Why the “cloud” does not take off: how store loyalty systems work



    Изображение: Dean Hochman, Flickr

    В нашем блоге мы уже рассказывали о том, как устроен новый закон об онлайн-кассах, доработках нашего софта под его требования и изменениях в процессе технического обслуживания используемого в сфере торговли железа.

    Сегодня мы рассмотрим другую интересную тему — внедрение систем лояльности в магазинах, а также поговорим о том, почему пока компании предпочитают строить собственную инфраструктуру, а не использовать облачные сервисы.

    Как и где работают системы лояльности


    Loyalty systems can allow retailers to increase customer loyalty and increase revenue. However, in order for its implementation to benefit the audience and allow the business to increase sales, a number of conditions must be met. One of the main things - purchases in the store should be made regularly by regular customers.

    In this case, the product itself should be highly marginal - then it will be possible to give a discount on it relatively painlessly. A good example of such a business is a cosmetics store, which is regularly visited both for goods for oneself and for buying gifts.

    If the store sells something that it is not necessary to buy often - for example, large household appliances, and the buyers, for the most part, are different each time, then their discount points will simply accumulate, and there will be no particular need to spend them. As a result, demand stimulation will not happen.

    Also, the loyalty system is disadvantageous for shops selling goods with a small margin - for example, for grocery retail discounters, especially small shops. Suppliers do not give them big discounts, so that when introducing a loyalty program, the business will lose some of the already small profit.

    Infrastructure: what you need to run the system


    To implement a loyalty system, the store needs to build the appropriate infrastructure. There are two possible options, in general terms. The first implies that for each store a local server is allocated on which the server of the loyalty system is deployed.



    There is also a second option, in which only one server is allocated for the loyalty system, which is available to each store.



    The devices involved must be connected to a local network at the store or outlet network. In this case, all the cash desks will be able to punch goods using a personal discount or accrue points to customers.

    At a minimum, it is necessary to provide for the deployment of additional servers on which the system will operate, as well as integrate it with the cash desks used. If the cash software does not have a module for working with the loyalty program, then its functionality will have to be “finished”.

    The ideal situation for introducing a loyalty program is the simultaneous purchase of a cash solution and software of the loyalty system from one supplier. For example, we at Pilot developed a Profi-T cash register program and it has a built-in module with a loyalty system. This solution allows you to apply a point loyalty program both separately for each store and the distribution network as a whole.

    “Out of the box” the system includes: a cash module that can work with a loyalty server to accrue / write off points, an API server and a website for administering the system.

    Training staff to work with the loyalty system entails additional costs. At the same time, high-quality cash register software can minimize the mistakes of employees - for example, by asking them simple questions during work ("is there a loyalty card - if so, write off / accrue points, if not - give out a card").

    In addition, you can save money - for example, more and more stores refuse to issue physical discount or savings cards. It is possible to identify a client using a mobile phone or email, so it is not necessary to spend money on “plastic”.

    That's how it works now - stores buy hardware and software, support infrastructure for the operation of loyalty systems. However, many retailers abroad have long and successfully been using cloud-based loyalty systems, let's talk a little about their prospects in the Russian market.

    Clouds: Pros and Cons


    In many countries, the segment of cloud loyalty systems has been actively developing for a long time. There are a number of advantages for business:

    • Savings - the company gets rid of the need to bear the costs of buying and maintaining its own servers, paying for software licenses, as well as employees supporting this hardware.
    • Fault tolerance - the load is smoothly distributed throughout the cloud, so the failure of one server will not lead to the inoperability of the entire system.
    • Simplicity - for small retailers, working with a cloud solution is often easier to implement and maintain their own infrastructure for a loyalty system.

    However, in Russia, cloud loyalty systems have not yet received wide distribution, for which there are several reasons:

    • Migration difficulties - moving to the cloud may not be so easy, especially for large networks that have already invested a lot of resources in their own loyalty systems. Considering that “everything works this way”, there are no special incentives for the transition.
    • The need for an Internet connection - in order to work with the cloud system, all stores in the network must have constant and duplicated Internet access.
    • Distrust of cloud systems is a problem that is not unique to retail. Not all domestic companies are ready to entrust important data to third-party services, this factor also limits the spread of cloud loyalty systems.
    • Lack of competition is a problem in many regions of the country, even those large and developed, such as the Moscow Region. Where federal and regional retail chains are not represented, competition between sellers is low. Therefore, they do not think about introducing loyalty systems.

    Prospects


    Despite the small spread of cloud loyalty systems in Russia at the moment, in the future 3-5 years, the alignment may change in their favor. Technical restrictions will gradually disappear - if earlier many sellers did not see the point in organizing a permanent Internet connection for stores, then with the introduction of EGAIS and the adoption of Federal Law-54 (the "Law on Online Checkout"), the situation has changed. In addition, the tariffs of Internet providers are constantly decreasing.

    The difficult economic environment is also pushing companies to find ways to reduce costs - many stores note a decrease in the average bill, a decrease in the frequency of purchases, and increased customer sensitivity to prices. All this contributes to increased competition, and therefore to the spread of loyalty systems - if a large network comes to a region with a low level of competition, then local players are forced to either close or quickly introduce simple loyalty systems, for example, discounts on all products on a store card.

    All of the above allows us to predict a massive transition to cloud loyalty systems over the next five years.

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