The Retailer - Issue 67

Issue 67 - November 2019 THE RETAILER

Paving bricks-and- mortar with online





Aussie and Proud? So arewe.

Issue #67 Features 14 HOW THE DIGITISATION OF PAYROLL IS TRANSFORMING THE RETAIL LANDSCAPE The future of payroll is here, and it’s digital. Learnwhat Single TouchPayroll legislationmeans for your business andhowyou can take advantage of the latest advancements. 30 THE RETAIL EXPERIENCE IS GETTING A FACELIFT Success in this era of innovation comes down to integrating people, processes, and data. 50 HAVING THE AI ADVANTAGE HELPS RETAILERS TO KEEP UP WITH THE PACE OF CHANGE Artificial intelligence-powered personalisation can help retailers deliver experiences that lead to loyal customers in the hyper-competitive retail landscape.

For the last 30 years eftpos has been providing competitive and convenient payment solutions to all Australians.

Today, we have become the first payment service to adopt the Australian Made logo.

TECHNOLOGY 12 When it comes to IT spend, retailers should shop like their customers 16 Are you listeningwhere your customers are talking? 20 What retailers should knowwhen offering buy now, pay later 28 Bringing the convenience of the digital experience in-store 36 Investments in online channels can improve offline customer encounters 42 Why retailers should befriend a cloud-based POS system 47 Revolutionising returns: Howan online portal simplifies the returns process 54 Retail and the Rule of Three 64 Omnichannel is the key to creating great customer experiences 68 Keeping retail systems secure in the age of connected devices BUSINESS OPERATIONS 08 Rethinking the relationship between the online and offline retail experience 19 A retailers guide to shopping for IT infrastructure 26 Leveraging bricks-and-mortar to compete online 35 HowCottonOn iswinning the CXGame 44 Why retailerswho prioritise supply chain excellencewill reign supreme 58 Embracing the age of e-commerce: The simple digital strategies to help drive online sales 66 Multi-channel does notmeanmulti-brand 70 Rebuilding bricks-and-mortar retail withClick&Collect

REGULARS 04 Fromthe ExecutiveDirector 06 Retail news acrossAustralia 10 40 TheARARetail Events Recap 52 Managing risks at work 24

Tomorrow, is a new day: we are updating our infrastructure and seeking to adopt the most innovative product technology. This is our commitment to Australian consumers, merchants and the local industry.

Big banksmust stop squeezing retailers Differentiation in retail is off to a roaring start

Learn more about how eftpos is helping merchants at


Cyber criminals will shop anywhere


2D ‘data embedded’ barcodes: A vital asset for retailers and the traceability chain


Stay cheerful this holiday season with AI 48 This might change how you think about price optimisation 56 The halo effect: Double-dipping into the pool of sales revenue 62 Sixways towin a sale by understanding Aussie shoppers’ pain points HUMAN RESOURCES 22 It’s time for new tactics in retail hiring 32 Want to improve customer experience? Get employee experience right 38 How HR can leverage new technologies to help retail staff improve workplace culture and customer service 46 Retailers driving efficiencies to free up more time for customers 60 Digital mobile-first micro training is the future of employee engagement and customer service


Melbourne Office Level 1, 112 Wellington Parade East Melbourne VIC 3002

External Contributors Alcami Interactive, APRA AMCOS, Ardrossan, Adyen, BluJay, Boomi, CouriersPlease, Daylight Agency, Digital Reality, Doddle, eftpos, Emarsys, GoDaddy, Humanforce, InMoment, Flexigroup, Freshworks, Frontline, GS1, JDA Sotfware, Paessler, PageUp, Pronto, Retail Directions, Rimini Street, Software AG, Sonder,SOTI, Square, StaffConnect,Twilio, Vend,WorkJam, Xero, Zendesk

Editor-in-chief Zoe Thompson, Assistant Editor Tim Janczuk, Marketing Specialist Trina D’souza, Design Coordinator Beth Hirsch,

Events and Sponsorship Account Manager Chris Sav, Retail Institute or call 1300 368 041 Graphic Design Bandit Design Group,

Follow the ARA

australianretailersassociation @austretailers @retailaustralia australianretailersassociation

Australian Retailers Association Phone (toll free): 1300 368 041 Fax: (03) 8660 3399

Copyright Contents may not be reproduced in any form without permission from the Australian Retailers Association and then only with suitable acknowledgments. 2019 Australian Retailers Association. ISSN: 183404720

From the Executive Director


t’s that time of the year again the busiest trading period is well and truly upon us, and the ARA knows retailers will be

This edition of The Retailer brings to light the Retail landscape: Paving bricks-and-mortar with online platforms. As the digital era has taken over the retail industry, there is now an opportunity for retailers to incorporate the best elements of online and offline channels to create thriving omnichannel business models. This issue encompasses all aspects of retail and ways to strengthen the industry. As we head into the end of a decade, the ARA anticipates that 2020 will bring some relief to retailers and expects the 2019 Christmas trading period to deliver strong results for retailers. Merry Christmas, and I wish you all a happy and healthy holiday trade.

