overall to the PoSA solution while the offender community viewed it as a highly effective loss prevention tool.

  • Customers report purchasing locked-up merchandise highly detrimental to their shopping experience.
  • Survey respondents reported PoSA provided easier, more convenient access to products before buying, leading to an improved customer shopping experience, and increased likelihood of purchase.
  • Customer response to the PoSA concept was generally favorable, while the PoSA activation process was intuitive to most customers. Research and development around consumer familiarity marketing continues.
  • Favorability and PoSA process familiarity among consumers is expected to increase as more manufacturers integrate PoSA into their products, and adoption expands within the retail industry.
  • PoSA has shown positive initial results with manufacturers that can scale production to integrate PoSA-enabled devices, thereby protecting high-theft items throughout the supply chain.

“LPRC has proven to be an excellent incubator and enhancer of new and existing Asset Protection solutions. Their team provides evidence-based, unbiased feedback direct from both retailers and actual theft offenders, forming a strong partnership within the asset protection community,” stated Adam Hartway, DiSa Digital Safety’s chief executive officer.

“Digital Safety looks forward to continuing to partner with the LPRC to research, refine, and continue to create disruptive technology,” Mr. Hartway said.

Report 1: Walmart 20-Store PoSA Test
The LPRC conducted an in-depth review of literature and messaging along with extensive testing of the solution roll-out in 20 Walmart test store locations. The goal was to gauge overall market response to the PoSA solution in a larger test store group. The study’s very favorable results demonstrate that PoSA is easily identified and understood by customers, store personnel and the offender community.

  • Customers responded positively to PoSA as compared to alternatives, with 61% citing easier, more convenient access to products before purchasing, leading to an improved customer shopping experience. Customers seamlessly adopted to the PoSA process during the store test.
  • Among asset protection managers, 67% prefer PoSA to other in-store product protection options, with 56% rate PoSA as very favorable.
  • PoSA facilitates open sell ability which creates an improved in-store experience for customers. Products included in the 20-store test received a substantial sales lift, with test stores reporting a shift into the top 20% of overall chain sales.
  • DiSa-protected products experienced a lower return percentage than unprotected product; no refunds for fraudulent returns occurred during the 20-store test.

Report 2: Walmart One-Store PoSA Pilot Program
Surveys were conducted by the LPRC in the first Walmart U.S. pilot store featuring the PoSA solution. The goal was to assess customer and associate reactions to its functionality and introduction to the retail market. Again, participants responded very positively to PoSA.

  • The PoSA in-store set-up was noticed by 70% of customers surveyed, with 50% stating they understood the technology based solely on display signage or box-mark.
  • PoSA was viewed as a more convenient alternative than other LP practices used to secure product in-store by 100% of the customer and associates involved in the store test.
  • Overall, 80% of customers preferred the shopping environment created by PoSA as compared to alternative loss prevention solutions.
  • Category managers and asset protection managers found the PoSA process was easily learned by both consumers and store associates. Retail management and store associates developed positive impressions of PoSA, felt the PoSA-protected items were safe, and desired to expand PoSA to many other product categories.

Report 3: PoSA Box-mark Recognition & Effectiveness
The LPRC worked extensively with several leading retailers for more than three years to design a universal box-mark that represents all PoSA technology. The chosen box-mark, pictured above, is included on the packaging of all PoSA-protected goods. The box-mark was well received and easily identified among survey respondents.

  • Customers reported the PoSA box-mark to be aesthetically pleasing and easily understood.
  • Loss prevention managers found the PoSA box-mark to be practically applicable and scalable.
  • Offenders demonstrated a high understanding of the chosen box-mark, reporting a fear response to its presence.

The LPRC will continue to study PoSA as it integrates into stores over the coming months, monitoring solution efficacy and box-mark recognition among manufacturers, store personnel, customers and offenders.

According to Dr. Hayes, “The LPRC will remain at the forefront of these R&D efforts, bringing together retailers for crucial education and discussion, and providing expertise on retail loss prevention.”

A fourth report in progress will focus on informing the offender community about the PoSA solution.

About LPRC
The Loss Prevention Research Council (LPRC) was founded in 2001 by leading retailers and Dr. Read Hayes to support the evidence-based needs of loss prevention decision-makers. Founding retailers include Target, Walmart, OfficeMax, CVS, GAP, Home Depot, Beall’s, Barnes and Noble. Current LPRC membership has grown to encompass more than 45 major retail chains. To date, the LPRC has conducted over 120 real world loss prevention research projects for retailers and partners. The scope of these projects includes: large-scale field experiments to provide decision-makers with impact and ROI data: development of statistical models for shortage reduction; employee dishonesty and shoplifter dynamics research; and supply chain and violent crime R&D. For more information, please visit http://www.lpresearch.org.

About the DiSa PoSA Solution
The DiSa PoSA solution, the world’s first entirely digital asset protection solution, is a digital lock applied to consumer electronic products during manufacturing. Each device is assigned a unique activation code. The digital lock prevents theft by rendering the devices inoperable from the point-of-production to the point-of-sale at retail stores. The device remains locked until the legitimate buyer activates the device using a one-time activation code printed on the retail sales receipt. Once activated, the device remains permanently unlocked and fully functional. DiSa offers full support to manufacturers, retailers and consumers through 24/7 phone support, Web support and App support. DiSa was awarded first place in the 2017 (R)Tech Asset Protection: Innovation Award; sponsored by the Retail Industry Leaders Association (RILA). More information is available at http://www.disa.sg.

About Digital Safety USA (DBA DiSa)
Digital Safety USA (dba “DiSa”), is a U.S.-based asset protection solution provider and wholly-owned subsidiary of DiSa Limited - Singapore that specializes in research and development of cutting-edge retail security solutions. DiSa Digital Safety PTE LTD is a Singapore-based PoSA solution provider and wholly-owned subsidiary of DiSa Limited that specializes in research and development of cutting-edge retail security solutions. More information is available at http://www.disa.sg.

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Leigh McKenney
DiSa Digital Safety USA
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