Unified Commerce
Greg Cantlon
Changing your POS? 7 critical tests your ...
Changing your POS? 7 critical tests your software must pass
Customer Experience
Greg Cantlon
From points to personalisation: Five steps to ...
From points to personalisation: Five steps to galvanise the liquor retail loyalty experience
Team
Carmela Salisbury
Kelly Brown steps down as Triquestra CEO
Customer Experience
Triquestra
6 omnichannel retail painpoints ...
6 omnichannel retail painpoints unified commerce solves
Customer Experience
Triquestra
Delivering a unified CX: liquor retail's new ...
Delivering a unified CX: liquor retail's new priority

local

Seven things to look for in a retail technology partner

Can your retail system keep up with customer demand for omnichannel experiences?

Consumers now see both the online and offline shopping experience as part of the same buying journey and not one versus the other.

This is introducing more complexity into the business, with channels becoming less physical and more digital. And that’s why unified commerce is now retail’s top priority, with 88% of retailers investing in unified commerce or considering doing so to build a customer-centric approach to retail.  

But at a time when 2 in 5 retailers (40%) lack in-house expertise to make the most of new technologies, and only 25% of retailers can connect online and store data, many retailers are looking at how to rebuild their businesses from the bottom up for their unified commerce business model.

They know that working with the right people and the right technologies will make the roll-out of new customer experiences much easier and deliver results much faster.

If you’re developing the roadmap or requirements for your next point of sale or retail platform, start here.

There are seven important indicators of a good technology partner:

1

Maturity and market responsiveness

With a mature platform you can focus on delivering innovation because the critical functionality you need already exists.

Look for a partner who’s been around retail for a while, with a platform built on a modern architecture and sound business model and proposition. They’ll need to understand your fast-paced, data-intensive environment where any significant level of downtime is unacceptable.

Their people will have the capability to help you plan and implement your projects so that they work for you now and into the future. When you choose a partner with a mature platform, they can focus on delivering innovation because the core functionality you need already exists.

2

Real-world customer experience

A strong track record and referenceable customer base means less risk.

Make sure your partner has a recent and proven success record for planning, implementing and managing complex, large-scale deployments across multiple stores, multiple formats and multiple geographies.

Have they implemented unified commerce systems or are they just unifying digital commerce channels? Ask for evidence of the relationships, products and services that help their clients to be successful, including the consultancy, customisation, integration, training and support services you’ll need.

3

Flexible and innovative mindset

Seek a partner that can pivot quickly as markets change.

You want a partner who’s got the people and processes to move fast, while cultivating an environment where innovation flourishes.

Check that they have a history of responsiveness and the ability to assess and quickly correct any unforeseen issues. Can they change direction, be flexible and achieve competitive success as opportunities develop, competitors act and customer needs evolve.

4

Broad product capability

Choose a partner that can give you a holistic portfolio and expansive retail ecosystem.

Offering a unified experience means unifying all the backend systems that run POS, inventory, customers and loyalty, pricing and promotions, analytics and fulfilment. You don’t want to be tied to a point player that can only provide portions. You’ll need all your core requirements out-of-the-box plus the ability to customise and easily add new functionality.

Your partner should let third parties connect via APIs and cultivate a vendor ecosystem to reduce risk and increase flexibility. You also need to know that your partner has a strategic roadmap and investment committed for new capabilities. 

5

Consulting and market understanding

Ensure your partner can translate your business needs into functional solutions.

Find a partner that will guide you in the right direction and tune technologies to fit your individual business needs. Do they have consultancy skills that span business and technical knowledge? Can they advise you on business processes as well as how the software works? Make sure they understand your wants and needs (as well as those of your customers) and can translate them into products and services.  

6

Exceptional operations

Make sure they combine experience, processes and systems for faster ROI.

Check that your partner can meet their goals and commitments, and that they have the organisational structure, skills, experiences, programmes and systems to operate effectively and efficiently. That includes agile — make sure they’ve done the training and really understand agile principles, methods and practices.  

7

Local and committed to your success

A local partner means you can have more influence on the product roadmap and expect faster turnaround.

Retailers are developing a customer-centric mindset and building new skills and capabilities to compete with new competitors. They recognise the risk that comes with global vendors with an indirect model of engagement and support.

A local business means you can enjoy direct engagement with on-the-ground people focussed on your needs, and not distracted by offshore business activity. With direct access to second and third level support and simple processes, you’ll enjoy leaner, faster support services.

Biggest isn’t always best. A mid-sized company will have fewer layers of bureaucracy, giving them more agility and responsiveness. It also means that you’ll be an important customer of influence to your partner - they will value your business and work hard for it.

This blog was originally published on 21 January 2019 and updated 07 October 2024.

Want help to innovate and scale new services, faster?

Triquestra has been delivering retail management systems in multiple industries and geographies for more than 25 years. Our product and people are supporting award-winning retailers delivering disruptive, world-first customer experiences that build loyalty and grow sales.

 If you’re experiencing technology challenges that prevent you from unifying your physical and digital channels, get in touch. We’d love to help you digitise your business to create the unified experiences your customers now expect.

For more on how a move to a unified commerce strategy gives you the flexibility and agility you need to keep in step with consumers’ changing needs, download our ebook:

The perfect blend: Four capabilities to look for in a liquor retail tech partner

Can your liquor retail business keep up with customer demand for new digital experiences?

Brick-and-mortar sales still dominate the liquor retail sector, with online sales languishing at single-digit percentages of total sales.

However, the move to online is real, with liquor online sales globally estimated to grow 4.5% between 2022 and 2027, reaching nearly US$40 billion by 2027.

