Recent data from the Australian Bureau of Statistics (ABS) shows that growth has been modest for Australian retailers this year. Paul Zahra, CEO of the Australian Retailers Association (ARA) said that 2024 remained a difficult year for retail, due in part to inflation and softened customer spending.
In this context, driving incremental gains and improving return on investment is essential for retailers. Implementing new technology is certainly a great way to do this, but having the right approach is key for reducing costs and maximising efficiency. Taking a unified approach to technology tools and systems can significantly streamline how retailers operate. In fact, Lightspeed research – based on a survey of Australian consumers – found that a unified shopping experience was important for local stores to remain competitive.
But what is a unified approach, and how can retailers like you apply this to your business?
Understanding unification and supporting growth
When it comes to technology adoption, there are broadly two different approaches: segregated and unified. In many cases, retailers use a series of separate tools and systems which perform different functions. For example, they’ll use Vendor A for their point of sale (POS), Vendor B for payments, Vendor C for inventory management, and so on. That, however, can increase costs, implementation and training time, and can create business silos. This means data sits in isolation, and doesn’t flow across a business. Just as having different teams within a business operate in silo, with no communication, and no central objective, the same issues – diminished insight, productivity, growth, etc. – can happen with tech.
With a unified approach, however, all technology platforms form one connected system. Through it, you can improve business-wide visibility and collaboration, as well as gain a better understanding of how to pursue growth, reduce costs and boost operational efficiencies. Various tools, apps and processes are all integrated with one another, creating a seamless flow of information. Consider unification in a retail setting. Combining all your systems – such as POS, payments, inventory management, loyalty programs and more – can offer significant advantages.
For example, integrating payments and POS enables you to streamline transactions, and improves the flow of data between these two mission critical tools. Then, if you notice you’re selling lots of a particular product, you can use your integrated inventory management function to order more stock. Or, if your POS shows that you haven’t sold much of another item and it’s in excess in your inventory management, you can trigger a discount or offer to customers in your loyalty program to avoid over-stocking. When all these platforms – and more – work in unified, data-driven unison, your business can do so more easily too.
Effective implementation
Transitioning to new technology systems and ways of working can seem daunting, especially if you’re contending with tighter budgets and limited resources. You first need to consider what your priorities are, and focus on areas which will benefit most from integration. Typically for retailers, three of the most important parts of your business are POS, payments and inventory management. With platforms like, for example, Lightspeed, you can unify these three critical areas. Then, on that foundation, it’s easier to subsequently integrate other tools like marketing, insights, loyalty programs and roster scheduling.
Once your new unified system is in place, it’s crucial to train staff to work effectively alongside it. Knowing how to leverage the technology and the data it provides makes it easier to apply the insights you yield and turn them into informed decisions about your business strategy. By regularly analysing your data and approach – particularly during the upcoming peak season – you can refine and improve your approach, doubling down on strengths and tweaking areas where improvement is required.
As we head into peak shopping season, it’s an important time for retail businesses to reflect on their current performance and prepare for what’s ahead. This extends to your technology approach. Given the moderate growth reported by the ABS, generating incremental revenue, improving efficiencies and driving down costs through a unified approach to technology, can provide great opportunities for retailers.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
