Retail TouchPoints: Is the Retail World Ready for Digital Receipts?
By Andrew Gaffney
Through
a special arrangement, presented here for discussion is a summary of a current
article from the Retail TouchPoints website.
During the checkout
process today, consumers often leave the store with a paper receipt longer
than their arm. Not only does this process fly in the face of the green movement,
it is also inconvenient for consumers to store and manage reams of paper from
different merchants.
Apple and a few other retailers have started to
shorten the paper trail by encouraging consumers to have a PDF of their receipt
emailed to them. However, the entrance of software giant Intuit into the digital
receipt space could usher in a more dramatic shift to paperless checkouts.
During this past holiday season, Intuit launched a pilot program in the Scottsdale,
AZ market to test the waters for the launch of QuickReceipts.
The pilot, which
is scheduled to run through the end of February 2010, is working with leading
retailers including Best Buy, Cost Plus, World Market, Dillard’s, Smart & Final
and Peek…Aren’t You Curious. Tapping into the product expertise and installed
customer base from such products as TurboTax, Quicken and QuickBooks, QuickReceipts
is designed as a hub to provide consumers online access to their electronic
receipts from participating retailers via MyQuickReceipts.com. Based on the
success of the pilot program in Arizona with major retailers, Intuit is planning
for a national rollout with additional retailer participants.
Other leading
solution providers in the digital receipt space are already planning to partner
with Intuit’s rollout. afterBOT announced the commercial availability of QuickReceipts
Connect at the NRF show earlier this month, a solution designed to provide
the retailers with fast, efficient integration to the QuickReceipts centralized
digital receipt repository.
“AfterBOT’s digital receipt expertise gives retailers
more advanced ways to serve and support their customers, increase loyalty and
reduce shopping stress,” said Jim Nadler, VP of marketing, afterBOT. “We designed
QuickReceipts Connect to be a flexible and scalable application that works
easily with retailers’ existing systems or with our TransAccess applications.”
With
afterBOT’s solution, retailers can implement QuickReceipts Connect, which is
PCI compliant, and link to the QuickReceipts repository. afterBOT’s team uses
the NRF industry standard ARTS Digital Receipt XML (DRXML) format to enable
QuickReceipts Connect to be fully functional quickly and enable participation
in the next phase of the project.
AfterBOT also offers services to integrate,
maintain and manage the connection, allowing retailers to store data within
their firewall and move data to QuickReceipts.
Discussion
Questions: Is the time
right for digital receipts? What
are the pros and cons of digital versus paper receipts for consumers and retailers?
There’s no question that we’re moving toward more digital receipts but retailers are not only slow to invest in technology, they often have more burning issues.
As more consumers embrace all things digital, including managing purchases and expenses, the move away from paper and analog processes will accelerate. The more consumers ask for it, the more retailers (at least those who are listening) will answer.
Other categories are, not surprisingly, further ahead. Travel, in part because the selling channels have shifted so drastically, is a great example. Hotels mail folios, all airlines send electronic confirmations and even though many are still just PDFs, the course is clear.
Perhaps one of the greatest opportunities, especially for Intuit and others in the business of providing the digital receipt solutions, is the data that is collected. These companies will have valuable data and insights around customers across categories, payment forms and channels. When everyone figures that out and those companies offer appropriate services to retailers, they’ll move even faster to support digital.
As someone who throws away 99% of my retail receipts, I absolutely love this idea. To be able to have receipts in one digital location would be terrific for facilitating returns, verifying warranty periods…what’s not to like?
I was also intrigued by the online receipt concept on view at NRF. It’s clever and seems like a “green” concept, if nothing less.
Maybe I haven’t fully considered its practical utility, but I’m unable visualize a good reason to archive my receipts for everyday purchases.
Could this be a case of a technology that works–even works well–but that has very limited usefulness in shoppers’ daily lives?
Today paper receipts are a shopper marketing mechanism. But not always a wildly effective one in comparison to some other vehicles. Digital receipts, however, open a door to higher redemption on coupons, higher pass-along coupon sharing, and higher product returns because shoppers have easier access to warranties. This change will up everyone’s game in the shopper marketing world.
