Is your point of sale system good enough for today’s omnichannel environment?
In a recent blog, we talked about how changing consumer expectations are disrupting legacy point of sale technology and shared five areas to focus on to differentiate the store customer experience.
If you want to ensure your next retail platform will grow and evolve alongside your needs, here we look at the challenges retailers experience when making the shift to a new POS, and the important tests the new tech needs to pass.
For many omnichannel retailers, the rise of online shopping has set higher expectations for in-store experiences.
Physical stores now play a key role in driving demand and profitability - even when the final purchase happens online.
Shoppers today view their online and in-store interactions as part of a unified buying journey, not separate channels. And by speeding up delivery, increasing share of wallet, and providing hands-on product experiences, stores are enhancing and differentiating the overall customer journey.
Yet, a significant challenge persists: many retailers find that their outdated point of sale systems are unable to meet the needs of today’s omnichannel shoppers, especially with the ‘phygital’ experiences that tech-savvy consumers now expect.
And making the shift to a new point of sale is complicated:
Many retailers defer upgrades because of concerns about potential disruption to current operations, the resources required for successful implementation and the task of staff training.
Compatibility issues with existing and future systems can make the transition to a modern POS seem a daunting task.
This can be amplified by a fear of not achieving the anticipated return on investment, especially if they’ve previously been burned by failed tech projects.
In the past, retailers who got behind on their store technology investments frequently focused on catching up to current standards. However, now the focus is on future proofing – choosing platforms that speed up innovation, with the flexibility to change direction as opportunities develop, competitors act and customer expectations evolve.
You don’t want a project that fails to deliver the desired returns because the wrong product was selected.
So at a time when point of sale software is undergoing a surge of disruption, innovation and investment, how do you select the right system for your business requirements?
Here are the 7 tests a point of sale purchase must pass, with the first being the most crucial of all:
Test 1. Can it be rapidly implemented and deployed?
The number one priority for most of the retailers we speak with is speed of deployment.
The complexity of upgrading legacy POS infrastructures can present significant operational challenges. This means you need a platform built on a modern architecture, with all your core requirements out-of-the-box plus the ability to customise and easily add new functionality.
When you choose a partner with a mature platform, they can focus on delivering innovation because the core functionality you need already exists.
Check the provider has recent and proven success planning, implementing and managing complex, large-scale deployments across multiple stores, multiple formats and multiple geographies. They’ll need to understand your fast-paced, data-intensive environment where any significant level of downtime is unacceptable. And their people will need the capability to help you plan and implement your projects so that they work for you now and into the future.
Our client GAS took only 10 weeks to rollout Infinity across 127 stores – a masterclass in POS deployment. GAS now has a modern retail system that supports its retailers to provide great customer experiences and drive growth.
“That is what Infinity point of sale system is able to deliver to us, a system which is fast, reliable, secure and on a modern architecture and platform.”
Nahid Ali, GAS General Manager
Test 2. Will it support your unified commerce business model?
Today, the store is mission control for a seamless omnichannel customer experience, making the POS the anchor for unified commerce.
That means you’ll want a point of sale system that will not only work with your existing systems, but also provide an end-to-end solution for a unified commerce business model.
The POS needs to be the hub for unified experiences spanning endless aisle, click and collect, store fulfilment, pricing and promotions, clienteling and loyalty, as well as functions that allow customers to search, transact, acquire and consume products across all your channels.
You don’t want to be tied to a point player that can only provide portions.
“The reason unified commerce resonated with me is that it would give us one core platform do the heavy lifting and a single source of truth to manage the customer data, inventory and order orchestration, rather than relying on too many systems to push and pull data everywhere.”
Shane Lenton, previously Cue’s Chief Information and Digital Officer
Test 3. Will the system work offline?
No matter how exceptional your retail customer experience is, it becomes irrelevant if you're unable to complete a sale.
When inevitable network outages happen, you need to trust that your POS will keep all your stores operational without any disruption.
When implemented correctly, the offline POS experience should be so seamless that your staff may not even realise the system is offline.
Though some features may be limited, it's essential to know what transactions can still be processed during the loss of connectivity. For example, the system should handle card and cash payments, process returns, capture customer data and link it to profiles, and continue scanning products for smooth checkouts.
Test 4. Can it grow with you, and adapt to change?
Whether you're expanding into new locations or launching pop-up stores, it's crucial to ensure your POS system can scale quickly and adapt to changes in customer expectations. While it might seem obvious, scalability can easily be overlooked in the excitement of cutting-edge technology.
Your growth plans should account for how your physical stores can complement your online presence - not just to drive online sales but also to strengthen customer loyalty. Your POS solution must be able to function anywhere your ecommerce platform can.
POS adaptability means having a system that can quickly adjust to evolving customer preferences. It should operate seamlessly across tablets, phones and fixed tills, allowing transactions to flow between devices effortlessly. This flexibility not only opens up possibilities for innovative store layouts and experiences but also provides the practical benefit of better backup strategies for your devices.
Your partner should let third party solutions connect via APIs so that you are free to focus your development efforts on the front-end. You can be more agile and create a community of third-party apps and systems that work together in an ecosystem. As a result, you’ll reduce integration and maintenance overheads, increase real-time accuracy and enjoy virtually limitless scalability and agility.
Test 5. Does it have an intuitive UX for a better EX?
