Why retailers are reevaluating their in-store commerce solutions
Brick-and-mortar retailers have historically relied on outdated technologies, while their e-commerce counterparts have adopted more modern solutions. In-store systems continue to be isolated from digital commerce solutions, likely contributing to only 6% of companies saying they deliver very consistent omnichannel purchasing experiences.
Current setups and solutions leave retailers disconnected and with a fragmented experience across channels. This leads to a disjointed journey for shoppers as they move between online and in-store channels, with minimal personalization across touchpoints. Not being able to deliver the personalization consumers have come to expect means retailers miss out on revenue and engagement opportunities.
As omnichannel strategies become table stakes, retailers are reevaluating their in-store systems to better set themselves up for success online and in-store, ensuring no revenue is left on the table.
Challenges with current, legacy in-store setups
In-store solutions for retailers are often expensive to implement and maintain and still require significant upgrades periodically. They might be bound to specific hardware, such as desktop or mobile-only, or require hardware from a certain brand or model to operate properly.
These legacy systems also result in disconnected, fragmented experiences across channels; poor inventory visibility impacting sales and reducing store value; lost revenue, customer churn and more.
“When many of these [systems] were implemented, 25–30 years ago, they had different tasks to fulfill,” said Dirk Hoerig, founder and Chief Innovation Officer at commercetools. “E-commerce wasn’t what it is today and brands didn’t have the shopper demand to connect online and offline channels. Shoppers came to the store and the in-store system was just there to run the checkout. So, it was not about having a customer record, understanding who you are, doing any clienteling even, it was not about running individual promotions — it just needed to know the price or if there was a discount.”
While there has been some movement to modernize these in-store systems, it’s been a slow process with challenges on the execution side. Some retailers have made progress but others are lagging, often due to high costs.
Capabilities retailers need for the modern age
Having a complete view of the customer — including purchase history, unique preferences and other relevant information — allows retailers to track where shoppers are in their journey and the touchpoints they’ve previously interacted with. In-store associates can then provide personalized assistance and secure sales that might have only been achieved online. Because shoppers are looking for tailored, personalized experiences, regardless of sales channel, retailers need full visibility into product catalogs and customer journeys, so they can more effectively upsell and cross-sell for better customer experiences.
For example, instead of in-store experiences where customers only interact with store associates at checkout, brands should arm in-store associates with relevant customer knowledge and data to provide a higher level of support, tailored recommendations and offer alternatives that might fit better. By providing all that information in an easy-to-use UI for store associates, customers will get a better experience — helping retailers achieve a streamlined in-store experience.
Additional capabilities required for the modern age include a unified commerce platform; efficient deployment of in-store touchpoints (i.e., ability to launch needed in-store functionalities like BOPIS, quickly); flexible, unified integrations (solutions that work easily with others without heavy lifts from developers); adaptable in-store experiences (tailored without adding too much complexity); and a hardware-agnostic approach (ability to use any existing hardware).
“Hardware investments are one of the biggest investment pieces in the retail landscape,” Hoerig said. “I wouldn’t recommend doing so at the beginning because it takes budget and time away. If you have 800 stores and in each store, you have three terminals, plus a couple of handheld devices, that’s a lot of money — and it will hold you back.
“While the hardware looks great, it costs a lot of money and you still need to modernize the software stack to have it running — a new gadget won’t do anything without the right software,” he continued. “In most cases, hardware isn’t a limiting factor, the software is. Digital and physical are blending, so multiple systems aren’t needed like in the past.”
Taking a hardware-agnostic approach and focusing on software that provides retailers with what they need is crucial as it helps to keep teams up to date regardless of the physical systems they’re using.
How to find and implement updated in-store technologies
Jaycar, a mid-market Australian retailer specializing in electronic components, struggled to connect with younger audiences due to a disconnect between its online and offline shopping experience. The company realized its separate digital and in-store commerce systems were outdated and risked losing market share and revenue.
To address these concerns, Jaycar partnered with commercetools to unify the commerce experience for its customers. Jaycar included mobile tablets to support its traditional store checkout functions — all integrated with its tech stack, providing associates full access to all product information, inventory data, customer history and more.
“Rather than doing what we did 10 years ago, which was to try to glue together and integrate disparate systems, we’re building things in a composable way and getting the best pieces we need,” said Graeme Faulkner, Chief Technology Officer at Jaycar. “Now, with commercetools, we launched an in-store commerce engine and added ratings, reviews and loyalty management in just seven weeks.”
When working toward implementing new in-store commerce solutions, retailers can start small due to this composable nature, making updates more achievable and less intimidating.
“First, look at what you want to achieve,” Hoerig said. “Let’s say you have POS systems at the aisle but want mobile checkout so nobody has to wait in line — you can focus on that and start rolling it out. You can start by replacing specific functionality that hasn’t worked well or enable pickup in-store functionality. What would your customers love to see you offer first? Take it from there, step by step. That’s a great thing about this composable architecture, it gives you all these modules and components, so you can say, ‘I want to replace my systems immediately,’ and just roll it out, then keep your hardware.”
As omnichannel strategies have become standard, retailers focus on in-store experiences to ensure their in-store commerce systems are aligned with the touchpoints delivered across other channels. Composable solutions allow retailers to easily update in-store solutions as needed without requiring hardware upgrades — enabling seamless, personalized experiences that increase engagement and revenue opportunities.
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