The latest research findings in The Retail Expectation Gap, undertaken by Parcelhub and Brightpearl, has found that investment in back office technology by e-tailers has two key benefits: the ability to utilise more sales channels and increased customer retention.
According to the survey, e-retailers using back-office systems and delivery management platforms are more likely to sell across five channels than those who do not (three on average).
74 per cent of retailers also reported that the use of a back office system led to a 50 per cent plus customer retention rate compared to 52 per cent of retailers that did not use such technology.
A similar trend is seen with Delivery Management Platform (DMP) users. 73 per cent of e-retailers that use a DMP have 50 per cent or more returning customers, as a proportion of the total customer base, compared to 48 per cent of retailers not using a DMP.
E-retailers were asked about their investment plans for the coming twelve months with Demand Planning Software top of the list with 36 per cent planning to invest, followed by Delivery Management Platforms (30 per cent) and Back Office Operating Systems at 29 per cent.
The top technology investment areas for next year
- Demand Planning Software – 36 per cent
- Delivery Management Platform – 30 per cent
- Back Office Operating System – 29 per cent
- Outsourced Delivery Tracking Support – 28 per cent
- Warehouse Management System – 19 per cent
Steve Marjoram, managing director Parcelhub, said: “Our research highlights that investing in back-office systems has two immediate benefits: stronger customer retention and the ability to sell over a greater number of channels.
“We can see that e-tailers are looking to make significant investment in technology but it’s important that they evaluate and prioritise the software and services to provide the greatest competitive advantage.
“That is why our Expectation Gap research is an important tool in the decision-making process as it highlights the needs and commercial drivers from both the retailers’ and consumers’ points of view.”
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