2019 A mixed year as shoppers remain cau�ous preferring to save rather than spend.

working hard over the coming weeks to deliver an exceptional experience this season for all. The ARA urges retailers to start preparing ahead of the busy festive season if they haven’t already begun. In recent years we have noticed more Australians doing their Christmas shopping sooner rather than later. They aren’t waiting until Boxing Day for a bargain, as Black Friday and Cyber Monday become more and more popular. Retailers need to be ready early – especially for those selling beauty and cosmetics products. As online shopping grows, so do customers’ expectations on delivery options for their purchases. Shoppers dealing with the Christmas rush need flexible options to take the stress out from a busy time and have their presents bought, wrapped, and under the tree before Christmas Day arrives. Retailers need to be equipped for increasingly popular ‘frictionless’ payment methods such as buy-now-pay-later or E-wallets. The same goes for fast deliveries – don’t be caught out without an express option, especially in the week before Christmas.

Are you Christmas Ready ?

MID-2018 Strong retail performance offered promise, but as the year wore on consumer sen�ment was dampened by slowing house prices, stagnant wages and low interest rates.

Russell Zimmerman Executive Director Australian Retailers Association

Look out for Pebble’s 2019 key Christmas insights!

Members of the ARA Council from left to right: President: Rowan Hodge, Stephen Younane,Toby Darvall, Anthony Wilson, Treasurer: Graham Dear, Beth Knight, Secretary: Steve Plarre and Greg Leslie. Absent: Mark Daynes, Advisory Councillor: Andrew Ng, Ralph Edwards, Charlie Davey, Jack Gance, and DrewMeads.






he retail industry globally is undergoing major disruption, and to get ahead of the curve, Lendlease recently partnered with tech startup company, Shop You to trial an innovative personal shopping service. The service could be the solution to some of the major pain points for the industry and consumers. Recently, Lendlease released promising results for the trial. The service combines a shopping personalisation app, with a personal human stylist, and convenient CBD location for customers to collect, try on, and return clothes. Over 40 professional women aged between 25 to 40 years participated in the which ran over the course five weeks fromMay to June 2019 at a Lendlease precinct. The trial focused on women’s apparel, which represents a significant share of national retail spend. The trial sought to address three key pain points: 1. Helping customers find the perfect outfit, in the right size and style – via the Shop You app 2. Quickly getting the outfit to the customer – via the collection point 3. Easily returning the outfit – via the collection point in the Lendlease precinct Major results: • The personal shopper service achieved a low return rate on items • The average basket size was approximately three times the industry average of $95 • The customer conversion rate was nine times higher than the industry average of 2.8% • Based on in-depth interviews with trial participants, there is substantial demand for the service, with most participants saying they would be disappointed if the service was discontinued • Feedback from participants highlighted three critical drivers for the service’s success: personalisation through the app and personal stylist, the ability to shop multiple brands via one platform, and the central location to try-on, collect and return products • Customers said they valued being able to purchase items frommultiple brands, using one payment and collection process. • Experience with a personal human stylist was important for building an emotional connection to the service, an element that challenges pure online retail businesses. The trial was supported by Stanford University’s Launchpad Accelerator Program, which focuses on validating and testing new ideas using the design thinking methodology. PERSONAL SHOPPING TRIAL REVEALS RICH LESSONS FOR RETAIL “The process for securing the right operator for the site took more than two years; this tenancy provides a stand-out opportunity for a flagship store which will benefit from the 22 million shoppers that Rundle Mall boasts annually.” Adelaide’s premier retail strip is seeing some significant changes, with new brands entering the market while some old favourites are disappearing. “The retail in Rundle Mall is changing; we have seen recent closures of mid-tier fashion retailers with a shift towards health and beauty stores like Jurlique and MECCA and now Sephora,” said Lauren Smith, Manager Retail Leasing, at Colliers International. “The Adelaide CBD is yet to see the other international brands in both the fashion and cosmetics arena, but we anticipate that their arrival is imminent.” T

“We appreciate that communities don’t necessarily want a hand-out, but they want a hand-up to be able to support them to ensure their communities remain as vibrant as they should be. “We stand in support, together with other charities in supporting drought- impacted communities, with money raised helping us provide emotional support and financial relief to those affected who are struggling to pay everyday bills, including basics such as food, petrol, and utilities.” Rural Aid CEO, Charles Adler said: “We were overwhelmed with the support and generosity shown by Woolworths customers and team in raising funds via our Buy a Bale program in 2018. The millions of dollars raised has helped us provide much- needed relief to farmers in drought-impacted communities. “The dire projection of drought is not letting up, and we are yet to see the worst of its impact. We are very conscious that it will be a prolonged state of crisis in rural and regional areas across Australia, and as such, raising funds to be able to continue to deliver our support to those in need is essential. “Further to providing on-farm support to farmers, Rural Aid offers financial assistance and mental health counselling to help keep the community spirit alive and support a positive mindset through these tough times.” Foodbank CEO, Briana Casey said: “Food insecurity in Australia is already at an all-time high, and unfortunately it is only further exacerbated by the drought. “We’re determined to do all we can to end hunger, ensuring no Aussie child, family, or individual is left with the uncertainty and stress of sourcing their next meal. Money raised as part of this Appeal will help us continue this work in regional areas.” Lifeline CEO, Colin Seery said: “While people in rural and regional Australia are known for being down-to-earth, practical and resilient, it’s important for them to know that help is available and for them to access that help. “Funds raised by this Appeal will enable more Lifeline, skilled trainers, to support drought-impacted communities to better recognise and respond to signs of mental health concerns and provide conversations that could offer hope.”

