2 February 2024

What is unified commerce and why is it so important to retail success?

2 February 2024

As more sales channels and touchpoints emerge, the customer journey from awareness to purchase becomes more complex. Customers want to hop between channels in one seamless interaction. They want more options and less friction.

That means retailers need a strategy that lets customers shop, buy and receive goods how, when and wherever they want.

The only way to meet demands for a truly unified experience is to move to a unified commerce approach that delivers seamless customer journeys across all channels, touchpoints and locations.

Unified commerce is the term used for a retail software platform that provides a central hub for data from every system and channel across your organisation.

It breaks down the walls between channel silos to deliver frictionless customer experiences, while reducing integration and operating costs, and increasing efficiency and accuracy.

At a time when only 25% of retailers are able to connect their online and in-store transaction data it’s gaining momentum, with 20% of retailers heavily investing in it, 32% beginning to invest and 36% considering doing so. Retailers who use unified commerce have seen a solid 7% revenue boost over those who did not. And Australian retailers can tap into a $44 billion opportunity when they connect online and in-store sales channels via unified commerce.

So what exactly is unified commerce?

Unified commerce is a retail management system that unifies all your customer and inventory data on one open, centralised commerce platform that exposes one version of truth to all channels.

That means all your data stays in sync – across point of sale, websites, apps, call centres, field staff, DCs and warehouses, kiosks, pop-up stores, concessions and marketplaces – and transactions can be viewed in near real time.

With all these customer touch points connected, unified commerce lets you deliver a holistic and personalised customer experience more consistently. You can make purchasing online and in-stores more seamless and convenient through endless aisle, digital payments and ‘buy anywhere, fulfil anywhere’ services. And you can treat each customer as the individual they are – one person with one account, interacting with one unified brand.

A unified commerce platform also helps you and your technology partners innovate quickly, maximise margin and deploy new services – efficiently and profitably.

Here’s how unified commerce helps you retail better

Optimise inventory and availability

When you have an accurate, real-time view of your inventory, you can quickly see where inventory is and therefore the fastest place to fulfil from. You can 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). You’ll improve inventory accuracy, reduce stock requirements, minimise fulfilment costs and get products to customers faster.

Fulfil orders the way customers want

With a ‘buy anywhere, fulfil anywhere’ strategy and centralised unified commerce platform, you can give customers and staff real-time visibility of inventory, order and customer data across the business. That means you can offer a range of fulfilment options like click-and-collect, ship-from-store and split shipments – whatever suits your customers best.

Attract, scale and retain loyal customers

You can capture customer details for your loyalty program via any channel and then analyse purchase and browsing histories to develop the personalised experiences customers now expect, with rewards and offers that are timely and relevant. Store and call centre employees can also see this information to offer tailored services and encourage conversions at the point of sale.

Localise pricing and promotions

Pricing is shared across channels so customers can trust that they’ll see the same price whether they shop with you in-store or online. You can make better decisions about store product assortments, by matching breadth and depth to demand, trends and local demographics. And by customising products, prices and promotions nationally, regionally and even by individual sites, you’ll increase conversions and maximise profits.

React smarter and faster to demand changes

Using APIs on an open platform, you can expose data in real time, rather than replicate or move it. That lets you add specialised functionality across various systems and provides a fast and easy way to plug in and deploy new services, channels and devices. You’ll innovate quicker, increase speed to market and build your competitive advantage.

This blog was originally published on 13 January 2020 and updated 2 February 2024

If you’re experiencing technology challenges that prevent you from unifying your sales, service and marketing channels, get in touch. We’d love to help you develop the ability to create unified retail experiences 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:

download now

Triquestra

2 February 2024

Unified Commerce

Low tech, high risk: 8 signs your retail business is underinvesting in IT

Triquestra

2 February 2024

Unified Commerce

Are retailers spending enough on their IT?

As we all know, retailers traditionally have spent less on IT compared to other industries and enterprises of a similar size.

In the past, it was for good reason.

Other sectors like finance and healthcare rely heavily on technology for their core operations and risk management. Banks need top-notch IT for secure transactions, while healthcare relies on IT for patient records and life-saving equipment.

Retail, on the other hand, focused more on physical store operations and customer service, where IT played less of a central role. Retailers didn't face the same level of regulatory pressures as other industries with strict data security and privacy requirements, nor did it handle much sensitive customer data.

Retail is also a volume-driven and highly competitive sector with significant operational costs and price sensitivity, and slimmer margins compared to other sectors. This leaves less room for significant IT investments, especially when measured against competing demands from inventory, store rents and staffing.

And retailers were often slow to adopt new technologies because they didn’t yield high returns. Business changes were more gradual and often driven by consumer trends rather than technology.

So what has changed?

It was only with the advent of new technologies like mobile apps, ecommerce and digital marketing that IT become a game-changer in retail.

Retailers learned to be agile and invest in technology for competitive advantage during the pandemic and are starting to embrace that agility as new technologies like generative AI become mainstream.

Now retailers are focussed on finding the right systems and partners to rebuild their business from the bottom up. They’re building a customer-centric approach to retail using technology and experiences to enhance the brand, drive sales and grow loyalty.

The most forward-thinking and ambitious retailers know that they need to do it quickly. Nearly one in five retailers have posted negative economic profit since 2015. And while the retail sector has created value over that time, the gap between winners and losers is widening, with the top 10% of publicly traded retailers now accounting for 70% of the sector’s economic profit.

Retailers that are aggressive on growth - creating distinctive omnichannel customer experiences and expanding the breadth of their product offerings, while also resetting their cost base - are the companies that will create value, meet customer needs and head off competition.

And that means retailers are now as dependent on technology as other industries for their survival.

How much should retailers spend on IT?

The simple answer is it depends. There’s no one-size-fits-all solution and the right number depends on a retailer’s specific circumstances. It can vary greatly by retail category, company size and growth stage.

Our anecdotal experience suggests that most retailers spend only 1-3% of their revenue on IT, although one study found that retail and ecommerce IT spend was 10% share of company revenue in 2023 (up from 7% in 2022).

This is still low compared to other industries such as software, tech hosting and financial services, which dedicate 19%, 16% and 15% of revenues respectively.

These industries, of course, have different business models with significant investments in R&D. We’re not suggesting retailers need to invest at these levels, but they do need to scale their IT spend for opportunities that make their businesses stronger, smarter and ready for the future.

What are the problems retailers experience when they underspend?

There are 8 indicators that can mean it’s time to assess your level of IT spend:

1. Things just don’t work smoothly

Retailers who don't spend enough on their IT infrastructure may face hardware malfunctions, software crashes and other technical issues that disrupt business operations and negatively impact customer experience. Legacy systems can be less efficient, more vulnerable to security breaches and don’t integrate well with newer technologies.

2. Customers are frustrated

Today’s consumers expect a seamless shopping experience, whether online or in-store. Inadequate IT infrastructure can result in slow service, unavailability of products, discrepancies in pricing and a disjointed omnichannel experience, all of which lead to disappointment and frustration, a lack of trust and even a sense that your organisation is dysfunctional and incompetent.

3. Growing pains

Retailers with outdated or poor IT systems may find it difficult to scale their operations effectively. As the business grows, systems can become a barrier, hindering expansion and adaptation to new market demands.

4. Data, what data?

The inability to collect, analyse and act on data due to poor IT infrastructure can leave a retailer behind in understanding market trends, consumer behaviour and inventory needs. That means missing out on insights that could drive business growth and operational efficiency.

5. Security, what security?

Inadequate security measures and a lack of robust data privacy protocols are signs of underspending. Retailers need to invest in IT to protect customer data and comply with privacy laws. Failure to do so can lead to data breaches, legal issues and a loss of customer trust.

6. Compliance and regulatory challenges

Retailers are subject to various regulations, including those related to data protection and privacy. Insufficient IT investment can lead to non-compliance with these regulations, resulting in fines and damage to the company’s reputation.

7. Employees aren’t happy

Working with outdated systems can be frustrating for employees, leading to decreased morale, lower productivity and higher turnover rates.

8. Sales decline

With all these issues, sales and profitability can dip. Customers may choose competitors with better service and technology, and the retailer may incur additional costs due to inefficiencies and security breaches.

When is it time to increase your IT spend?

If your retail business is focused on any of the following goals, you’ll want to increase your IT spend as a percentage of revenue, at least in the short term:

Transforming into digital-first business: Retailers are implementing omnichannel strategies 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.
Meeting changing customer expectations: Changing consumer preferences and rising expectations for speed and convenience are creating new growth opportunities. The retailers that deliver a personalised and memorable CX are best positioned for long-term growth and loyalty.
Developing new business models: Retail leaders are improving and expanding their traditional products and services and launching in new, but related, market segments. Technology is blurring industry lines and allowing different operators – including retailers – to move into services such as media, healthcare, finances, travel and entertainment.
Improving operational efficiency: With increasing costs, pressure on consumer spending and the cost of doing business on the rise, there will be more consolidation and business failures. Retailers recognise that investing in technology now will lead to long-term cost savings, even if it means a higher short-term spend. It’s about making things run smoother and more efficiently, which cuts costs down the road.

Want help to find the right systems to build your unified commerce business model?

We can help you build a foundation for operational efficiency and continuous, innovative growth. Just contact me at kelly.brown@triquestra.com or get in touch.

For insights into how a unified commerce approach gives you the flexibility and agility you need to keep in step with consumers’ changing needs, download our ebook:

Download now

Triquestra

14 December 2023

Unified Commerce

The 7 omnichannel capabilities reshaping stores

Triquestra

14 December 2023

Unified Commerce

      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.

Triquestra

18 October 2023

Unified Commerce

What’s the difference between unified commerce and omnichannel?

Triquestra

18 October 2023

Unified Commerce

In recent years, the terms ‘unified commerce’ and ‘omnichannel’ have reached buzzword status. Both are used to describe the delivery of seamless customer experiences across physical and digital channels.

But while they’re used interchangeably, there’s a significant difference between them.

Unified commerce is the next-generation architecture that finally delivers on what omnichannel promised.

A unified commerce platform provides a central hub that breaks down the silos between channels to deliver truly seamless experiences, while also solving omnichannel’s biggest weakness – operational complexity.

At a time when only 25% of retailers can connect their online and in-store transaction data it’s gaining momentum, with 20% of retailers heavily investing in it, 32% beginning to invest and 36% considering doing so. And retailers who used unified commerce in 2022 saw a solid 7% revenue boost over those who did not.

Omnichannel offers options, but creates operational complexity

Omnichannel strategies talked about creating a seamless and consistent customer experience across all channels, but the execution has left a large gap in the user experience.

Why? Retailers have to quickly spin up new channels as consumers demand them. An omnichannel approach does connect numerous channels, but they all operate in functional silos. That means customers can’t hop between channels in one seamless interaction and most attempts to deliver unified experiences fall well short.

Omnichannel makes things much harder for retailers in five ways:

Integrating data silos: Often loosely connected with manual processes and custom integrations, omnichannel solutions are fragile, inefficient and costly to maintain. The silos generate a cascade of inconsistent, inaccurate data shared across the business, making it virtually impossible to deliver a seamless customer experience.
Inventory that isn’t real time: Many omnichannel systems only access rudimentary sales and inventory positions. This prevents retailers from offering the ‘buy anywhere, fulfil anywhere’ options that are best for customers and most profitable for them.
Adding modern technologies and capabilities: Connecting legacy systems with modern technologies requires custom integrations, making the creation of new brand experiences complex, expensive, time consuming and risky.
Obtaining a single view of the customer: Silos negatively impact customers because they have to deal with inconsistencies and gaps, such as partial sales histories, different answers to questions or having to start new conversations in each channel.
Loss of innovation: Day-to-day inefficiencies mean that internal teams are tied up in remediation and troubleshooting and have less time to spend on creating the innovative, personalised experiences customers desire.

Here’s an example of how omnichannel creates operational complexity:

An omnichannel architecture could allow a retailer to look up inventory across all its stores but they would struggle to make all items available online. This is because many retailers have items that are difficult to ship, such as fragile items, dangerous goods or large and bulky or heavy products. With no ability to create customised views of inventory to make them available for click and collect but exclude them from home delivery or inter-store transfers, they can only offer these items in stores.

Unified commerce puts the customer experience first

Customers today 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.

The only way to meet these demands for a truly unified experience is to move beyond omnichannel to unified commerce.

Unified commerce is an architectural approach that delivers seamless customer journeys across all channels, touchpoints and locations.

It breaks down the walls between internal channel silos by using a centralised commerce platform that combines point of sale, inventory, ordering and fulfilment, loyalty, pricing and business intelligence.

With a unified view of the customer, and all channels and engagement points connected in real-time, you can deliver a personalised and consistent customer experience.

Your customers get a ‘one brand’ experience: one person with one account, interacting with one unified brand. No hitches, and no inconsistencies.

You can make purchasing online and in-stores more seamless and convenient through endless aisle, digital payments and ‘buy anywhere, fulfil anywhere’ services.

And you can quickly respond to changing customer expectations and new technologies by using microservices and APIs to expose data and connect third-party services.

A unified commerce platform enriches your customer experience and positively impacts your entire business in so many ways:

Simplify your technology
Accelerate speed to market
Optimise inventory and availability
Boost in-store productivity and sales
Personalise your customer experience
Create relevant and agile experiences.

This blog was originally published in January 2020 and updated 17 October 2023.

Want help to reduce operational complexity?

We can help you define your goals, develop a business case and create your roadmap to simplified operations and unified customer experiences. Get in touch.

For insights into how a unified commerce approach gives you the flexibility and agility you need to keep in step with consumers’ changing needs, download our ebook:

download now

Triquestra

25 September 2023

Unified Commerce

The critical role of stores in digitising the retail customer experience

Triquestra

25 September 2023

Unified Commerce

      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.

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.

Triquestra

25 September 2023

Unified Commerce

Success or surrender: 5 critical moves for rescuing a failing retail software project, plus when to cut your losses

Triquestra

25 September 2023

Unified Commerce

Has your retail software project hit rock bottom?

In my last blog, I talked about why many retailers fail to achieve the expected ROI from their retail management software investments and shared five tests a new purchase must pass.

In this blog, we’ll look at what to do when a software project goes wrong.

Enterprise software failure rates are remarkably high, though naturally rarely discussed in public! For some companies, their investments become a black hole, sucking up funds and resources to rescue the project. Others lead to serious business disruptions when the software goes live and the loss of innovations that deliver a competitive edge.

So how do you resurrect a failed software project and, more significantly, what are the important signs it’s time to cut your losses and walk away?

There are five steps to take to salvage a failing software project, or rebuild after a failure:

Step 1: Rethink your game plan and goals

Take another look at the original project plan and strategic objectives. Adjust them to fit the new reality and the challenges you've faced. Then set realistic expectations and lay out clear objectives for moving forward. Maybe you need to tweak the timeline, shuffle resources or reconsider the budget? A fresh plan gives you a chance to gain momentum and start over.

Step 2: Take a good hard look at what went wrong

Figure out the specific issues and challenges that caused the project to falter. Was it poor planning, bad program management, miscommunication or technical shortcomings? Communicate openly with all the stakeholders involved and listen to their take on the situation. Working together and sharing ideas will foster trust, encourage problem-solving and ensure everyone is on the same page regarding the path forward.

Step 3: Take stock of your team

Are the people and team dynamics that got you to this point capable of turning the project around? Check that the individuals have got the right skills for the job and are aligned with the revised project goals. Examine the team dynamics and make sure your leaders are up to the task. A great team can often turn things around.

Step 4: Call in the experts

If the project is in a critical state, it’s probably time to bring in outside help. Get on board external consultants and software vendors with real-world experience in the current disrupted retail environment. Ask them to provide guidance, identify areas to improve and suggest potential solutions. They'll have managed complex, large-scale deployments and can provide new perspectives and bridge skills gaps to get things back on track.

Step 5: Take action and keep tabs on progress

Take actions to remedy the identified issues and implement corrective measures. Whether it's changing team members, improving communication, adjusting workflows or adopting new project management methodologies, implement the fixes needed to address the issues. Keep a close eye on the progress, track the key performance indicators (KPIs), and have regular status updates to make sure things are heading in the right direction.

But what do you do when you’ve completed all these moves and the project is still floundering?

If the project is still not delivering real value after taking these steps, it can mean the wrong product was selected. Any software purchase that doesn’t meet its target ROI is a failure. And at a time when consumer confidence is low and customer expectations are rising, new technology investments are being held to an even higher standard.

Sometimes making the uncomfortable decision to cut your losses and start the process of finding a new software provider is the right thing to do.

While it may first register as a loss, it could end up being the best thing that ever happened to your retail business.

Here are the indicators that mean it's time to pull the plug and start over:

Misalignment with business KPIs: If the project no longer aligns with your strategic goals or the original business objectives have significantly shifted, it's a fundamental mismatch. When the deviation is substantial and irreconcilable, it's best to cut ties and focus on initiatives that do.

Unrecoverable delays: If the project keeps getting delayed without any end in sight, it's a red flag. When the delays are significant and impact the project's viability or business objectives, it’s time to assess whether the proposed solution is even feasible.
Escalating costs: If the project costs are skyrocketing and return on investment isn't looking promising, it may be financially unsustainable to continue. When cost overruns outweigh the expected gains, it’s better to cut your losses and move on.
Susceptibility to the sunk cost fallacy: This is our tendency to follow through on a project if we have already invested time, effort, emotion or money into it, whether or not the current costs outweigh the benefits. Any unrecoverable costs sunk in the past are irrelevant when deciding what to do next.
Insurmountable technical challenges: If the project faces technical obstacles or limitations that can’t be overcome within a reasonable timeframe, it’s an indication that the solution is not suitable or feasible. When the problems are too big to fix or would require a complete overhaul, the software is not the right fit.
Stakeholders withdraw support: When important stakeholders lose confidence in the solution or no longer provide support, it's a clear message. If the solution cannot realistically recover to meet their expectations, it’s time to consider ending it.

Making the call to exit a failing software project is tough, but often necessary.

It’s an opportunity to find a solution that best meets your particular needs, allowing you to create real, sustainable value for your retail business.

Want help to assess the viability of your software project?

If your project is not delivering the returns you expected, we can help you navigate the complex issues and find the right path forward. Just contact me at kelly.brown@triquestra.com or get in touch.

For insights into how a unified commerce approach gives you the flexibility and agility you need to keep in step with consumers’ changing needs, download our ebook:

download now

Carmela Salisbury

28 August 2023

Unified Commerce

Your four stages to unifying customer experiences

Carmela Salisbury

28 August 2023

Unified Commerce

Can you deliver to changing customer needs? Here’s how to simplify and streamline interactions with your brand and fulfil the promise of omnichannel retail.

	1
      Get tight control of your inventory

	2
      Extend your brand experience across all channels	
	

	3
      Create delightful, personalised shopping experiences
	

	4
      Innovate, innovate, innovate	
	

Omnichannel retail promised to make things better for customers by delivering unified shopping experiences, but the execution has left gaps in the user experience.

Shoppers today have numerous selling channels available to them, but silos mean that customers can’t just hop between channels in one seamless interaction and must deal with inconsistencies that lead to disappointment and frustration.

Omnichannel has also made it much tougher for retailers. Today it’s not just about providing multiple options – it’s about delivering a frictionless experience no matter where or when customers shop. This variety is overwhelming retailers, with 47% saying there are too many channels for them to effectively deliver the best experience.

And many omnichannel set-ups neglect to take full take advantage of stores, which provide unparalleled opportunities to provide excellent service and personalised recommendations to retain loyal customers, as well as take on activities such as returns, fulfilment, endless aisle orders, in-store wishlists and more.

That’s why retailers are moving from omnichannel to an integrated unified commerce platform strategy.

Unified commerce makes it easy to meet and even exceed customer expectations by creating a ‘one brand’ experience everywhere your customers shop while solving the problems and restrictions of omnichannel retail.

It’s gaining momentum, with 20% of retailers heavily investing in unified commerce, 32% beginning to invest and 36% considering doing so. Retailers who used unified commerce in 2022 saw an impressive 7% revenue boost over those who did not.

And the transition to unified commerce is simpler than many think.

Retailers can quickly reap the benefits by following these four stages:

Stage 1: Get tight control of your inventory

Ensure you can accurately manage your inventory levels across all your locations and customer touchpoints by centralising your inventory information in near real time.

With a unified inventory management system in place, you can guarantee you’ve got the right inventory available in each location, without carrying the cost of overstocking or “buffers”. You can 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. You can also react to trends quickly, and forecast demand based on historical data, sales forecasts and seasonal variations.

See how Night ‘n Day started with inventory to create great customer experiences and increase net profit by around $12,000 a year for each store.

Stage 2: Extend your brand experience across all channels

Once your inventory is under control, you’re free to increase your purchasing, ordering and fulfilment options. To do that, you’ll need to move from multichannel silos to a unified commerce platform that provides a strong order management capability.

Exposing, rather than replicating, inventory and customer data from your platform to each channel means everything stays in sync. Your staff and customers will have consistent product visibility and can expect fluid and accurate interactions, whether in-store, on mobile or online.

And with real-time data on stock levels, you’ll be able to see where inventory is located, find the lowest cost or fastest fulfilment route, and provide better promotions.

Here’s how Cue Clothing is using unified commerce to combine physical and digital channels into a ‘one-brand’ experience.

Stage 3: Create delightful, personalised shopping experiences

Now you can build genuinely meaningful customer experiences. With a single view of customer, order and inventory data, you can treat each customer as an individual, all the time – one person with one account, interacting with one unified brand.

Make your loyalty programme your cornerstone for innovation, delivering the unified and personalised experiences customers expect. Use AI and data from online and offline channels to deliver timely and personalised communications, recommendations, offers and rewards across in-store and digital touchpoints, including desktop web, mobile web, mobile apps, email and social.

By delivering each customer a powerful, tailored, one-of-a-kind experience across all channels and touchpoints, you’ll create rich emotional connections, drive up conversions and send transaction values soaring.

Here’s how Z fuels more sales and repeat visits with its Pumped loyalty programme.

Stage 4: Innovate

Your unified commerce platform is now your hub for innovation - a springboard for adding new channels and services to take advantage of new capabilities and deliver results at a speed and scale that would be unachievable within a traditional omnichannel model.

By using agile methodologies and APIs to expose data and functions, and easily plug in and deploy new services, channels and devices, you’ll reduce integration and maintenance overheads, increase real-time accuracy and enjoy virtually limitless scalability and agility. And by seamlessly embedding purchasing opportunities into everyday activities, you’ll make the shopping experience seamless for the consumer.

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

See how APIs can help you innovate at pace and build powerful ecosystems to give customers extraordinary experiences.

This post was originally published May 2019 and updated on 28 August 2023.

If you’re urgently revamping your omnichannel 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.

Triquestra

28 August 2023

Unified Commerce

Show me the ROI: 5 tests to justify your retail software purchase

Triquestra

28 August 2023

Unified Commerce

Are traditional ROI measures good enough in today's environment?

Everyone’s focused on ROI for their enterprise technology purchases nowadays. ROI has always been important, but at a time when consumer confidence is low and customer expectations continue to rise, new technology investments are being held to an even higher standard.

But making the shift to a new retail management system can be difficult.

Research has shown enterprise software failure rates range from 30-70%, and some observers say that fewer than 10% of major software purchases fully meet expectations. Stories  about  outright software failures do appear in the media, but they’re just the tip of the iceberg - people don’t talk publicly about failures because they do not want to be associated with them.

For some companies, their investments become a black hole, sucking up funds to salvage the situation. They pour money and resources into further development, implementation and maintenance, only to find after a few years that they’ve fallen by the wayside.

And many projects may not be outright failures but lead to serious business disruption when the software goes live. Chaotic stores frustrate customers, supply chains go haywire, data integrity and security can be compromised, employee frustration kills productivity and integration challenges hinder efficient operations.

Plus there’s the loss of innovations that can give you a competitive edge. A successful solution will be implemented faster than expected and meet or exceed the expected ROI, letting you create frictionless and differentiated omnichannel customer experiences that drive loyalty and grow revenue.

You don’t want a project that fails to deliver the desired returns because the wrong product was selected.

So how do you justify your technology investment?

There are five tests technology purchases need to pass, and the first is the most important by far:

Test 1: Does it deliver your strategy and help drive forward your KPI's?

Evaluate how the software will help to achieve the strategic goals and objectives of your organisation.

It should be a solution to the challenges you face or help you take advantage of new opportunities. It needs to offer clear benefits like boosting productivity, cutting costs, improving customer satisfaction or increasing revenue. If it doesn't directly address your needs, it's probably not the right fit.

Test 2: Does it deliver REAL value?

The ‘shiny object’ syndrome is prevalent in retail. People can get fixated on the latest trends and fail to assess how the investment helps to deliver a return on investment.

How much will the system cost in terms of licenses, implementation, training and maintenance? Compare those costs to the benefits you expect to see. Consider both the tangible and intangible returns, such as increased revenue, reduced operational costs, improved decision-making, enhanced scalability or competitive advantage. A positive ROI should be evident over a reasonable timeframe.

Test 3: Does it deliver operational savings?

People are your most important resource. If your investment saves them time, that frees them up to work on higher value activities.

The system should be user-friendly with intuitive workflows and features that align with users' needs and preferences. You want a solution that your store and head office staff can easily adopt and start using right away. No one wants to deal with complicated interfaces or spend hours in training sessions. And a solution that provides a positive user experience will yield higher productivity gains and better overall results.

Test 4: Can it grow with you and adapt to change?

Assess whether the system can scale and adapt to your organisation's changing needs. It should be able to handle more data, channels and touchpoints, easily integrate with other systems, be flexible enough to adapt to new technologies and scale to provide long-term value.

You don't want to be stuck with an outdated or narrow point solution that won’t let you evolve to meet changing customer needs.

Test 5: Can you rely on the vendor for new functionality and ongoing support?

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

Assess the reputation and support provided by the vendor. Do they have a good track record of successful implementations in the current, disrupted omnichannel retail climate, with customer reviews and references?

Are they known for their customer service? You’ll want a partner that will be there for you when you need it, ensuring you can easily add new functionality and connect to third party systems (via APIs) to cultivate your retail ecosystem.

By putting your potential software investment through these five tests, you’ll find a solution that meets your needs and is cost-effective, adaptable, user-friendly and supported by a trusted and reliable partner.

Want help to ensure your software investment pays off?

We can help you define your goals, develop a business case and create your roadmap to create the unified experiences that are best for customers and most profitable for you. Get in touch.

For insights into 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:

download now

Carmela Salisbury

18 April 2023

Unified Commerce

Power your retail innovation strategy with APIs

Carmela Salisbury

18 April 2023

Unified Commerce

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

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.

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

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.

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.

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:

DOWNLOAD NOW

Triquestra

28 February 2023

Unified Commerce

How the move to ‘phygital’ is disrupting point of sale technology

Triquestra

28 February 2023

Unified Commerce

      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:

DOWNLOAD NOW