The Loss Prevention Research Council (LPRC) has released a series of reports detailing a recent study on the impact of the Point-of-SaleA ctivation (PoSA) solution from Digital Safety USA. PoSA reportedly scored very favorably in consecutive field study tests.
According to Dr. Read Hayes, LPRC director, “The LPRC is pleased to offer these reports as a significant benefit to our membership. Over the coming months, we will continue to review and evaluate each new integration of PoSA at the store level to provide our members with ongoing real-world, unbiased, scientific data on current loss prevention applications and methodologies.”
The LPRC has evaluated the PoSA solution from Digital Safety USA for the past three years, working with many different assets from a variety of categories including notebook computers, tablets, smartphones, and speakers.
“The prospect of an effective, consumer-friendly, scalable digital solution like PoSA is an exciting prospect for retail loss prevention,” said Dr. Hayes.
During the December 2016 holiday buying season, LPRC analyzed the results of 549 in-person surveys conducted by Walmart in the Gainesville, FL, Innovation Lab and at 20 Walmart test store locations. The intent was to understand the impact and benefits of the PoSA solution and its related identifying box-mark.
Executive Summary
Customers and store personnel responded very favorably overall to the PoSA solution while the offender community viewed it as a highly effective loss prevention tool.
- Customers report purchasing locked-up merchandise highly detrimental to their shopping experience.
- Survey respondents reported PoSA provided easier, more convenient access to products before buying, leading to an improved customer shopping experience, and increased likelihood of purchase.
- Customer response to the PoSA concept was generally favorable, while the PoSA activation process was intuitive to most customers. Research and development around consumer familiarity marketing continues.
- Favorability and PoSA process familiarity among consumers is expected to increase as more manufacturers integrate PoSA into their products, and adoption expands within the retail industry.
- PoSA has shown positive initial results with manufacturers that can scale production to integrate PoSA-enabled devices, thereby protecting high-theft items throughout the supply chain.
“LPRC has proven to be an excellent incubator and enhancer of new and existing asset protection solutions. Their team provides evidence-based, unbiased feedback direct from both retailers and actual theft offenders, forming a strong partnership within the asset protection community,” stated Adam Hartway, DiSa Digital Safety’s chief executive officer.
“Digital Safety looks forward to continuing to partner with the LPRC to research, refine, and continue to create disruptive technology,” said Hartway.
Report 1: Walmart 20-Store PoSA Test
The LPRC conducted an in-depth review of literature and messaging along with extensive testing of the solution roll-out in 20 Walmart test store locations. The goal was to gauge overall market response to the PoSA solution in a larger test store group. The study’s very favorable results reportedly demonstrate that PoSA is easily identified and understood by customers, store personnel and the offender community.
- Customers responded positively to PoSA as compared to alternatives, with 61% citing easier, more convenient access to products before purchasing, leading to an improved customer shopping experience. Customers adapted to the PoSA process during the store test.
- Among asset protection managers, 67 percent prefer PoSA to other in-store product protection options, with 56 percent rating PoSA as very favorable.
- PoSA facilitates open sell-ability, which creates an improved in-store experience for customers. Products included in the 20-store test received a substantial sales lift, with test stores reporting a shift into the top 20 percent of overall chain sales.
- DiSa-protected products experienced a lower return percentage than unprotected product; no refunds for fraudulent returns occurred during the 20-store test.
Report 2: Walmart One-Store PoSA Pilot Program
Surveys were conducted by the LPRC in the first Walmart US pilot store featuring the PoSA solution. The goal was to assess customer and associate reactions to its functionality and introduction to the retail market. Again, participants responded very positively to PoSA.
Report 3: PoSA Box-mark Recognition and Effectiveness
The LPRC worked extensively with several leading retailers for more than three years to design a universal box-mark that represents all PoSA technology. The chosen box-mark, pictured here, is included on the packaging of all PoSA-protected goods. The box-mark was well received and easily identified among survey respondents.
- Customers reported the PoSA box-mark to be aesthetically pleasing and easily understood.
- Loss prevention managers found the PoSA box-mark to be practically applicable and scalable.
- Offenders demonstrated a high understanding of the chosen box-mark, reporting a fear response to its presence.
The LPRC will continue to study PoSA as it integrates into stores over the coming months, monitoring solution efficacy and box-mark recognition among manufacturers, store personnel, customers, and offenders.
According to Dr. Hayes, “The LPRC will remain at the forefront of these R&D efforts, bringing together retailers for crucial education and discussion, and providing expertise on retail loss prevention.”
A fourth report in progress will focus on informing the offender community about the PoSA solution.