The changing face of IT within the forecourt retail sector

The changing face of IT within the forecourt **retail sector**The changing face of IT within the forecourt retail sectorContents

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The Shop of the Future

The changing face of IT

within the forecourt retail sector

The forecourt of the future is reliant on technology

Technology has played a significant role in forecourt retail for quite some time; from fuel distribution and efficiency, to enabling 24-hour service in unmanned locations to name two. The forecourt of the future will be far more reliant on technology as an enabler to unlock new innovations.

Through the intelligent implementation of new technology, retailers can create true ‘smart forecourts’, delivering an enhanced experience for customers, staff, and investors alike.

How integrated is the office of the CIO with the overall company strategy?

Taking EV charging as an example, an EV charging strategy is as much of a real estate, ROI, and grid availability issue as it is a technology one. However, upon committing to a roll-out of charging points, the success factors come down to customer engagement and average transaction revenue across NFR.

Would I charge my car for 30 minutes if all I could do is sit in the car and twiddle my thumbs? Or would I want to use that time to grab a bite to eat, pick up some essential groceries, collect a parcel, work, or perhaps catch up on my endless Netflix collection?

And how can the retailer ensure services are available, easy to use, and monetised in such a way that my 30 minutes taking up 180 square foot of real estate is more profitable than it is today?

Ironically, 15 years ago one approach to achieving more throughput for the forecourt (i.e. enabling higher revenues) was for drivers to get their fuel, grocery or food-to-go and move on as quickly as possible. Today, we want the fuel users gone quickly, and the electric users motivated to spend.

So, we have a quandary: how to get the right balance in how we encourage the right behaviours based on what vehicle you drive! Some potential options are through incentive - whilst a car is drawing power, the owner’s transactions are at a discounted rate. Or perhaps app integration to pre- and re-order for returning customers. Or maybe a redesign of the fuel distribution system to end the queue-versus-stretch debate at the same time.

More likely than not the answer will lie with an innovative technology solution...

Developing an IT strategy that covers customer experience, interoperability, and performance

Assuming the direction is clear, the technology that underpins the strategy and supports the process and operations needs to be deployed to maximise ROI, minimise costs, ensure security, and increase customer interaction. Even without a desire to implement or expand EV charging, the rise of NFR is of paramount importance, as consumer behaviour has altered in recent times and accelerated since the pandemic.

Some of the challenges that IT leaders are being faced with include deciding on what innovative technology should be included in the strategy to deliver an enhanced experience for customers, staff, and investors alike. Here are a few good examples of how this can be achieved, and how it will change the way in which we shop:

Digital cameras
create actionable data streams

Consider a coffee shop. The purchase habits of a young professional versus an elderly person with their grandchildren
are very different. Imagine if you could capture this information
as they walk through the door and adapt your digital
marketing accordingly…

Being able to identify different personas and their associated purchasing habits can open the door to numerous marketing and sales opportunities. A digital camera can identify the difference between a young or old, male or female customer, as well as many other traits that influence shopping habits. Take that data stream, combine it with the right AI, and transform your digital marketing content.

Customer Wi-Fi
access for effortless browsing

Seamless, user-friendly Wi-Fi services that can unleash the power of wayfinding and geolocation, augmented and virtual reality (AR/VR), digital endless aisles, wireless self-checkout, and advanced stock replenishment, will help streamline the shopping experience. Imagine, if you cannot find an item that you are looking for, being able to ask your phone if it is currently in stock and, if so, where it is located.

The Internet of Things (IoT)
drives efficiency

The interconnection of physical devices shows no signs of slowing down and offers retailers a range of advantages when it comes to efficiency of labour, stock control, and pricing, providing a holistic view of the entire ecosystem through a single pane of glass, ensuring routine processes such as restocking tasks can be automated where possible, reducing time spent on administration. This, in turn, will open the door to data-driven decision making, utilising the insights generated to identify new opportunities for service improvement.