This growth in online sales is introducing more complexity into the business, with channels becoming less physical and more digital. And that’s why everyone’s focussed on finding the right systems to rebuild their businesses from the bottom up for omnichannel retail.

But at a time when 2 in 5 retailers (40%) lack in-house expertise to make the most of new technologies, and only 25% of retailers can connect online and store data, they know that working with the right people and the right technologies will make the roll-out of new customer experiences much easier, and deliver results much faster.

So, how do you evaluate a new retail platform provider?

There are four important capabilities they will need to provide:

1.    Expertise across all retail, not just liquor

You’ll want a mature retail platform that supports liquor and convenience, rather than a narrow, liquor-specific POS system.

A partner with experience in highly competitive retail industries - like fashion and big-box retail - will have expertise in disrupting the customer experience, with APIs and a retail ecosystem few can match.

They’ll bring best practice ideas and capabilities from other retail sectors - not just liquor retail - and have POS omnichannel expertise distilled into all the essential modules you need to deliver seamless and differentiating experiences in stores, online and on mobile apps.

And with all the core liquor features you need out-of-the-box - plus localised functionality and the ability to customise – you’ll achieve a faster return on investment.

2.    Real-world customer experience

A strong track record and referenceable customer base means less risk.

You’ll want a partner with recent and proven success in liquor and convenience retail, with a track record of complex, large-scale deployments across multiple stores, multiple formats and multiple geographies.  

They’ll need to understand your environment where fast service is non-negotiable, staff require specialist knowledge and transaction volumes are highly variable. Make sure they have people who can help you plan and implement your projects, so that they deliver now and well into the future.

Their experience in the liquor sector will give them a deep understanding of the trends changing mobility and convenience, and bring you the best of consumer, retail and CX applications and technologies.

3.    Broad product capability and innovation mindset

Choose a partner that can give you a holistic portfolio and expansive retail ecosystem.

Offering a unified customer experience means unifying all the front- and back-end systems that run POS, inventory, ordering, customers and loyalty, pricing and promotions, analytics and fulfilment. You don’t want to be tied to a point player that can only provide segments.

When you choose a partner with a mature platform, they can focus on delivering innovation because the critical functionality you need already exists.

An open architecture and APIs will let you cultivate a modern retail and CX ecosystem that reduces risk and increases flexibility.

And with agile methodologies plus experience working with agile retailers, they’ll have the ability to move to fast and change direction as opportunities develop, competitors act and customer needs evolve.

4.    Local and committed to your success

A local partner means you can have more influence on the product roadmap and expect faster turnaround.

Liquor retailers are creating distinctive omnichannel customer experiences by developing strong brands, offering tailored convenience, expanding the breadth of their product offerings (or moving into specialist categories) and generating new revenue streams.

They recognise the risk that comes with global vendors that have a narrow focus on liquor POS or an indirect model of engagement and support.

A local business means you can enjoy direct engagement with on-the-ground people focussed on your needs, and not distracted by offshore business activity. With direct access to second and third level support and simple processes, you’ll enjoy leaner, faster support services.

Biggest isn’t always best. A mid-sized company will have fewer layers of bureaucracy, giving them more agility and responsiveness.

It also means that you’ll be an important customer of influence to your partner - they will value your business and work hard for it.

Want help to deliver a personalised, fast and seamless CX?

Our product and people are supporting award-winning retailers delivering disruptive, world-first customer experiences that build loyalty and grow sales. If you’re experiencing technology challenges that prevent you from unifying your physical and digital channels, get in touch. We’d love to help you digitise your business to create the unified experiences your customers now expect.

For more on how to deliver every customer a personalised, fast and seamless experience, download our ebook:

Delivering a unified CX: liquor retail's new priority

Can you keep up with consumer demands for an omnichannel retail experience that doesn’t stop when they enter a store? Kelly Brown explains why liquor retailers are overhauling how they plan, build and deliver their CX, and shares three steps to take to remain relevant.

Customers today expect retailers to offer convenience, speed and value throughout the end-to-end shopping journey. They are more discerning and impatient, and don’t care that it can be hard to deliver – they only care about a great experience.  

That is driving a massive shift in how liquor retailers plan, build and deliver their customer experience.  

The retailers making the first move know that a compelling bricks-and-mortar presence blended with an improved digital offering can be leveraged for competitive advantage. And that means seamlessly integrating all back-end systems and channels to deliver experiences that align with customer expectations.   

However, it’s complicated.  

While liquor retail has always been challenging – fast service is non-negotiable, staff require specialised knowledge and transaction volumes are highly variable – this requires a fundamental transformation of the standard business model.  

Liquor retail has been a laggard in creating new digital experiences and investing in technology to improve front- and back-end operations. Many liquor retailers have legacy solutions that are no longer fit for purpose and have bolted on solutions for the digital space that don’t easily integrate.   

Brick-and-mortar sales still dominate, with online sales growing but still languishing at single-digit percentages of total sales-digit percentages of total sales. Change is difficult in a sector with regulatory restrictions on alcohol delivery, age verification requirements and the more ‘sensory’ experience a store can offer.  

And at a time when 75% of retailers can’t connect their online and in-store transaction data, many struggle to deliver the cohesive, consistent unified experiences customers now expect.   

So what steps can you take to differentiate your liquor retail business?  

Here’s a three-pronged strategy that will help create the distinctive omnichannel experiences customers now expect: 

1. Deliver a unified customer experience 

Focus on the end-to-end needs of your customers and revamp the customer journey to expand your relationship beyond quick visits to stock up on beverages.  

That means making purchasing online and in stores seamless and convenient through digital payments, endless aisle and ‘buy anywhere, fulfil anywhere’ services coupled with fast and flexible on-demand delivery options. In-store pickup can drive foot traffic to physical locations. And leveraging data from online interactions can help in upselling and cross-selling.  

