SHORT CUTS:Quick Tips to Enhance Your Retail SuccessFive Easy Pieces …for an Effective Loyalty Program

A select group of NRF Big Show attendees enjoyed a very special interlude during the show. The group of 60+ leading retail executives were entertained in fine style at KWI’s Annual Executive Client Dinner. Held at the incomparable.....more

Client Highlight:David Yurman

New POS Hardware Upgrades PerformanceAdvanced functionality at a lower price!

Signed, Sealed and PatentedKWI Acquires Cloud 9 Mobile Intellectual Properties

It was Show, Tell and Sell at NRF!KWI demos enterprise-class Omni-opportunities

Sleek, smooth, fast and powerful. No, we’re not talking about the latest sports car… KWI is pleased to advance our clients’ POS performance with two new POS hardware devices offered in three unique configurations. The new Fujitsu TP7K Point of Sale series is a state-of-the-art solution that delivers impressive levels.....more

KWI kicked off the new year with a major development that will keep our clients in the vanguard of retailing. We have acquired from VeriFone/GlobalBay the Intellectual Properties and associated patent licenses for our Cloud 9 Mobile offering. KWI first partnered with VeriFone to integrate the GlobalBay mPOS solution into our Cloud 9.....more

KWI continues to dominate the cloud with continuing technological advances that give our clients every advantage possible in today’s retail universe. The excitement was palpable as friends old and new visited our NRF Big Show booth to see the latest developments in KWI’s enterprise-class......more

Running a competitive retail business today is all about brand building. CRM practices have a tremendous impact on where consumers will spend their dollars, more than ever before. The start of a new year is the time to take stock of your Loyalty Program....more

Chargebacks occur when credit card customers contact their issuing bank to initiate a refund for a purchase. There are many reasons chargebacks can occur from a price or merchandise quality dispute to a failure in the fulfillment process. The customer may or may not contact the merchant to remedy the situation ahead of time. In some cases the customer may be completely wrong in their perceived reasons for initiating....more

David Yurman is a luxury lifestyle brand– iconic and enduring. The company was founded in 1980 by sculptor David Yurman and his wife, Sybil, a painter. The two artists collaborated to create jewelry that was both a fashion statement and a piece of art and remain partners in both business and life today. The Company remains privately owned and family operated headquartered in New York City with a global......more

All About Chargebacks!

Lately the news has been abuzz with stories about individuals or groups hacking into systems to steal credit card numbers and sensitive information putting the issue of eCommerce security front and center. Last month we discussed some policies and procedures that your store team can use to minimize chargebacks caused by fraud, but with the ever-growing “card not present” environment how can....more

Credit Card Fraud in the eCommerce Environment

Marketing on the Curve: A Window into Future Technology KWI Annual Executive Dinner

Signed, Sealed and Patented: KWI Acquires Cloud 9 Mobile Intellectual Properties

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KWI kicked off the new year with a major development that will keep our clients in the vanguard of retailing. We have acquired from VeriFone/GlobalBay the Intellectual Properties and associated patent licenses for our Cloud 9 Mobile offering.

KWI first partnered with VeriFone to integrate the GlobalBay mPOS solution into our Cloud 9 Mobile product two years ago. Since then we have successfully deployed this enterprise-class solution for more than 50 of our specialty retailer clients. The technology is so feature-rich and future perfect it has attracted such distinguished brands as David Yurman, Steven Alan, Pandora, Tom Ford, Scoop and Intermix to the KWI family of valued clients using the Cloud 9 Mobile POS solutions.

As a strategic partner of VeriFone/GlobalBay for mobile retail solutions, KWI was already defining the requirements for and leading the design efforts of our Cloud 9 Mobile platform available on Apple iPads, iPad Minis and iTouch devices. Now with the ownership of the Intellectual Properties KWI brings all the essential resources under our roof to design, refine, develop and deliver a comprehensive and ever-advancing suite of Cloud-based mobile solutions. This acquisition allows us to continue to offer a leading cloud mobility platform in the industry today, and in the future.

Acquiring the rights to the Intellectual Properties and associated patent licenses for our Cloud 9 Mobile POS platform gives us total control for future development meaning we can be even more responsive to our clients’ needs with valuable new features and faster time to market assuring our market leadership position for the KWI client base of over 120 specialty retailers.