What is not to like? Did you ever look for an old receipt because you had a problem with a product? This makes ultimate sense. Online sales are all electronic and access to receipts is much easier than those you regularly get at retail. Do you want to get the info on a 2004 purchase at Amazon? It is available electronically.
The value to the retailer is incomparable. Connections, data, ability to communicate messages to their customers…this is a real connection with value on both sides of the transaction.
I love that I have a have a digital receipt from Apple before I even leave the store. As a consumer I would love to have all my receipts in a single location.
I think the biggest challenge for universal acceptance is consumers’ fear of data being stolen. Retailers will have to get quite good at communicating the benefits to the consumer beyond not having a piece of paper.
Digital receipts are the way to go. I think retailers are misguided if they think that consumers are reading the marketing messages on their ever-growing receipts. Not only is it a waste of paper, but it is an inconvenience for the consumer to have to carry this long paper trail. It is interruption marketing at its worst! And totally unnecessary.
Like most of the other commentators, I’m liking this idea. In particular, I like it for major purchases such as appliances, clothing, etc, where I am likely to have a warranty-related need.
But the vast majority of paper receipts generated are for more mundane purchases, the daily coffee stop or the afternoon trip to the supermarket to decide “what’s for dinner.” And 99% of these receipts are promptly thrown away. To really put a dent in the paper generated these are the receipts that have to be addressed.
But I hate cluttered digital mailboxes just as much as I hate cluttered files. Perhaps there’s a need for “receipts management software” as a feature in popular programs like Quicken. All receipts could be received (or downloaded) into the file and cataloged by retailer. Users could set retention periods by retailer.
I will join the chorus. This one is a no-brainer for the consumer and if the retailers think creatively, it is for them as well. As a road warrior, I also agree that travel is an area that is fertile ground…rental car receipt, hotel receipt, boarding pass…would love to eliminate all of this paper clutter and manage electronically.
One reason that online travel services took off is the digital receipt, which is an invaluable way to track business expenses and double check on flight times. It’s easy to imagine digital receipts taking off in certain retail segments, like consumer electronics, where rebates are common. I hope it takes off!
Getting a digital receipt is good when it shows up and is accurate. When it gets lost in cyberspace and/or is not accurate, how do you prove that you purchased something when you need a refund or a repair? Digital receipts are convenient until there is a problem, then they are frustrating. Yes, we are going that direction but not all consumers will be satisfied unless they can actually see that they have received the receipt and that it is accurate. As in anything else, timely accurate data is the key to success.
Digital receipts are coming. I wrote a blog post on the topic based on what I saw at NRF. Here is an excerpt:
In 2000, NCR led creation of the Digital Receipt alliance. Participating companies were Visa, Office Depot, America Online Inc., Microsoft Corp. and Hewlett-Packard Co.’s VeriFone division. The alliance proposed a standard for digital receipts to the National Retail Federation’s technology standards body which now maintains this standard.
So, companies have been working in this space for nearly a decade. There have been several attempts to approach this more from the consumer-side of the equation–attempting to create demand for a customer ‘receipt repository’ of sorts. The latest entrant is Intuit QuickReceipts.
What’s Changed – A few things are different now and may provide the catalyst for digital receipts:
A large company with significant resources (Intuit) is sponsoring the repository and working with retailers to gain critical mass. Transaction Tree is one company partnering with Intuit to populate the database (as is Afterbot).
Apple already offers email receipts and many customers are getting acclimated to the idea.
Retailers and their customers are looking for ways to be more ‘green’.
Retailers need to find new ways to reach customers on a one-to-one basis. Leveraging receipt data to generate a more relevant offer to customers is one way to do this.
I agree with all the advantages people have mentioned. Only thing I can add here is that it protects shoppers who send in the required “original receipt” for rebates. I’m still angry with Apple for never sending me a promised $100 rebate, years ago, after I bought a computer and they ignored the request and then said they never got the receipt. I found many others have had the same experience with Apple, and I now buy from them reluctantly.
