- Validation: This stage includes validation techniques used before the order is placed. At this point, we validate the consumer has entered a valid credit card, valid expiration date, valid zip code and email address. The technique used to validate a credit card number is called mod 10 (for modulus 10). Mod 10 is a simple algorithm available as an out-of-the-box feature in most e-commerce applications.
- Fraud subsystem: This is where all the techniques mentioned in the previous section are used. The outcome of this stage is either a valid order which is sent to the Order Management system or a potential fraudulent order (suspected fraud order) that is sent for manual review
- Manual Review: In this stage, suspected fraudulent orders are routed to staff members specially trained to deal with fraud. The fraud specialist will determine whether the order is in fact fraudulent or it is a good order that needs to be processed. This is obviously an expensive task and as we optimize the fraud subsystem stage, we can minimize the number of orders for manual review.
Replacement or acquiring a new order management system is a daunting task – how do you resolve and arrive at a decision. System project teams within a retail company are the best option to arrive and there is no limitation on the time frames which can vary depending on the complexity of the requirement. However when it comes to evaluating potential solutions, there are some standard steps which a marketer and retailer can follow:
System objectives and priorities
Managing increased capacity, improving customer service online and offline, business methods like continuity shipping, processing costs to be lowered, inventory efficiency are some of the reasons for acquiring a new order management system. It’s always important to prioritize the goals well before choice of the alternatives so that the processing is made easier.
Operations and budgets
As retailers and marketers need to spell out how the order management system should serve business requirements in a formal and comprehensive functional method.
RFP to provide analysis
Besides the results of the functional needs, the RFP should also provide: requests to vendors to indicate if they can meet your requirement, length of time it would take and also support from out of the box functions. Listing of all your hardware, networks, and explanation of how your retail business works, if there are any third party processors are all equally important to be included in the RFP list. Read more
One major reason being that a card is smaller and more transportable. It can conveniently fit into a wallet credit card slot. That might not seem like much because paper can fold up into a smaller size, but in the days where receipts and notes are thrown around into purses or wallets, those certificates have a greater chance of being forgettable or even unintentionally disposable. Because gift cards are about the same weight and proportions of a credit card you are constantly reminded of them every time you reach for your plastic.
Another reason why cards are more beneficial is because they are capable of being “reloadable.” This means that once the funds on the card are depleted, the user can “reload” more money back into it. In a sense, it acts like a debit card exclusive for that retailer or set of retailers, so that it only uses the amount available on the card’s account but allows you to put more funds into it as you please.
Most of the retailers only target gift services during special seasons like the holiday season or back-to-school season, and for occasions like Valentine’s Day or the Fourth of July. Retailers try to make most of their sales during these periods and their marketing strategies are targeted as such. Sometimes they do not offer gift services during the regular shopping time period to cut down costs.
However, an equal number of retailers offer both – gifts during season and non-seasonal times. As a retailer you need to decide whether your products have the flexibility to offer gift services.
Loyal shoppers and new customers should be placed on a customer relationship platform that drives genuine satisfaction and loyalty for effective gift services. This injects brand and product exposure with equal measure. Some of the standard suggestions to consider are:
- Smart engagement strategies should be exercised by marketers when awarding gift services to high-value long-term customers and low-potential shoppers. Existing loyal customers should be rewarded to attain a higher percentage from them. Low-potential shoppers should be based on number of items or total cost which ever is higher and rewarded accordingly.
- Promise what you can deliver. With the increasing number of retailers offering types of gift services, marketers should view customers as highly influential, individual brand ambassadors, in which their word-of-mouth increases your market share. For this you should ensure that the services your site promises to deliver are accurate and rewarding. This leaves customers satisfied and increases the likelihood they will come back for more or send referrals to friends and family.
- Choose a Gateway and an ISO. Spend time before the project starts to get agreements and contracts Signed.
- Have a fraud prevention mechanism to reduce charge-backs and be identified as a high risk customer.
- Spend time upfront developing a strategy that allows you to test and get the kinks worked out of the different payment methods.
- Involve the Corporate Data Security Team Early in the Project to comply with the standards.
- Plan on periodic penetration tests to identify the security flaws in the payment processing.
- Build a check list of the compliance tests that need to be complete for a launch and work towards meeting them (CISP).
- When building the Gift Card processing system, keep it close to the credit card processing methodology of authorize and settle. This will provide a unified method of payment processing.
To grow wallet and market share, it is critical that a retailer be able to execute two fundamental selling skills – up-selling and cross-selling. Retailers that can identify what their customers need and want can then successfully migrate customers up the product price curve, as well as encourage them to purchase items that complement their primary purchase.
Fundamentally, up-selling and cross-selling processes bring into play correlations between market basket data – information on what a customer has in his/her shopping basket at checkout – customer purchase history and product relationships. These correlations can be used to define business rules designed to optimize cross-selling and up-selling processes.
For example, as depicted in below diagram, business rules can enable retailers to migrate customers from lower- to higher margin items, thus increasing the features and functionality customers receive, as well as encouraging them to purchase additional products.
Certainly, components of up-sell and cross-sell processes are interrelated. What’s more, these selling strategies are not limited to a particular retail industry segment.
Retailers across multiple industry segments are seizing opportunities to leverage these strategic processes in order to move beyond their competitors. Consider how up-selling and cross-selling processes might occur within three distinct market segments:
- Apparel – technology could help customers visualize a greater set of ensembles than just the handful that are on display. Systems could also link to records of customers’ previous purchases and enable them to match ties to shirts they already have at home.
- Home improvement – sales associates and customers could use simulation technology to design their ideal kitchen or bathroom. They could then leverage technology-enabled room planning and decorating tools to carry out the project.
- Grocery/discount – grocers and discount retailers are already equipping shopping carts with “cart companions” – wireless devices that offer customers layouts, recipes, promotions, coupons and frequent shopper loyalty programs.
To be executed successfully, these processes should be built on an integrated business strategy that is aligned with seven fundamental cross-sell and up-sell forces. Understanding these forces and how they can be leveraged to affect up-selling and cross-selling within the context of the retailer’s strategy is absolutely critical to the retailer’s survival and potential competitive advantage.
- Match Buyers and Merchants:Make sure what your customers are looking at and provide them with relevant products.
- Banners:list the promotion across the website internal banners
- Flexibility in selling: Increase margins with up-selling and decrease margins when you clear out inventory.
- Create cross product bundles:Take 2 or three similar products which complete themselves and offer the three at a reduced price
- Strategically advertise ‘Hot deals’: Strategically promote the latest and hottest offers through different media
- Create Awesome User Experience: Create wonderful web pages to deliver excellent user experience
- Refined Searches: Tweak the searches to make sure that the prominent products are shown up on the search.
- Automatic Merchandising: The criteria of promotion should be based on results and not on behavior
- Merchandising based on Stats: Promote products based on the data and metrics.
- Know the customer: Conduct promotions based on customer segmentation.