“This acquisition secures our ability to deliver innovation, strategic breakthroughs and competitive advantage in the Cloud. No other company can match our expansive suite of enterprise-class and mobile solutions, with full control of the end-to-end process from design to delivery. Building a world-class infrastructure of people and technology to support enterprise-class retail solutions with a 24/7/365 HelpDesk and advanced managed services, all in a true Cloud offering untethered from in-store POS” said Sam Kliger, CEO.

While there has been an influx of cloud-based mobile and mPOS providers in recent years, our competitors cannot match what KWI has accomplished over the past 28 years.

Now more than ever KWI “owns” the power of mobile retailing, and as a KWI client so do you!

For more information, contact Gary Brill, Vice President Business Development, at gary@kwi.com or call (516) 621-2400 ext. 325.

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New POS Hardware Upgrades PerformanceAdvanced functionality at a lower price!Sleek, smooth, fast and powerful. No, we’re not talking about the latest sports car … KWI is pleased to advance our clients’ POS performance with two new POS hardware devices offered in three unique configurations.

The new Fujitsu TP7K Point of Sale series is a state-of-the-art solution that delivers impressive levels of flexibility, performance and reliability. Our Store Systems Development team has selected this advanced system to replace the TP3K and at a lower cost!

Compact and elegant in design, the TP7K combines POS power with ultra-modern aesthetics that blend beautifully with a range of retail environments, from fashionable and sophisticated to rough and rugged. The TP7K supports multiple in-store touch points via a single product platform providing ideal flexibility, lower installation and service costs, and faster, easier customer transactions resulting in a highly interactive shopping experience.

More About the Hardware• Priced below the TP3K• Windows 7 Operating System• Keyboard/Printer virtually identical to TP3K

There are two new models:

TP7KF (replacing the TP3K)The TP7KF replaces both the Controller and Primary registers in stores. Choose a stacked configuration, or a disbursed version that allows you to separate components and customize setup based upon your retail environment. The TP7KF also supports “Hot Swap” hard drive replacement.

The TP7KF is available in double-textured Ocean Black and measures 17.7” wide x 14.4” deep x 21” high.

TP7K All-in-OneThe TP7K All-in-One is available as an integrated system complete with cash drawer. Disbursed setup is available. Raid is also available in the All-in-One by having a certified service technician conduct the process. Designed with a 15” monitor; a customer display screen is an optional add-on.

The TP7K All-in-One is available in Ocean Black measures 14.8” wide x 10.1” deep x 11.8” high.

These new Fujitsu POS systems are priced with a regular printer with endorsement and MICR reader.

Both devices have been certified by our Store Systems Development team and are ready for delivery now.

For more information, contact Gary Brill, Vice President Business Development, at gary@kwi.com or call (516) 621-2400 ext. 325.

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It was Show, Tell and Sell at NRF!KWI demos enterprise-class Omni-opportunitiesKWI continues to dominate the cloud with continuing technological advances that give our clients every advantage possible in today’s retail universe. The excitement was palpable as friends old and new visited our NRF Big Show booth to see the latest developments in KWI’s enterprise-class solutions and Cloud 9 Mobile POS.

To start, KWI rocked the Expo on opening day with the announcement that it had acquired the Intellectual Properties and patent licenses from VeriFone/GlobalBay for our Cloud 9 Mobile POS platform giving us total control for all aspects of future development. See the KWI Acquires Cloud 9 Mobile Intellectual Properties article in this issue for the exciting details about this announcement.

KWI In-The-Know at The Retail Insider PartyKWI also sponsored the Retail Insider Party hosted by Cathy Hotka & Associates at this year’s NRF. The Retail Insider Party is a highly coveted show with a secret location announced only a day prior and based on invitation only attracting close to 300 CIOs, CMOs, and VPs of the retail community. As a sponsor, KWI was recognized with company branding and had the opportunity to bring our clients to the party and add them to the invite list. It was a great networking opportunity for our clients and for KWI and we were proud to sponsor this annual event.

Mobile POS Does Not Have to be MobileDuring the show we demonstrated how you would be able to use our Mobile POS on an iPad at a fixed location. Allowing you the easy solution of installing extra registers during peak traffic periods, conduct sample or warehouse sales or eliminate large wrap desks. With mPOS 4.0 you can simply install an iPad stand and cash drawer on a countertop and instantly you have an additional checkout location.

Beyond A Demo…One of the big draws at our show was a meaningful tie-in with the 9/11 Tribute Center. KWI sold FDNY “Firefighter Remembrance” teddy bears in the booth to raise awareness for our client partner with all proceeds benefitting the 9/11 Tribute Center and the September 11th Families Association. Every sale was completed on our latest Cloud 9 Mobile POS release. Each purchase, whether credit card or cash, was completed real-time in our booth so retailers could experience first-hand the powerful features and easy handling of a live transaction from start to finish, complete with a mobile cash drawer. If you would like to purchase an FDNY Teddy Bear in support of the 9/11 Tribute Center, click here.

Today’s retailers are well aware of the advantages of mobile POS even if they have not yet adopted it themselves. KWI’s enterprise-class mobile platform enables truly state-of-the-art retailing coupled with the omni-channel

appeal of mobile/social marketing. Visitors to our booth were eager to experience a virtual tour of Cloud 9 Mobile POS with features including mobile inventory, mobile promo pricing, omni-channel fulfillment, multiple payment tenders, non-merchandise transactions… and much, much more.

KWI analyzed 14,000 client transactions in the 2-month pre-Christmas period in mixed POS environments and learned that Mobile POS transactions contained an average of 16.6% more units and 20% higher sales dollars over traditional POS transactions!

In addition to experiencing the full spectrum of the latest Cloud 9 Mobile POS features, retailers were also eager to demo the KWI Merchandising, CRM, and the soon to be released Clienteling platforms … all with the KWI leadership advantage.

Let KWI Fulfill Your ‘Wish List’Proclaiming the tagline “Real Time Enterprise Cloud Retailing”, this year’s booth was bigger than ever allowing us to better host record crowds. We thank all of you who were able to connect with us at NRF, and look forward to an exciting new year of expanding your retail potential into a fully mobile omni-channel operation. If you could not make it to the show, or if you want to know more about Cloud 9 Mobile POS updates and other KWI enterprise-class solutions, give us a call.

For more information, contact Gary Brill, Vice President Business Development, at gary@kwi.com or call (516) 621-2400 ext. 325.

Marketing on the Curve: A Window into Future Technology KWI Annual Executive DinnerA select group of NRF Big Show attendees enjoyed a very special interlude during the show. The group of 60+ leading retail executives were entertained in fine style at KWI’s Annual Executive Client Dinner. Held at the incomparable restaurant DANIEL owned by Chef Daniel Boulud, the event featured a superb gourmet dinner and a presentation by Paul Price, CEO of Creative Realities. His talk titled “Marketing on the Curve” was a window into technology and its speed of change. Highlights of his presentation follow:

Paul opened his presentation by stating there is a trap being set by very powerful forces that are determined to change every business. The trap exists because of the difference between our perception of change and how change actually happens. Technology is driving change in every business at a much faster rate than managers are anticipating in their business models.

All technologies from medicine to electronics change at exponential rates. The only variables are the type of technology, its age, and the resources driving its progress.

Paul continued by stating that we are in the midst of the biggest changeover in the methods of conducting business since the Industrial Revolution. A Cambrian-like explosion of new technologies are emerging and converging to change almost everything. The difference between the 19th and 21st centuries extended beyond the scope and scale of change, to include the speed of change as well.

Reshaping your business model into a parabolic-shaped curve occurs as a result of several technologies emerging from multiple sciences. Your position relative to the top of the curve shapes your perspective with critically different meaning. The further behind the curve you are, the more difficult it becomes to see where your business is going.

Paul believes that one segment of the many worth examining closely is Artificial intelligence.

Artificial intelligence will not be matching our brain’s ability anytime soon, however expert systems such as IBM’s Watson are already in commercial deployments revolutionizing businesses’ understanding of their markets and shaping new strategies. Artificial Intelligence is just beginning on its developmental curve as its costs, flexibility and applications continue to improve. Like all technologies, Artificial Intelligence will inevitably become smaller, better, faster, and cheaper. Artificial Intelligence will give managers the ability to drive extraordinarily personal and relevant experiences as the technology learns and adjusts the store experience to its shoppers via the plethora of personal devices, in-store devices and interactive displays the best store experiences will have.

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Google’s acquisition of U.S. Robotics is a sign of more to come in this technology segment. Amazon is already turning to robotics into strategic advantage with their Keva robotic warehouse system. It will still be some time before we see robots serving beverages at the bar or taking care of the house, but as the technology accelerates on its curve we are bound to see phenomenally innovative applications for robotics from the supply chain to the demand chain that will disrupt our current perceptions of business.

Our current business models are being overturned by technological change faster than many of us are realizing. It is time to challenge every assumption underlying our current way of going to market. The first and most important step is to have a plan regarding the role of technology in our businesses and how that technology will create or disrupt the value your business delivers.

For more information, contact Gary Brill, Vice President Business Development, at gary@kwi.com or call (516) 621-2400 ext. 325. In addition Paul can be reached at Paul.Price@cri.com.

David Yurman is a luxury lifestyle brand– iconic and enduring. The company was founded in 1980 by sculptor David Yurman and his wife, Sybil, a painter. The two artists collaborated to create jewelry that was both a fashion statement and a piece of art and remain partners in both business and life today. The Company remains privately owned and family operated headquartered in New York City with a global cross-channel presence.

David Yurman’s designs are inspired by everything from simple, ordinary objects to art, displaying the creative use of sliver or a combination of silver and gold. Depending on the collection, he adds stones or jewels to the pieces to add character and life. The “Cable Bracelet” introduced in 1983 remains one of the world’s most coveted jewelry designs.

Today, David Yurman’s company is one of America’s leading fine jewelers, with a wide breadth of collections added to the original cable design including a fine watch collection, a bridal collection, a men’s collection, and one of a kind specialty pieces. From classic Yurman pieces to new collections, the brand continues to define effortless American luxury.

Prior to opening the NYC Flagship store in 2000, David Yurman collections could only be found in luxury department stores including Neiman Marcus and Saks Fifth Avenue. The company has continued to expand domestically and internationally. David Yurman uses the finest precious metals, rare gemstones, and unconventional materials fashioned by the world’s best craftspeople. The standards of quality carry through all aspects of the business. Attention to detail and the customer experience attracts loyal collectors and new customers every day. KWI’s focus on the in-store customer experience with the Cloud 9 Mobile platform was important to David Yurman when selecting the right technology partner for their retail operations. KWI is very proud to be selected as the company’s retail solutions partner providing our full suite of Enterprise-class Merchandising, Merchant Services and Mobile POS Sales and Inventory throughout the global David Yurman operation, encompassing the United States, Canada, and Europe.

We are delighted to add this partnership to our growing list of unique and admirable specialty retailers.

For more information, contact Gary Brill, Vice President Business Development, at gary@kwi.com or call (516) 621-2400 ext. 325.

Client Highlight:David Yurman

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Short Cuts:Quick Tips to Enhance Your Retail SuccessFive Easy Pieces… for an Effective Loyalty Programby Evan Rubin, VP, KWI-CRM

Running a competitive retail business today is all about brand building. CRM practices have a tremendous impact on where consumers will spend their dollars, more than ever before. The start of a new year is the time to take stock of your Loyalty Program and think about refreshing it. Here are five steps to help you consider new ways to build deeper relationships that are more rewarding for your customers and your business.

Step 1. Offer choices to learn more about your customer. We are all revealed by the choices we make. You can enhance the strength of your loyalty program by giving your customers choices of rewards, offering different ways of participating in the program, and creating a database profile of each customer’s preferences. Surveys can provide valuable insight into personal motivators Try encouraging customers to complete them by offering an appropriate reward.

Step 2. Personalize the program. Use analytics to identify key customer groupings and then customize your program to speak to each group’s key drivers or demographics. For example, you might find one segment always responds to promotional pricing while another is less price driven, but more status aware and therefore responsive to exclusive offers that put them in the vanguard. By marketing to each group’s preferred values, you will pull better results.

Step 3. Be flexible. Provide options for your customers to make the most of their loyalty program participation, whether it is transferable points, partnerships, or brand-appropriate ways to earn extra rewards. Make it convenient to redeem their rewards to create a positive experience from start to finish.

Step 4. Look outward: Focus on customers, not products. Clearly identify your most valuable customer segments and market to the distinct behaviors of those segments. Build your program on what the customer has clearly demonstrated he or she wants. Paying attention and “listening” to the customer is the sure way to build their lifetime value.

Step 5. Keep it simple. Nobody likes to feel restricted. The fewer rules you have, the more attractive your program becomes from the customer’s point of view. Create a program you can easily fulfill without many caveats. If you cannot deliver reliably on the promise of your loyalty program, you are doing more harm than good.

KWI offers state of the art CRM to help you build a powerhouse customer database and maximize the value of that goldmine. Call us to get your 2014 marketing efforts off to a great start!

For more information, please contact Evan Rubin, Vice President KWI-CRM, at erubin@kwi.com or (516) 621-2400, ext. 367.

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All About Chargebacks!By Christine Colasanto, Operations Manager, KWI Merchant Services

What is A Chargeback?Chargebacks occur when credit card customers contact their issuing bank to initiate a refund for a purchase. There are many reasons chargebacks can occur from a price or merchandise quality dispute to a failure in the fulfillment process. The customer may or may not contact the merchant to remedy the situation ahead of time. In some cases the customer may be completely wrong in their perceived reasons for initiating a chargeback, but regardless the responsibility falls on the merchant to ensure the transaction goes smoothly.

Inside the Chargeback Process The chargeback process can be very frustrating for merchants, especially if you do not know how it works:

1. The customer disputes a transaction by contacting their card-issuing bank.2. The card-issuing bank researches to determine whether the reason for the chargeback is valid. If the card-

issuing bank determines the reason for the chargeback is not valid, the chargeback is declined and the customer is held responsible for the charge.

3. If the card-issuing bank determines the reason for the chargeback is valid, a provisional credit is provided to the customer. The card-issuing bank initiates the chargeback process and obtains credit from the merchant’s processing bank.

4. The merchant’s processing bank now researches the validity of the chargeback. If the processing bank determines the chargeback is invalid the chargeback will be declined and returned to the card-issuing bank.

5. If the processing bank determines the chargeback is valid, the chargeback amount is removed from the merchant’s account and the processing bank provides a notification to the merchant.

6. If a processing error occurred, the sale is presented again to the card-issuing bank for correction.7. The merchant provides documentation to remedy the chargeback. If the documentation is satisfactory,

the chargeback is declined and the customer is once again charged for the sale. If the documentation is unsatisfactory, the chargeback is successful and the process is over.

As you can see, the resolution of a chargeback takes many steps involving multiple parties and can be a lengthy and time-consuming process. The best policy is to prevent them or minimize their occurrence as part of your Loss Prevention strategy. To learn more about avoiding chargeback situations, give us a call.

For more information, please contact Christine Colasanto, Operations Manager, KWI Merchant Services at ccolasanto@kwi.com or (516) 621-2400 ext. 376.

Credit Card Fraud in the eCommerce Environmentby Lauren Pedro, Senior Manager Client Services, The Zellman Group

Lately the news has been abuzz with stories about individuals or groups hacking into sys-tems to steal credit card numbers and sensitive information putting the issue of eCommerce security front and center. Last month we discussed some policies and procedures that your store team can use to minimize chargebacks caused by fraud, but with the ever-growing “card not present” environment how can retailers protect their online environment?

eCommerce fraud is a deep and opportunistic space with fraudsters masking themselves behind a veil of legitimacy. If you expect that your acquirer, gateway, or issuers will reduce your fraud risk you may be disappointed to learn the limitation of their protection.

There are a number of tedious manual processes you can take such as verifying the Bank Identification Number (BIN) to determine if the credit card holder and issuing bank for the credit card are located in the same country, but there are legitimate reasons why the condition may not apply and you do not want to risk upsetting a customer. It is also unlikely that your team will keep a negative historical file of problem customers, chargeback records, prior fraud

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attempts, etc. to review when processing each transaction.

The online transaction is meant to be instantaneous and efficient. So partner with an eCommerce platform that can score your transactions for fraud in a matter of seconds!

These platforms are behind the scenes fraud scoring systems that assign points for different elements of a trans-action: IP address, free email account, age of email account, time of day, length of time as a customer, net sale amount, type and quantity of products ordered, shipment method, different shipping and billing addresses, high-risk zip codes, etc. You can use these platforms to automatically generate a fraud score to indicate the likelihood of fraud before an order is processed. Most platforms allow you to customize these transaction rules.

Remember, eCommerce is not just about protecting your profit; it is also about reassuring your customers. Improve your online reputation by providing a safer shopping environment. It’s good for sales!

For more information, please contact Kimberly Bloomston, Vice President, Loss Prevention Operations, at kbloomston@zellmangroup.com or (516) 625-0006, ext. 406.