Actually, instant rebates are the way to go, but at least for those companies that don’t allow instant rebates, it’ll be a little harder under this system to rip consumers off. And yes, I do think rebates that require the receipt, a sample of your hair and your grandmother’s shoe size are all a deliberate rip-off.
What a terrific idea. Lower costs and hassles for the retailer, a convenient repository for the consumers that may need to make a return. What’s not to like?
The transition will be the biggest challenge. A significant number of consumers will resist this for a variety of reasons. It’s new and there is always resistance to new. More importantly, there is the routing information that consumers will be required to give out. This raises security issues (real or imagined) along with the concerns about yet more marketing flowing into already jammed inboxes.
That aside, this is definitely the future.
Right now, I think the digital receipt is still a solution looking for a problem. HOWEVER, I think there is huge potential here by looking at it from the business perspective and then letting that build demand for the consumer segment.
There are a lot of things annoying about business travel, not the least of which is completing expense reports. Everyone in business knows there are expenses they have not either recouped for their business or charged their employer. Keeping track of every minor expense is often too cumbersome. Probably the best approach I ever saw was the guy who counted his cash on arrival at the airport, charged and everything he could on the trip, and then counted his cash on the plane home (after the drinks were delivered). He now knew the answer he wanted and just had to find the “receipts” to match it. (He didn’t smoke or have other daily habits.)
If the IRS (and corporate controllers) would figure out a way to accept credit card receipts and digital receipts for employee expense reports then I think those employees would soon understand how digital receipts could help them personally. Another angle might be the introduction of a VAT tax which would introduce another sales tax deduction for personal income tax. Software tools that help people negotiate better prices for frequently purchases items would also increase their demand for digital receipts but would also discourage their use by retailers. (Who wants their customers to be reminded they paid too much?)
I think vendors hoping to address this area need to work on the back end in order to increase the utility of the digital receipt after it is collected. It is not enough to just reduce the little pieces of paper….
While I agree completely with the pro-digital army of commentators, I just want to remind one and all that there will always be some Luddites out there who want a physical receipt either because like Warren, they don’t trust a certain retailer or because they don’t trust technology, no matter who offers it.
I think Liz nailed it: this is a major marketing opportunity. Relevant, targeted coupons, offers, and other marketing messages on the digital receipt can add value to the consumer, chain, and participating brands.
Intuit will have its work cut out for it, though, if it wants to both manage the receipts and sell ad inventory to advertisers who want to reach shoppers through Intuit’s new touch-point. The challenge will be even greater if they want to make those ads and coupons targeted based on each shopper’s purchases.
I’m interested to see whether Intuit tries to grab the ad revenue for itself, share it with the chains, or let chains manage the ad space on the digital receipt for themselves.
I bought a house 5 years ago. When it was time to refinance (before that became the set up for a joke!) I pulled my paper receipts so I could tally up what I’d actually spent on improvements.
Much to my surprise, over the 5 years, the ink on the receipts had faded to unreadable.
If I can have a copy of the digital receipt, count me in TOMORROW. Especially if I can port it directly into a spreadsheet when it’s tax time, as well.
Didn’t want to give the impression that I oppose digital receipts. I’m a formidable Luddite (although I did get electricity last year, and am now considering indoor plumbing), but digital receipts are definitely the way to go. Lest there be any confusion in my previous rambling.
Ok, so just finally getting to this blog here on the Left Coast. And, for once, I cannot honestly think of one thing to add that already hasn’t been said here. Is there ANY disadvantage to a digital receipt? Can’t think of any real one. It is the way to go.
Lots of companies with interesting potential utility, but most of this technology is being aimed at groups with little disposable income.
Digital receipts a good thing since most of us tend to misplace them but as a first step, the retailer should go to a paper and digital receipt to hold the consumers hand during this change.
I’m not sure how electronic receipts will “reduce shopping stress.” Paper receipts are the period at the end of the shopping sentence (pun intended). They’re also an on-the-spot, immediate way to check your purchases to make sure you were charged correctly. I live in a retirement community and these folks – especially those on fixed incomes – review their receipts line-by-line before exiting either of our two nearby major supermarkets. In fact one nearly always must navigate through or around a knot of older shoppers positioned just inside the exit doors reviewing their receipts.
