As the influence of retail technology in the pet industry grows, retailers must attentively consider which systems will best serve their unique business goals.
Technology has now infiltrated most aspects of our society, and the business world is no exception–particularly when it comes to retail. From point of sale to finance management to scheduling systems, investing in and adapting to a business model in which retail technology is prominent can help pet retailers more efficiently manage their businesses.
Streamlining day-to-day processes frees time and resources that can be focused on refining a unique approach that separates a pet store from its peers and provides an edge in today’s fast-paced, competitive marketplace. Ultimately, retail technology benefits both employees and customers by allowing both to spend valuable time and energy on their shared main priority: taking the best possible care of animal companions.
Companies that offer pet care services, for example, can save time and provide better customer service by using an efficient scheduling system.
“Many pet parents today want an easy way to find a close and reliable pet care service–and easily book appointments without making phone calls and jumping from website-to-website,” says Michelle Oliger, sales and customer fulfillment at PetExec, which is owned by Kinship, a member of the Mars Petcare family.
“They want to be able to update records and view their packages easily. Offering an app or being on a strong pet care platform is a great way that a pet facility can make themself unique in the marketplace.”
The role of technology in driving the evolution of retail cannot be understated, as demonstrated by the explosive growth of e-commerce in the pet care market. As online ordering increases (and shows no signs of slowing), auto shipping, pickup and delivery options allow retailers to offer a convenient shopping experience to consumers in addition to a positive in-store environment.
“Many savvy independent pet retailers have adopted e-commerce platforms that provide customers the convenience of curbside pick-up, home delivery, and even direct fulfillment,” says Jimmy Haverstick, president of Astro Loyalty. “Independent pet retail exclusive e-commerce platforms like eTailpet and others built on generic retail e-commerce platforms have provided tremendous value to independent retailers and their customers.”
Customers are at the center of everything when it comes to a pet business, which is why retailers need to keep track of the experience and satisfaction they are providing pet parents. This is why customer relationship management (CRM) tools have become so prominent in the pet retail space.
According to Shianna Andersack, general manager of eTailPet, and Subodh Gupta, founder and CEO of Franpos, a quality CRM process allows retailers to keep tabs on data regarding customer interactions, behaviors and preferences in order to provide personalized service and targeted marketing.
Haverstick says another aspect of customer engagement that has been enhanced by technology is customer acquisition via local search engine marketing, and customer retention via loyalty platforms. He points to platforms that leverage search engine and marketing optimization infrastructure with their proprietary technology to bring new customers to independent pet retail.
“Using existing search engine methods coupled with pet industry-specific techniques and store locators, these platforms successfully convert online pet owners to interact with and visit independent pet retailers,” he explains, citing NextPaw and New Media Retailer as examples.
Rewards and loyalty programs are another avenue for drawing and maintaining customers and making them feel valued. Haverstick says the integration of retailer- and brand-sponsored rewards set a company apart from one with basic loyalty incentives.
“In addition to customer loyalty tools, the Astro platform connects retailers, distributors, and brands - taking costs out of the supply chain by automating credits and giving brands efficient access to their retail partners,” he says.
Point-of-sale (POS) systems are another growing component of success in the pet industry, as they allow retailers to process transactions, track inventory, and manage customer data at the point of sale. Andersack points out that POS systems can also integrate with CRM and e-commerce platforms, adding that “eTailPet offers a fully integrated solution that ecompasses everything a pet store owner needs to operate their business.”
Gupta explains that cloud-based point of sale systems like Franpos have become increasingly popular, offering a range of features like inventory management, customer relationship management, and sales reporting.
“In the past business owners may not have trusted a cloud-based POS for a myriad of reasons, whether it was unstable internet connections or security around data. This has completely changed today,” says David Joseph, co-founder of DAVO by Avalara. “New businesses and those adopting cloud POS understand the huge advantages in everything from efficiency in back office functions to DIY marketing solutions.”
The quality of interaction between various functions can make or break how successful a business is at implementing retail technology. The ideal systems will allow retailers and customers alike to easily and quickly navigate different aspects of running a business and shopping for pets through comprehensive solutions.
Patrick Shanahan, CEO of DaySmart Software, cites a growing interconnectedness as one way technology has evolved to help make business operations more seamless. For example, he says, staff can chat online or through text with customers, process payments, and manage schedules. Some platforms allow users to do it all at once.
“Companies are continually working to add more functionality and integrations that allow their users to do more with less platforms,” Shanahan adds. “Now, pet businesses can send out marketing campaigns via text or email, allow clients to easily book an appointment online, and reward those clients with the associated loyalty points – all within one, easy-to-use system.”
One integration solution that can help make the customer experience more fulfilling is combining retailer rewards and brand-sponsored promotions, suggests Haverstick, and they should provide user-friendly “self-serve web portals, mobile apps, and ultimately a loyalty program that is simple to understand and actually rewards the retailer’s loyal customers.”
Gupta echoes this sentiment, stating that loyalty programs can be integrated with other tools including POS systems to track customer purchases and provide rewards based on certain thresholds. Additionally, marketing services can be used to promote the loyalty program and communicate with customers about their rewards and progress, and online booking software can be used to track customer appointments and offer rewards or incentives based on the frequency of their visits.
