As convenience store operations grow and incorporate more technologically advanced procedures, the need to simplify where possible becomes stronger. As a result, retailers and supplier partners are consistently working to create seamlessness and efficiency.
To that end, technology integration is a primary goal for many c-store tech leaders. The point of sale (POS), specifically, is one area in which retailers are looking to reduce friction.
Integration of different systems to allow, for instance, a hot sandwich ordered from a foodservice kiosk, a candy bar, a pack of cigarettes, fuel, and loyalty point accumulation or redemption in the same transaction, both inside the store and at the forecourt, is a strong objective. And, the integration gets more challenging when the transaction is made via a mobile wallet.
“That’s a goal for many c-store retailers, certainly,” said Doug New, chief information officer, Nouria Energy Corp. “Now some of those items are age restricted, perhaps, and are going to need some friction because somebody’s got to approve that, check my ID, whatever that process might be. But yes, that’s a goal.”
Worcester, Mass.-based Nouria operates 301 stores and 91 carwashes in New England and, with its acquisition of Enmarket, the Southeast.
Data Management
One of the chief facets of technology integration retailers must consider is data management. Data can be housed in many dashboards as more networked devices are added to a store, and leading retailers are approaching this by developing a “single pane of glass” in which to view statuses, Ed Collupy, president of Collupy System Solutions LLC, noted.
“With the ongoing increasing amount of data being collected, retailers need to have a strong data strategy that addresses the disparate sources of information; cleanses similarly named data and other anomalies; and focuses, with strong governance, on prioritizing data-centric projects, all in an effort to bring about maximum value from technology investments,” Collupy said.
New agreed, noting the importance of data and how retailers want to use their data.
“The primary source for most business data in our industry is the POS. So that produces, obviously, all of the transaction data,” he said. “And if you’re looking to implement a loyalty program or any other kind of marketing promotional program, looking to understand buying habits, weather impact. There’s all sorts of ways to integrate that information with the transaction data that comes from the POS.”
The challenge, he explained, is not just determining how to have different systems communicate, but how to have them share data in a meaningful way. Further, retailers must understand how one system produces data and how the other consumes it.
“What do you need to do to clean that data, ingest that data, use that data?” New asked. “One of the things I always fall back on when I’m looking at potential vendors or solution providers is, ‘Do they support technology standards for that data? For how that data can be shared? The formatting of that data that they produce so that other systems can accept it?’”
Adherence to technology standards can make the integration effort and ongoing support easier. In the future, Collupy, too, hopes to see a stronger support and adherence to standards, including a focus on a data dictionary.
He believes a unified approach to data management is necessary for c-store retailers, particularly small to mid-sized chains, who “are going to need to invest in their people and are likely going to need to look to service providers” that can help them develop this.
“The people include both business and IT professionals. All functional areas need to be unified, not just tech and data,” Collupy continued.
He knows, however, that data integration will require additional investments.
“Many business owners will take the view that the investments they’ve already made should help them reap benefits,” Collupy said. “They’ll get some, but to get everything possible out of the data, integrating data will be critical (and future investments will be necessary).”
That said, during the data integration process, Collupy warns against the possibility of data silos, which could be the result of a poorly planned effort. This could make it difficult to access or use data effectively.
“… A strong governance process that engages cross-functional teams can help mitigate
incompatible data structures and added data silos,” he said.
Security, too, is a big focus of c-store tech leaders. In a unified environment, Collupy said, a security approach that considers the whole ecosystem and not just individual components is required.
And when a new solution provider is considered, retailers should research the security
policies the provider has in place to protect data, New said.
“As a customer who’s not making software but using it, our focus is on the permission you’re granting these different systems to talk to each other, right? How do they actually gain access? … So when I send you something, what does my system need to be able to process it? How is that controlled? Who might know it? How often can I update that password or that access token? How do I turn it off if I think there’s a problem? So data security is paramount. …” said Evans.
Advanced Integration
Haffner’s, which operates 70 stores in Massachusetts, Maine and New Hampshire, has a single back-office product for its c-store operations.
“We’ve got handhelds that feed that back-office enterprise resource planning (ERP) system. Our registers feed data into those back-office systems. So we’ve got a very traditional c-store world, but from the handheld and the POS to the dispensers, all the accounting and back-office paperwork and deliveries and inventories are fully integrated,” said Steve Evans, chief technology officer, Haffner’s.
When expanding further, however, such as with foodservice or car washes, integration can be highly dependent on the fuel brand used, he continued, as fuel brands control the software required at the store.
Haffner’s has both branded and unbranded sites, so the chain is governed by a different set of rules for each location.
“That becomes a significant block in integration,” Evans said.
As a whole, the convenience store industry is working to remove these bottlenecks, he revealed, “so that we can take these different sectors of the c-store business and unify them, regardless of the fuel brand.”
Foodservice, specifically, is a sector to which Collupy brings attention in terms of tech integration. He noted that like small foodservice operators, small and independent c-stores are confronted with outdated, non-integrated systems that can become a time-consuming burden.
“Clearly, foodservice remains a promising revenue- and profit-generating category; without improved integration of legacy and even new-to-industry c-store systems with traditional foodservice-focused technology, the c-store industry will be left behind,” he said.
Evans noted vendors are becoming much more software oriented, a necessary shift for technology integration.
“Because I do want my foodservice kitchen management system to integrate with my POS. I do want to be able to do stuff from the pump, and I want it to all work off my loyalty app,” he said.
Integrating technology from the POS to the back office has been around for years for a traditional store, “but (with) these other pieces of loyalty and foodservice and auxiliary services at the stores, we’ve had to become a lot more software based, and all the vendors have realized this, and there’s definitely a focus on unification and integration,” Evans said.
New emphasized the importance of the effects of tech integration on the customer-facing side, using foodservice as an example.
“If I’m a customer coming into a store, how challenging or not challenging is it for me to order a sandwich from a foodservice kiosk and pay for it? Is it one step? Is it two steps? Do I place the order on the kiosk and then go pick it up, but then have to go up front and pay? Can I pay at the kiosk itself? Am I able to take advantage of any promotional offers at that kiosk at the same time?” he asked rhetorically.
These are the questions tech leaders in the c-store industry must ask when it comes to how they plan to approach integration, as well as which vendor services will be most advantageous to their existing systems.
When New considers a new solution, he questions if there will be redundancy, and if there is, if the overlap in functions will be a benefit or not.
Integration can be simple or complicated, he explained, depending on what the specific goal is. For instance, integrating the POS with the ERP, allowing the ERP to gather the transactional data to produce reports, is not difficult.
“There are others that are going to be much more complex,” New continued. “… One of the things that we’re about to roll out is a mobile wallet with our mobile app, and when you’re dealing with multiple fuel brands and a loyalty provider and the application developer and the mobile app developer, that could be different. There’s an awful lot of touch points. There’s an awful lot of challenges with making sure that you’re seeing the consistent user experience across that entire platform.”
Retailers must ask themselves what their goal is, he advised. They need to know what their business objective is for a piece of technology. If c-store operators are looking to integrate new technology into their system, this will provide a better understanding of the type of solution they’re searching for and how they will exchange and absorb data.
At the end of the day, Evans said, it’s important to meet customers where they’re at.
“When you have an older company like Haffner’s that’s been around for 100 years, we have a lot of legacy stuff that’s been around,” he said. “But customer experience for us is frictionless, from the loyalty app forward. … Everyone says more and more digital … so we have to become more digital, but we also have to be able to serve (those who want the) ‘every employee knows your name experience’ or (those who) want to be able to get what you need off an app or off the pump … because that’s convenient for you.”
