ScanSource

FOR SMALL RETAILERS

While technology has undoubtedly made the world a smaller place, it has also empowered a new generation of entrepreneurs and retailers to create modern businesses fueled by 21st century technology. New solutions have opened the door for small retailers to compete on a global scale. But what is it that drives these businesses forward—and how will technology help them meet and exceed their organizational goals in the coming years? A survey of retailers across various business verticals revealed some interesting insights into how tech is playing a role for companies of all sizes—and how ScanSource is positioned to help them take their businesses to new heights.

Looking into the Mind of the Small Retailer

To better serve customers and users, you have to understand what makes them tick. We surveyed small retailers from across multiple industries to understand what drives them, how they use technology, and where ScanSource can help deliver outstanding value.

Entrepreneurial

At the heart of every small retailer is an entrepreneur, and the impetus for starting their own business sticks with them, even as their companies grow.

I want to be my own boss

89%

of retailers say that they like being in charge

How can I be better?

But these decision-makers aren’t satisfied with the status quo and are constantly looking for ways to improve—including leveraging new technologies.

84%

of retailers say that they like trying new things for their businesses

Improving

Searching for success stories

While retailers want to make the decisions, they also want to draw inspiration from the success of others.

78%

of retailers find stories about other retailers to be inspiring

Inspiration

Technology for all

While younger retailers (under the age of 45) are more comfortable with technology and digital solutions, those over the age of 45 are also leveraging technology in new ways. In fact, they are beginning to make learning about new solutions a top priority.

91% of retailers under the age of 45 agree that they must continually train on new technologies. 82% of those over 45 agree.

88% of those under 45 consider themselves technologically savvy, compared to just 64% of those over the age of 45.

Under 45 years old

Over 45 years old

100

91%

82%

100

88%

64%

Technology

Strategic investments are key

Budget is obviously a key priority for retailers but not for the sake of driving increased profitability. These retailers are laser-focused on building better businesses, and they are prepared to invest in the right solutions to help them succeed.

Investing

Under 45 years old

Over 45 years old

57% of retailers under the age of 45 say that budget is not a concern when it comes to trying new technologies— and that number grows to 61% for those over the age of 45

100

57%

61%

Outstanding service above all

Technology is a means of improving customer experience and service levels or freeing up time that can be reinvested in providing a personal touch

Customer

Retailers feel that they are competing with organizations like Amazon and other big-box stores for their level of service. They look to leverage their experience to deliver better customer interactions and are nearly unanimous in concluding that providing outstanding service to the end user is essential to their business.

Customer

Investing

Technology

Inspiration

Improving

Entrepreneurial

I want it to be

as smooth for

customers as possible.

I want their

experience to be

as seamless

with us as possible

and exchanging information as

effortless as possible.

Most retailers have one primary focus: adding additional value and providing a level of service that keeps their customers coming back for more. A key finding from our study is that, among these retailers, they acknowledge that finding the right technology solutions and partners is a cornerstone of meeting these growing expectations.

How Retailers Are Approaching Technology

Retailers acknowledge that technology is key

Retailers want to make decisions, just not all of them

Small or large, the struggle is real

Retailer expectations for 3rd-party technology suppliers are high

Staying in the know is important and challenging

When it comes to planning for future growth, conducting financial management, and getting the most out of their marketing efforts, retailers largely agree that tapping into technology solutions is extremely important.

Retailers acknowledge that technology is key

In addition to all of their own responsibilities, retail leaders devote an average of nine hours per week either looking for or wrestling with technology solutions.

Retailers want to make decisions, just not all of them

While it is true that small retailer leaders relish their roles as "decision makers", there are some areas where they are more likely to avoid certain responsibilities—specifically as it relates to sourcing and servicing tech solutions.

Just 9% of retailer owner/operators say that they are responsible for maintaining current IT systems.

On the other hand, 94% of retailers say that they are in charge of determining the investments their businesses must make.

Small or large, the struggle is real

While the study shows that large retailers are more willing and eager to consider using new technology, both small and large retailers agree that staying on top of the technology market is a difficult challenge. Knowing what’s out there, what value it adds, and how it relates to their organization is a hurdle that many companies face.

76% of large retailers (100+ employees) identify as “progressive” in their approach to using new technology. 59% of retailers with 10–99 employees identify as the same, and only 45% of those with fewer than 10 employees see themselves as technologically progressive.

Large and small retailers both have concerns about implementing new technology, though those concerns can differ. Smaller organizations are particularly worried about financial exposure. Larger retailers—those who consider themselves more progressive in adopting new technology—are concerned with cybersecurity and compliance.

56% of small retailers say that sticking to the operational budget is highly critical.

49% of “technologically progressive” companies are very concerned about the cybersecurity risks of using cutting-edge tech, and 47% are concerned about staying in compliance with increasing regulations.

Among the key products and services that require some assistance from 3rd parties:

Network security

loT solutions and digital signage

Web hosting, custom apps, and business services

Staying in the know is important—and challenging

Retailers are largely aware of the positive impact that new technology solutions can have on their business operation and bottom lines, but many are unsure of how to get there. Whether it’s finding the right solution or supporting it once it’s in place, the challenge can be daunting.

86% of all retailers agree that they must continually train themselves on new technologies and techniques to remain competitive and up to date on the latest offerings.

When it comes to support, it’s all about personalization. Customers want VARs and SIs that they partner with to offer support that is based on the needs of their businesses – not cookie-cutter solutions. Customers are interested in solving specific business challenges. Partners should be able to explain the pros and cons of their offerings and make recommendations that will deliver meaningful value.

Retailer expectations for 3rd-party technology suppliers are high

When these retailers partner with 3rd-party technology specialists, they have big expectations for the level of service and performance they receive.

Retailers want human interaction on the other side of their tech solutions. Just as they focus on service levels in their own businesses, being able to pick up the phone and get a human interaction to solve technology-related challenges is key.

Retailers want hands-on training to help understand and use their technology solutions and believe this should come from the 3rd-party suppliers.

Now that you have a deeper understanding of the mindset and challenges that retailers are facing, ScanSource is well-positioned to offer expertise that will provide outstanding value and service for your organization. How? Just take a look:

The ScanSource Opportunity

OPPORTUNITY

SET APART

BUSINESS VALUE

Areas of opportunity retailers want help with...

and these additional areas as well:

Merchant accounts Voice telephone systems

Data networking Physical security

Business service tech Network security

Web hosting Cloud services

Digital signage IoT solutions

Custom app development

Delivery and point-of-sale systems

Inventory management

Loyalty/ engagement programs

OPPORTUNITY

48%

are interested in custom application development solutions

44%

are interested in delivery and point-of-sale systems solutions

46%

are interested in inventory management solutions

52%

are interested in loyalty/engagement program solutions

What sets ScanSource apart? Why do our customers buy from ScanSource? Because they want a partner who can:

ScanSource invests every single day in the resources, programs, and people to help create profitable growth.

Help them beat the competition

Close more deals

Discover great profitability

SET APART

The ScanSource business value props—putting it all together

ScanSource is uniquely positioned to help retailers of all sizes and markets reach their business goals through technology solutions. Here’s how:

Solution Suppliers

ScanSource Services Portfolio

Centralized logistics

Partner enablement

Knowledgeable support

BUSINESS VALUE

solution suppliers

We strategically maintain a line card with the industry’s leading suppliers, vetted by our team. That way, our subject-matter experts can help our customers build solutions that are more complete than ever before.

ScanSource Services Portfolio

ScanSource services are laser-focused on giving businesses a competitive edge by providing resources and programs that will help organizations scale across their entire customer base. Our services include planning and design, implementation, optimization, and customer experience. By combining the top technologies and products with best-in-class service offerings, ScanSource is uniquely empowered to help our customers grow their businesses to new levels.

Centralized logistics

When customers need it now and need it right, ScanSource can help. Speed and efficiency are our default mindset. And the ability to deliver the solutions that our customers need with a good dose of confidence in how they’ll arrive is proof of just how seriously we take our commitment to excellence.

Partner enablement

We’re going to help you grow your business; we take that promise very seriously. That’s why we invest our time and energy in enablement programs that actually help them grow. And it’s why we build programs that are designed to identify and connect the resources and support that our customers need for adding new product lines to their offerings efficiently.

Knowledgeable support

We know a thing or two about solving problems. And a major part of how we help customers transform products into solutions is our knowledgeable sales and support teams. From proposal through warranty, these focused experts are here to help at every step of the sale.

Find out how partnering with ScanSource can help you deliver the perfect solution for your retail customers. Visit scansource.com/retail-solutions for more information.

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