Today, any innovation within the store must minimise friction for store teams because this directly contributes to delivering a superior customer experience. The focus is now on speed and simplicity to maximise staff productivity, no matter where they are in the store.
An easy to use UX and straightforward setup will enable new employees to quickly learn the system and begin selling almost right away. By removing the frustrations caused by complex technology, you'll also help lower staff turnover.
In addition, many retailers run multiple systems within stores, forcing their teams to juggle between different apps and screens as they serve customers. By consolidating store technology onto a single POS-based retail system, your teams can do everything in a single view, from sales transactions, customer loyalty, pricing, product and promotions through to virtual appointments and endless aisle access to stock.
Test 6. Will it make complex sales simple?
For enterprise retailers with multiple brands, B2B operations or franchises, you’ll need a POS system that makes complex sales simple.
You’ll want to control everything from either head office or at store level to set pricing and promotion rules, permissions, return and refund validation, discounting and cash management.
And ensure it supports complex sales like charge-to-account, quote management by channel, debtor management, loyalty and all types of pricing, including retail, trade, contract, promotional, project, customer-specific and rules based.
“Infinity is one of the few platforms able to accommodate our diverse business model, with both retail and wholesale customers requiring multiple volume breaks and bulk purchasing. And Infinity’s New Zealand presence gives us an out-of-the box solution with local capabilities that can be customised to our requirements.”
Amanda Thompson, General Manager of Moore Wilson’s
Test 7. Can you rely on the vendor for new functionality and ongoing support?
Working with the right people and processes will make the roll-out of your new point of sale much easier and deliver results much faster.
A local partner means you’ll have direct access to second and third level support, with direct engagement with people on the ground committed to your success (and not distracted by offshore business activity).
It means you can have more influence on the product roadmap, with fewer layers of bureaucracy giving them more agility and responsiveness. And a mid-size partner is more likely to view you as an important customer of influence.
Louise Mitchell, NPD’s Senior Category Manager
Want help to modernise your point of sale?
As you transform your customer experience to deliver the seamless and personalised buying journeys your customers crave, your point of sale system must transform as well. If you’re looking for help to shape your strategy and extend your omnichannel capabilities, get in touch. We’d love to help you develop the solutions you need now and guide you to where you’re headed next.
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:
How the move to ‘phygital’ is disrupting point of sale technology
Retailers are shifting focus from ecommerce to their stores to better serve omnichannel customers. Here's how changing consumer expectations are transforming in-store technology and disrupting legacy point of sale (POS).
For most omnichannel retailers, the growth of ecommerce has meant boosting their investments in physical retail.
That’s because the store is essential to creating and satisfying customer demand - even if the customer ultimately transacts online. Consumers now see both the online and offline shopping experience as part of the same buying journey and not as one versus the other.
With the ability to see, touch and feel products and assess alternatives, stores are important for marketing and customer acquisition. Store conversion rates are typically 20-40% - around ten times more than ecommerce channels (only 2.5-3%). The store remains the dominant sales channel, still generating more than 70% of sales. and continuing to grow at 4% year on year.
And with pressure on consumer spending plus inventory, pricing and interest rate uncertainty, retailers want to leverage their existing investments in stores and staff - 71% cite store operations as top-three driver for their tech investment strategy.
As the store shifts to become the hub of the omnichannel customer journey, the point of sale must shift as well.
But many retailers have hit a wall because their POS technology can’t support their customers’ current omnichannel demands, let alone the ‘phygital’ shopping journeys now expected by digitally savvy consumers.
They’ve been focussed on ecommerce initiatives, delaying important POS hardware upgrades and the shift to modern operating systems. Some retailers have POS systems that are end of life and about to be sunset, and others are hamstrung by legacy in-house solutions that require custom integrations with modern technologies or are no longer supported.
And at a time when 75% of retailers can’t connect their online and in-store transaction data, they struggle to deliver the cohesive, consistent unified experiences customers now expect.
If you’re upgrading your point of sale to modernise your customer experience, here are the important shifts in functionality to consider:
EX aligns with CX
Today, any store innovation must reduce friction for the store teams, which in turn will drive a great customer experience. Speed and simplicity are now the priority to help people be as productive as possible, wherever they are in the store.
However, many retailers run multiple systems within stores, forcing their teams to juggle between different apps and screens as they serve customers.
Retailers are consolidating store technology onto a single POS-based retail system that lets their teams do everything, from sales transactions, customer loyalty, pricing, product and promotions through to virtual appointments and endless aisle access to stock.
Clienteling gets personal
Clienteling is becoming more sophisticated as consumer expectations for a frictionless ‘one brand’ experience rise. However, many retailers still 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.
Leading retailers are helping their in-store teams deliver more personalised experiences by using AI and data from across online and offline channels to create timely and relevant communications, recommendations, offers and rewards.
Initially provided for customers visiting stores during click-and-collect pickups, retailers like Cue Clothing are extending customised recommendations into other communications with customers, such as e-receipts and shipping notifications.
They’re taking advantage of the unparalleled knowledge of their store staff to boost digital sales and service by giving in-store teams the tools to connect with shoppers virtually. By integrating video commerce platforms with POS solutions (like Infinity) they’re automating the end-to-end process, from customer communications and data insights to seamless sales transactions and fast delivery.
Store experiences go digital
Retailers know that consumers now expect more from stores and are working to match those expectations with new experiences – such as events, service offerings, customisation, resale, repairs and so much more.
