Getting the Most from Your LP Technology

There are a number of issues facing the industry as we slowly recover from what has been a deep recession for retailers. Whether or not consumers’ buying patterns have been permanently altered remains to be seen, but it does seem reasonable to assume that the recovery will not happen overnight.

Employment figures have spooked consumers; many are still not opening their wallets as fast and as often as they did 18 or 24 months ago. That means that retailers must continue to seek ways to keep costs down and get more from their staff and technology.

Unfortunately, a recessionary economy also brings along an increase in property crime that, for retailers, translates into more shoplifting and theft. Maintaining loss prevention efforts becomes even more crucial during economic troughs; allowing merchandise to walk out the door is always unacceptable, but more so when sales and profits are down.

The good news is that the infrastructure for LP and security can do much more than protect merchandise. It can also help with management, staffing, marketing and overall operations. Here are some areas that all retailers need to look at to make sure they are getting the most from their technology.

Cameras are one of the most popular security and LP tools. Video images can not only provide a visual of the shoplifter leaving the store with a parka full of over-the-counter pain relievers, they can also alert management to safety, customer service and product placement issues. Smart cameras can even alert management when checkout lines have grown too long or when a customer is waiting for service at a counter.

Integrated people-counting systems go well beyond security and LP by providing information on traffic patterns, store flow, customer service and staffing needs. New devices can distinguish between couples walking together and adults and children.

People-counting also lets retailers know how many people enter or leave a store. Integrating it with register sales gives retailers a good idea of sales convergence rates, allowing them to look at how many people entering the store are actually buying and to make changes to staffing, promotional displays and product placement as needed.

Remote monitoring allows retailers to use the Internet or an intranet to view video from different locations at one central point. That means that LP professionals and management can tap into cameras from anywhere using a secure password. It is a powerful tool for loss prevention because it allows for centralized collection and analysis of security and theft incidents.

Using remote monitoring, retailers can look in on operations at each location anytime. For example, a manager can look to see if the Halloween display has been replaced by the appropriate Thanksgiving promotional display, or that workers are unloading produce trucks before fruits and vegetables spoil.

Data analytics. Exception monitoring software can collect transactional data and review it for unusual patterns. It is also very good at detecting problems at the chain-wide, store and associate levels. This analytic software can quickly identify possible internal theft, but it is also good at spotting operational problems. For instance, a sales associate who does not use proper procedures for returns or credit card transactions can be quickly identified. The solution may be as simple as retraining the person.

Merchandise return data can also recognize problems with product defects or shipments. If a particular model of printer is repeatedly being returned, there could be a problem with the manufacturer; if the product is primarily returned from one region, it could mean a shipment was damaged. This is valuable information for the retailer.

These are just a few of the ways retailers can use their security and LP technologies to the fullest. Technology can not only help make a store or retailer safer and more secure, but also operate more efficiently and profitably.