Gupta explains that Franpos uses an online booking software that lets pet parents schedule appointments for their pets through the Franpos consumer app or website. Digital marketing services can be used to promote the online booking feature and communicate with customers about their appointments.
Joseph adds that with the DAVO Sales Tax app, business owners can automate the entire process of sales tax by integrating the app with the POS system. From there, he says, the app integrates with accounting software.
“The benefit is that the POS system is reporting the same, accurate numbers across integrations and complimentary systems,” he says.
POS systems should also have a high-power inventory management system to track the stock status of products, and to reorder items when they reach a certain threshold so retailers are not caught without in-demand products, suggests Andersack. For its part, she says, eTailPet offers a Smart Order technology that allows pet store owners to make informed decisions on what inventory should be carried in the store.
“Overall, the retailers should opt for a POS system that offers an all in one solution to streamline operations and improve the customer experience by providing a more seamless and efficient process for conducting transactions and accessing information,” Andersack says.
Retail technology is just as prone to changes and challenges as any other facet of running a business. Once a retailer has made the jump and invested in a technological solution for their store, they have to be ready and willing to remain educated (and pass that education onto their colleagues), inventive and flexible to ensure all parties are getting the full advantage.
Shanahan acknowledges that because retail technology in the pet space has grown so rapidly, the plethora of vendors often leads to a difficult selection process for business owners who are trying to determine what they truly need.
“It’s crucial for pet retailers to thoroughly examine their technology needs and options as a first step before moving forward with any purchases,” he offers. “Look for platforms that can quickly adapt to current processes and scale with evolving business needs through a single platform.”
For Haverstick, loyalty program-related technology can cause problems if the software is not flexible enough to handle the loyalty needs of the retailer. Honing in on current loyalty needs and thinking ahead about how those needs might evolve along with the business is important, he says, when considering which loyalty program to use.
“Considerations are flexibility of loyalty design, integration with POS, distributors and brands, ease of use at checkout, consumer-facing tools, and reporting.”
Training is also a necessity when introducing a new technology to a business and its employees to ensure that the entire team is productively using the software. Time is of the essence, but that doesn’t mean learning the foundations and utilizing training resources is disposable. Joseph finds that the time it takes to implement and learn the ins and outs of a new product will yield benefits worth the investment.
“If you have used a system for a long time, there may be features that you aren’t utilizing currently,” says Oliger of PetExec. “Paying for dedicated coaching time and working with someone who can assess whether you are utilizing features to the best of your ability is very important. This will save you money and may even increase your revenue due to efficiencies gained and automations leveraged.”
Gupta and Andersack concur that compatibility and data security are also worth analyzing. They encourage retailers to make sure any additional technology is compatible with the systems and hardware already in place, and protect the data of their customers and employees by ensuring that systems are secure and that information is not exposed to unauthorized individuals.
These challenges are not without solutions, though. Gupta says that by being proactive and planning ahead - setting aside a budget for technology investments, providing training and support for staff, carefully planning their technology stack, and implementing security measures to protect customer data - retailers can ensure that their business is getting the most value out of technology.
Automation doesn’t have to mean there is no interpersonal communication between businesses and customers, either. Oliger says using a system with customizable, automated messages will allow the facility to continue to provide the high level of customer service they pride themselves on while maintaining a program that saves time and money.
Looking Forward
Just as the pet industry at large evolves and grows over time, so too will the technologies that help it to continuously advance. Ultimately, the future looks promising regarding innovative ways to enhance the customer and employee experiences both online and in stores.
Haverstick says for Astro Loyalty, in particular, technologies that improve customer experience will continue to improve, ultimately helping independents stay competitive in the pet business.
Additionally, he expects e-commerce platforms to evolve with integrations and marketing tools, loyalty providers, POS companies, and marketing software to better tailor programs and promotions to specific pet owners, and loyalty analytics for brands to become quite important.
Another way to ease some of the pressure for individual business owners and because of the breadth of the retail technology category, Joseph expects to see growth in tech stacks to support small businesses and make the decision-making process simpler.
According to Shanahan, retail technology will continue to focus on the needs and preferences of modern pet parents.
“I think we’ll continue to see more emphasis placed on improving the client payment experience. Today, consumers embrace choice when it comes to how they pay, whether it be online or in-person,” he predicts. “By adopting modern payment technology, pet retailers will be able to provide their clients with faster, more convenient checkouts – all while streamlining operations for their business by integrating payment processing with their scheduling software.”
Similarly, Andersack is confident that nutritional preferences like the trend toward high-quality, natural and organic pet products will contribute to technological enhancements. While pet parents keep feeding their pets like family members and thoughtfully considering the ingredients and sourcing of their diets, she says, retailers may use features like blockchain technology to improve supply chain transparency and traceability.
And, of course, e-commerce will consistently play a role in the retail technology market, and retailers should always be considering how they can best serve their customer base online. Andersack points to examples including artificial intelligence and machine learning to offer personalized product recommendations, as well as functional and helpful digital customer support.
Gupta says that “Overall, the pet retail industry is likely to continue to adopt new technologies and tools that can help retailers improve their operations, reach a wider audience, and provide better service to their customers.” PB
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