Privacy has also got to be a concern. How many people do you know who’d like all of their purchasing records pooled somewhere? Can the IRS subpoena that information? Who would like to hand over records of all of their purchases of tobacco and alcohol? Could insurance companies refuse coverage based on those records? Are you a little concerned about the nearly weekly revelation that yet another gigantic consumer database has been hacked? Or that despite data-pooler promises, consumer email addresses seem to eerily attract like magnets offers for either items they’ve purchased or items that compete precisely?
But my comments above are mostly about supermarket receipts. Receipts for durable goods (and even some services) should be digital and many already are. My online purchases always arrive with a paper receipt but I’ve already PDF’d their confirmation emails (an existing kind of digital receipt). My dentist and barber never give me a paper receipt (my bank statement is an existing kind of digital receipt). I doubt, however, that you’d prefer a digital receipt for the purchase of a car or house. Fry’s, the big box electronic retailer, even posts someone at the exits to review your paper receipt. So, it’s all over the place, based on (omigosh!) what works best for each retailer and their customers. Digital receipts are already largely here wherever they work best, so the time must be right, right?
Digital receipts are definitely on the future landscape. Although they may not be for every consumer, in 5 years they will be the norm.
I am working with two retailers right now on a pilot to send a mobile receipt to their customers cell phones. Even better than email. Can’t really disclose the names, but happy to talk about the concept with anyone that’s interested.
The online retail marketplace is already using digital receipts in a win-win relationship between producer and consumer. I’m sure entrepreneurs will, where it makes sense, rapidly deliver innovative cost-saving solutions to general retail marketplace paper receipt problems. Apple and other retailers are already showing the way.
Ok–I hate to be the contrarian in the group, but I while I like the idea of digital receipts, I don’t want the service that handles them to share my receipts from one store to another or some service for data mining purposes.
I join the chorus too. It is the way to go. However, it should run in parallel with the traditional receipts to help not so digital savvy customers. Also, if the receipts are not instantaneous, I’m not too sure of its popularity with customers who would like to check the items on the bill. Customers find instant gratification when they see a savings or a discount on their bills. This effect could be lost if they have to go home and check their bill online. Instant billing on the smart phone could still do the magic.
Based upon my personal experience, I would never accept the digital receipt. I have one reason – ACCURACY. Almost every week I find errors on receipts for products I purchase. A paper receipt allows me to quickly check what I was charged verses the advertised price and shelf price. Retailers, especially chain grocers, have not yet mastered the mechanics of pricing. Many department stores suffer from the same problem. I can’t imagine any rational reason to deny me the right to immediately check behind a cashier.
As to receipts being 3 feet long, I would encourage you to examine one of these. In my experience 2.5 of the three feet is advertisement or coupons. If retailers are looking to do US a favor then I would encourage them to find ways to present better receipts. Each item purchased should reflect the price paid in a direct form. Don’t list a MSRP for an item and list the deal discount at the bottom of the receipt. Ever consumer should be afforded the courtesy of being able to easily determine exactly what he was charged for each item. You should be able to do this without a hand-held computer. The receipt should not be a point of deception.
I agree 100% with Shilpa Rao. You need to balance the paper value of instant recognition with the convenience of digital receipts.
Each customer is unique. Letting customers opt in for digital receipts would be the way to go. We tried this experiment with coupons many years ago and it was a disaster.
Learning from this disaster, we found that consumers are radically different regardless of what your segmentation or best customer lookalike systems say. Better to ask them first then to ask them for forgiveness later.
Like many others, I also like the idea of digital receipts. But only sometimes. I would love to have digital receipts for purchases with a high return rate (clothes, electronics, housewares, gifts, etc.).
On the other hand, I do not want to slow myself or the line down at Walmart/Target/grocery store to give the cashier my email address; probably repeating it several times. I would prefer to NOT have any receipt. I like the receipt choice at a gas pump. Q. “Do you want a receipt?”
I totally agree with this concept, but a country like India where tangibility is the foremost thing while purchasing products, digital receipts will be unacceptable in retail business.