dding to its existing eight showrooms across Victoria, leading kitchen, bathroom, and laundry retailer e&s has launched a state-of-the-art designer showroom in Preston, at the heart of Melbourne’s growth corridor. The new store is unlike any other appliance retail offering in Victoria, delivering a unique interactive experience to explore, test and try a wide range of quality products fromworld-renowned brands in a space designed to inspire Each appliance has been categorised into key zones throughout the showroom, dotted around a racetrack-like layout that provides a major aisle to facilitate customer traffic and flow. Featuring an array of products frommore than 50 mid-range to luxury brands, these include Sub Zero and Wolf, Neff, Bosch, Miele, Fisher & Paykel, Asko, and SMEG. e&s second-generation owners Rob and Mike Sinclair wanted to give Preston locals and beyond access to a broad spectrum of products from affordable to luxury, without needing to travel to the other side of the city. Opened in December 2018, the 3039 sqm retail space has employed a team of 20 and realises the vision of the Sinclair brothers, who engaged award-winning interior and architecture firmMim Design. “We felt that in the northern parts of Melbourne premium appliance retail offerings were limited. Launching an e&s in one of Melbourne’s fastest-growing suburbs just made sense,” Rob says. “e&s Preston doesn’t just meet the demands of consumers; it exceeds them. The innovative layout and design takes people on a journey, and encourages considered buying decisions that stem from an ability to interact with each product.” “When people enter the space, they can immediately visualise and understand where and how their potential purchases can seamlessly work within their own homes,” adds Rob. Fit with an expansive demonstrative kitchen catering for workshops and events, a cafe for pondering purchasers, along with a lounge and large active wine cellar, e&s Preston provides an immersive product experience like no other. E&S FLAGSHIP STORE SHOWCASES ITS INNOVATION THROUGH STORE LAYOUT AND DESIGN A

o help support communities that are continuing to experience some of the worst and prolonged drought conditions on record, Woolworths partnered with leading Australian charities to launch the S.T.A.N.D (Support Through Australian Natural Disasters) Drought Action Appeal. The Salvation Army, Rural Aid, Foodbank, and Lifeline are set to benefit from the Appeal, ensuring they can continue their vital work in supporting drought- impacted rural and regional communities. The Appeal will help fund a variety of programs undertaken by the organisations including: • Financial support for household and living expenses • On-farm support such as stock feed for farmers in drought-declared areas • Additional counsellors in regional areas in recognition of the significant mental health toll the drought is having • Helping address food insecurity in drought-impacted areas The fundraising started in September across Woolworths supermarkets nationwide, with customers invited to buy a limited-edition sunflower seed kit as part of the Woolworths Discovery Garden community program. The Woolworths Discovery Garden sunflower seed is sourced from several local Australian farmers across New South Wales. All funds raised will go directly to supporting the S.T.A.N.D Drought Action Appeal, with Woolworths matching every dollar raised from the sale of the kits. Woolworths Supermarkets Managing Director, Claire Peters said: “Woolworths is in the heart of every community, including drought-impacted regions. Every day we hear about the worsening situation in these regions from our local team members, and we want to do more to support those impacted by drought. “Last year during the drought action appeal, our financial commitment, along with the millions of dollars raised by customers and team, helped our partner Rural Aid supply stock feed, counsellors and financial assistance to farmers in drought-impacted regions. “This year, our Appeal will provide support to our partners The Salvation Army, Rural Aid, Foodbank, and Lifeline. They all play a vital role in helping alleviate the pressure of the drought, not only at the farm gate but across the wider communities in which those farms operate.” The Salvation Army Chief Secretary Colonel Mark Campbell said: “It’s no secret that families in rural and remote areas across Australia are doing it incredibly tough and that drought is a multifaceted issue. T WOOLWORTHS PARTNERS WITH LEADING AUSTRALIAN CHARITIES TO DEVELOP A DROUGHT ACTION APPEAL



olliers International has brought global beauty giant, Sephora, to Adelaide. The beauty and makeup multi-national chain has leased a flagship tenancy over two levels totalling 625sqm at 90 Rundle Mall in Adelaide’s CBD, their first store in South Australia. “As a global beauty brand, it is only fitting that Sephora would take one of the best locations in Rundle Mall; the location and size of the premises means it is perfectly equipped to introduce an international retailer to the SA market,” said Ben Laycock, Director, Retail Leasing at Colliers International.




Rethinking the relationship between the online and offline retail experience While online and in-store retail might seem worlds apart, the customer experience should be seamless, consistent, and deliver on your promise to customers.

+ You should strive to leave customers with the same satisfaction they get from being in your store as they do from visiting your website. history, preferences, customer service history, billing, and inventory, is crucial to enabling a consistent, conversational experience. This information also needs to be accessible for different teams, such as sales, marketing, support, billing, as customers now see you as one entire organisation and not individual departments. The biggest gap between customer expectations and reality happens when a brand promises one thing yet delivers something else. The quickest way to build brand loyalty is to be consistent. Today, we see companies going out of their way to surprise and delight their customers. But this approach can be a challenge in itself - it means your staff is always working faster and harder to deliver things they might not be able to promise the next time around. THREE: KNOW THE SOLUTIONS THAT YOUR CUSTOMERS NEED



Brands need to make the end-to-end experience as seamless as possible by ensuring all communication channels are easy to use for both the customer and your sales and support agents. You should strive to leave customers with the same satisfaction they get from being in your store as they do from visiting your website.

In fact, our research shows that more than half of Australian consumers have higher expectations than they did a year ago. While consumers’ expectations are rising, companies are not acting at the same rapid pace to meet those expectations and being able to provide a great experience when, where, and how consumers want it, across all channels, is critical. What this means for retailers is that every interaction with your brand - be it online or offline - has to feel like a connected, seamless experience. This is a universal challenge, and it is not easy to know where to start, so I recommend retailers first focus on three key things. ONE: CONVENIENCE IS PARAMOUNT Retailers in Australia have an opportunity to streamline how shoppers buy their products. According to Adyen’s 2019 Australia Retail Report, positive shopping experiences amount to a $71 billion lift in sales annually, while negative experiences amount to $21 billion in abandoned sales. In today’s competitive retail landscape, integrating the offline and online experience is the best way to get a slice of the $92 billion in sales that are there for the taking.

omparisons between online and offline retail have been rampant over recent years, and it is not slowing down. While e-commerce offers

Rather than over-promising, and at times, under- delivering, the focus should be on understanding each and every customer. If you know what your customers want without them having to tell you, you can optimise the efficiency of your customer service without consuming your employee’s time and resources. For some customers, being able to answer their own questions quickly is the way to go. When customers can self-serve, we see exponential boosts to customer satisfaction scores. For others, speed is the key. Using technologies like automation and AI means customer service is fast and accurate. By knowing your customers’ needs, you can identify the technologies that will help you have the largest impact on their experience. While they might seemworlds apart, the experience retailers provide in-store and online has to be seamless - both as individual channels and as a collective experience. Think about how you can create a consistent experience, wherever and whenever your customers choose to shop - these brands will be well-positioned to win the next evolution of the race for retail dominance. 

unparalleled speed and convenience, physical retail gives consumers the opportunity to touch and try things before they buy. This either-or conundrum is leaving many retailers scratching their heads about where to invest in leveling up their customer experience. But in reality, today’s consumer expects to be able to shop both online and instore and have the same - or at least a similar - experience. So now, the question becomes: how do brands provide seamless, engaging, and authentic experiences, wherever their customer chooses to shop? We know that expectations are changing, and retailers are under more pressure than ever to keep up with the rapid evolution brought about by the ‘Experience Economy,’ with brands like Airbnb, Afterpay, and Airtasker. Brands like these have created a new paradigm in that consumers are no longer comparing your business against your competitors but to the best experience they have ever had.

TWO: MEET YOUR CUSTOMERS WHERE THEY ARE Consumers use multiple channels to

communicate with their colleagues, friends, and family every day. They now expect to be able to speak to brands in the same way. The key to making this feel seamless is to ensure it feels like a conversation. Just like consumers keep the same conversation threads going with their friends across multiple channels at once, like Facebook, WhatsApp, SMS, and Twitter, they expect that brands can do the same. We call this an omnichannel experience. To do this, you need to connect each channel through a platform that brings your customer information into a single view. Combining data from all parts of the business, including shopping

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+ It’s time the banks put their business customers’ interests first and offered least-cost routing.


ARA Executive Director Russell Zimmerman has clearly outlined the issue. “Part of the problem is that banks don’t offer the lowest cost solution as a default position. If they did, they would look at every retailer individually and inform them that they would be better off using least-cost routing. However, they have a vested interested in not doing that,” he said. Small and medium sized retailers are particularly impacted by the banks’ inaction. Retailers who don’t know their options lose money when processing transactions, and don’t have time to research alternatives. The banks need to get moving. Retailers need to know their options. It’s time the banks became proactive and offered least-cost routing. 

he banking royal commission uncovered practices that many Australians regard as questionable. It has now been eight months since the final report was published, yet many banks haven’t got the message and continue to profit from a lack of transparency. Australian retailers are still suffering as the banks drag their heels on least- cost routing. Banks, which jump out of the gates when there’s a quick dollar to be made, sit idly by when they can help their customers make a big saving. By staying silent on least-cost routing, banks cash in while retailers’ bottom lines take a big hit. It’s time the banks put their business customers’ interests first and offered least-cost routing. They need to make it simple for retailers to access. They need to make fee structures transparent. Australian consumers have taken to tap-and-go card payments in droves, while mobile and eCommerce payments are increasingly popular for retail purchases. Banks route these payments through channels that yield the highest merchant fees at expense of retail businesses, which lose thousands of dollars every year to the consequent exorbitant fees. A key consideration is the viability of eftpos as a provider of routing services: a market with three providers is more competitive than a duopoly. Maintaining competition and choice will obviously keep costs down for Australian retailers. In the long run, retailers may be worse off should eftpos, for any reason, exit the merchant market; transactions would be automatically routed via Visa and Mastercard, creating a duopoly. If not for eftpos, which maintains competitive options between payment providers, retailers would be forced to accept higher costs. Least-cost routing is a straightforward solution: channel payments through the cheapest path possible. Many of Australia’s leading industry associations, led by the Australian Retailers Association, have called for the banks to be more proactive in telling business customers about least-cost routing, yet most remain silent. The ARA has been doing everything possible to educate its members, but the banks must also step up.

Big banks must stop squeezing retailers

Default routing to higher cost transaction options is an impost on retail businesses that is ultimately borne by the consumer and which must come to an end.

Russell Zimmerman is the Executive Director of the Australian Retailers Association (ARA) with almost 10 years’ experience in the position. Russell has propelled the ARA forward and has overseen the growth in membership led by his personal approach in liaising with members and understanding of retail issues. Small, medium and large retail members have seen Russell’s strategic approach to advocacy deliver savings across the industry. A natural extension of his thirty years of retailing, Russell fosters and engages those around him to raise their potential to achieve and nurture future leaders. With Russell’s stewardship, the ARA has continued to build a reputation for credibility, integrity, and action upon its credibility in the business world.





+ Reducing IT spending on high-cost enterprise software maintenance and support can be a strategy for retailers to take charge of their technology roadmap, rather than letting it be dictated to them. spend in an environment where the margins are small. Reducing IT spending on high-cost enterprise software maintenance and support can be a strategy for retailers to take charge of their technology roadmap, rather than letting it be dictated to them. Lowering unnecessary costs wherever possible through such options as third-party support may serve to increase margins for retailers while enabling valuable budget to be spent on innovative solutions to drive the business forward. Those retailers considering a spending spree on innovation may have an opportunity to increase their budgets by lowering support and maintenance fees. If you’re in doubt about this, it’s worth considering a few questions about how you use your enterprise software system. • When was the last time an enterprise software update made a real, practical difference for your business? • Has it ever boosted sales or streamlined logistics? And has it ever allowed you to move into newmarkets or attract new customers? • How often do you put off implementing the updates you have been provided? And is it because of the need to test and validate them, or is it an absence of useful new features? • When you needed help with a high priority support issue, how quick has the vendor been to address it?

When it comes to IT spend, retailers should shop like their customers

Enterprise software and ERP vendors may market the latest release as an indispensable upgrade and possibly a panacea to digital transformation. However, many retailers would say the benefits to these are marginal at best, and just not relevant to their top priorities. An unnecessary ERP or enterprise software upgrade is unlikely to stem the tide against online retail and won’t stop shoppers moving their Christmas purchases to whichever month is cheapest. Vendors may try to tell retailers that support will be cut off if they don’t upgrade, but third-party support and maintenance can counteract that claim. Further, tier one support and maintenance should allow the ongoing management of existing systems regardless of vendor input. Retailers can define their business-driven IT roadmap, rather than accepting a vendor-dictated roadmap as the starting point. They should stop and look at all options for their business and not adopt an upgrade that may ultimately not add anything more to the company than an unnecessary expense. If retailers are willing to spend, they could do well to follow the lead of their customers and research all their options before purchase, because they could find significant savings. 

Retailers need to stop and look at all options when upgrading their software platforms and systems.


etailers are ready to spend on their customers, and in the crosshairs of the bean counters and IT leaders are digital transformation initiatives.

the issue and are willing to spend to fight back. But are they set to spend it in the right areas? And when it comes to business systems such as enterprise software platforms and Enterprise Resource Planning (ERP) systems (such as SAP or Oracle), are they being pushed into costly and unnecessary upgrades? The discussion and preparation of digital transformation in the retail sector can be essential to support business success in Australian and international markets. Because many retailers operate on paper-thin margins, digital business investments may seem impossible to fund, which can prevent real innovation from taking place. When the spend does take place, it is likely to be more useful to

growth of online retail. While brick-and-mortar stores experienced less impressive sales in the lead up to Christmas, according to the Australian Bureau of Statistics, online retail contributed 6.6% to total retail turnover in November 2018, the highest level recorded. Further, the introduction of Black Friday and Cyber Monday sales has led to many Australians bringing forward their Christmas shopping to November and doing so online. One economist stated that “Australian retailers need to stand out with an offering that meets needs or provides a better experience than other goods and services – domestic or foreign.” The Gartner figures mentioned earlier show that retailers do not have their heads in the sand on

According to a study by Gartner, Australian retailers are predicted to spend $4.9 billion on technology products and services in 2019 to improve the retailer’s business systems, expand into newmarkets and enhance the customer experience. It could be argued this level of spending is long overdue. Australian spending trends over the Christmas period, long the saviour of Australian retail, show how necessary a transformation of the status quo has become, particularly with the

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Born in the cloud, Xero is a beautiful, easy-to-use platform for small businesses and their advisers around the world. Xero provides its 1.8 million subscribers with connections to a thriving ecosystem of 800+ third-party apps and 200+ connections to banks and financial service providers. On the inaugural 2018 Financial Times FT1000 High-Growth Companies Asia Pacific list, Xero was the fastest growing tech company in the $200 million+ segment. Xero won ‘Bookkeeping software of the year’ from the Institute of Certified Bookkeepers UK in 2018, and was rated by Canstar Blue as the best accounting software in Australia from 2015-2018 and in New Zealand in 2019. For more information visit, the chance for human error, ensuring staff always get paid correctly and on time. By streamlining your operations, STP will be a catalyst for greater accuracy, security, and efficiency – so you can always do right by your people. But payroll isn’t the only digital advancement small businesses should be embracing. For the retail community, the latest online systems are transformative– from the ability to simplify rostering, to making on-the-spot payments, invoicing directly frommobile devices, and seamlessly plugging into clever platforms that enhance overall productivity. BOOSTING YOUR BUSINESS POTENTIAL It was the need for streamlined systems that saw Gelato Messina co-owner Declan Lee make the switch to cloud-based technology. As the much- loved gelateria expanded from Sydney to the rest of the country (and beyond), Declan knew they needed accounting software that would grow with them. He explains, “Life before Xero was pretty clunky. Now, the entire process from payroll to invoicing is simple and convenient. Using a cloud-based systemmeans that our business partners always have access to the numbers – wherever in the world they might be.” Like Declan, countless retailers across Australia are currently transforming the way they do business. For anyone unsure where to start, the answer is simple: reach out to your trusted advisor. Not only will your accountant or bookkeeper be able to guide you on all things STP compliance, but they’ll also be ready to walk you through the next best steps to take on your digital journey. The future of payroll is here, and it’s set to make business smoother, simpler, and a whole lot more efficient. 

How the digitisation of payroll is

transforming the retail landscape The future of payroll is here, and it’s digital. Learn what Single Touch Payroll legislation means for your business and how you can take advantage of the latest advancements.



+ While the relationship between employer and employee might start with a paycheque, it goes much deeper.

Naturally, this may seem like a big change, especially if you’ll be using software for the first time. But rest assured, once you’ve got your head around this new way of doing things, it will make the entire payroll process much faster and more intuitive (not to mention error and hassle-free). When it comes to the potential of technology, there’s a lot to get excited about. Most retailers already have online banking capabilities, and now it’s time to bring payroll up to speed. Ultimately, saying goodbye to spreadsheets and clumsy desktop systems will mean less time spent on data entry, paperwork, red tape and compliance, and more time to devote to the running of your business. PAYROLL DONE SMARTER, FASTER AND FAIRER As any business owner will tell you, payroll is far more than just a financial task. While the relationship between employer and employee might start with a paycheque, it goes much deeper. Making a move to digital payroll removes

any of us have memories of taking our hard-earned pay home in a safely guarded envelope. Needless to say, times have changed. With the

recent introduction of Single Touch Payroll (STP) now requiring digital payroll reporting to the ATO, countless small businesses will begin using accounting software technology, some for the first time. And those that have already made the transition say it has revolutionised the way they operate. But first, let’s take a moment to break down what STP is all about.


STP is a newreporting systemrequiring all businesses to report salaries, wages, PAYG

withholding, and superannuation to theATOvia up-to-date, enabled software every time they pay their staff. In short, all employers (regardless of size) have been expected to report payroll via STP as of September 30 this year.





again or repeat themselves. This ‘experience amnesia’ is a symptom of a brand designing experiences in isolation of other channels or without anticipating the customer’s next need. UNLOCK YOUR OMNICHANNEL POTENTIA L Armed with in-depth data and a better understanding of your customers, you can share this knowledge across every aspect of your business to impact and improve customer experience strategies. Brands who deliver seamless omnichannel experiences consistently deliver lower cost to serve, improved upsales, higher advocacy, and lower customer effort. Digital capabilities for gathering and interpreting data not only pinpoint focus areas but provide the opportunity to turn insights into action. Whether it’s small, targeted changes or sweeping strategy improvements, you can implement them knowing they were directly influenced by first-hand customer intelligence. When you go beyond static customer experience metrics to uncover buyer stories, you extract valuable meaning that drives action and fosters long-lasting customer relationships. Combining CX technology with an enhanced human touch and delivering consistently through omnichannel interactions is crucial. It shows a deep understanding and commitment of care that resonates and drives trust with customers. A consistent and intuitive customer journey that elegantly combines both technology and human interaction - in ways deemed valuable by the customer is the key to keeping the CX bubble intact. Those brands that can deliver on this will hit the elusive sweet-spot of a fully informed, omnichannel offering. 

Are you listening where your customers are talking?

Identifying what customers actually want and delivering it where it matters is the key to creating a thriving omnichannel business. BY ROBERT GLENNON [INMOMENT]

InMoment™ is the leader in Experience Intelligence (XI), helping organisations deliver more beneficial and memorable experiences in every moment. The company’s cloud-native XI Platform is engineered with data science at the core, featuring three clouds that work seamlessly together to give businesses a comprehensive understanding of the most important factors impacting the bottom line: Customer Experience (CX) Cloud, Employee Experience (EX) Cloud, and Market Experience (MX) Cloud. InMoment’s technology, coupled with its deep domain knowledge in experience design and delivery, help more than 500 of the world’s leading brands in 95 countries attract, excite, and retain their most profitable customers and most valuable employees. For more information visit,


channels for direct feedback with customers. Make it as easy as possible for them to tell you how they feel about your brand. Don’t shy away from asking them the important questions, and be sure to balance both asking and listening. Today’s technologies enable brands to do this at scale and in a very personalised way. Harnessing customer listening platforms to capture, understand, and socialise the authentic voice of your customer is a powerful way to make the human element of the relationship central for both customers and employees. EXPERIENCE AMNESIA Many CX programs focus too much on singular touchpoints to eliminate CX issues. This is no bad thing, but the reality is that customers experience brands throughmultiple episodes and across different channels. Instore, online, customer services, sales, and marketing are all channels that need a seamless system of communication. Managing pathways is, therefore, a source of real differentiation. A big problem comes when customers try to traverse channels and find they have to start

hether your business exists online or offline, the impact of customer experience (CX) is universally vital.

Advances inmonitoring and interpreting customer feedback gives an opportunity for qualitative stories beyond responses on a 1-to-10 scale. With more information, your brand is equipped to make CX strategy adjustments based on in-depth feedback you receive. Predictive intelligence and anomaly detection technologies allow customer behaviour to be profiled, so you can anticipate their needs and actions and communicate with them accordingly. ENGAGE DIRECTLY The importance of customer communication was highlighted in our 2019 CX Trends Report. The report discovered that to capture how consumers feel about them and the experiences they are providing; the most important thing brands could do is to ask them directly. Nearly 78% of customers selected this option, while only 43% of brands reported the same. Consumers still consider better service from staff to be the key driver of CX. This is especially true of Aussie consumers who rated the importance higher (50%) than US (42%) and UK (30%) consumers. The solution to this disconnect is to open varied

More often than not, identifying where there is a problem or opportunity is half the battle and it’s not one that Aussie brands are winning. Our 2019 CX Trends Report asked whether brands are getting better at delivering an excellent customer experience - 36% of Australian brands believed they are ‘definitely’ doing better, but only 13% of consumers said the same. This level of disconnect identifies clear opportunities to deliver what matters to customers through the most appropriate channels. UNDERSTAND THE CUSTOMER STORY Going beyond basic customer experience metrics to discover customer stories uncovers why a customer chooses their purchase or pinpoints exactly where the experience led to less-than- favourable ratings. Understanding these stories allows retailers to create a targeted CX strategy that resonates with customers and ultimately maximises long-term sales.


Harnessing customer listening platforms to capture, understand, and socialise the authentic voice of your customer is a powerful way to make the human element of the relationship central for both customers and employees.





Retailers must consider robust IT security policies and procedures that include encrypting sensitive data, ensuring third-party service providers who have access to sensitive data have policies and procedures in place and enforce them, an effective strategy for IT asset disposition, anti- virus protection and data back-ups, enforce a written password policy, ongoing education of staff of the importance of cybersecurity vigilance. Irrespective of the resources dedicated to data security by retailers, the risk of hacking remains real, and if this event should occur, retailers need to consider cyber insurance to protect against the resulting financial loss. ARA Insurance Services has many insurance solutions to protect your business from these costs if the criminals do get through. The policies provide broad protection for cyber hacking, including: • civil penalties and compensatory awards by regulators • legal actions by third parties • loss of revenue while the business is interrupted • ransom payments • hacker damage costs to restore data, programs, and networks as a result of a hack • breach costs, including forensic investigations, notification costs, credit monitoring services, call centre costs, and PR costs. Importantly these insurance products provide the services of a full incident response team in the event an attack should occur – this is invaluable when pressured decisions need to be made that can potentially save or lose business. ARA Insurance Services can also assist you to review your existing prevention and security measures and refer you to specialised cybersecurity professionals where we identify a need for data protection improvement. Call us now on 1300 368 041 (dial 3) or email for an obligation free quotation to see how your current insurance premium and cover compares to ARA Insurance. 

Cybercriminals will shop anywhere Retailers cannot avoid the use and collection of data as well as a reliance on technology, and therefore the risks of data loss and technology breaches must be managed.

A retailers guide to shopping for IT infrastructure

+ based systemwill instantly provide a virtual network and new technologies like standardised application program interfaces (APIs) that bring down the operational costs associated with legacy systems. As the online retail market continues to grow, it will only get more competitive and data- driven. To seize the opportunities presented by technologies such as AI and connected devices, while managing the burden of data processing and interconnectivity, retailers must put infrastructure investment high on their agendas. As part of this, they must consider their setup carefully to ensure both happy customers and a successful bottom line.  One of the biggest headaches that retailers face is whether their existing infrastructure can support and integrate technological advancements and the subsequent demands they put on data.

Choosing the right data infrastructure is crucial for retailers to access and action customer data effectively.




very day retailers in Australia and throughout the world are subjected to cyber-attacks. Whether this is attributable to disgruntled staff or criminals, the reality is a breach of a company’s IT systems, and data is a real and considerable risk. Irrespective of whether a retailer is bricks and mortar, online, or a combination of both, they are exposed to cyber breaches and attacks with sensitive data, personal records, financial information, and money being stolen. Although retailers have tried to harden their defences, cybercriminals are almost always one step ahead. In February 2018 the expectations of retailers with regards data security were increased significantly when the Office of the Australian Information Commissioner (OAIC) introduced Notifiable Data Breaches (NDB) regulations making it mandatory for any organisation covered by the Privacy Act of 1988 to report a data breach that is “likely to result in serious harm to an individual whose personal information is involved”. It is a misconception to consider only larger organisations are at risk of cyberattacks. SME’s are considered an “easy” target with less sophisticated cybersecurity measures and protections. It is also a misconception to think these risks are limited to online retailers only. Any retailer that holds data that can be used by criminals to extort or sell and/or is confidential and critical to a retailer’s operation is a potential target. A retailer can suffer POS malware attacks, DOS

(Denial of Service) extortion threats, ransomware, credential stuffing, hacking of CRM’s and other platforms that hold customers details, data access via accidental loss of laptops, ipads, and other mobile devices – all of which can have devastating effects. A recent survey in Australia by Chubb Insurance, a leading global cyber insurer, highlights the challenges faced by SME retailers; • 47% of SME’s in Australia are unaware of their cyber reporting obligations under the Notifiable Data Breaches (NDB) scheme • 49% of SMEs do not have a data breach response plan, while 79% are confident they can overcome a breach by sophisticated hackers within 24 hours • 49% of Australian SME’s were victims of cyber incidents in the past year • Only 27% of SMEs have cyber risk insurance • One — the number of staff members that hackers need to dupe to gain access to your business’ data Data security breaches can have severe implications for a retailer’s bottom line with companies suffering lost productivity, lost revenue, notification costs to customers, PR costs, significant recovery costs and penalties, irreversible damage to the corporate brand and customer trust, and exposure to third party legal claims. Retailers cannot avoid the use and collection of data as well as a reliance on technology, and therefore the risks of data loss and technology breaches must be managed. Preventative measures and post-loss actions are necessary tools to prevent and/or minimise loss.


cross every industry, the buyer journey has changed. Not long ago, customers progressed through the buying funnel

can determine which data needs to be held in a private cloud, versus which data can be stored elsewhere through a third-party provider. What kind of flexibility do I want? Working with multiple cloud service providers and a dedicated data centre partner gives you the flexibility to choose the right provider for your data needs. From securing customer data, to increasing bandwidth during peak shopping times, partnership will empower retailers to meet the demands placed on the business at any given time. How innovative do I want to be? One of the biggest headaches that retailers face is whether their existing infrastructure can support and integrate technological advancements and the subsequent demands they put on data. Artificial Intelligence (AI), for example, requires complex data processing and a high level of computing power and interconnectivity. Who will manage this? Regardless of what your IT infrastructure looks like, it’s important to consider how your IT teamwill manage it. Multi- cloud environments that involve more than one service provider are naturally more complex. Explore partnerships that best empower your teamwhile simultaneously meeting business demands. Howmuch can I spend? Outsourced provisions, such as public cloud or colocation, are growing in popularity as they provide an instant update to infrastructure without major output. A cloud-

in a formulaic and predictable manner. Today, however, the customer journey involves a web of touchpoints across online and digital platforms that continuously direct and re-direct the customer to specific brands and products. To get ahead, retailers have quickly turned to data to enhance customer experience and ultimately drive sales. But expectations are high. Not only must retailers have the ability to collect customer data rapidly and concisely, but they must also be able to garner and act on insights in real-time, pivoting their marketing strategies as necessary. And this is impossible without the right infrastructure in place. Like many things, there’s no one-size-fits-all when it comes to IT infrastructure. This is leading many retailers to look to cloud and data centre partners for the purpose-built infrastructures, rapid, low-cost interconnection, and simple management within these complex data environments. But how do you get started on this journey? Here are five considerations for retailers: What are your data needs? Understanding your data needs is critical to a functional and strategic data strategy. Start by assessing howmuch of your data is highly sensitive. For example, customer payment information needs to be kept in a highly secure environment. From here, you

Digital Realty supports the data centre, colocation and interconnection strategies of more than 2,000 firms across its secure, network-rich portfolio of data centres located throughout North America, Europe, Latin America, Asia, and Australia. Digital Realty’s clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications, and social networking to financial services, manufacturing,

Call us now on 1300 368 041 (dial 3) or email for an obligation free quotation or visit to see how your current insurance premium and cover compares to ARA Insurance.

energy, healthcare, and consumer products. For more information visit,



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