That also means extending digital experiences into stores, such as the ability to look up loyalty points, explore product information or browse and order from the entire inventory.
Mobility is a high priority and retailers are providing fast and flexible self-service checkouts, mobile point of sale and contactless payments everywhere the customer is - in the store, out in the yard, at trade shows and pop-up stores.
They’re using multichannel wishlists to let customers add items to wishlists in stores. By capturing both in-store and online shopper interactions they’re able to retarget customers with personalised marketing campaigns that build engagement and grow sales.
Fulfilment a competitive advantage
Today consumers make their purchasing decisions based on shipping costs and timings. They expect options – from slow to fast, and everything in between – plus visibility, communication and tracking, no matter the fulfilment solution.
However, most retailers struggle to quickly deliver new fulfilment experiences via their POS.
With modern point of sale systems, retailers are using their stores to support the fulfilment options consumers now expect and positioning inventory closer to customers – the source of demand.
Endless aisle access to all inventory via the POS lets them offer the fulfilment options consumers expect – such as click-and-collect, store-to-door and scheduled delivery, plus innovative new delivery solutions, such as 1-hour delivery via Uber and Shippit.
Future proofing an imperative
In the past, retailers who got behind on their store tech investments frequently focused on catching up to current standards.
Now, the focus is on future proofing – choosing platforms that speed up innovation, with the flexibility to change direction as opportunities develop, competitors act and customer expectations evolve.
When it comes to POS solutions that can support omnichannel experiences, look for a platform that provides a unified hub for all your channels – reducing integration, complexity and overheads, and increasing efficiency and accuracy.
With agile methodologies and APIs to easily plug-in new apps and systems, your new POS will be your platform for innovation – a springboard for adding new channels and services at a speed and scale that would be unachievable within a traditional omnichannel model.
This blog was originally published on 28 Feb 2023 and updated 7 August 2024
Want help to modernise your point of sale?
As you transform your customer experience to deliver the seamless and personalised buying journeys your customers crave, your point of sale system must transform as well. If you’re looking for help to shape your strategy and extend your omnichannel capabilities, get in touch. We’d love to help you develop the solutions you need now and guide you to where you’re headed next.
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 new ebook:
6 omnichannel retail painpoints unified commerce solves
With rising customer expectations for a cohesive and consistent shopping experience, many retailers have hit a wall because their omnichannel efforts can’t meet today’s retail demands. Here Kelly Brown describes six major challenges you will face in omnichannel retail, and how to solve them.
Customers today are delightfully unreasonable, and expect to transact when, where and however they want. They don’t care how you achieve it and will reward you if you have it - or shop elsewhere if you don’t.
Retailers are responding by building a customer-centric approach to retail, using technology and experiences to enhance the brand, drive sales and grow loyalty.
However, it’s complicated.
Many omnichannel retail solutions can look smooth on the surface but have rough patches underneath. They include legacy solutions that are no longer fit for purpose, and channels operating in functional silos. Things can easily unravel.
And when 75% of retailers are unable to connect their online and in-store transaction data, most struggle to create a unified user experience that traverses easily between online and offline channels.
If you’re looking at how to keep pace with changing customer expectations, here are the most common challenges retailers face as they build their omnichannel systems, and how they can be remedied with a unified commerce approach.
Inventory that isn’t real time
Managing inventory is a retailer’s biggest challenge — no matter their size. It’s also the biggest cost. Many retailers launched digital commerce channels without getting their inventory right and can only access rudimentary sales and inventory positions. That prevents them from offering the ‘buy anywhere, fulfil anywhere’ options that are best for customers and most profitable for them.
The solution: Optimise inventory and availability
One of the most compelling benefits of unified commerce is a single view of stock across all stores and DCs. This means you can quickly see where inventory is and therefore the fastest place to fulfil from. You’ll improve inventory accuracy, reduce stock requirements, minimise fulfilment costs and get products to customers faster. And you’ll increase sales by using ranging and fulfilment capabilities that enable you to sell products across channels (and even sell products not normally stocked within any channels).
Blending physical and digital experiences
Services such as click-and-collect, ship-from-store, find-in-store and returns anywhere are all just table stakes today. Many retailers implemented quick-fixes to swiftly get new capabilities up-and-running, but now need a long-term unified solution to connect backend systems and deliver the omnichannel experiences customers expect.
The solution: Create relevant and agile experiences
With a unified inventory you can increase your purchasing, ordering and fulfilment options to provide customers with frictionless experiences and access to your entire range from any location. A single platform gives everyone across channels and stores the ability to view all customer touchpoints in real time. And you can extend your range across more sales channels such as in-store kiosks, shoppable screens, pop-up stores, concessions and mobile devices.
Obtaining a single view of the customer
Today consumers don’t think in terms of channels. They now expect a “one-brand” experience that lets them shop at any time, using any channel, from any device, at the best price. But if you’ve got siloed backend systems and processes that mean your customers must deal with inconsistencies and gaps, you simply cannot offer a seamless customer experience.
The solution: Personalise your customer experience
The ability to see each customer’s shopping preferences and purchase history across all channels is critical for building personalised shopping experiences. With a unified commerce platform providing a holistic view of your customers, you can better plan your pricing and promotion strategies and get the right offer or message to the right customer, at the right time and right place. By creating remarkable customer experiences that meet or even exceed consumer expectations, you can ensure customers return, again and again.
