Turbocharging delivery: why you start with unified inventory

How well is your business geared to deliver the fast fulfilment options consumers now expect? Retailers with a single view of inventory across all locations can slash delivery times, profitably.

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Over recent years, retailers have adapted to changing consumer demands, evolving channels and rising customer expectations around convenience, choice and speed.

And now they’re turbocharging their digital and physical fulfilment to help differentiate the CX.

Why is delivery speed so important?

Customers now expect retailers to provide multiple fulfilment options, ranging from same-day shipping (for a fee) through to free delivery over a longer timeframe and everything in between.

They consider reliability to be just as important as speed when it comes to delivery, preferring their orders to arrive when they expect them, rather than promised a same-day or next-day delivery that never appears.

And the time is right to use stores as mini-distribution centres. Soon, up to half of all online purchases are expected to be fulfilled directly from physical stores, and up to 50% potentially being returned to these locations.

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The challenges of omnichannel delivery

However, omnichannel fulfilment can be the source of many inventory optimisation challenges.

Compressing delivery times and introducing store-based fulfilment means adjusting inventory management, allocation and replenishment strategies. It requires careful analysis of the destination of products, distinguishing between those that will be sold on the shop floor and those designated for fulfilment, and adjusting replenishment processes to ensure optimal stock levels for both.

In addition, many retailers can only access rudimentary sales and inventory positions, and have complex systems that are fragile, inefficient and costly to integrate.

So, what is required to compress delivery times and introduce omnichannel fulfilment?

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1. Real-time inventory visibility in every location

To provide the speed and convenience consumers expect, retailers are moving from multichannel silos to unified commerce platforms that provide a unified view of inventory across all stores and DCs.

 Real-time data on stock levels can benefit your business in many ways:

• Reduce inventory costs by ensuring you’ve got the right inventory available in each location, without carrying the cost of overstocking or ‘buffers’

• Optimise your product range by matching stock to each store’s location and demographics

• Create dark stores for online order fulfilment, turning physical locations into temporary or permanent fulfilment nodes to enable faster delivery and keep retail staff working

• React to trends quickly and forecast demand based on historical data, sales forecasts and seasonal variations

• Extend your range across more sales channels such as in-store kiosks, shoppable screens, pop-up stores, concessions and mobile devices.

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2. Optimise store fulfilment processes

Once your inventory is under control, you’re free to extend your omnichannel delivery.

By using your stores for fulfilment or pick-up, you can increase the amount of inventory for sale while reducing inventory cost and slashing delivery times. Many potential online sales previously lost to inventory shortages can be saved when stores also function as fulfilment centres. And the return on investment can be spectacular. With endless aisle fulfilment, our clients have achieved a 200 to 300% growth in online revenue.

Target USA is one high profile example. It consistently fulfils the majority of its sales, including online orders, directly through its physical stores. In Q2 2024, 97.9% of Target’s orders were fulfilled by its stores, which are a ‘one-stop’ for fulfilment, including returns in store, kerbside returns and even kerbside returns and pickups.

Store-based fulfilment also presents a unique marketing opportunity. Consumers are more environmentally conscious, and using stores as hubs allows customers to make more sustainable choices in the way they purchase products. Store fulfilment allows retailers to streamline packages for more efficient last-mile delivery - minimising the numbers of trucks on the road, reducing environmental impacts, boosting profit margins and enhancing the overall customer experience.

And even better, store fulfilment doesn’t demand that eco-conscious consumers pay extra. Retailers just need to guide customers toward using the more sustainable and, importantly, often faster fulfilment options that are already accessible through their stores.

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This post was originally published on 15 December 2021 and updated on 19 September 2024.

If you’re urgently revamping your omnichannel delivery capabilities and want advice on which projects to tackle first, our checklist could help. It will let you assess where you are at against retail leaders and decide what you need to improve. Download it here. 

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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:

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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. 

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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.

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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

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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. 

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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: 

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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. 

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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:

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1

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. 

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2

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. 

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3

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.  

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4

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. 

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5

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. 

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6

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. 

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7

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. 

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This post was originally published September 2022 and updated on 14 December 2023.

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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. 

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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 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: 

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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.   

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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.   

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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.  

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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.  

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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. 

