How Cloud-based Solutions Are Changing the Game

When it comes to the cloud, things are looking up. Retailers are doubling down on cloud-based technology to supercharge their eCommerce and digital marketing efforts. According to our 2022 report, 49% of respondents said cloud-based technology is the most important area for the industry. While a further 51% siad that it is a must-have when investing in a new eCommerce solution.

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Innovate your eCommerce Strategy with Cloud Solutions

COVID-19 proved that online retail scalability matters. When customer demand surges, retailers need to have the right technology in place to help meet it. Traditional retailers fell behind the curve of their competitors that had already invested in cloud technology. However, now there are signs that these retailers are catching up and transitioning away from out-dated technology architecture that was holding them back.

Beyond the more well-known benefits of speed, lower costs and stronger security, cloud technology is now being used by retailers to hyper-personalise the customer experience. At the root of this, cloud data kept on cloud-based data platforms is being integrated with other data flows from multiple sources at retailers' fingertips.

Retailers are no longer bound by the limitations of data silos. With the help of third-party sources, retailers using cloud-enabled data platforms can now access and combine their previously untapped data resources to achieve the industry's "data ideal".

Now armed with increased customer insight, hyper-personalised targeting is becoming relatively straightforward. Tailored recommendations, content and communications are helping customers through purchasing journey. Cloud-based data is enablilng retailers to get an accurate view of customer behaviour, resulting in increased customer loyalty. 

Making the Case for Cloud: Outlining the ROI

Although the benefits of investing in cloud-technology are clear, some retailers will still have some work to do to prove a solid business case and get buy-in from senior management. This is more challenging when there is outdated and complex legacy IT infrastrucutre. Implementing cloud technology will become more challenging in those situations. 

The latest research reveals that cloud-based solutions offer four times the ROI of their on-premises equivalents – and they are 2.5 times quicker to boot. The rewards are real, but retailers must first have clarity on what success means to them and the costs that will affect ROI in the end.

Of course, there are costs associated with the initial investment and implementation of cloud solutions. However, retailers can immediately see the financial impact by switching off any redundant cloud applications. Quick financial gains can also be realised if thorough technical assessments have been carried out before implementation, this can avoid costly errors and project overruns.

Determining the right KPIs upfront is essential for retailers to prove ROI. These KPIs can include the likely revenue-generating effects of a faster time to market, the sales uptick and the efficiency benefits. Modelling these target outcomes in advance of taking the plunge could help win stakeholder approval and keep your cloud strategy on track. 

Kickstarting Your Journey to the Cloud

The Nordic retail market is somewhat behind the rest of the European region regarding cloud maturity. However, closing the gap is still possible. Some steps retailers can take to implement this, include:

• Start with your customer. Retailers need to decide what they want to offer their customers. It is important to plan how cloud technology can enable brands to reach their goals. Maintaining a focus on the customer will help to ensure the tech stack is in sync with business targets.

• Tackle journeys first. It is likelly that large-scale technology implementation projects can overrun or face obstacles along the way. Keeping small goals in mind from the outset and identifying the particular journeys and workflows that will recieve the biggest value from cloud is a good place to start. Once those have been accomplished it can be rolled out across the rest of the organisation.

• Choose your provider carefully. Retailers need to do their homework to find out which is the best vendor for their cloud goals.  
  
  
• Talent, talent, talent. Hiring the right talents to implement cloud technology will also be a key part of the digital innovation strategy. Having in-house resource to keep the cloud journey moving in the right direction is a good way to ensure the business objectives are met.
  
  

Playing Cloud Catchup?

If you are behind on the cloud adoption curve, do not despair. Seize the opportunity to learn from your peers from across the Nordics region and beyond and hear insights from those deploying the latest solutions now.

Join us at eTail Nordic in Copenhagen from 25-26th October. Register now!