NZ retailers urged to prioritise CX over tech advances

Customer experience should be the top focus for e-commerce retailers in Aotearoa New Zealand, rather than technological advances alone, according to Mark Presnell, Managing Director at Auckland-based eCommerce integration firm Convergence.

Presnell believes that whilst technological development is a critical aspect of modern retail, it's the correct application of this technology in improving customer experience that truly impacts the success of a business.

With many retailers expressing anxieties over the rapid pace of technological change, and the rise of AI and powerful fulfilment models like those of Amazon and Temu, the focus shouldn't be technology per se, but rather its effective utilisation. Presnell affirms that, "even legacy systems like Netsuite, Attache or SAP (Systems, Applications & Products in Data Processing) are perfectly fine so long as they are part of an integrated eCommerce architecture that enhances speed, security, and usability along with customer satisfaction and personalisation."

Presnell notes the challenge for smaller retailers to keep pace with change, like large-scale establishments. He reassured retailers by reflecting on retail's core function to provide, "value through a seamless customer service experience," and stressed that retail is not all about size and reach. He underlined that not all consumers prefer to buy from large, faceless corporations, and therefore local retailers can also compete effectively if they focus on enhancing customer experience.

Presnell also identified the challenge local eCommerce retailers face in maintaining their unique brand identity amid the efficiency and automation provided by larger corporations like Amazon. His advice to local e-commerce retailers is to focus on strategies that improve their technology usage to enhance the end user experience.

Presnell recommended several strategies: Firstly, optimising legacy systems by integrating them with modern eCommerce platforms like Shopify or BigCommerce, which can extend their usefulness without incurring the high costs of upgrades. Secondly, monitoring technological developments, particularly those involving AI and automation, to understand which innovations can meaningfully contribute to business operations. Lastly, focusing on comprehensive technology training to ensure staff proficiency, which can mitigate issues of outdated technology that frustrates employees and hampers productivity.

Presnell cautions that a reliance on complex or inappropriate technology that is not correctly integrated into a smooth process is setting businesses up for failure. He is firm in his belief that "surviving into the future is about realising that technology is only useful if it improves business functions, and legacy technology can do that too. More important is to ensure efficiency while safeguarding the unique character and competitive edge of your business."