Integrating data silos
Retailers use multiple customer-facing and back-office systems, spanning POS, mobile apps, inventory management, ecommerce, CRM, fulfilment, finance, marketing and more. Often loosely connected with manual processes and custom integrations, these omnichannel solutions are fragile, inefficient and costly to maintain.
The solution: Lower cost of ownership
A single commerce platform gives you a leaner and more flexible architecture that reduces the need for reconciliation and manual processes to maintain and manage data and functions, and there is only one system to secure. Exposing data and functions (rather than moving and replicating them) makes integration faster and standards-based, improving efficiency, decreasing errors and increasing accuracy. Third parties can easily plug in, building the ecosystem of retail software, tools, resources and devices you can add and change to match your business needs.
Adding modern technologies and capabilities
To keep pace with consumer demands for omnichannel services, retailers need to create and deploy new apps, services and channels. However, connecting legacy systems with modern technologies requires custom integrations, and creating new brand experiences is complex, costly, time consuming and risky.
The solution: Accelerate speed to market
With a single platform, there’s less work required to plug in and implement new functions across channels, test cycles are reduced, and you’ll use development capacity more effectively. You can run experiments to test new customer experience innovations and easily move the successful experiments into enterprise-wide operations. These improvements in IT efficiency and flexibility let you launch new tools and services to meet business demands and start seeing revenue benefits faster.
Unifying employee experiences
After years of underinvestment, many retailers are playing catch-up with the employee experience. Their stores often lack the tools and systems that enable their people to deliver the relevant and personalised customer experiences that match online shopping’s price, speed and convenience.
The solution: Boost in-store productivity and sales
By arming your store staff with the right customer data and tools, combined with AI-driven recommendations, they can more easily make decisions, provide personalised upselling advice, sell inventory at any location and serve customers faster, anywhere in the store. You’ll enhance customer interactions, improve the employee experience and increase conversions.
This blog was originally published on 13 December 2022 and updated 20 May 2024
Can you keep up with your customers’ expectations?
Retailers are unifying their backend systems to create the seamless and convenient experiences customers now expect. 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 ability to create a compelling in-store experience harmonised with a digital offering for competitive advantage.
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 7 omnichannel capabilities reshaping stores
There’s a colossal shift taking place right now in how retailers plan, build and deliver their in-store customer experience.
And the prime driver behind this upheaval is the ecommerce boom that is creating new online shopping habits and reshaping consumers’ expectations of in-store experiences.
Customers today crave convenience, personalisation and a seamless shopping journey that doesn’t stop when they enter a store.
As more shopping journeys begin online and store visits becoming more intentional, retailers are looking for new ways to elevate the customer experience - by bringing digital convenience to stores, fulfilling orders via stores to increase profitability and delivering personalised and tactile in-store experiences.
And while the shift towards online retail is real, physical retail is going to continue to grow at 4% year on year and total an estimated 70% of sales by 2027. The retailers that take a unified CX approach are seeing significantly higher profitability and sales growth than their peers.
Do you have a clear strategy and roadmap towards strengthening your in-store CX?
Many retailers struggle to support their customers’ omnichannel demands and aren’t equipped to create the shopping journeys now expected by post-pandemic, digitally savvy consumers.
They have disparate and siloed backend systems that are fragile, inefficient and costly to integrate. Many implemented quick-fixes to get new capabilities up-and-running, but now need a long-term unified solution that delivers a single source of truth across all physical and online channels.
And they’re under increased pressure to implement change fast but can’t quickly spin up the new “phygital” customer experiences the business demands.
So what are the new capabilities retailers need to modernise their customer experience for unified retailing?
Here are seven areas where retailers are increasing their focus and investment:
Stores that amplify the digital experience
The phenomenal rise of live online customer experiences has migrated beyond social media and live chat to virtual shopping appointments. 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. Platforms like Brauz provide the video commerce smarts, while unified commerce solutions (like Infinity) help to automate the end-to-end process, from customer communications and data insights to seamless sales transactions and fast delivery.
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 convenience 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.
Self-checkout expands to self-service
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, out in the warehouse or yard, at trade shows and pop-up stores. While self-serve kiosks are practical solutions for larger stores and supermarkets, fuel and convenience retailers taking advantage of new self-service software that can be deployed on any touchscreen terminal, making it simple to create fast and memorable experiences.
Endless aisle for anywhere, anytime orders
Consumers are choosing retailers based on the ease and flexibility of the end-to-end experience. 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 shop whenever they feel like it, at any time, using their most convenient channel. And endless aisle access to inventory lets customers order any product and get it delivered to any address.
Flexible omnichannel fulfilment
With ecommerce sales returning to pre-pandemic growth levels, services such as ship-from-store, click-and-collect, endless aisle and returns anywhere are all just table stakes today. 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 now 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 across all stores and DCs they can quickly see where inventory is located and the fastest route to fulfil orders.
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 rewards across in-store and digital touchpoints, including the point of sale, mobile app, web, email and social. And some are extending these personalised recommendations into other communications with customers, such as e-receipts and shipping notifications.
Unified employee experiences
A great customer experience hinges on a great employee experience. After years of underinvestment and now a labour crunch, many retailers are playing catch-up by making employee efficiency and enablement a top priority this year. They’re giving their in-store teams access to relevant customer intelligence - such as loyalty points and 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.
