Mini Checkout Copyright 2011

Agenda 1.About us 2.Current Waiting Line Model 3.Disadvantages 4.Proposed Service Model and Benefits 5.Existing vs Proposed System 6.Preventing Security Risks 7.Demo 8.Conclusion Mini Checkout Copyright 2011

1 of 12 companies accepted into the program Partners with Alligato mobile payment platform  Key customers are existing ecommerce payment gateways  Optimal Payments – 4000+merchants shifting to mobile commerce Mobile development team members are recent graduates from UBC computer science Business development team member from SFU business school. About Us Mini Checkout Copyright 2011

Current Waiting Line Model Mini Checkout Copyright 2011 X= Rate of arrival in queue Y = Rate of completion Existing waiting line model with a fixed number of customer service points in the physical store. This creates a bottleneck which in turn limits the number of paying customers the store can generate. Waiting Customer Fixed Checkout Point

Disadvantages Mini Checkout Copyright 2011 Long lineups and wait time for checkout Increase customer reneging and balking behaviour Decrease customer satisfaction Idle resources Sales associates help customers make purchase decisions but customers still have to do checkout through a fixed checkout point in most cases During periods of low traffic, services points are underutilized Increased retailer cost in order to deliver a high performance customer service

Proposed Service Model Mini Checkout Copyright 2011 Customer Checking-out Fixed Checkout Point Mobile Checkout Points A customer service system with flexible number of checkout points by employing mobile used either by the customers or by the sale associates.

Operational Benefits 1. Increase customer throughput by optimizing the checkout process 2. Increase productivity of existing resources by increasing system utilization 3. Reducing risks identified in most recent Best Buy Inc. annual report such as: “failure to anticipate and respond to changing consumer preferences in a timely manner” According to an IHL study » Use of self-service kiosks is growing 10% a year » nearly 50% of Americans want stores to offer self-checkout “failure to control costs” Mini Checkout Copyright 2011

Saves time and resources Increases purchase per customer Increases # of customers Value Added Mini Checkout Copyright 2011 Increases customer satisfaction 3. Provides real time push advertising 2. Attracts a new tech savvy generation of customers 4. Offers on-the-go access to information for customers 1. Increases customer loyalty

Existing vs Proposed System Mini Checkout Copyright 2011

Existing Purchasing System CUSTOMER: 1)Selects products, adds items to the cart 2)Logs in/signs up 3)Credit card used either for payment or reservation of items 4)Select pickup location/shipment BEST BUY: 1)Transaction recorded in order management system 2)Checks warehouse/store inventory 3)Process payment 4)Sends electronic order confirmation to customer 5)Employee collects the items 6)Ships items to customer’s residence or notifies store of pickup order CUSTOMER: 1)Goes to store to pickup order 2)Wait at the Customer Service Desk BEST BUY: 1.Checks customer’s ID and printed store pickup notification 2.Retrieves reserved items and brings them to the customer 1) Transaction recorded in local POS system Proposed Purchasing System 5) Scans barcode of the electronic receipt Returns electronic receipt back to mobile device (barcoded)

Preventing Security Risks Mini Checkout Copyright 2011 Inventory shrinkage prevention Mandatory membership Limit of amount spent / number of items purchased Associates security at physical entrances Barcode scan of the customer’s receipt on smartphones Payment fraud prevention Just as secure as the existing e-commerce, if not more Mandatory membership PIN entry for transactions Picture Identification required

Conclusion Mini Checkout mobile self-checkout application is the natural progression of the existing POS systems It overcomes the limitations created by long lineups at the cash registers and self checkout machines Some of the benefits provided: 1.Convenient and interactive checkout process for customers 2.Increased number of customers served 3.No extra employee time is required to fulfill orders, and shipment. 4.Provides push advertisement opportunities 5.Caters better to impulse buying, saves time, empowers customers Mini Checkout Copyright 2011