Headless Architecture – What Are the Opportunities For Retail Right Now?
October 26, 2020
Author: Paul Lynch
In retail, the impact of the pandemic has inevitably benefited those that have previously invested in the right areas – namely digital experiences, intelligent fulfilment and total commerce technology – and those struggling with the burden of costly brick-and-mortar overheads and the crippling lack of in-store business.
- Taking digital in-store
- How does headless help in-store
- Why’s the store still important?
- How can headless improve the online experience?
- So, why is headless important right now?
Many retailers are cost cutting in order to survive and optimising the growth of their online operations. However, these should not be thought of as two separate businesses, as is the case for many. The purpose of the store is changing to a place where people collect online orders, return items too rather than a place where people socialise and browse.
Taking digital in-store
It’s vital that we start thinking of the store as a logical extension of the online environment. The new way of thinking is the visit to the store is an opportunity for the up and cross selling, rather than browsing. But this is still quite an advanced step in most retailers’ minds right now. Most brands today will have both online and physical outlets, with many trying to make their online channels reflect their brick-and-mortar stores.
With the enforced disruption of this year, we’re starting to see the ‘flagship’ retail experience move away from the traditional in-store experience – think Oxford Street, Fifth Avenue – and onto our screens and mobile devices. Burberry cracked this several years ago with their Regent Street flagship store, and the luxury brand has continued joining the dots between digital and physical, introducing social media and other touchpoints to their store experience.
It’s therefore almost a case of flipping how many of these retailers traditionally think – applying in-store learnings to online – the other opposite way.
The store needs to have more of a digital focus, with automation, merchandising and promotions driven by online learnings. Consumers are now generally visiting stores to purchase, collect or return, rather than browse, as many will do their research online. It’s important this customer journey is curated through all channels.
How does headless help in-store?
Headless commerce allows you to use the same back-end management platform to manage customer data, payments, inventory, and fulfilment systems, to reach all of your customer-facing points of sale, whether in-store, on mobile, or both at the same time. This is done through a lean microservices architecture, via APIs.
For example, a shopper might browse products while sat on a train and save an outfit as a favourite or add to their cart. As the customer then passes by a store, the brand app can send them a notification that the store has the outfit in stock, in their size and a map of the store to find the item quickly and easily.
The experience doesn’t have to end there, with the ability of auto-shopping, the app can use a customer’s purchase history or preferences to recommend additional products and maximise the value of the sale, whilst providing a more personalised experience.
The in-store checkout experience needs to facilitate self-checkout post pandemic. This has become a priority. For instance, Scan-and-Go technology can allow a customer to place products in their basket, the products can be recognized and paid for automatically, and the customer can walk out of the shop with the items they need, without the need for queuing or contact during payment. This is great in terms addressing social distancing measures post-pandemic, but also in providing a smooth, convenient experience for customers, powered by microservices.
Why’s the store still important?
It’s all about the experience you offer. Give people more of a reason to head to the store. For some retailers, this might be by offering a pre-booked VIP shopping experience. By asking questions before the booking, or using previous browsing and purchasing data if they are a loyal customer, brands can prepare a curated experience with recommended products in the correct size, colour, and fit, for instance.
Fitting and testing are still important factors in why many might choose the store over online purchasing. Technology such as magic mirrors allow for fitting comparisons. Customers need to know if the item is going to fit properly, suit their skin tone, match the rest of their outfit. This is a way of trying on clothes post-pandemic without having to physically touch items that have potentially been tried on by multiple people.
Fulfilment options such as click-and-collect are proving more popular than ever. Online shoppers can select a time to visit their local store, and pick up their items from a locker or designated area, quickly, safely and easily. This has been extended – particularly for out-of-town locations – to options like drive-thru or curbside pickup.
How can headless improve the online experience?
For many, the reality remains that the chore of getting to the shops can be a long process, especially when you have children – how do you make this experience ideal? How do you look at the experience and bring it to life at home?
More specifically, how can we use the everyday applications on our devices – calendars, cameras, social media, TV, voice recognition – and elevate the commerce experience? Headless technology is the bridge between these front-end applications and the back-end commerce architecture.
Let’s take a common purchase for many of us parents – children’s shoes. Dragging the children to the store is painful for a parent, but they need to get their feet properly measured. Imagine 3D imagery of the feet, using that AR technology via the camera on their phone, to match the right shoes to the measurements.
Parents could order a pair of shoes they know fit properly from the comfort of their home, and the kids might even enjoy the AR experience. Retailers that adopt a headless strategy will be able to implement and refine these kinds of front-end experiences far quicker than those with a rigid technology stack.
Consider the TV probably the most used device in the house. We’re still waiting for it to really take off in the overall retail experience. But interaction through TV adverts or even TV programmes, that link to a retailer’s online store, is just another part of the omnichannel retail experience that could become a focus. Amazon have made ‘shoppable TV’ a reality, and with the growth of Netflix, Disney+ and Apple in the online streaming space, retailers should be considering this as a commerce tool in the near future. Again, this has the potential for another fun, flagship experience that is only really possible with the power of headless.
Similarly, we’re still waiting for voice assistants to really take off in the commerce space. Voice recognition has the ability to help automate the journey, but this experience still needs to be fully curated and link the different channels together. For example, Alexa can help a customer add something to their shopping list, which is a common use case at the moment, but the orders don’t always pull through correctly so require checking. Headless is key here, too. A robust back-end commerce platform can take care of all the inventory, fulfilment, and payment operations, whilst the front end can concentrate on that seamless experience.
Can this be linked to a TV that is also connected to a customer’s online retailers? A TV screen is usually bigger than a laptop or tablet, so it’s easier for the family to do the shopping together and easier to select different items. We just need one or two retailers to partner with the likes of Alexa and build out some fun, useful front-end applications to make that experience more convenient. Retailers are reluctant to invest in this technology, as it’s another channel experience to tie into their strategies, but it could be a real differentiator for first movers.
So, why is headless so important right now?
Forward-thinking businesses are constantly enhancing their user experiences, to engage with customers and sell products. This focus on enhancing the user experience takes precedent with a headless microservices architecture.
Essentially, a microservices architecture is fundamental in enabling brands to respond more quickly to changing consumer trends and behaviours. With the world around us changing faster than ever, and new challenges, technologies, and channels for businesses to consider, it’s vital they can adapt to these changes, or risk being left behind.
And it’s not just about the front-end focus. With physical store locations facing a challenging future, this architecture also enables an omnichannel approach for content distribution, with a flexibility between the front and back ends allowing businesses to optimise back-end systems, in a way that isn’t possible with monolithic solutions.
Paul Lynch | Area Vice President & Managing Director, LiveArea EMEA
With over 20 years’ experience as a key member of a senior management team, Paul has gained valuable entrepreneurial experience whilst being central to the controlled growth of those businesses. With a passion for ensuring quality delivery in a timely manner, Paul has considerable experience of meeting the expectations of customers at all levels, with a focus on ensuring technical excellence across all delivery teams.