Take advantage of the shift in preference for neighbourhood shopping, with local product ranges tailored to each location and community, supported by bespoke promotional programmes.  

Use apps and your website to provide customers with personalised recommendations, invites to virtual tastings or opportunities to reserve products for in-store pickup, increasing their engagement and loyalty.  

The solution: Create a distinctive omnichannel customer experience by developing a strong brand, offering tailored convenience, expanding the breadth of product offerings (or moving into specialist categories) and generating new revenue streams. 

2. Unlock the value in your inventory

As you work towards delivering a compelling in-store experience blended with a digital offering, you’ll need to see a real-time view of all your inventory. If you don’t know the quantity of an item, where it is located, its current price nor status, you can’t offer the ‘buy anywhere, fulfil anywhere’ options that are best for customers and most profitable for you.   

However, the average inventory accuracy rate for retailers is estimated at 63%, meaning around one third of inventory records are inaccurate due to discrepancies between physical stock and what's recorded in inventory management systems. And liquor retailers face additional challenges, such as strict regulations, varying product availability and high SKU diversity, that compound these difficulties.  

Inaccurate inventory stems from both systemic and operational challenges. Retailers often rely on traditional ERP systems or custom-built software that can’t provide the real-time updates needed for online sales and instant stock checks. On top of that, legacy systems not designed for real-time data exchange struggle to keep up with the demands of new sales channels, resulting in delayed or inaccurate product availability and pricing information.   

The use of multiple, often disconnected systems for various retail operations further compounds the problem, creating data silos that hinder the development of a unified view of inventory, sales and customer interactions. And when things go wrong, many resort to a quick fix rather than real, lasting solution, which means missing out on chances to really improve the shopping experience and operational efficiency. 

The solution: You’ll want a unified commerce platform that provides an accurate, real-time view of all your inventory and customer data across stores, DCs and digital channels. You’ll improve inventory accuracy, reduce stock requirements, minimise fulfilment costs and increase ranging capabilities.  

3. Pivot into retail media services   

To remain relevant and competitive in the future, you’ll want to venture beyond traditional retailing and enter new service categories with a higher level of profitability.  

Retail media networks are emerging as one example in retail. A retail media network is a retailer’s advertising platform where they can sell ad space across all their digital assets, such as their website, apps, social channels and in-store digital screens.  

With the demise of revenue from third-party cookies, retail media helps alcohol brands to advertise to the right audience - people who want to purchase alcohol and are legally entitled to do so - and drive higher conversions that increase sales. And as online alcohol sales grow – 15.2% growth is expected between 2022 to 2030 - so will advertising revenues for retailers.  

The solution: With the alcohol industry’s advertising spend expected to reach $6bn in 2023, create a retail media division (or subsidiary) to capitalise on the advertising revenue opportunity and drive additional new growth. 

This blog was originally published on 30 May 2023 and updated 30 April 2024

Want help to differentiate your liquor business? 

If you want to create distinctive and frictionless customer experiences across all physical and digital channels, get in touch. We’d love to help you develop a unified customer journey. 

For more on how to deliver every customer a personalised, fast and seamless experience, download our new ebook:  

How new customer loyalty programmes fuel the c-store retail experience

Fuel retailers now realise there is enormous untapped potential to revamp their loyalty programmes to drive customer engagement and expand share of wallet. Kelly Brown explains how to elevate fuel loyalty solutions to create more relevant and personalised experiences that grow customer value and differentiate the business.

For many years, fuel retail loyalty programmes were an easy way to drive customer engagement and revenue. However, with changing consumer behaviours and formidable new competition, few meet the needs of today’s retailers or consumers.  

Most are simple “earn-and-burn” transaction or discount-based programmes that extend the same set of outdated offers to all customers, regardless of their different behaviours.   

They typically relinquish ownership of customer data and relationships to third party coalition loyalty providers that can’t differentiate retailers from their competition. And, crucially, with no access to data on their customers’ preferences, purchasing behaviour or communications, retailers can’t assess what their customers care about to provide the fast and easy personalised services they increasingly expect.  

The reality is, today customers don’t just compare your service to that of your competitors, but to the best service they’ve ever received, anytime and anywhere.   

At a time when industry regulators like the NZ Commerce Commission say that “motorists are often better off simply choosing the petrol station with the lowest board price or the site with a one-off ‘discount day, rather than counting on a complicated loyalty scheme”, you know that loyalty programmes are well overdue for an overhaul. 

Leading fuel retailers are investing in innovation, digitisation and branding to launch new loyalty solutions that deliver a complete view of customers’ preferences and purchasing behaviour, with the ability to create fast and memorable experiences.  

And they’re seeing the benefits - loyalty programmes are linked to an 18-30% increase in visits and spends at restaurants and c-stores, and loyalty members annually spend 38% more on average.  

If you’re looking at how to develop your loyalty and personalisation capabilities, here are the steps to take to deliver an exceptional CX, and examples of fuel retailers doing it best:  

1. Take control with a standalone loyalty programme  

In contrast to the third party loyalty programmes, modern loyalty systems give you a 360-degree view of all retail and trade customers, with their entire purchasing history and preferences captured and centrally stored in one database.    

By reclaiming ownership of your customer data from all channels and touchpoints – ranging from fuel selections to coffee preferences and convenience items within stores - you can recognise customers consistently wherever they shop with you.  

Example: in the UK, Shell Go+ is a very simple mechanism: customers earn visits, instead of points. All they have to do is spend £10 or more on fuel or £2 or more in the shop. They get 10% off all hot drinks and deli by Shell food ranges, and money off fuel every 10 visits, and plenty of treats and surprises along the way.  

