#inmar

1. Is the “plumbing” running smoothly?

If you’re bolting together a bunch of tech that doesn’t communicate effectively, interact smoothly or measure results then you have your first priority set immediately. This kind of approach increases the probability of a negative customer experience and can be a recipe for disaster.

Some major retailers like Lowe’s have, in the past, struggled with connectivity and other technology issues. Now, however, the company appears to have started to turn the corner. Ideally addressing less than optimal interaction between their POS system and their MyLowesCard, Lowe’s is investing in a new tech hub to enable greater data sharing throughout the organization and enable more effective decision making and improved customer support.

Direct-to-consumer (DTC) brands are gaining ground on retailers but too often they lose customers before a full conversion because halfway through the purchase process the links don’t work, the PayPal experience isn’t cleanly integrated for example, and ultimately carts are abandoned.

Convenience stores don’t get a lot of Internet airplay or national media love but have you been to a QuikTrip lately? They “get it.” The associate handling checkout is often operating two registers at the same time and they’re still getting people out the door quickly. They can do this because they have invested wisely in maximizing the speed of their POS. (Not to mention having well-trained associates!)

Cashierless is great for many retailers but there are too many age-restricted items in c-stores for this channel to solve for that just yet. This optimized throughput increases the probability of a repeat trip since speed is a big decision-driver for consumers when they’re choosing a c-store.

2. Is your technology reducing friction and allowing customers to do more with less? (Are you providing convenience, saving time and enabling personalization?)

Rarely do you hear references to “big brother” anymore as consumers have become comfortable with providers appropriately leveraging their data to create personalized experiences. Their expectations have increased exponentially.

It’s about more than simply maximizing the return on customer spend — retail tech investments should make shopping faster, more convenient and help make customers’ lives easier. The examples below are technology investments aimed at improving the shopper experience:

·       Scan & Go at Sam’s Club

·       Grab and Go at Giant Eagle

·       Cashierless, Walmart Canada

3. Is your tech stack arming your business with valuable customer data? (Does the data deliver actionable insights that you can easily disseminate throughout the organization to drive business decisions?)

Retailers don’t have the resources to interpret data at the speed and scale of individual teams and departments. In the age of IT sprints, limited resources and consistently stretched goals, retailers have to arm all departments with the data they need to be successful.

Retailers need technology partners that do more than provide snazzy dashboards. They need partners who can make actionable recommendations for increasing profitability and/or reducing costs. They don’t outsource for gnarly graphics; they outsource for partners to support their strategic objectives and solve their challenges.

We’re in a period when private equity funding is high and, as a result, goals can be aggressive. It’s easy to make short-sighted decisions that fit nicely into a pitchbook story to drive up a multiple. But, keep in mind, whether you’re a retailer (or a vendor supporting retailers) you must maintain a customer-centric mindset. Ask yourself these three questions, use the answers to guide your tech investment decisions and you’ll enjoy the fruits of your labor in the form of customers who are not only willing to spend their money with you — but are also happy to share their positive experiences with friends.