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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 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: 

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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.

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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.

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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.

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This post was originally published June 2022 and updated on 25 September 2023.

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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.

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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.

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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: 

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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. 

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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. 

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 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.  

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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.  

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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.  

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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.  

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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.  

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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. 

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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. 

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

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

How a unified commerce platform solves retail inventory problems

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From endless aisle and click-and-collect to self-serve and returns anywhere, customers expect a seamless and unified experience. But if you can only access rudimentary sales and inventory positions, you’re prevented from offering the ‘buy anywhere, fulfil anywhere’ services that are best for customers and most profitable for you.

Managing inventory is one of the most challenging processes for retailers – no matter their size. It’s also the largest cost. It’s a balancing act to strike the right stock levels and adjust those levels as your business changes. Understocks lead to missed sales and dissatisfied customers, and overstocks tie up your capital and result in markdowns that can hurt your margins.

Some retailers struggle with the fundamentals of inventory control, such as stock taking, demand forecasting, planning and receipting.

And in a world where online and offline channels are blending into a single brand experience, customers expect access to products wherever and whenever they want.

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Unify your inventory

To provide the purchasing and fulfilment options you need for frictionless experiences that delight customers and reduce costs, you first need to get tight control of your inventory.   

A unified commerce platform gives you a single, accurate and up-to-date view of inventory so you can be sure that you have the right product at the right place at the right time. 

With unified inventory management across all locations, you can make better decisions about what stock to order and how to make it available in your physical, mobile, online stores and call centres.  

You can react to trends quickly, and forecast demand based on historical data, sales forecasts and seasonal variations. And with the platform’s open architecture and APIs, you’re free to add new features, channels, apps and services that will increase customer satisfaction and benefit your business in many ways: 

• Increase sales with ‘endless aisle’ capabilities that let you sell products stocked in any location and have them delivered direct or collected by the customer

• Reduce inventory costs by moving stock to the right location when it’s needed and cutting your overall stock requirements

• Lower fulfilment costs by delivering direct to the customer using store-to-door, warehouse-to-door, click-and-collect, kerbside pickup or optimised sourcing

• Reduce overselling or underselling with real-time inventory updates that remove the issues of selling unavailable stock or having more stock than listed online

• Turn locations on and off for endless aisle fulfilment based on the stock mix and quantities or surges in online shopping

• Offer more purchasing and fulfilment options to customers so they can locate items in-store, buy online, collect in-store, reserve online, receive the same day or at a time and location of their choice

• Optimise your product range by matching stock to each store’s location, community and demographics while still giving access to your complete range via endless aisle

• Extend your range across more sales channels such as marketplaces, in-store kiosks, shoppable screens, pop-up stores, concessions and mobile devices.

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Retailers reaping inventory benefits with the Infinity unified commerce platform:

GAS optimises inventory for improved profitability

GAS completed a lightning-fast nationwide Infinity point of sale implementation. Site owners now have the tools to manage inventory and run more profitable businesses.

Night ‘n Day gets tight control of inventory

By simplifying inventory management with Infinity, convenience grocery retailer Night ‘n Day cut costs, freed up time and increased net profit to around $12,000 per store each year.

This post was orginally published January 2020 and updated on 18 July 2023

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If you’re struggling with inventory accuracy and are looking at how to build a foundation for frictionless customer experiences, talk to us about how to start with a single view of inventory.

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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. 

Power your retail innovation strategy with APIs

This blog was originally published on 28 February 2020 and updated 18 April 2023.

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Retailers are urgently innovating to create the seamless and personalised omnichannel experiences consumers now expect. They are looking for new ways to make use of their data and connect their systems together to streamline business processes and create great customer experiences. One major advantage of using a unified commerce is that its open architecture that lets you easily make those connections with APIs.

APIs (Application Programming Interfaces) are present in every part of our digital world. Every time you use an app like LinkedIn, make a Skype call or listen to Spotify on your phone, there’s an API in action.

APIs let you add specialised functionality to a website, application, platform or software without having to write all of the back-end code. By using APIs, you can expose data in real time, rather than having to replicate or move it. The result is a set of functions that’s available across various systems, plus a fast and easy way to plug in and deploy new services, channels and devices.