This programme stands out due to its simplicity. Gaining and redeeming points is simple and doesn’t involve complicated calculations. 

2. Extend your loyalty programme to your mobile app 

Today loyalty programmes are an integral part of a smartphone app: loyalty mobile app users typically spend 10-20% more a month, and visit 20-30% more frequently each month.  

The customer essentially manages their own loyalty experience and should be able to collect points, make payments and redeem points straight through their mobile device at any time. And to really differentiate your offering, make it a simple and engaging experience by enabling both fuel and in-store transactions. 

Example: Z Energy, now part of Ampol Australia, expanded its Pumped loyalty programme back in 2019. Customers now save 6 cents per litre every day with no minimum spend at Z and participating Caltex stations, on up to 50 litres. They can choose to stack their discount when spending $40 or more to get an even bigger discount next time. And they earn Flybuys or Airpoints Dollars by scanning their Z or Caltex App, or Flybuys or Airpoints card.   

Z’s mobile app plays a key role in their loyalty programme. By delivering loyalty discounts and rewards at point-of-sale and on the app – not just via a card - they lowered the hurdle for customer adoption and made it faster and easier to use. For many users of the app, the big draw is another essential daily fuel: Coffee. The ‘jump the queue’ feature is one of Z’s most popular mobile offerings, with one in four coffees sold now pre-ordered.

3. Apply analytics to create more relevant and personalised offers  

The next stage is to use the data-driven insights to create cluster- or even site-specific offers. Tailor your offers for local buying opportunities and use your customers’ transaction histories to customise product bundles, pricing and promotions to increase sell-through without compromising margin.  

You can then capitalise on opportunities to craft offers that feel personally relevant to each individual in your database by combining internal data (such as transactions and location) with external data (such as competition, weather, traffic conditions and demographics).  

Example: The Chevron Texaco Rewards program rewards Chevron and Texaco customers for their fuel and qualifying in-store purchases at participating stations. But Chevron has also had success offering short-term loyalty schemes. Its AFANity program, which debuted in 2016, gave members points for specific activities, such as visiting a Chevron or Texaco gas station or checking in on the Chevron or Texaco mobile app. They then redeemed the points for rewards, including tickets to football games, autographed memorabilia, officially licensed team gear and unique once-in-a-lifetime experiences with their favourite teams.  

Chevron understands that people are not emotionally attached to petrol or convenience items but are very emotional about sports. Their loyalty programme tapped into that to create a positive affinity with the brand.  

4. Use AI-driven marketing tools to hyper-personalise the CX  

AI algorithms let you analyse customer preferences, predict many aspects of customer behaviour and develop personalised communications, experiences and offers.  

By interacting with customers at the right moment, with the right offer and in the right channel, you can drive behavioural changes in customers and multiply the lifetime value of loyalty customers. This is why gamification is the number one loyalty trend businesses plan to invest in during 2024.  

Example: Ireland’s Circle K understands the value of gamification with it Play or Park loyalty game. Members get 1 point for every litre of petrol or diesel and 4 points for every €1 spent on eligible purchases at Circle K stores. Members collect points and can play or park: each batch of 200 points qualifies for one entry which they can ‘Play’ for the prize of the month or ‘Park’ for an upcoming prize. And the prizes are big: February 2024’s ‘Experience of a Lifetime’ prize offers two friends the opportunity to drive free for a year, and March 2024’s prize awards 10,000 euro in cash.  

This is a great example of an engaging loyalty programme. It includes elements of gamification and has fantastic, tangible prizes for winners.   

5. Ecosystem loyalty programmes are next 

Looking ahead, large retailers are learning to drive customer loyalty and growth by pooling data within an ecosystem of brands. Multiple companies are tapping into their complementary product and service offerings to develop a joint loyalty programme around a unifying customer value proposition. 

 While still in their early stages, these ecosystem approaches promise many benefits: 

  • Consumers will receive heightened experiential benefits in addition to faster loyalty rewards growth, more flexible redemptions and an unmatched simplicity and daily relevance. 

  • Retailers and brands will see a rise in reach and frequency of usage. They will gain access to richer, more privileged consumer data, shared infrastructure and cross-marketing opportunities.  

Example: bp’s Everyday Rewards loyalty scheme in New Zealand is simple - customers earn 1 point for every litre of fuel and $1 spent on convenience products in-store. It includes ongoing loyalty promotions, such as 6 cents per litre off the fuel price up to 50 litres. And customers benefit from savings across a range of everyday purchases from multiple partners including Woolworths, ASB and Vineonline. 

Everyday Rewards is a powerful purchase motivator. Users gain points across a variety of partners and aren’t locked into spending rewards with one brand. People will be more motivated to use bp stations if they know their loyalty will be rewarded with other experiences and offers, not just fuel discounts or free car washes. 

As you look at how to modernise your loyalty programme, ensure you focus on the end-to-end customer experience. You have a fantastic opportunity to leap-frog your competition by taking an ecosystem-centric approach that gives your customers a ‘next-generation’ experience. 

Z Energy fuels more sales and repeat visits

Z Energy, New Zealand’s largest fuel retailer and part of Ampol Australia, developed Pumped to replace a third-party loyalty scheme and create a more seamless mobile and in-store customer experience.

Built using Infinity’s Loyalty module, Pumped uses a QR barcode on Z’s mobile app to identify the customer at point-of-sale or self-serve online payment terminals and add any relevant offers to their transaction. It also lets them consume any offers they have earned, such as free coffee, carwashes or LPG bottle swaps.

Z can now create new offers that help engage customers, offer them valuable rewards and encourage repeat visits. And Pumped is now Z’s cornerstone for innovation, with the ability to deliver the unified and personalised experiences its customers expect.

“With a single view of the customer we are right in the middle of the transaction with the customer in real-time. We know where, when and how they shop and, over time, will find new ways to interact, personalise and reward each customer’s experience.”

Andy Stewart, Head of Digital & Operations – Low Carbon Futures, Z Energy 

This blog was originally published on 12 February 2023 and updated on 21 February 2024.

Want help to modernise your fuel loyalty programme? 

As you transform your customer experience to deliver the seamless and personalised buying journeys your customers crave, your retail systems must transform as well. If you’re looking for help to develop your loyalty and personalisation capabilities, get in touch. We’d love to help you develop more meaningful relationships that deliver profitable growth.  

For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook:

The four trends shaking up liquor retail and four bold recommendations

As we reach the height of peak holiday season, most retailers are hard at work preparing for 2024. And the big question on everyone’s mind is how to battle declining sales growth. 

The outlook for next year is uncertain.  

While retail spending has slowed, with predictions of subdued sales until late calendar 2024, it’s not yet falling off a cliff. The latest ABS/MST Marquee data also reveals that liquor retail is holding up well compared to other categories, with liquor sales rising 2.2% in September. 

But as retail spending starts to lose share of wallet to non-retail spending – like travel, dining out, housing and health - retailers are urgently looking at how to boost sales growth. 

To secure a profitable future for your liquor retail business, you’ll want to understand the latest trends transforming our industry.  

Here’s the outlook for liquor retail, plus the four steps to take to remain relevant: 

1. Digital-first world order 

A compelling in-store experience that is harmonised with a digital offering can be leveraged for competitive advantage.  

Global online alcohol sales are back at pre-pandemic levels, with growth of 15.2% expected between 2022 to 2030. That is creating new online shopping habits and changing expectations of the in-store experience.   

As more customer journeys begin on mobile apps or online, and consumers increasingly demand digital convenience within stores, the ability to convert fleeting transactions into enduring relationships will rely heavily on unified experiences across all channels.   

Recommendation #1: Deliver a unified customer experience 

Liquor retailers will need to make shopping a fast, easy and compelling omnichannel experience with personalised products, prices and promotions pre, during and post their purchases, plus fast and frictionless on-demand delivery options.   

2. Changing consumer behaviours 

Liquor stores that deliver a unified and memorable CX are best positioned for long-term growth and loyalty.  

Changing consumer preferences and rising expectations for convenience are creating new growth opportunities.   

Conscious consumption is driving sales of local and sustainable alcohol brands. An increased focus on balanced lifestyles has fuelled the no- and low-alcoholic drinks category, with global sales topping $11bn in 2022 and growth accelerating. There’s explosive growth in ready-to-drink (RTD) and canned cocktails, and a continuing rise in premiumisation and viral craft cocktails.  

Recommendation #2: Adapt products to meet consumer expectations 

Liquor retailers need to create a distinctive omnichannel customer experience by developing a strong brand, offering tailored convenience, expanding the breadth of their product offerings (or moving into specialist categories) and generating new revenue streams.   

3. Economic headwinds 

High inflation, increased costs, supply chain disruptions and changing workforce roles are creating financial pressures.  

The liquor retail sector has changed significantly over the past decade. Independent retailers are increasingly joining banner groups, and brick-and-mortar retailers face formidable competition from new entrants, such as on-demand delivery providers and online-only retailers.  

With increasing costs, pressure on consumer spending and the cost of doing business on the rise, there’s likely to be more consolidation and business failures. The climate crisis is also putting pressure on retailers to create a sustainable future for their businesses and the planet.  

Recommendation #3: Embrace complexity to build new capabilities 

Resilient companies invest during tough times, and evolving new businesses takes a long time. Those that don’t invest in their customer experience will get left behind.  

4. Rise of services businesses 

Services are a tremendous growth opportunity for retailers – and a way to start building ecosystems that satisfy more consumer needs.  

Retailers can achieve up to 20 to 30% additional growth by expanding into services businesses and developing ecosystems that attract and retain loyal customers. Technology is blurring industry lines and allowing different operators – including retailers – to move into services such as healthcare, finances, travel and entertainment. 

Retail media networks are emerging as one example in liquor retail. A retail media network is a retailer’s advertising platform where they can sell ad space across all their digital assets, such as their website, apps, social channels and in-store digital screens. 

The most significant benefit of a retail media network for retailers is that they can monetise their valuable first-party data by selling and delivering relevant ads to customers – resulting in a better customer experience, stronger supplier partnerships and a new, high-margin revenue stream.   

By offering suppliers the opportunity to promote their products through their store networks and digital assets, it enables supply partners to reach the right audience - people interested in purchasing alcohol and legally entitled to do so – and boosts their sales at the point of purchase.  

Recommendation #4: Monetise your customer data by selling advertising 

With the alcohol industry’s advertising spend expected to reach $6bn in 2023, liquor retailers are launching retail media subsidiaries to capitalise on the advertising revenue opportunity and drive additional new growth for their business.  

Are you experiencing technology challenges that prevent you from exploit these trends and opportunities? 

Our partnerships with retailers delivering disruptive, world-first experiences give us a deep understanding of changing consumer needs and technology trends. Get in touch if you’re looking for help to develop a unified customer journey. 

Want to deliver every customer a personalised, fast and seamless experience? 

Get our ebook to find out how to revamp the liquor retail CX.  

The downturn begins: Craig Woolford on how convenience retail can battle declining sales growth 

There’s been regular debate about this year’s retail sales slowdown – when is the tipping point, how long will it last and how far will it drop? MST Marquee analyst Craig Woolford recently shared the outlook for convenience retail, plus three opportunities to exploit and three challenges to anticipate. 

