Is a unified technology approach key to retail growth?

Australia's diverse and vibrant retail sector – from family-run independent stores to national brands making waves on a global scale – has experienced modest growth this year, according to data from the Australian Bureau of Statistics. That said, Australia's headline inflation fell to its lowest level in three years recently, sparking cautious optimism amongst economists.

But despite the arrival of peak season and hopeful economic news, being strategic and proactive to drive incremental gains and return on investment is still important for retailers. Technology can help in that regard, but not all technology adoptions and strategies can be as effective as one another. Having the right approach to and adoption of technology is valuable in the quest to reduce costs, maximise efficiency and stimulate growth.

A 'unified' approach to technology can empower retailers in their quest for all three. Lightspeed research - based on a July 2023 survey of 758 Australian shoppers - found that a unified shopping experience was important for local stores to remain competitive. But what is a unified approach to technology? And how can retailers implement it within their business?

Unification over segregation
When it comes to technology adoption, there are two common approaches: unified and segregated. A segregated approach occurs when a retailer - or any business for that matter - uses a series of separate tools and systems from different vendors. For example, they'll use Vendor A for their point of sale (POS), Vendor B  for payments, Vendor C for marketing campaigns, Vendor D for loyalty programs, etc. 

This approach can mean retailers pay more for software, spend longer understanding and managing their different tools, and, perhaps worst of all, create business silos. This means data and processes sit in isolation and do not flow across a business. Imagine if a retailers' marketing team, sales team, eCommerce and logistics team, HR, etc. didn't effectively communicate or work towards the same common goal. The same issues - diminished insight, productivity, growth, etc. - can happen with tech silos. 

Then there's a 'unified' approach, through which a retailer uses one connected system for everything from POS and payments to marketing and HR. Often, this can lead to lower costs and diminished barriers to entry. In addition, retailers can increase visibility, collaboration and operation-wide productivity; the result of which can be a business better optimised to pursue growth, reduce costs and boost operational efficiencies. 

For example, integrating payments and POS can enable a retailer to streamline transactions and benefit from more powerful insights whilst also improving both the customer and employee experience. Then, if the retailer notices it has an excess of a particular product - for example, at the end of a season - in its POS data, it can use its marketing platform to promote it at discounted rates, for instance, to a segment of loyal customers who qualify through its loyalty program. When all these tools, processes or departments work in unison, it can help drive incremental revenue and improve ROI. 

If you're a retailer, then how can you adopt a unified approach? 

Making the transition
Implementing new technology can be daunting, especially when many retailers are thinking about everything from peak season to consumer spending patterns. When it comes to technology adoption, a strategic approach can be effective. First, consider what your operational priorities are and focus on areas which will benefit most from integration. 

For retailers, three of the most important areas are POS, payments and marketing. With platforms like Lightspeed, for example, you can unify these three critical areas. On that foundation, it's then easier to add other tools gradually and strategically, like inventory management, loyalty programs, data management and workflows.

Unifying your technology isn't a 'set and forget'. To get the most out of your investment, drive incremental revenue and improve both your customer and employee experience, it is essential to regularly analyse your data and approach to identify what could be improved. This is particularly important during peak season, to ensure your technology is working just as hard for your business as you are. 

While the arrival of peak season and cautious optimism on macro economic trends are welcome news for the retail sector, proactive growth strategies remain important as they can help make the most out of this environment. Every decision and every tactic counts, and that extends to technology. The retailers who unify their technology strategies today can be well placed to innovate faster, stay on top of their business performance, gain valuable insights, streamline their operations and boost customer satisfaction.