These advantages can then be passed on to customers, helping them enjoy a more streamlined shopping experience. For example, shoppers can be directed to the items they want, for the best possible price, by connecting to the shop’s technology ecosystem via their phones, with helpful suggestions provided, based on their purchase history.

Contactless solutions
help staff deliver their best

This includes virtual shopper assistants, click-and-collect, and contactless payment. Collectively, these technologies will allow retailers to redeploy labour from mundane, repetitive activities to customer-facing roles. This will drive better engagement and brand loyalty with customers and staff alike, which - in turn -increases staff retention

Automated
theft reduction

In 2020, retail theft was up by nearly 20% from 2019, but technology can offer a solution. Replacing legacy CCTV systems with smart camera technology allows retailers to reduce theft through automated notifications and advanced behaviour detection, coupled with other forms of artificial intelligence and machine-learning tools. These systems can also detect and generate actionable data streams at the point of sale, cross reference with the ERP / POS system, and confirm or red flag the accuracy of the transaction.

Bespoke
digital coupons

With the cost of living increasing on a daily basis,
digital coupons will remain a staple of the shopping experience. Digital coupons are rapidly outpacing traditional paper ones and are easier to target towards specific groups of people, utilising the personas described above, providing shoppers with bargains tailored to their purchase histories and preferences.

Data-driven
decision-making

Online retailers know everything they need to know about their customers and use that data in targeted marketing campaigns, as well as predicting buying behaviours. But how much do physical retailers really know about their customers? Currently, not a lot… But through the data streams generated on-site, this is changing, allowing for tailored customer experiences and more informed decision making at all levels.

The impact of innovation on IT

These innovations require an IT infrastructure to support them, along with correct vendor selection to ensure interoperability with existing systems, and alignment with existing operational processes. Three main areas of technology that each innovation has in common is connectivity, data streams, and security.

A connectivity strategy that leverages emerging technologies like private 5G to improve performance, navigate geographical challenges, and mitigate costs. Private 5G networks and private LTE solutions enable you to modernise business processes, transform how services are delivered, and drive ongoing innovation. Forecourt retailers can implement high-performance wireless or campus networks that support their mission-critical applications and bring together the capabilities of Wi-Fi and ethernet.

As data streams increase so too will customer insights and opportunities to optimise. Big Data solutions will help you transform your customer and business data into actionable insights and increased revenue. Decisions around where to store and how to handle the data will integrate into a cloud strategy.

As the reliance on technology increases, the availability and security of critical infrastructure does as well. Understanding and identifying risks is the first step to ensure the continuous availability of services, followed by design and implementation of the correct security posture to prevent unwanted attacks and the associated impact.

In order to leverage these innovations consideration must also be given to legacy systems and the state of the IT environment based on prior investments, or potentially lack of. Ensuring the right platforms are in place or introduced to provide correct levels of control and visibility will be a must have as the complexity of the IT estate will only grow as the role of technology expands. Furthermore the ability to be agile and interoperate with multiple 3^rd parties, some specialists in their fields like Charge Point Operators or e-Mobility Service Providers or strategic partnerships with big brands, will be critical to success.

In summary, there are innovations and external market drivers that will no doubt increase the reliance on technology across forecourt retail, and the role of the CIO as a key strategic partner instrumental to the business strategy will be of great importance. The IT strategy and implementation of innovative technology solutions will drive customer engagement, additional revenue streams, increased average revenue, and optimisation. And the supporting infrastructure technologies will be key to enabling these new innovations to drive forecourt-retail forward.

Long gone are the early days when Bertha Benz refilled the tank on her maiden trip from Mannheim to Pforzheim, and pharmaceutical companies provided fuel as a side hustle. Forecourt retail is now generating hundreds of billions of dollars across a broad value chain, where circumstances have created rich opportunities that retailers can seize upon to attract customers and drive their business forward.