This post was originally published September 2022 and updated on 14 December 2023.
Want help to modernise your stores for unified retailing?
As you transform your stores to be the centre of your omnichannel experience, your POS and retail systems must transform as well. If you’re experiencing technology challenges that prevent you from unifying store and digital experiences, get in touch. We’d love to help you make stores play a bigger role in your CX strategy.
If you’re driving the CX transformation at your retail business, our unified commerce maturity model is the perfect tool to create your roadmap. Learn about the capabilities you need to create a rich mix of omnichannel experiences.
The critical role of stores in digitising the retail customer experience
There’s been a massive shift in consumer expectations around convenience, connected shopping experiences and personalisation. Here’s how to use your stores to elevate and differentiate your customer experience.
For most omnichannel retailers, the growth of ecommerce has meant boosting their investments in physical retail.
That’s because the store is essential to creating and satisfying customer demand - even if the customer ultimately transacts online.
Consumers now see both the online and offline shopping experience as part of the same buying journey and not as one versus the other. Investments in unified commerce to unify the store and online experience are gaining momentum, with 20% of retailers heavily investing in it, 32% beginning to invest and 36% considering doing so. Retailers who used unified commerce in 2022 saw a 7% revenue boost over those who did not.
Omnichannel retailers now see their stores as critically important assets to invest in.
Store loyalty captures more share of wallet
Today’s shoppers are purposeful and discerning. They don’t just compare your service to that of your competitors, but to the best service they’ve ever received, anywhere, any time. They want consistency across your channels, recognition wherever they shop with you and a relationship with your brand.
With the ability to see, touch and feel products and assess alternatives, stores are important for marketing and customer acquisition. Store conversion rates are typically 20-40% - around ten times more than ecommerce channels (only 2.5-3%). And the store remains the dominant sales channel, still generating more than 70% of sales.
Stores shorten delivery times
Stores support ecommerce fulfilment and place inventory close to customers - the source of demand. Click and collect, ship from store and return in store are now routine ways to fulfil online orders. Without a store, many online orders would not happen, and would be unprofitable.
Stores set the stage for experiences
Stores can amplify brands by adding a tactile experience and human factor that isn’t possible online. Store staff build trusted relationships with customers through personalised recommendations. They are often better at acquiring customers and stimulating repeat purchases than digital channels. And self-service technologies can create an easy and fast experience at transactional moments of the in-store journey.
Our client, Cue Clothing, is a remarkable example of how to use stores for competitive advantage. Around 20 percent of its sales are online, but over 60 percent are fulfilled by stores instead of a dedicated warehouse. The introduction of endless aisle increased access to inventory eightfold to 80,000 items, leading to a 70 percent increase in conversions and 130 percent increase in overall sales. And Cue has also launched a range of award-winning in-store initiatives – including virtual styling and in-store wishlists - that are driving up conversions, increasing revenue and boosting customer loyalty.
So how can your stores play a bigger role in your CX transformation?
Here are 3 areas to focus on to differentiate your store experience:
1. Bring digital convenience to stores
Many retailers have relied on convenient physical locations and knowledgeable store staff to entice customers to visit them. But today’s digitally savvy consumers want a ‘joined-up’ omnichannel experience that doesn’t stop when they enter a store.
By reimagining the store customer experience and giving staff tools to connect with customers digitally, you'll bring a rich mix of human and digital interactions into stores.
Start by revamping the checkout experience. Offer fast, digital, contact-free point-of-sale transactions wherever the customers are - in the store, out in the warehouse or yard, at trade shows and pop-up stores. Ensure you can provide quotes and take cash sales or charge-to-account orders anywhere, with the flexibility to handle complex split orders, sales and returns.
Put customers in charge of their in-store experience by integrating digital services, such as the ability to look up loyalty points, access product information and add items to digital wishlists in stores. People who use digital while they shop in-store convert at a 20 percent higher rate compared to those who do not use digital as part of the shopping journey.
Localised pricing will let your team offer up-to-date, competitive pricing and empower them to make better, on-the-spot decisions.
2. Use store fulfilment to increase ecommerce profitability
Retailers are working to optimise their processes and remodel stores into fulfilment centres to meet the explosion in demand for online orders fulfilled in stores.
However, many retail systems weren't built to provide real-time inventory so the challenge of knowing where stock is located across the store network causes missed sales and cancellations of online orders.
Create a single view of inventory across stores, online, mobile and warehouses to improve your return on inventory and maximise selling opportunities.
Use your stores as mini-distribution centres to give your customers a variety of delivery options, such as click-and-collect, store-to-door, drop ship and returns anywhere.
Endless aisle capabilities let you sell products not stocked in your current location and have them delivered to or collected by the customer.
3. Personalise customer experiences by extending digital into stores
With more customer journeys beginning online and store visits become more focussed and deliberate, 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 largely unknown to store staff.
By connecting all your customer engagement points in near real time, you can deliver a holistic and personalised customer experience more consistently. That means treating each customer as the individual they are all the time – one person with one account, interacting with one unified brand.
Combine your customer, inventory and sales data from all channels and touchpoints and analyse your customer preferences. Use these insights to develop personalised communications, experiences and offers that drive customer satisfaction and loyalty.
Make this data available to your store staff. For example, provide your teams with access to relevant customer information, such as loyalty, wishlists and sales histories. Use AI technology to provide personalised upselling recommendations during click-and-collect pickups.
