Why outdated retail systems are costing you more than an upgrade?

An excellent functioning retail management system plays a crucial role in ensuring high-quality services and seamless operations across your whole business. However, many retailers are still using old and inefficient IT systems that limit their ability to make timely decisions, compete and satisfy their customers’ needs. These outdated systems cause businesses too many problems, such as:

Poor return management. Customers want to return items easily, but old systems make it hard to do so across channels. If they have bought an item online and want to return it in a physical store, it is important that your IT system allows them to do so. After all, customers’ satisfaction always lies in the centre of business operations.

Lack of omnichannel services. Nowadays, the option of click-and-collect has been offered by many retail companies. Thus, to stay part of the changing landscape of retail, one must make sure that their offering is in no way falling behind competition. Customers expect to buy online and pick up in-store or curbside, but old systems don't support these options. As a result, businesses are missing out on sales by not providing an efficient omnichannel approach.

Inventory inaccuracies. When your database and ecommerce website are separated and the information is not synced, there is a high possibility that you may sell an item which is out of stock. Old systems don't update inventory information in real time, leading to overselling and failing to satisfy your customers.

No inventory visibility for customers. Give your customers the option to check product availability before heading to the store. The lack of inventory visibility creates setbacks for your customers and may even make them not want to visit your store. Furthermore, the ability to check product availability is key for store associates as well because they can inform customers where they can find the desired item and deliver personalized customer service.

Manual and error-prone tasks. Outdated systems require a lot of paperwork and data entry, wasting time and increasing the risk of mistakes. Without a contemporary system, paperwork and manual data entry is inevitable. This increases the risk of mistakes and time-waste on double-checking data. Be part of the modernized solution and forget about analysing tons of physical documents.

No customer insights. Old systems cannot collect and connect customer data across channels, preventing retailers from offering personalized and relevant offers. When you do not have access to crucial customer insights such as preferences, previous purchases, and behaviour, it is difficult to create successful loyalty programs and retain customers.

Delayed and unreliable reporting. Working with an old system hinders your decision-making as it does not provide a real-time holistic view of retail operations. When managing each store location as a separate entity, it is difficult make profitable decisions because by the time all data is united into a single report, the information is no longer accurate. It is important to know you can trust the quality of the information you use when making decisions.

Limited marketing capabilities. When using multiple separate IT systems, tasks such as changing prices, running promotions and tracking results across channels become daunting. Information is not synced properly, and retailers cannot track the performance of different products, identify their top-selling items, and create effective offers.

Burdensome system maintenance. There are companies using old IT systems which are no longer supported and require much time and money spent on system maintenance. This is no longer necessary if retailers decide to invest in a new modern retail management system instead of trying to save their outdated one. A unified commerce platform integrates all aspects of your business within one solution, connecting the whole enterprise and all physical and online stores.

If you found some similarities with the difficulties you encounter in your business, do not hesitate to contact NavTech Group for a consultation. As a trusted Microsoft and LS Retail partner, we offer business solutions that are tailored to our customers’ needs and help them overcome challenges on the path to success.

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