For many merchants, the COVID-19 pandemic forced the rapid adoption of digital solutions and helped businesses cope with a challenging year. In most cases, this involved implementing ecommerce or click-and-collect to ensure consumer demand could still be met — even when stores were closed. Chris Aitken, consultant at ECI Spruce, explores why merchants should now look to integrate these systems, to help ensure productivity and profitability as the sector rebounds.
It’s understandable that many rushed to implement new software in the early days of the pandemic. However, in an attempt to adapt quickly some neglected the importance of fully integrated digital systems — creating problems later down the line. Using multiple software systems not only makes it impossible to break away completely from manual processes, it can also drain staff time and hinder your ability to provide five star customer service.
The digital revolution
According to research last year from L.E.K. Consulting looking at how customer demand has transformed the builders’ merchant landscape, even before the pandemic approximately 80% of customers were regularly using smartphones for work, while 60% used laptops. There’s no doubt that these figures skyrocketed during the pandemic, with digital solutions offering firms a lifeline when government restrictions forced stores to close.
The same research found that the increasing availability of mobile apps helped enhance customer experience, with survey respondents citing the leading app providers as Toolstation (36%), Screwfix (35%) and Amazon (35%) as the ‘go-to’ providers.
It’s easy to see why merchant businesses of all sizes are now seeking to adopt new technologies able to manage ecommerce and click-and-collect services effectively, however there are some key elements that must be considered.
The ability to access an in-depth and real-time overview of the business is crucial and if you are operating multiple, disconnected systems this task becomes virtually impossible. You may find yourself working from old data, or having to input data manually from one system into another. Not only is this incredibly time consuming, it is also prone to human error or oversight.
“The ability to access an in-depth and real-time overview of the business is crucial and if you are operating multiple, disconnected systems this task becomes virtually impossible.”
One survey found inaccurate data to be a key factor impacting merchants profitability, with 50% of respondents citing it as a top-three reason, followed by Brexit impact and manual processes, both at 38%. The same survey found that 94% of respondents believe technology is now a vital element to the efficient running of their business, while 88% agree that automating business processes helps their companies stay competitive.
The challenge of ecommerce
While many rushed to add some form of ecommerce functionality to their business at the start of the pandemic, to avoid this feeling like an add-on that simply creates extra work for your team it’s essential that you integrate your back office processes with your ecommerce software.
You will struggle to retain customers and build your reputation if a potential buyer sees a product listed online but then arrives in-store to find it’s already been sold. Operating a single system, such as ECI Spruce, can ensure that you and your team have full visibility of real-time stock levels as well as tracking deliveries and managing the restocking process.
With a real-time picture of stock levels, you can also ensure that new materials are ordered in line with demand, as well as taking advantage of any bulk buying discounts.
As more customers move towards ordering online or through specialist apps, a digital equivalent to the in-store team is required. CRM systems can help you better personalise customer journeys, able to send out targeted emails, offer product specification advice or suggest items that the customer might also be interested in — a service that can help you gain the competitive edge.
Streamlining the day-to-day
The lasting impact of the pandemic, Brexit delays and price hikes mean that many merchant businesses are faced with tighter profit margins. To ensure their operation remains profitable, some have sought to automate many of the day-to-day processes and free up staff to focus on growing the business and winning new customers.
An ERP system can automatically store and send out records, receipts and proof of delivery notes — avoiding costly oversights or administration errors. Sending an invoice online takes seconds, with customer details and order history automatically saved in your system, ensuring all invoices can be processed and paid in a timely manner.
Many customers now expect merchants to keep an accurate log of previous orders, quantities and other key details. With a fully integrated system, staff working on the shop floor can quickly access information while chatting to a customer — helping to secure a sale or increase order size.
Overall, the benefits of a fully integrated system are now clear and arguably an essential factor in a merchant business succeeding in a digital age.
Click here for more information on ECI’s Spruce business management software.
