Revealed; e-retailers’ top tech investment plans for 2022
The latest research findings in The Retail Expectation Gap, undertaken by Parcelhub and Brightpearl, reveals retailers’ top tech investment plans for 2022.
E-retailers were asked about their investment plans for the coming twelve months with Demand Planning Software topping the list with 36% planning to invest, followed by Delivery Management Platforms (30%) and Back Office Operating Systems at 29%.
For merchants operating within increasingly unpredictable markets, demand planning tools have become ever-more essential for e-commerce retailers to forecast inventory and optimize stock, identify trends and enable data-driven decision-making.
The survey also 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% of retailers also reported that the use of a back office system led to a 50% plus customer retention rate compared to 52% of retailers that did not use such technology.
A similar trend is seen with Delivery Management Platform (DMP) users. 73% of e-retailers that use a DMP have 50% or more returning customers, as a proportion of the total customer base, compared to 48% of retailers not using a DMP.
The top technology investment areas for 2022
- Demand Planning Software – 36%
- Delivery Management Platform – 30%
- Back Office Operating System – 29%
- Outsourced Delivery Tracking Support – 28%
- Warehouse Management System – 19%
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.”
“It’s really noticeable that merchants are prioritizing the post-purchase journey with regards to their planned technology investments, because, long-term, this can have a major impact on customer experience,” said Mark Hook, Global Communications Director, Brightpearl.
“Fast scale multichannel enterprises are dialed into the need to address complexity and gain more data-driven insight. By using tools that connect historical sales data to powerful, built-for-retail back office operating systems, firms are delivering hugely improved margins and boosting customer satisfaction. It’s no surprise more merchants are looking to derive similar benefits next year.”
ENDS
Notes to editors
The survey was conducted among 1000 consumers and 100 retail decision makers in organisations with a turnover of over £250K. The interviews were conducted online by Parcelhub and Brightpearl.
Brightpearl is a Retail Operations System (ROS) for retailers and wholesalers. With its global headquarters in Bristol, UK and US headquarters in Austin, Texas, Brightpearl helps more than 3,000 commerce businesses to streamline and automate their retail operations across order management, CRM, fulfilment, accounting inventory, and warehouse management. https://www.brightpearl.com/
Parcelhub is the UK’s leading provider of multi-carrier delivery solutions and proactive tracking support. Flexible and scalable, its portfolio of services integrates seamlessly with marketplaces, eCommerce platforms and order management systems, providing hundreds of multi-channel retailers, global brands and wholesalers with one access point to 20+ carriers and 600+ delivery options. https://www.parcelhub.co.uk/