These improvements let you shift your team’s priority from maintenance to innovation.

By using APIs to access existing solutions in the market, you are free to focus your development efforts on the front-end. You can be 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.

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APIs in action

Here are just some of the ways APIs help you optimise operations, personalise customer experiences and drive new revenue:

Retail anywhere, any time

APIs let you easily expose your product catalogues and other eCommerce solutions to give customers many more ways to engage with your brand, including social commerce.

Deliver anywhere, any how

Consumers now make purchasing decisions based on shipping costs and timings. APIs can power the fulfilment options they now expect - such as click-and-collect, store-to-door, scheduled delivery and even 1-hour delivery.

Payment convenience counts

APIs give consumers the payment options and ‘buy-now, pay later’ services they want, both in-store and online. Infinity was the first retail system in the world to integrate with Afterpay at point of sale and supports Adyen, Smartpay, Laybuy, Alipay, WeChat Pay, Slyp and Zip to name just a few payment partners.

Personalised communications

APIs let you connect internal and external data to create timely and relevant communications, recommendations, offers and rewards. You can provide customers with real-time shipping visibility and tracking throughout the shipping journey, no matter the fulfilment solution. APIs let you create customised recommendations for customers visiting stores during click-and-collect pickups, and extend them into other communications, such as e-receipts and shipping notifications.

And they help to create personalised marketing experiences that boost loyalty and increase conversions - such as notifications for items on sale, low-in-stock or restocked – plus product recommendations on the website, based on each customer’s behaviour and past data.

Virtual Shopping

APIs support virtual retail shopping ecosystems that go beyond live chat to support in-store experiences on digital channels. By integrating video commerce platforms with POS solutions (like Infinity), you can automate the end-to-end process, from customer communications and data insights to seamless sales transactions and fast delivery.

Extending digital into stores 

APIs also improve the in-store shopping experience. You can give your in-store teams’ data on customer histories and shopping preferences, as well as personalised recommendations based on past purchases and wishlists. APIs can help provide product recommendations for customers visiting stores for click-and-collect pickups, answer product questions in real-time and support self-checkout. In addition, new multichannel wishlists let customers add items to their wishlists while browsing in stores

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So how do you start making the most of APIs?

Begin by evaluating your company’s value chain. Can you easily integrate and use APIs to access third-party platforms and services to scale your business? Or can you release your own APIs to attract partners and build out your platform? The two options are not mutually exclusive.

 An API-enabled platform like Infinity lets you scale your business quickly by easily adding new apps and services as business requirements change.

 We can also help if you’re looking for advice on how to create a strategy and implement an API programme that quickly creates customer and business value.

 The end result is the ability to create extraordinary customer experiences that help to capture market opportunities, generate additional revenue and build brand advocacy.

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Find out more about Infinity APIs and our integration partners. Then contact us for advice on how to use APIs to achieve greater agility, faster growth and better margins.

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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:

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 boom in ecommerce that is creating new online shopping habits and reshaping consumers’ expectations of in-store experiences.

Yet many retailers have struggled 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 at the start of the pandemic 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.

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So what are the new capabilities retailers need to modernise their customer experience for digital-first retailing?

Here are seven areas where retailers are increasing their focus and investment this year:

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1

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.

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2

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.

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3

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.

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4

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.

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5

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.

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6

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.

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7

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.

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Are you looking at how to modernise your stores for digital-first retailing and a better customer experience? Our unified commerce maturity model is the perfect tool to create your roadmap. Use it to assess your current capabilities, identify the gaps and prioritise areas for improvement.

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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.

Omnichannel retailers now see their stores as critically important assets to invest in.

Last year, US online sales grew faster than ecommerce for the first time ever - with physical stores growing at 18.5 percent versus ecommerce growth of 14 percent.

And while ecommerce growth is predicted to outpace growth through physical stores in future, the spotlight will remain on stores. For most omnichannel retailers, the growth of ecommerce actually means 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.

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 advice, service, support and sales. They are often better at acquiring customers and stimulating repeat purchases than digital channels.

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.

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: 

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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.

• Localised pricing will let your team offer up-to-date, competitive pricing and empower them to make better, on-the-spot decisions.

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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.

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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.

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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.

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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.

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