Extend these personalised recommendations into your other communications with customers, such as e-receipts and shipping notifications.
This post was originally published June 2022 and updated on 25 September 2023.
As you transform your stores to be the centre of your omnichannel experience, your POS and retail systems must transform as well. If you’re experiencing technology challenges that prevent you from unifying store and digital experiences, get in touch. We’d love to help you make stores play a bigger role in your CX strategy.
If you’re driving the CX transformation at your retail business, our unified commerce maturity model is the perfect tool to create your roadmap. Learn about the capabilities you need to create a rich mix of omnichannel experiences.
How to smash your channel silos to create seamless customer experiences
Most retailers are feeling the pressure to add new physical, online and mobile channels to keep pace with new technologies and changing consumer demands. But if you’re only adding and not actually integrating these channels with the rest of your organisation, you can end up with silos that frustrate your internal teams and customers.
How the move to ‘phygital’ is disrupting point of sale technology
Retailers are shifting focus from ecommerce to their stores to better serve omnichannel customers. Kelly Brown explains how changing consumer expectations are transforming in-store technology and disrupting legacy point of sale (POS).
The boom in ecommerce has had a profound effect on how retailers deploy in-store technology.
Today consumers expect a consistent customer journey across every physical and digital touchpoint. With shoppers returning to physical stores in full force during 2022 and ecommerce growth slowing, retailers are doubling down on their in-store innovation projects.
While ecommerce sales grew 6.2% in the last quarter, this is a dramatic drop from the double-digit growth during the previous five years and the slowest growth rate since 2009.
Retailers know that despite forecasts for ecommerce to total 24% of global retail sales by 2026, a massive 76% of sales will remain in stores.
And with pressure on consumer spending, plus store rents, labour and utilities all on the rise, retailers now want to leverage their existing investments in stores and staff.
As the store shifts to become the hub of the omnichannel customer journey, the point of sale must shift as well.
But many retailers have hit a wall because their POS technology can’t support their customers’ current omnichannel demands, let alone the ‘phygital’ shopping journeys now expected by post-pandemic, digitally savvy consumers.
With stores periodically closed during the pandemic and ongoing supply chain disruptions, many focussed on ecommerce initiatives, delaying POS hardware upgrades and the shift to modern operating systems.
Some retailers have POS systems that are end of life and about to be sunset, and others are hamstrung by legacy in-house solutions that require custom integrations with modern technologies or are no longer supported.
If you’re upgrading your point of sale to modernise your customer experience, here are the important shifts in functionality to consider:
EX aligns with CX
Today, any store innovation must reduce friction for the store teams, which in turn will drive a great customer experience. Speed and simplicity are now the priority to help people be as productive as possible, wherever they are in the store.
However, many retailers run multiple systems within stores, forcing their teams to juggle between different apps and screens as they serve customers.
Retailers are consolidating store technology onto a single POS-based retail system that lets their teams do everything, from sales transactions, customer loyalty, pricing, product and promotions through to virtual appointments and endless aisle access to stock.
Clienteling gets personal
Clienteling is becoming more sophisticated as consumer expectations for a frictionless ‘one brand’ experience rise. However, many retailers still 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.
Leading retailers are helping their in-store teams deliver more personalised experiences by using AI and data from across online and offline channels to create timely and relevant communications, recommendations, offers and rewards.
Initially provided for customers visiting stores during click-and-collect pickups, retailers like Cue Clothing are extending customised recommendations into other communications with customers, such as e-receipts and shipping notifications.
They’re taking advantage of the unparalleled knowledge of their store staff to boost digital sales and service by giving in-store teams the tools to connect with shoppers virtually. By integrating video commerce platforms with POS solutions (like Infinity) they’re automating the end-to-end process, from customer communications and data insights to seamless sales transactions and fast delivery.
Store experiences go digital
Retailers know that consumers now expect more from stores and are working to match those expectations with new experiences – such as events, service offerings, customisation, resale, repairs and so much more.
That also means extending digital experiences into stores, such as the ability to look up loyalty points, explore product information or browse and order from the entire inventory.
Mobility is a high priority and retailers are providing fast and flexible self-service checkouts, mobile point of sale and contactless payments everywhere the customer is - in the store, out in the yard, at trade shows and pop-up stores.
They’re using multichannel wishlists to let customers add items to wishlists in stores. By capturing both in-store and online shopper interactions they’re able to retarget customers with personalised marketing campaigns that build engagement and grow sales.
Fulfilment a competitive advantage
Today consumers make their purchasing decisions based on shipping costs and timings. They expect options – from slow to fast, and everything in between – plus visibility, communication and tracking, no matter the fulfilment solution.
However, most retailers struggle to quickly deliver new fulfilment experiences via their POS.
With modern point of sale systems, retailers are using their stores to support the fulfilment options consumers now expect and positioning inventory closer to customers – the source of demand.
Endless aisle access to all inventory via the POS lets them offer the fulfilment options consumers expect – such as click-and-collect, store-to-door and scheduled delivery, plus innovative new delivery solutions, such as 1-hour delivery via Uber and Shippit.
Future proofing an imperative
In the past, retailers who got behind on their store tech investments frequently focused on catching up to current standards.
This year, the focus is on future proofing – choosing platforms that speed up innovation, with the flexibility to change direction as opportunities develop, competitors act and customer expectations evolve.
When it comes to POS solutions that can support omnichannel experiences, look for a platform that provides a unified hub for all your channels – reducing integration, complexity and overheads, and increasing efficiency and accuracy.
With agile methodologies and APIs to easily plug-in new apps and systems, your new POS will be your platform for innovation – a springboard for adding new channels and services at a speed and scale that would be unachievable within a traditional omnichannel model.
Want help to modernise your point of sale?
As you transform your customer experience to deliver the seamless and personalised buying journeys your customers crave, your point of sale system must transform as well. If you’re looking for help to shape your strategy and extend your omnichannel capabilities, get in touch. We’d love to help you develop the solutions you need now and guide you to where you’re headed next.
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 new ebook:
Why unified commerce is the nirvana of omnichannel
This post was originally published on 3 March 2020 and updated on 2 February 2023
We’ve seen a dramatic boom in ecommerce in recent years that is creating new online shopping habits and reshaping consumers’ expectations of the retail experience.
Many retailers have had to take a ‘just get something done’ approach to creating seamless customer experiences that span channels. Now they’re struggling with omnichannel set-ups that simply link digital and physical systems together, and they don’t have the ability to keep pace with changing consumer behaviours.
But omnichannel should not be the end goal. It’s just one approach to getting a single view of your customers that will help you deliver unified experiences.
Instead, a unified commerce platform will break down your channel silos and move your retail business toward the holy grail of holistic, real-time, personalised customer experiences spanning in-store, online and everywhere in between.
To help explain why unified commerce is the nirvana of omnichannel, here’s a look at where we are now and where we’re going.
Multi-channel
To keep pace with new technologies and changing consumer demands, retailers are giving customers access to new mobile and online channels. Each touchpoint and channel operates independently, with separate people, processes and technologies existing in functional silos.
But when you only add and don’t actually integrate new channels with the rest of your organisation, you create bad service experiences that frustrate internal teams and customers.
Silos mean that your customers have to deal with inconsistencies and gaps, such as incomplete sales histories, different tones of voice or having to start conversations afresh in each channel. These silos inevitably lead to disappointment and frustration, a lack of trust and even a sense that your organisation is incompetent.
Omnichannel
With an omnichannel approach, you’re connecting numerous backend systems so that customers can seamlessly interact with your brand. However, your channels are still operating in functional silos.
That means most attempts to offer unified experiences fall short.
You’re likely to be struggling with legacy technologies that have been customised and are infrequently updated, and then you bolt-on new solutions that don’t easily integrate. These omnichannel systems are fragile, inefficient and costly to maintain.
And things can easily unravel. Adding new channels and tools requires additional custom integrations that are complex and slow, adding significant costs and curbing the agility and scalability you require.
Unified commerce
With a unified commerce approach, you can achieve retail nirvana by creating immersive and frictionless experiences for customers across all channels, touchpoints and locations. Rather than building custom integrations to unify different systems, you can easily use all the tools and services within a single unified platform.
It gives you a single source of truth for inventory, order and customer data. With this one view of the customer, and all channels and engagement points connected in real-time, you can deliver a personalised and consistent customer experience.
You can also quickly respond to changing customer expectations and new technologies by using microservices and APIs to expose data and connect third-party services.
Unified commerce has been a game changer for our clients.
It eliminates the customer journey pain points and amplifies the ‘wow’ moments. Now you can treat each customer as an individual, all the time – one person with one account, interacting with one brand.
Unified commerce can benefit your business in many ways:
It provides a stable backbone by acting as the hub for all your channels, reducing integration and operating costs, while increasing efficiency and accuracy.
It’s also your platform for innovating – a springboard for adding new channels and services, giving you the ability to take advantage of new capabilities and deliver results at a speed and scale that unachievable within a traditional omnichannel model.
It gives you total control over all your inventory and lets you create seamless and personalised purchasing, payment and fulfilment options across ‘endless aisle’ shopping, fast (eg 30-minute) click-and-collect, kerbside pickup, store-to-door, shoppable screens, kiosks and hyper-personalised loyalty offers.
You can deliver frictionless experiences and let customers access your entire product range from any location, including stores, online, mobile, shoppable screens, pop-ups, stores within stores, virtual showrooms, social channels, call centres and more.
And our savviest clients are now investing in new customer-facing technologies, like chatbots, mobile apps and AI. Some are pioneering contextual commerce – the ability to seamlessly implement purchase opportunities into everyday activities (such as Shoppable Instagram and Facebook).
The end result is the ability to deliver the personal, ubiquitous and unified experiences your customers expect, fostering loyalty, driving growth and improving profitability.
Want help to plan your next steps?
We can help you define your goals, develop a business case and create your roadmap to deliver the unified experiences that are best for customers, and most profitable for you. Get in touch.
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 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 who can’t differentiate retailers from their competition.
And, crucially, with no access to 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 digital technologies allow companies to ‘hyper-personalise’ to serve each individual customer, fuel retail 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.
If you’re looking at how to develop your loyalty and personalisation capabilities, here are the steps to take to deliver an exceptional CX:
Take control with a standalone loyalty programme
In contrast to the coalition 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.
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
When you create your loyalty app, ensure you include features that save customers’ time, increase convenience and turn purchases into a fun and engaging experience. And to really differentiate your offering, make it a game-changing experience by enabling both fuel and in-store transactions.
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).
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.
