Software providers can talk and talk all day about what makes their offering the best. But hearing from a retailer who implemented the technology and is actively seeing benefits with their customers is the true testament of value.
The future of retail is developing at a rapid rate today, with self-checkout, mobile shopping and BOPIS, and other services that put additional pressure on both new retailers and retailers with legacy systems looking to keep up with the pace of change.
In this blog, we’re going to highlight the experiences a few of our long-term U.S. customers have realized during their time working with us.
Payments
Savers Value Village is using our TransAction+ payment solution to drive responsive and adaptable payment capabilities. The number of ways a consumer can pay seems endless –cash, debit, PIN-less debit, credit, gift cards, etc. – so the ability to quickly process each and every one of them is critical. Today, TransAction+ allows nearly 3,000 point of sale lanes across more than 300 Savers Value Village store locations to run independently. In addition to eliminating store-wide downtime risks and minimizing security risks, we’ve also reduced transaction times by 33%.
Scalable point of sale services
With customer engagement and consistent brand experience so critical to retailers’ long-term strategy, customization potential is a critical factor when it comes to the point of sale. Retailers require a system that can be configured to their unique needs. What’s more, fully managed cloud services now deliver all the functionality of on-premise enterprise systems.
Our relationship with Beall’s began in 2012 when they deployed GK’s enhanced coupon solution for SAP POS. Since then, Beall’s has implemented numerous custom enhancements, such as EMV credit card authorization. Our ability to integrate new technology with Beall’s existing core SAP POS software has helped leverage and maximize the life of that system, and plan for future requirements.
Integration with legacy systems
For new retailers looking to grow their business, scalability is a particularly important factor to consider with technology solutions. Platform architecture should make it easy for the system to grow alongside the business. As retailers look to expand their physical footprint, they often find it challenging to scale and optimize on-premise solutions. Cloud software can ensure retailers can continue to grow without unnecessary IT overhead.
On the other hand, retailers that already have existing legacy systems they rely on for core services means that the simplicity of integrating new services and solutions is the key to avoiding costly and slow adaptation.
According to PGA TOUR Superstore, the right solutions should be instrumental to “execute in the present and prepare for the future,” just as our payments solution has proven to be for them.
The golf equipment retailer originally chose GK Software because of its reputation for innovation and the suite of add-on modules that provided immense functionality without having to change its core platform. Today, PGA TOUR Superstore leverages GK’s TransAction+ payments solution and a suite of Central Services.
Innovative solutions for the world's leading retailers
One thing we’ve found in common between the retailers we work with is that they all look for professional support, fast implementation, and technology that enables them to best serve their present and future customers, regardless of how their preferences change.
Our fully managed cloud services give retailers access to enterprise functionality and scalability without having to build out their own expertise or infrastructure. Instead, they enjoy the freedom to deploy increasingly critical services quickly while maintaining the flexibility to deliver unique, differentiating customer interactions with ease.
Our long-lasting relationships - often spanning decades - are a testament to both our expertise in the space, and ability to innovate as retail changes.
See what more of our satisfied customers have said about working with us and reach out if you’d like to learn more about how our platform and services can help you continue serving your customers the experiences they expect and you desire.
In my last blog spot on coupons and bundles, we touched on industry-specific differences that can be crucial to a retailer’s success in the context of Dynamic Pricing. I would like to go into this more detailed and show you which industry-specific challenges and opportunities Dynamic Price Optimization brings with it and how you can use AI software perfectly adapted to this.
This blog post will therefore deal with the specific challenges and chances in the fashion industry. It is special in many ways; I have experienced this in several customer projects. Basically, this industry offers great potential for Dynamic Price Optimization because clothing is always needed and because the average margins are comparatively high. These reasons alone mean, that applying AI methods for price optimization offers a great deal of leeway and creates a large lever for profit potential. Nevertheless, a few technical and strategic requirements should be considered in order to generate the maximum benefit from a dynamic pricing software solution.
- The life cycles of many items in a fashion assortment are comparatively short – often only about 4 to 6 months. During this short period of time, an item must be launched successfully, it must generate as much profit as possible in its peak season and it must be sold out on time (and yet margin-saving) to free up stock for the next season. Take swimsuits for example, as a product that’s often introduced early in spring for a summer target, before warmer clothing replaces its inventory in the fall. The more excess inventory on the shelf and in the backroom come September, the less profitable a retailer is. Therefore, it is particularly important to adjust prices regularly and strategically.
How does a dynamic pricing software support these requirements?- The software offers various algorithmic procedures for pricing all product life cycle phases.
- The software allows to control the optimization target (revenue, sales, profit etc.) for each product life phase and for each product group in a differentiated way.
- The software can provide relevant, demand-based prices at least daily.
- Fashion assortments are usually both broad and deep. This means that they contain many different items and many variations of these products. Think about the number of dresses, skirts, pants and shoes you see in one shop or store – as well as the number of sizes and colors. This results in both technical and strategic requirements if the product range is to be dynamically priced.
Which functionalities does a software for dynamic price optimization has to offer accordingly?- The software must have a master-variant capability. In concrete terms, this means that master and variants can be treated both as a relational unit (keyword: family pricing) and separately from each other – both in the algorithmic calculation of demand and in the final pricing. This should be done because women’s running shoes in size 10 are likely to have different demand than size 7 and – if this is part of the strategy – should perhaps be able to be priced in a correspondingly graded manner. The pricing software must therefore be able to calculate and provide differentiated master and variant prices.
- The software must also have a powerful tracking functionality in order to be able to record and process demand in detail at variant level. This forms the basis for sales forecasting and thus for optimal price control.
- The software must be able to process large and complex data volumes with high performance. Fashion assortments consist on average of 20,000 to 50,000 items, and when variants are included this number climbs up to several million. A Dynamic Pricing solution must scale linearly so that it is possible to record the demand for each individual item at variant level (tracking functionality), derive price elasticities and sales forecasts and provide optimized prices.
- Promotions and marketing campaigns are an integral part of every fashion season, as well as part of customer’s expectations. In order to be successful with promotions and above all not to give away too much earning potential, two things are crucial: You have to promote the right items to increase customer frequency and you need to set the right prices for all non-promotional items. With this combination, promotions achieve great success because the promotion itself drives customer frequency and the Dynamic Pricing software keeps the margin of all other products at a stable high level. In this way you increase frequency, sales and profit at the same time.
How can an AI-based pricing software support your marketing campaigns?- The software should be able to suggest products for marketing campaigns that are relevant and timely for customers, for example based on current demand.
- The software should be able to be controlled quickly and easily so that promotion products can be excluded from the algorithmic price calculation with just a few clicks.
- The software must be able to differentiate between promotions and “normal” purchasing behavior so that promotions do not lead to a reduction in the general price level.
In principle, a software solution for dynamic price optimization should fit into your existing processes as seamlessly as possible. It should also use and supplement the wealth of experience and knowledge of your pricing managers, for example with highly complex data analysis and statistically valid decision supports. The software must be able to support your existing pricing processes and optimize them in such a way that your business units achieve sustainable growth. You can find out how to approach such a project here !
- Turnover increases by approx. 12 percent
- Significant increase in profitability
The company was able to exceed the comparative results from the previous year by 11.7% or EUR 5.89 million at a figure of EUR 56.16 million. EBITDA grew even more strongly and increased by approx. EUR 7 million to EUR 6.26 million in comparison with the previous year. The positive developments in the company’s cloud business and growth in the USA were responsible for the increase in turnover and the strong growth in earnings. The effects of the efficiency programme, which was introduced in the second half of 2019, were also extremely positive.
The month of July, which was also highly successful, gives reason for optimism for the further course of this financial year, particularly because business with new customers was very restrained during the first half of the year because of the COVID-19 pandemic. In the light of this, the Management Board is standing by the forecast that it provided in the 2019 annual accounts for the 2020 financial year as well as the restrictions that it contains regarding further statements beyond the year 2020.
According to research from the National Retail Federation and Forrester, since January, no-touch payments have increased for 69% of retailers. Of those that offer contactless payments to customers, 94% expect the demand to continue increasing over the next 18 months.
COVID-19 has caused an aversion to physical touch in an effort to keep employees and customers safe, resulting in several contactless and mobile payment stories making headlines. It doesn’t hurt that major retailers are behind the news in support of the technology, including Amazon, CVS and Kroger.
What’s more, news of the nationwide coin shortage has caused retailers to rethink their payment options. It demonstrates the need for retailers to provide a variety of convenient payment options for shoppers. It’s not just about accepting one form of payment over another; it’s also about having the ability to process a range of transactions so customers can pick the payment method that they prefer.
Let’s take a deeper look at how these recent announcements are driving a new approach to a contactless customer experience - and why other retailers should be paying attention.
Contactless payments through mobile
Major retailers are quickly pushing forward with new contactless options. CVS is driving contactless payments with Paypal and Venmo, and Kroger announced the launch of its payments pilot, accepting Apple Pay, Google Pay, mobile banking apps, and more. Instead of having to hand over a card or cash, shoppers can simply use their phones for a touch-free way to pay.
The retailers launching contactless payments are making smart and necessary moves. Waiting in a checkout line is one of the largest pain points within a physical store, so seamless and faster payment options are key. This is especially true since the pandemic, which has led to more use of contactless credit cards as a safe, sanitary no-touch payment option for consumers.
Amazon Dash Carts
Amazon’s smart shopping carts – the Dash Cart – is another new option for shoppers to skip the checkout line altogether. To Amazon, the “10 items or less” and self-checkout lanes should be things of the past. The Dash Carts reflect a different approach to frictionless retail than its Amazon Go stores, which require costly ceiling camera infrastructure and RFID technology.
The Dash Cart has inspired retailers to take a second look at the cashierless concepts they currently have in place and to consider experimenting with innovative technology. However, while it’s important to experiment with new concepts, it’s equally essential to find the right tech that fits well with a retailer’s specific format and unique shoppers’ needs.
For example, although other smart cart vendors promise larger basket sizes, the Dash Cart is designed for small to mid-sized shopping trips. Amazon’s cart still doesn’t provide an answer to contactless checkout for most retail segments.
Don't neglect the point of sale
It’s clear that the future of checkout means contactless payment options that promote a frictionless customer experience. There is no doubt we will see more retailers investing in these technologies as they look to provide the flexibility, speed and convenience customers expect. In fact, it will soon become a deciding factor on whether a shopper chooses your store, or a competitor.
What’s more, retailers that offer mobile or contactless checkout services are better able to handle changing market conditions and customer behavior. Whether it’s through order and pay ahead, or handheld devices for associates, the store of the future is built on the idea of an invisible point of sale.
To learn more about how to offer contactless payment for your customers, contact us today.
No two retailers are created alike. Their customers’ unique needs and the type of services they offer will lead to different strategies. But at the core of all successful retailers lies one idea: they understand the importance of being able to conduct retail efforts anywhere, at any point in time.
It’s rare – and no longer profitable – for retailers to sell exclusively via ecommerce or brick and mortar. While that strategy might have made sense a decade ago, combining the benefits of both shopping experiences will ensure retailers stay relevant in the future. Here are a few ways retailers are achieving the now-universal aspect of shopping consumers have come to expect.
Mobile capabilities to interact anywhere
Adopting mobile retail capabilities provides retailers the ability to interact with consumers from anywhere, in any situation. For example, a busy family can order groceries from their kitchen, or preorder and pay for a coffee at the convenience store from the comfort of their car. Mobile capabilities also gives retailers the opportunity to reach shoppers at different stages of their journey, whether that’s the awareness stage at home, or while they’re shopping in-store, searching for reviews or additional information about a product.
Last year’s Black Friday – a traditional brick-and-mortar shopping day – saw online sales reach $7.4 billion, the second largest online shopping day ever behind 2018’s Cyber Monday. This highlights consumers’ expectation that a retailer be available and accessible online and via a mobile device.
Dark stores to improve fulfillment
Successful retailers have already started to utilize dark stores, or stores that are used solely as distribution centers. Brick and mortar retailers hold this advantage over Amazon as they have an existing distribution network with “warehouses” close to consumers: their stores.
As a result of the coronavirus pandemic, shoppers who have experienced successful delivery, curbside pickup and ecommerce services will likely continue these habits in the future.
What’s more, limiting the number of customers in-store and enforcing social distancing will likely deter shoppers from choosing physical retail. Dark stores can help retailers oversee BOPIS, delivery and last mile processes with more efficiency.
Both grocers and retailers – including Whole Foods and Bed Bath & Beyond – are doing just that. Whether making their stores completely dark, or choosing to utilize stores as a showroom, physical retailers can meet the instant gratification demands of consumers.
Technology that meets unique needs
Retailers need to be much more aware when it comes to understanding the most beneficial technology for their vertical, and for each type of consumer purchase. For example, it doesn’t make sense for grocers to have best-in-class clienteling solutions that tell shoppers the differentiating features around everyday products like butter or milk. Instead, grocers need solutions that focus on replenishment, convenience, speed, and ease of delivery.
Similarly, apparel retailers require technology that supports the social and experiential event that is shopping. And those in the hospitality business should focus on secure point of sale and payments technology that drives service, quality and convenience.
Understanding customers at the core
The common denominator of successful retailers is understanding how and why their target customers shop, and then delivering on that expectation. Once they understand this, retailers can establish the flexible technology that meets those needs, such as mobile capabilities and dark stores.
Do you have the right solutions to fit your shopper’s needs?
When thinking about a consumer’s shopping experience within a brick and mortar store, retailers’ efforts are often segmented into two differing approaches: a focus on scanning and contactless, or immersive and personal technology.
Contactless versus immersive tech
Scanning and contactless technology work to drive convenience and cut down on time consumers need to spend waiting in line. Even now, this point of sale technology has evolved one step further into scan-less, as Amazon has introduced Amazon Go stores and now, smart grocery carts, which eliminate the checkout line entirely.
However, for shoppers looking for a more personal experience – such as a gift-wrapping service – contactless shouldn’t be the only option.
Immersive, personal technology delivers a more tailored approach. Virtual reality, interactive displays and digital signage all can transform the brick and mortar store and provide individualized experiences for shoppers. For example, with AI, digital signage can target customers in the store based on factors such as geographic location, time of day and customer demographics.
Of course, depending on their vertical, value prop and more, not all retailers can – or necessarily need to – implement this technology. And what’s more, not all consumers may desire this experience. If shoppers stop bya convenience store for one item they already have in mind, they won’t be looking for an immersive experience.
Combining contactless and immersive to establish frictionless
However, successful retailers realize that a number of different shoppers with different needs enter their stores each and every day. The ideal technology strikes a balance of contactless and personal. It supports a robust unified commerce portfolio strategy that provides consumers the right experience at the right time. And at this intersection of contactless and personal lies frictionless retail.
Eliminating friction in the store
In response to COVID-19, brick and mortar stores have implemented new policies and practices to ensure the health and safety of shoppers and employees. As a result, shopping journeys are more likely to begin online and then transfer to the store, which highlights the importance of need for unified systems. A retailer’s website needs to be able to show accurate inventory for each store. And when shoppers continue their journey as they shift from desktop or mobile to in-store, that transition must be seamless.
Additionally, physical stores are also adapting and doubling as distribution or fulfillment centers as shoppers opt for BOPIS or curbside options. Therefore, frictionless last-mile services are essential. Shoppers should be able to easily place orders and pay for their items online, through a mobile device or in the store. Along with frictionless checkout in-store, providing free guest WiFi allows retailers to send personalized offers directly to shoppers’ devices.
Find the balance
Every shopper is looking to minimize friction, whether that’s in the browsing, buying or last-mile stage. But not every consumer journey should be treated equally, which is why a balance of personalized and contactless shopping experiences is crucial.
Plus, with unified technology that eliminates friction in the store, employees can do their intended job: provide an excellent customer experience. As physical stores reopen and adapt across the nation, the successful next chapter is frictionless technology.
Have you identified the friction in your business yet?
Recently, we published a blog on the new look of buy online, pickup in-store (BOPIS) services post-pandemic. We explored how a flexible, standalone BOPIS solution can make integration and deployment easier than ever. This is essential as BOPIS has become a critical service for many retailers to generate sales while offering a safe and convenient shopping option for customers. In fact, according to a consumer flash poll by NRF, half of all consumers have used BOPIS as a result of COVID-19.
Looking ahead, BOPIS will likely continue to grow even after the pandemic. In response, retailers will need to ensure that they properly implement this capability not just as a temporary solution, but a permanent long-term fixture. BOPIS is here to stay, which means now is the time to identify best practices that will lay a foundation for a successful BOPIS program.
Let’s dive into what capabilities and tools are required to successfully enable this fulfillment option and drive customer loyalty for the long run.
Quick and easy implementation
In the face of a public health emergency, retailers need an intuitive solution that delivers a sense of certainty and security – and they need it now. BOPIS is proven to help ease shoppers’ concerns by providing a safe and convenient way for order fulfillment. But how can retailers who don’t already have the functionality deploy it quickly while avoiding major technical hurdles?
Fortunately, BOPIS technology is available to all retailers for rapid deployment. Without requiring complete integration to all existing store systems, retailers can flip the switch on a solution that gives them all the fundamental benefits without the headaches of a long deployment. Retailers don’t need to waste time and energy integrating with current merchandise management or POS systems, and instead, can take advantage of solutions that’s designed for immediate use.
Here’s what that looks like.
Optimized Operations
To fulfill BOPIS orders, retailers will designate certain associates to focus on picking and packing items as quickly and efficiently as possible. This requires equipping associates with automated sorting technology to capture the fastest route for each order, with shopping lists sorted according to refrigeration zones and aisles.
Additionally, inventory has been a big challenge for retailers in recent months, with unpredictable shopping patterns creating spikes in demand on certain items like toilet paper. Associates should be given an accurate view of inventory and be able to note unavailable or substituted products right on the app, providing both customers and retailers real-time insight into what’s available.
Branded omnichannel customer experience
A seamless omnichannel experience requires retailers to bridge the gap between physical and online channels as much as possible. To achieve this, all communication, offline and online, should be branded and consistent across all touchpoints. This includes everything from the mobile app to email communication to signage at the stores.
Retailers should also ensure they are providing another level of convenience for customers by making the BOPIS solution easy to use. Shoppers should have the capabilities to create a wish list and get essential goods quickly and easily from home. They must be promptly alerted when their order is ready for pickup and easily locate the dedicated BOPIS location inside or outside the store.
Futureproof for new offerings
As BOPIS continues to mature, so too will the list of core integrations and features that are added to this list. The best approach for retailers without a BOPIS option today is to deploy the core features of a robust BOPIS program ASAP. But don’t choose a light solution without potential to grow and evolve.
Retailers will eventually want to integrate new features such as loyalty or personalized promotions down the road, which will require a flexible BOPIS solution that offers all of the central capabilities now and the ability to quickly add integrations later. This is essential for futureproofing your BOPIS offering.
Our GetMyGooods platform provides these requirements by allowing retailers to deliver simple and reliable BOPIS ordering that’s fast and convenient for customers. Contact us today to get started today.
When it comes to dynamic price optimization, the three crucial KPIs are sales, profit and purchase frequency. In pricing theory, it is said that in principle, any two of this KPIs can be raised together, but never all three. If you look at a single item, this might be true. However, if you look at a retailer’s entire assortment I can disagree in good conscience! Because that is exactly what dynamic price optimization can achieve by using AI technologies. With visibility into a retailer’s entire assortment, individual product prices can be adjusted with the help of AI in such a way that sales, customer purchase frequency AND profit are increased at the same time. A holistic strategy makes all the difference.
An effective instrument to meet sales, profit and purchase frequency KPIs is couponing. Coupons can be used to further drive customer loyalty and purchase frequency. By means of vouchers, attractive discounts on certain products or product groups can encourage purchases. The success of coupons depends on a few factors, including:
- Are discounts on coupons distributed en masse (“one size fits all” approach), or tailored individually for each customer?
- Do the coupons already contain product recommendations that encourage customers to buy? (and here, too: Are they general or individually tailored)?
- Is the coupon offer designed in such a way that it does not cannibalize profit margins?
With coupons, it’s difficult to name a general best practice approach. It depends on a retailers’ vertical, how well coupons are accepted by customers and to what extent these may be at the expense of profits. In the grocery or FMCG retailing sector, for example, retailers using coupons can operate quite differently as in the fashion, DIY or consumer electronics sectors.
When weekly grocery shopping for the family, it is quite likely that the shopping basket will be full – regardless if a coupon has been offered. This means that, from a global perspective, profits are not necessarily at risk. In the grocery retail and FMCG environment, the most important purpose of a coupon is to drive traffic into stores and drive loyalty so that shoppers do not buy from a competitor. Here coupons make a valuable contribution: frequency increases of 15-25% are not uncommon. AI can support this process and minimize manual effort by automatically calculating meaningful discount values per customer and can provide appropriate product recommendations that attract the customers’ interest.
In the fashion, DIY or consumer electronics sectors, coupons are also an effective marketing instrument if they meet certain requirements. This is because in these sectors it is quite possible that customers will only buy the product shown on their coupon – no additional products – which can have a strong negative impact on profits. Therefore, it is particularly important to design coupons in such a way as to protect margins, which can be done by bundling.
How do you do this? You use cross-price elasticities and show not only a discount value on your coupons but also a product combination on which you grant the discount – a so-called bundle. A bundled combination contains one high-frequency product and one high-contribution margin product. For you as a retailer, this creates a special added value, because the bundle generates both purchase frequency and profit. Powerful AI algorithms provide support in determining the right discount value and calculating the right (cross-price elastic) products per customer.
Regardless of choosing to offer a coupon or a bundle, both options should be thoroughly planned so that the expenses are amortized promptly. As a general rule, coupons are used and redeemed more frequently the more they are individually tailored to the shopper. Experience shows that coupons with individually controlled discount values and individually generated product recommendations are most effective – if only because they have the necessary relevance to be noticed by the customer at all. If you want to buy a new dress or a new television set, you are much more receptive to concrete offers for such products than you are to a general 10% discount coupon.
As part of a holistic dynamic pricing strategy, coupons are of course just one of many tools you can use to optimize the most important KPIs – sales, profit and frequency. We would be happy to discuss with you what measures you can take to achieve a sustainable increase in your business figures. Just contact me!
Visa has once again delayed the EMV deadline for fuel retailers. This time, from Oct. 1 2020 to April 17, 2021. But what does this exactly entail?
Given disruption due to the COVID-19 pandemic, the six-month extension provides retailers much needed additional time before the liability of fraudulent transactions shifts from the credit card companies over to them.
As of Spring 2020, a Conexxus survey reported that more than 51% of retailers had no outside EMV deployment, citing high costs and lack of knowledge as reason for lack of implementation.
Why it matters
Mercator Advisory Group found that 84% of U.S. consumers visit a gas station at least once a month, and more than half use a credit or debit card to pay. The fact that most consumers go to gas stations and are still using plastic cards to pay – and that non-EMV card readers are highly susceptible to fraud – is all evidence that compliance is essential.
As retailers will soon be the ones held liable for any card fraud that occurs, this means they will incur additional costs, such as chargebacks from banks. Not to mention a loss of reputation from angry customers.
Use the EMV deadline to evaluate existing processes
Those that are still up against the clock to achieve the new EMV standards must use this time to work toward implementation.
While this time might be cause for a few headaches, retailers should also take this opportunity to consider their current processes and evaluate if they are prepared for future shifts in consumer behavior and technology. In the same Conexxus survey, 20.97% of respondents cited a lack of available software as what’s preventing them from being fully deployed.
Unfortunately, when it comes to hardware replacement to meet compliance, there’s no simple solution other than investing in new AFDs or dispenser payment devices. But when it comes to software, this is where retailers have the opportunity to optimize their systems to best meet their payment needs.
Create a seamless journey
In today’s age of omnichannel retail, any interaction at the pump should also be tied to the in-store experience, and vice versa. Creating one cohesive, seamless journey for the customer drives a positive interaction and encourages loyalty.
For grocery retailers, this might manifest itself in a shopper who needs to fulfill a BOPIS order for their weekly pantry load, but filling up their tank is the last item on their to-do list. Even a small inconvenience like the slow process of using a chip reader at the cashier’s point of sale or having to enter their PIN at the pump diminishes the user experience. It’s too slow to be desirable.
Another seemingly small but important service is to allow reward card redemption both at the pump and in the store. By eliminating inconveniences and delivering a streamlined process, you will continue to foster loyalty – and even more important, avoid losing it.
For convenience retailers, an omnichannel payments system is a chance to bring their stores out of the stereotype of a necessary fuel stop and become a more alluring, quick service option for snack and grocery items. By offering order ahead and pay ahead capabilities, consumers can take the opportunity to achieve two important tasks at once with ease and speed.
An opportunity to future-proof payments
If there was ever a time to evaluate current payments systems, it’s now, while industry disruption is inescapable. Go beyond EMV compliance and you’ll see that integrating fuel payments with in-store processes has a lot of benefits. Retailers who take a strategic long-term approach can position themselves as a convenience and service leader. The EMV deadline is an opportunity you don’t want to miss.
Learn more about our fuel solution, GK Drive, or download our e-book on EMV at the Pump.
Modern retail demands flexibility and control. Especially in verticals such as grocery and convenience, consumers expect retailers to make it as easy as possible for them to get what they want, when they want it and how they want it.
Thus, the more high-value services a retailer can provide, the better.
The enterprise systems retailers run their businesses on are responsible for enabling these services. For most of history, deploying new services and upgrading existing ones has generally been tedious and expensive. It didn’t matter if they were built in house or acquired from a third-party vendor.
Then, the widespread availability of SaaS models for even the most robust enterprise systems made it easier to deploy best-in-class service across the business. The ability to add new modules to existing architecture and upgrade existing services gave retailers the flexibility and control to give the people what they want.
They could offer every service under the sun – from BOPIS, to self-checkout, personalized coupons and fresh-prepared foods – but could only move as quickly as vendors could update their overall architecture.
But by outsourcing the development of these services, they lost something along the way: control of the customer interaction.
That’s where headless commerce comes into the conversation.
What does headless commerce mean?
Headless commerce is a subset of a microservices-based architecture that separates the front- and back-ends of the overall commerce architecture. A headless commerce architecture gives retailers the capability and flexibility to create and fully manage their own graphical user interface (GUI) for every consumer touchpoint.
The platform provider is responsible for ensuring the service is equipped to handle any customer or retailer demand. The retailer maintains full control of presenting it any way they want to their customers.
In other words, the software provider does the heavy back-end grunt work while the retailer uses their talent and customer relationship knowledge to focus on delivering rewarding shopping experiences.
The headless trend has been popular particularly in the ecommerce space for years (think Shopify). It makes it a lot easier to set up a web shop and get to work when someone else manages the infrastructure of the site and you can worry about making your customers happy, without turning the store into a generic experience.
The same is now happening in the store – and across the ecommerce and in-store divide.
Headless goes in store
Online, a mouse click on a website triggers an interaction with the technology hiding under the covers. But in the store, everything a customer sees is the user interface. It is all the head.
Thus, it is more complex to decouple from the back-end infrastructure. With the growing requirement for ensuring the entire enterprise functions as a unified system, headless in-store operations are ready for their moment. And the POS platform is at the core of this transition.
There may be up to 50 or 60 or more other micro-services that make a single point of sale platform. Most functions are universally required and occur in the background – for example, applying tax during a transaction only requires one module regardless of the channel it’s applied. When a retailer needs to update these functionalities or modules, they can rest assured the vendor can do it quickly and easily because it doesn’t interfere with the customer interface.
This is one of the reasons that with a headless architecture, vendors can introduce updates much faster. But other services, such as BOPIS, require the customer to engage with multiple user interfaces across channels. So, even while the vendor works to deploy capability upgrades, the retailer has the option to integrate them with their APIs and GUI at their own pace. They’re fully in control of how fast to move and how the customer interacts with the brand.
Ultimate flexibility of the user experience
When the interface to customers is managed by a vendor in a standard platform arrangement, it can eliminate a lot of work and time spent by internal team. But it can also limit by their options to create a differentiated experience and customer connection.
With headless, retailers are entirely unrestricted. The end user gets the flexibility they crave in a modern retail environment. If you have the desire to support the in-house expertise and associated costs and time to manage the front end, then a headless omnichannel platform may be for you.
Want to maximize how open and flexible your customer interactions are?
Don’t just choose cloud, not just micro-services. Choose headless and do commerce your way.