Last month I attended ACAPMA’s excellent 2023 Asia Pacific Fuel Industry (APFI) Forum event in Brisbane. With attendees spanning fuel retailers and suppliers from across our region, it sparked lively discussions on the trends changing mobility and convenience retail. 

One of the highlights was a keynote from Craig Woolford of MST Marquee on the outlook for convenience retail in Australia. It included valuable insights for fuel and c-store operators across our region. 

Retail spending has slowed, but is not falling off a cliff 

Craig began by sharing the latest MST Marquee/ABS data showing how overall retail sales growth is slowing. While there was growth of 3% year on year for the three months to July 2023, interest rate increases have triggered a drop in consumer sentiment and spending slowdown. 

Craig predicts the trough in retail sales to arrive late calendar 2023. And while income tax cuts make him more positive for fiscal 2025, he predicts sales will be subdued until late calendar 2024, making it a lean 18 months for retailers. 

The data showed divergence between the major retail categories. Dining out is holding up well, alongside sales growth in supermarket, liquor, pharmacy and beauty, but volumes are generally weak. 

Retail spending is also starting to lose share of wallet to non-retail spending. Craig explained that this is the ‘normalisation’ path for consumers as we gradually revert to pre-Covid spending behaviours. Travel and dining out are winning our share of spend, along with ‘needs’ like housing and health.  

While there are several drivers for the slowdown this year, Craig described three key swing factors - drags from fading price inflation and higher interest rates, and a boost from consumer drawdowns on household savings. 

Opportunities in convenience retail  

Craig explained that convenience retailers can look to boost sales growth in three key areas:   

1. Exploit growth in dining out 

The trend towards dining out highlights a consumer now looking for convenience, not just experience. Consumer preferences long-term have moved from in-home dining towards dining out, with employment growth, excess savings and inbound tourism all supporting this trend. 

There’s an opportunity for convenience retailers to capture share in dining out, with cafes and fresh food customised to sites and regions. 

2. Drive up basket size through an expanded range  

The major supermarket chains generate good sales productivity through convenient store locations and a favourable basket mix, with average basket size around AU$45-50. Craig urged attendees to think about what could drive a 15-20% higher basket spend for their business. 

Successful retailers are building basket size through range extension. We’re seeing this with our own fuel and convenience retail clients, with many focussed on expanding their c-store offerings (combined with the potential of EV charging in fuel retail). 

3. Tap growth in online food retail by offering fulfilment 

Online retail accounts for around 7% of the entire food industry, spanning supermarkets, convenience, restaurants and takeaways. Craig described how it will continue to grow in high single digits, but the cost of fulfilment remains a barrier to a viable online food offering.  

C-store retailers can play a role by developing new business models that take advantage of convenient locations to become home delivery hubs. 

Challenges to anticipate  

Craig closed his keynote by sharing three challenges likely to test the mettle of convenience retailers:  

  • Declining tobacco sales: Tobacco sales are falling 10-15% and the fall is faster in some convenience channels, with tobacconists winning share. The tobacco industry is grappling with illicit tobacco and vaping, but with “limited government action” to address the problems.  

  • Rising wage costs: The 5.75% increase in retail award rates and 0.5% superannuation levy rise have made wage cost growth a problem into 2024 and beyond, with rates likely to rise by more than 4% in fiscal 2025. Craig said the Australian Fair Work Commission tends to take a balanced approach but noted that wage rate growth is currently less than inflation and could result in wage rate growth ahead of inflation in fiscal 2025. 

  • Rising occupancy costs: JLL Research has said that the forecast pipeline of new floor space will be just 37% of the 10-year historical average, with construction costs and high interest rates limiting new projects. That means floor space growth will be tight and could drive up rents. 

Are you looking for new ways to drive c-store revenue and profitability? 

Our partnerships with fuel and convenience retailers delivering disruptive, world-first experiences give us a deep understanding of changing consumer needs and technology trends. Get in touch if you’re looking for help to reduce costs, boost productivity and improve margins. 

For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook:  

Modernising liquor retail: 8 essential capabilities for a unified CX

In a recent blog, I talked about why liquor retailers are overhauling their business models to provide convenience, speed and value throughout the end-to-end shopping journey. That is driving a massive shift in how they plan, build and deliver their omnichannel customer experience.   

In this blog, we’ll look at how to create the omnichannel experiences that are best for customers and most profitable for you. 

Many liquor retailers aren’t equipped to create the shopping journeys now expected by digitally savvy consumers. They have siloed backend systems that are inefficient and costly to maintain and have bolted on digital solutions that don’t easily integrate.  

They struggle to meet customer demands for a joined-up retail experience that doesn’t stop when they enter a store.   

And they face powerful new competition from delivery and online retailers working hard to prevent people from going into stores in the first place!  

If you’re looking for new ways to extend your online experience into stores for unified retail, here are the eight pivotal capabilities you need for a modern customer experience: 

1. Digital convenience in stores 

The POS used to be the epicentre of the store technology experience. But today consumers expect unlimited access to information and functionality to inform their purchasing decisions, and demand digital experiences inside the store.  

Retailers are putting customers in charge of their in-store experience by integrating digital services, such as the ability to look up loyalty points, explore product information and add items to digital wishlists in stores. Shoppable screens provide ‘endless aisle’ capabilities that let customers browse and order from the entire inventory. 

2. Stores that amplify the digital experience 

Retailers are using the unparalleled knowledge of their store staff to boost digital sales and service by giving in-store teams the tools to connect with shoppers digitally.  Live chat enables customer service or in-store teams to solve user queries, and store teams are using social media to share educational content.  

Some retailers are going one step further and making use of live chat and virtual appointments to offer ecommerce customers the ability to speak with a store team member in real time. By giving customers product recommendations and helping them build personalised baskets, retailers are achieving high levels of conversions while increasing customer loyalty. 

 3. Localised pricing and promotions 

Retailers are making better decisions about store product assortments, by matching breadth and depth to demand, trends and local demographics. A unified view of inventory gives them total control over their stock to improve efficiency, reduce overall stock, create more satisfied customers and boost the bottom line. 

 And by customising products, prices and promotions nationally, regionally and even by individual sites, retailers are increasing conversions and maximising profits.  

4. Endless aisle for anywhere, anytime orders 

With a ‘buy anywhere, fulfil anywhere’ strategy and centralised unified commerce platform, retailers can give customers and staff real-time visibility of inventory, order and customer data across the business. That means customers can see the availability of products in their local stores, order via mobile apps or online for click-and-collect and, where regulations permit, order any product and get it delivered to their preferred address.  

5. Flexible omnichannel fulfilment 

Consumers now make purchasing decisions based on shipping costs and timings. And they want the right level of visibility, communication and tracking, no matter the fulfilment solution.  

Retailers are prioritising capabilities that help them to launch and scale omnichannel experiences faster by improving store fulfilment efficiency and enhancing the store pick-up experience. They’ve created hybrid stores that support the rise in online sales while meeting customers’ expectations for fast pick-up and delivery. They’re introducing ship-from-store capabilities that not only enable ecommerce orders to be shipped from stores, but stores can also ship orders placed in other stores. And with a unified view of inventory for endless aisle across all stores and DCs, they can quickly see where inventory is located and the fastest route to fulfil orders.  

6. Unified employee experiences 

A great customer experience hinges on a great employee experience. After years of underinvestment and continuing worker shortages, many retailers are playing catch-up by making employee efficiency and enablement a top priority. They’re giving their in-store teams access to relevant customer intelligence - such as loyalty rewards, wishlists and sales histories – to equip them to add more value to their customer interactions.  

Some are using AI technology to provide personalised upselling recommendations during click-and-collect pickups. And localised pricing gives their teams up-to-date, competitive pricing and empowers them to make better, on-the-spot decisions.  

7. Self-service to fuel growth 

In tandem with the new digital experiences inside stores, retailers are modernising their checkout experience so that customers can transact on their terms. They’re putting customers in control with fast and flexible self-guided assistance, mobile point of sale and contactless payments wherever the customer is in the store, and at events, trade shows and pop-up stores.   

While self-serve kiosks are practical solutions for large stores and supermarkets, liquor and convenience retailers are taking advantage of new self-service apps that can be deployed on any touchscreen terminal, making it simple to create fast and memorable experiences. Positioned on store counters next to POS terminals, these solutions remove the risk of theft or sales to underage customers by ensuring that store staff can quickly and easily verify IDs, audit to avoid losses and assist when required.  

8. Unified channels strengthen personalisation 

With more buying journeys beginning online, and store visits become more predetermined, customer expectations for a frictionless ‘one brand’ experience are rising. However, many retailers have channel silos that mean any interaction or activity that the customer had with them online is not available to the customer or staff within the store.  

Retailers are delivering personalised experiences by using AI and intelligence across online and offline channels to deliver timely and relevant communications, recommendations, offers and loyalty rewards across in-store and digital touchpoints, including the point of sale, mobile app, web, email and social. Some are extending these personalised recommendations into other communications with customers, such as e-receipts and shipping notifications. 

If you’d like help to create distinctive and frictionless customer experiences across all physical and digital channels, get in touch. We’d love to help you develop a unified customer journey. 

Want to deliver every customer a personalised, fast and seamless experience? 

Get our ebook to find out how to revamp the liquor retail CX. 

Delivering a unified CX: liquor retail's new priority

The ecommerce boom and ever-increasing consumer demands for more digital and personalised services are rapidly changing the business of liquor retail. Kelly Brown explains why liquor retailers are overhauling how they plan, build and deliver their CX, and shares three steps to take to remain relevant.

Customers now expect retailers to offer convenience, speed and value throughout the end-to-end shopping journey. They are more discerning and impatient, and don’t care that it can be hard to deliver – they only care about a great experience.  

That is driving a massive shift in how liquor retailers plan, build and deliver their customer experience.   

The retailers making the first move know that a compelling bricks-and-mortar presence blended with an improved digital offering can be leveraged for competitive advantage.  

And that means seamlessly integrating all backend systems and channels to deliver experiences that align with customer expectations.  

However, it’s complicated. 

While liquor retail has always been challenging – fast service is non-negotiable, staff require specialised knowledge and transaction volumes are highly variable – this requires a fundamental transformation of the standard business model. 

Liquor retail has been a laggard in creating new digital experiences and investing in technology to improve front- and back-end operations. Many liquor retailers have legacy solutions that are no longer fit for purpose and have bolted on solutions for the digital space that don’t easily integrate.  

And they struggle to support their customers’ current omnichannel demands, let alone the personalised ‘phygital’ shopping journeys now expected by post-pandemic, digitally savvy consumers.  

So what steps can you take to differentiate your liquor retail business? 

Here’s a three-pronged strategy that will help create the distinctive omnichannel experiences customers now expect: 

1. Pivot into retail media services 

To remain relevant and competitive in the future, you’ll need to venture beyond traditional retailing and enter new service categories with a higher level of profitability. 

Retail media networks are emerging as one example in retail. Liquor retailers are monetising their existing data and channels by introducing state-of-the-art digital screens closer to the point of purchase, creating a raft of opportunities for alcohol brands to advertise. 

With the demise of revenue from third-party cookies, retail media helps alcohol brands reach the right audience - people who want to purchase alcohol and are legally entitled to do so - and drive higher conversions that increase sales. And as online alcohol sales grow – 15.2% growth is expected between 2022 to 2030 - so will advertising revenues for retailers. 

2. Deliver a unified customer experience 

Focus on the end-to-end needs of your customers and revamp the customer journey to expand your relationship beyond quick visits to stock up on beverages. 

That means making purchasing online and in stores seamless and convenient through endless aisle, digital payments and ‘buy anywhere, fulfil anywhere’ services coupled with fast and flexible delivery options. 

Take advantage of the shift in preference for neighbourhood shopping, with local product ranges tailored to each location and community, supported by bespoke promotional programmes. 

And you’ll need to create true omnichannel experiences that seamlessly integrate physical and digital channels to create personalised customer communications, offers, experiences and rewards across in-store and digital touchpoints. 

3. Embrace complexity to build new capabilities 

To revamp your business and aggressively embrace innovation and new technologies, you’ll need to develop new expertise and capabilities. That will introduce more complexity into your organisation, with sales channels becoming less physical and more digital.  

You’ll want a retail platform that connects your physical and digital channels to let you deliver customer experiences that provide the convenience, speed and variety customers demand. Embrace agile working to innovate and get products to market faster. And by using APIs, you can create an ecosystem of partnerships to deploy new apps, services, channels and devices.  

Want help to differentiate your liquor business? 

If you want to create distinctive and frictionless customer experiences across all physical and digital channels, get in touch. We’d love to help you develop a unified customer journey. 

For more on how to deliver every customer a personalised, fast and seamless experience, download our new ebook:  

Four ways to revamp the fuel customer experience

This post was originally published on 12 May 2021 and updated on 22 February 2023

As consumer demand for convenience, speed, variety and affordability rises, the convenience store format needs to transform. Kelly Brown describes four areas to focus on to modernise the c-store CX.

With demand for traditional fuel expected to plateau around 2030, fuel retailers are urgently innovating to replace shrinking revenues and dwindling profits.

The leaders have quickly moved to improve and expand their traditional products and services and launch in new, but related, market segments. They recognise that the future business of fuel will be less vehicle-centric and more focussed on the customer. They’ve developed a customer-centric mindset and are building new skills and capabilities to compete with unfamiliar competitors.

monochrome-customer-satisfaction.png

We’ve seen some impressive transformations. The retailers making the first move are creating differentiated experiences for competitive advantage and forming strong customer relationships that are driving up conversions and profits.

It’s an immense undertaking. 

While fuel retail has always been challenging – very fast service is non-negotiable, transaction volumes are high and operations typically run 24x7 – this requires a fundamental transformation of the standard business model.

And customer expectations have never been higher. Today’s consumers expect brands to deliver fast and frictionless experiences through compelling interactions across all physical and digital touchpoints.

Building customer loyalty requires a complex mix of emotional and rational factors that enable you to connect and build relationships with customers across all your channels and communications.

 
 

So where should you focus? 

Here are four areas to explore:

 
 

1. Enhance the purchasing experience

Create a seamless experience across the end-to-end ordering and purchase journey, with personalised offers and incentives to encourage store visits, and fast point of sale transactions on the forecourt and in stores.

monochrome-fuel-scanning.png

  • A mobile app will let your customers pay for fuel without leaving their vehicles. Don’t restrict it to payments - use the app to help customers find their nearest service station, view their purchase history, accumulated loyalty points, discounts and rewards, or pre-order coffee, convenience items or a carwash.

  • By identifying customer pain-points and aggressively embracing innovation, Z Energy has delivered a world-first in fuel retail with the launch of its virtual fuel tank called Sharetank.  

2. Create a Convenience Hub

The convenience store format is ready for change. Consumers are cutting back on big weekly supermarket shopping trips and choosing to purchase more of their groceries at easily accessible local stores. 

  • Become a neighbourhood hub by expanding beyond traditional c-store offerings into high-quality products and fresh food, and design places customers want to visit, rather than need to visit.   

  • In highway locations, encourage customers to stay as long as they want, with fresh in-store and takeaway food, and rest areas for travellers. 

  • Consider the un-manned store model, which reduces costs while offering customers a quick, digital experience.  

3. Offer ordering and pickup

monochrome-customer-rewards.png

With the surge in ecommerce over recent years, consumers want new options for purchasing, payment and fulfilment.  

  • Boost sales and profits by letting customers place and pay for their order in advance using your mobile app. When they reach the store, all they need to do is pick up the order and go. Some fuel apps let customers order items while they fill up, and an attendant delivers them to their vehicles.   

  • New self-serve software offers a simple yet sophisticated solution to meet customer demands for speed and convenience via digital experiences.  

  • Draw online shoppers into stores by offering omnichannel services such as click-and-collect.  

  • Home delivery apps let your stores drive sales and engage with new customers, while continuing to encourage their local communities to shop in store.   

4. React smarter and faster to demand changes

Make better decisions about product assortments, by matching breadth and depth to demand, trends and local demographics.  

  •  A unified view of inventory will give you total control over your wet and dry stock to improve efficiency, reduce overall stock, create more satisfied customers and boost the bottom line. 

  • Maximise profits, conversions and promotional impact by customising products, prices and promotions nationally, regionally and even by individual sites.   

  • Offer a range of discounts to appeal to different shoppers, including dollars off the price, cost per litre, percentage off the price, cost plus a specific margin or markup and more.  

Want help to revamp your c-store customer experience? 

As you transform your CX to deliver the seamless and personalised buying journeys your customers crave, your point of sale and retail systems must transform as well. If you’re experiencing technology challenges that prevent you from unifying your physical and digital experiences, get in touch. We’d love to help you develop the agility to innovate and scale new services, faster

For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook: