Teamwork Commerce Technical Glossary
Welcome to the Teamwork Commerce Technical Glossary, your comprehensive resource for understanding key terms and concepts in the retail technology landscape.
A
A/B Testing: A method of comparing two versions of a web page, product, or other marketing element to determine which one performs better.
Assortment Planning: The process of selecting the right mix of products to meet customer demand and maximize sales.
Augmented Reality: A technology that superimposes computer-generated images on a user’s view of the real world, providing a composite view. Augmented reality is being used in a variety of retail applications, such as product visualization, in-store navigation, and marketing campaigns.
Average Ticket: A key metric in retail, representing the average amount of money spent per transaction. By increasing the average ticket value, retailers can boost their revenue without necessarily attracting more customers.
Average Transaction Value (ATV): The average amount spent by a customer per transaction.
B
Barcode Scanning: A feature of POS systems that uses a scanner to read barcodes on products, facilitating quick and accurate entry of product information.
Basket Size: The average number of items purchased per transaction.
Big Box Store: A large retail establishment, usually part of a chain, that sells a wide variety of goods, such as Walmart or Target.
BOPIS (Buy Online, Pick Up In Store): A retail strategy where customers purchase products online and pick them up at a physical store.
BOPIS (Buy Online, Pick Up In Store): BOPIS is an omnichannel retail flow that allows customers to buy products online and then pick up their orders in a physical store location. This approach offers convenience and flexibility to customers, enhances customer experience and drives foot traffic to brick-and-mortar stores, providing retailers with opportunities to upsell and cross-sell additional products.
BORIS (Buy Online, Return In Store): BORIS allows customers to return products purchased online to a physical retail store. This omnichannel approach simplifies the return process for customers, offering a hassle-free way to return items and receive refunds or exchanges promptly. BORIS implementation enhances customer service by providing a convenient return option, and creates opportunities to retain customer loyalty.
Brick-and-Mortar: A physical retail store where customers can browse and purchase products in person.
C
Category Management: A retailing and supply management concept where products are managed as a category to maximize sales and profitability.
Chatbots: Computer programs designed to simulate conversation with human users. Chatbots are being used in a variety of retail applications, such as customer service, product information, and sales support.
Churn Rate: The percentage of customers who stop shopping at a retailer over a given period.
Cloud-Based POS: A POS system that stores data on remote servers accessed via the internet, allowing for real-time updates and remote management.
Consumer Packaged Goods (CPG): Products that are sold quickly and at relatively low cost, such as food, beverages, and household items.
Contactless Payment: A payment method that does not require physical contact between the customer’s card or device and the payment terminal. Contactless payment methods are becoming increasingly popular due to their convenience and security.
Conversion Rate: The percentage of visitors to a store or website who make a purchase.
Cost of Goods Sold (COGS): The direct costs attributable to the production of the goods sold by a company.
CRM (Customer Relationship Management): A technology or system for managing all the interactions with your customers, and improve their experience and loyalty. CRM systems can be used to track customer interactions and behavior, store customer data such as shipment address, history, preferences, etc.
Cross-selling: The sale of complementary products to a customer who is already buying a product. Cross-selling can be an effective way to increase the average order value. For example, a retailer might cross-sell a pair of matching jeans to a customers who is buying a blouse.
Customer Acquisition Cost (CAC): The cost associated with acquiring a new customer, including marketing and sales expenses.
Customer Experience (CX): The sum of all the interactions that a customer has with a brand, shaping their perception of the brand and loyalty. CX encompasses every touchpoint a customer has with a brand, from their initial awareness of it, to the purchase, after purchase service and even social media interactions. By delivering positive CX at every touchpoint, retailers can build strong relationships with customers and encourage them to return for future purchases.
Customer Lifetime Value (CLTV): The total revenue a customer is expected to generate for a business over the course of their relationship. CLTV is a key metric for measuring customer profitability and identifying high-value customers. CLTV can be increased through initiatives like loyalty programs and strategic marketing campaigns.
Customer Loyalty: A customer’s continued patronage of a brand due to positive experiences and a strong emotional connection. Customer loyalty is a valuable asset for retailers, as it can lead to repeat purchases, positive word-of-mouth, and increased customer lifetime value. By providing positive customer experiences, retailers can foster customer loyalty and encourage customers to return for future purchases.
Customer Relationship Management (CRM): Tools within POS software that help businesses manage interactions with current and potential customers, including tracking sales history and customer preferences.
Customer Retention: The efforts made by a company to keep existing customers. Customer retention is a critical aspect of retail success, as it is much more cost-effective to retain existing customers than to acquire new ones. By providing positive customer experiences, retailers can encourage customers to make more purchases, and stay loyal.
D
Data Analytics: The process of examining data and reports to identify patterns and trends. Data analytics can help retailers gain insights into customer behavior, market trends, and operational performance. Real-Time Analytics offers a timely and informed approach, enabling businesses to make strategic decisions that maximize profits on the go.
Dead Stock: Inventory that has not been sold and is not likely to be sold in the future.
Demand Forecasting: The process of predicting future demand for products or services. Accurate demand forecasting can help retailers avoid stockouts and overstocks, and optimize their inventory levels.
Distribution Channels: The routes through which products are moved from manufacturers to consumers. Retailers must carefully consider their distribution channels to ensure that their products are available to customers where and when they want them.
Dropshipping: A retail fulfillment method where a store does not keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. Dropshipping allows retailers to offer a wide range of products without the need for costly inventory management.
Dynamic Pricing: A pricing strategy where prices are adjusted in real time based on demand, competition, and other factors.
E
E-commerce: The sale of goods and services over the internet. E-commerce has become a major force in the retail industry, and retailers must have a strong online presence in order to remain competitive.
E-commerce Integration: The ability of POS software to sync with online store platforms, allowing for unified management of in-store and online sales.
EMV Compliance: Adherence to global standards for credit and debit card payments that use chip card technology for enhanced security.
Endcap: A display of products placed at the end of an aisle in a retail store to attract customer attention.
F
FIFO (First In, First Out): An inventory management method where the oldest stock (first in) is sold first (first out).
Flash Sales: Short-term promotions offering substantial discounts on products for a limited period.
Foot Traffic: The number of customers who enter a retail store within a given period.
Fulfillment: The process of completing an order by picking, packing, and shipping it to the customer. Fulfillment is a critical part of the retail order fulfillment process, and it can have a major impact on the customer experience. By providing efficient and accurate fulfillment, retailers can ensure that customers receive their orders on time and in good condition.
G
Gift Card Integration: The ability of POS systems to process and manage gift card transactions, including issuing and redeeming gift cards.
GMROI (Gross Margin Return on Investment): A metric that assesses a retailer’s ability to turn inventory into cash above the cost of the inventory.
I
In-store Experience: The overall atmosphere and customer service provided in a physical retail store. A positive in-store experience can encourage customers to linger longer, browse more products, and make more purchases.
Integrated Payments: A feature of POS systems that allows for seamless processing of payments directly within the POS software, including credit card, debit card, and mobile payments.
Inventory: The stock of goods held by a retailer to meet customer demand. Inventory management is a critical aspect of retail operations, as it involves ensuring that the right amount of stock is available to meet demand without incurring excessive costs. Effective inventory management can help retailers improve their profitability and customer satisfaction.
Inventory Management: A system within POS software that tracks stock levels, orders, sales, and deliveries to optimize inventory control.
Inventory Optimization: The process of managing inventory levels to minimize costs while ensuring adequate stock to meet demand. Inventory optimization is a complex task that involves balancing a number of factors, such as demand forecasting, lead times, and storage costs. By effectively optimizing their inventory, retailers can reduce costs and improve their profitability.
Inventory Turnover: The rate at which inventory is sold and replaced over a given period. Inventory turnover is a measure of how efficiently a retailer is managing its inventory. A high inventory turnover rate indicates that a retailer is selling its inventory quickly and not tying up too much capital in stock.
Inventory Turnover Ratio: A measure of how often inventory is sold and replaced over a period.
K
Keystone Pricing: A pricing strategy where a retailer doubles the wholesale cost to determine the retail price.
L
Layaway: A purchasing method where a customer reserves a product by making a deposit and pays off the balance over time before taking the product home.
LIFO (Last In, First Out): An inventory management method where the most recently acquired stock (last in) is sold first (first out).
Loss Prevention: Strategies and measures used to reduce theft and fraud in a retail environment.
Loyalty Program: A loyalty program is a retail strategy employed by retailers to reward their customers’ repeat purchases. By creating an incentive structure that rewards frequent buyers with exclusive benefits and privileges, retailers can foster customer relationships, promote loyalty, and increase sales, while ensuring a steady stream of returning customers. Additionally, these programs give the opportunity to gather valuable data about customers which can be utilized to develop more efficient marketing strategies in the future.
M
Markdowns: Reductions in the original selling price of products to encourage sales.
Marketing Automation: The use of software to automate marketing tasks. Marketing automation can help retailers save time and improve the efficiency of their marketing campaigns.
Marketplace: A virtual platform where multiple sellers can list and sell their products. Marketplaces offer a wide variety of products from different vendors, providing customers with a convenient and comprehensive shopping experience.
Merchandising: The process of promoting and selling products to customers, including product display, pricing, and advertising.
Mobile POS (mPOS): A portable POS system that allows transactions to be processed using a mobile device such as a tablet or smartphone.
Multichannel Retailing: Selling products through multiple channels, such as brick-and-mortar stores, online stores, and mobile apps, all managed through the POS system.
Mystery Shopping: A method used by retailers to evaluate the quality of customer service and store operations by having anonymous evaluators pose as customers.
N
Net Promoter Score (NPS): A metric used to measure customer loyalty and satisfaction by asking how likely customers are to recommend a company to others.
O
Omnichannel: A seamless integration of physical and digital channels that provides a cohesive customer experience. In the omnichannel approach, customers can start a shopping journey on one channel and seamlessly transition to another without experiencing any disruption. This can involve browsing products online and then visiting a store to see them in person, buying online and picking up the items at the physical store, and many more.
Omnichannel Retailing: A retail strategy that integrates multiple shopping channels, such as physical stores, online stores, and mobile apps, to provide a seamless customer experience.
Omnichannel Retailing: A retail strategy that integrates multiple shopping channels, such as physical stores, online stores, and mobile apps, to provide a seamless customer experience.
Online Reputation: The public perception of a brand based on online reviews, social media comments, and other forms of online content. A positive online reputation can attract new customers and boost sales, while a negative reputation can damage a brand’s credibility and deter potential customers.
Order Management: A feature within POS systems that helps businesses track and fulfill customer orders efficiently.
Order Management System (OMS): A software system used to manage and fulfill customer orders efficiently.
P
PCI Compliance: Adherence to the Payment Card Industry Data Security Standard, ensuring that card transactions are secure.
Personalization: The tailoring of products, services, or communications to the individual needs or preferences of a customer. Personalization can help retailers create more relevant and engaging shopping experiences, but it needs to be accompanied by an excellent data source, such as customer preferences, history and behavior.
Planogram: A diagram or model that shows how and where products should be placed on retail shelves to maximize sales.
Point of Sale (POS): The location where a customer finalizes a purchase, typically involving payment and receipt. The POS is a critical part of the retail checkout process, and it can also be used to collect data about customer purchases. Retailers can use POS data to gain insights into customer behavior and improve their marketing and merchandising efforts.
Predictive Analysis: The use of data to predict future outcomes, such as customer behavior or demand for products. Predictive analysis can be used by retailers to improve their marketing, merchandising, and inventory management efforts. By having real-time and full visibility across locations, retailers can make more informed decisions that can lead to improved profitability.
Price Optimization: The process of setting prices to maximize profits while remaining competitive. Price optimization is a complex task that involves considering a number of factors, such as cost, demand, and competitor pricing.
Pricing Strategy: The method a business uses to set prices for its products or services. Pricing is a critical decision that can have a major impact on a retailer’s profitability.
Private Label: Products that are manufactured by one company but sold under another company’s brand name.
Product Lifecycle: The stages a product goes through from its development to its decline. The product lifecycle can help retailers understand the different stages a product goes through and make informed decisions about how to market and merchandise it. The most common stages are: introduction, growth, maturity, and decline.
Profit Margin: The difference between a product’s selling price and its cost, expressed as a percentage of the selling price. Profit margin is a key measure of a retailer’s profitability. By increasing their profit margin, retailers can improve their financial performance.
R
Real-Time Reporting: The ability of POS software to provide up-to-date data and analytics on sales, inventory, and other key business metrics.
Receipt Printing: The capability of POS systems to generate printed receipts for customers at the point of sale.
Retail Analytics: The process of analyzing sales data to gain insights into customer behavior, inventory management, and overall business performance.
Returns: The process of a customer returning a product to a retailer for a refund or exchange. Returns are a natural part of the retail business, and retailers must have efficient return policies and the right technology in place to minimize losses while maintaining customer satisfaction. (Include examples of return policies and programs?)
Revenue Attribution: The process of assigning revenue to different marketing channels or initiatives. Revenue attribution can help retailers determine which marketing efforts are most effective in driving sales.
RFID (Radio Frequency Identification): A technology used to track products and inventory using radio waves.
RFID Technology: A technology that uses radio waves to identify and track objects. RFID technology is used in a variety of retail applications, such as inventory management, asset tracking, loss prevention and Self-Checkout.
S
Sales Analytics: Reporting tools within POS software that analyze sales data to provide insights into business performance, sales trends, and customer behavior.
Shift Management: Tools within POS software that help manage employee schedules, track hours worked, and streamline payroll processes.
Shopper Journey: The process a customer goes through from identifying a need to making a purchase. Understanding the shopper journey can help retailers tailor their marketing and sales efforts to meet the needs of customers at each stage of the buying process.
Showrooming: The practice of examining merchandise in a physical retail store and then purchasing it online at a lower price.
Shrinkage: The loss of inventory due to theft, damage, or errors in inventory management.
Stock Keeping Unit (SKU): A unique identifier for each product in a retailer’s inventory, used to track stock levels and sales.
Supply Chain Management: The process of managing the flow of goods and information from suppliers to customers. Effective supply chain management can help retailers reduce costs, improve efficiency, and increase customer satisfaction.
Supply Chain Management (SCM): The management of the flow of goods and services, including all processes that transform raw materials into final products.
T
Touchscreen Interface: A user-friendly feature of POS systems that uses a touchscreen for entering data and processing transactions.
U
UPC (Universal Product Code): A barcode used to identify products and track them in retail environments.
Up-selling: A sale technique that persuades a customer to purchase a more expensive or upgraded version of a product they are already considering, to increase the average ticket, and ultimately, the business revenue. Effective upselling needs good information and data about the customer such as purchase history and preferences.
User Permissions: Settings within POS software that control the level of access different employees have to various features and data.
V
Virtual Reality: A computer-generated simulation of a three-dimensional environment that can be interacted with in a seemingly real way. Virtual reality is being used in a variety of retail applications, such as product demos, training, and customer engagement.
Visual Merchandising: The practice of developing floor plans and three-dimensional displays to maximize sales and provide an engaging shopping experience.
Z
Zone Pricing: A pricing strategy where prices are set based on geographical location or market segments.