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. A recent McKinsey webinar described how 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.
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
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:
6 omnichannel retail painpoints unified commerce solves
With rising customer expectations for a seamless ‘one-brand’ experience, many retailers have hit a wall because their omnichannel efforts can’t meet today’s retail demands.
Here Kelly Brown describes six major omnichannel retail challenges and explains how a unified commerce approach helps to create the relevant and tailored omnichannel experiences your customers now expect.
Customers today are delightfully unreasonable, and expect to transact when, where and however they want. They don’t care how you achieve it and will reward you if you have it - or shop elsewhere if you don’t.
Retailers are responding by integrating their physical and digital channels to deliver new omnichannel experiences that align with customer expectations.
However, it’s complicated.
Many retailers have taken a hard look at their ecommerce capabilities over recent years, but most are still searching for ways to create connected and adaptable experiences within stores. They 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 ‘phygital’ shopping journeys now expected by post-pandemic, digitally savvy consumers.
If you’re looking at how to keep pace with customers, here are the most common challenges retailers face as they build their omnichannel systems, and how they can be remedied with a unified commerce approach.
Inventory that isn’t real time
Managing inventory is a retailer’s biggest challenge — no matter their size. It’s also the biggest cost. Many retailers launched digital commerce channels without getting their inventory right and can only access rudimentary sales and inventory positions. That prevents them from offering the ‘buy anywhere, fulfil anywhere’ options that are best for customers and most profitable for them.
The solution: Optimise inventory and availability
One of the most compelling benefits of unified commerce is a single view of stock across all stores and DCs. This means you can quickly see where inventory is and therefore the fastest place to fulfil from. You’ll improve inventory accuracy, reduce stock requirements, minimise fulfilment costs and get products to customers faster. And you’ll increase sales by using ranging and fulfilment capabilities that enable you to sell products across channels (and even sell products not normally stocked within any channels).
Blending physical and digital experiences
Services such as click-and-collect, ship-from-store, find-in-store and returns anywhere are all just table stakes today. Many retailers implemented quick-fixes at the start of the pandemic to swiftly get new capabilities up-and-running, but now need a long-term unified solution to connect backend systems and deliver the omnichannel experiences customers expect.
The solution: Create relevant and agile experiences
With a unified inventory you can increase your purchasing, ordering and fulfilment options to provide customers with frictionless experiences and access to your entire range from any location. A single platform gives everyone across channels and stores the ability to view all customer touchpoints in real time. And you can extend your range across more sales channels such as in-store kiosks, shoppable screens, pop-up stores, concessions and mobile devices.
Obtaining a single view of the customer
Today consumers don’t think in terms of channels. They now expect a “one-brand” experience that lets them shop at any time, using any channel, from any device, at the best price. But if you’ve got siloed backend systems and processes that mean your customers must deal with inconsistencies and gaps, you simply cannot offer a seamless customer experience.
The solution: Personalise your customer experience
The ability to see each customer’s shopping preferences and purchase history across all channels is critical for building personalised shopping experiences. With a unified commerce platform providing a holistic view of your customers, you can better plan your pricing and promotion strategies and get the right offer or message to the right customer, at the right time and right place. By creating remarkable customer experiences that meet or even exceed consumer expectations, you can ensure customers return, again and again.
Integrating data silos
Retailers use multiple customer-facing and back-office systems, spanning POS, mobile apps, inventory management, ecommerce, CRM, fulfilment, finance, marketing and more. Often loosely connected with manual processes and custom integrations, these omnichannel solutions are fragile, inefficient and costly to maintain.
The solution: Lower cost of ownership
A single commerce platform gives you a leaner and more flexible architecture that reduces the need for reconciliation and manual processes to maintain and manage data and functions, and there is only one system to secure. Exposing data and functions (rather than moving and replicating them) makes integration faster and standards-based, improving efficiency, decreasing errors and increasing accuracy. Third parties can easily plug in, building the ecosystem of retail software, tools, resources and devices you can add and change to match your business needs.
Adding modern technologies and capabilities
To keep pace with consumer demands for omnichannel services, retailers need to create and deploy new apps, services and channels. However, connecting legacy systems with modern technologies requires custom integrations, and creating new brand experiences is complex, costly, time consuming and risky.
The solution: Accelerate speed to market
With a single platform, there’s less work required to plug in and implement new functions across channels, test cycles are reduced, and you’ll use development capacity more effectively. You can run experiments to test new customer experience innovations and easily move the successful experiments into enterprise-wide operations. These improvements in IT efficiency and flexibility let you launch new tools and services to meet business demands and start seeing revenue benefits faster.
Unifying employee experiences
After years of underinvestment and now a labour crunch, many retailers are playing catch-up with the employee experience. Their stores often lack the tools and systems that enable their people to deliver the relevant and personalised customer experiences that match online shopping’s price, speed and convenience.
The solution: Boost in-store productivity and sales
By arming your store staff with the right customer data and tools, combined with AI-driven recommendations, they can more easily make decisions, provide personalised upselling advice, sell inventory at any location and serve customers faster, anywhere in the store. You’ll enhance customer interactions, improve the employee experience and increase conversions.
Can you keep up with your customers’ expectations?
Retailers are unifying their backend systems to create the seamless and convenient experiences customers now expect. 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 ability to create a compelling in-store experience harmonised with a digital offering for competitive advantage.
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 new ebook:
