5 benefits for retailers to transform toward composable commerce

(Source: Commercetools)

Modernising your commerce infrastructure with composable commerce brings a range of benefits for retailers. 

1 – Create unique omnichannel customer experiences

Omnichannel commerce has become mainstream and, more than ever, retailers need to implement cohesive and personalised consumer-brand interactions across channels and devices. Because of its modular nature, composable commerce enables retailers to plug and play touchpoints at any time while creating connections for seamless experiences, no matter where the customer starts the shopping journey. 

Creating unique experiences means increased conversion repeat purchases in the long run, a benefit experienced by the fashion retailer 66°North. Because the company has modernized its commerce system with composable, it unlocked more design options for its frontends as the foundation for unique experiences that resonated with customers. The result: an increase in repeat purchase rate by 75 per cent.

2 – Innovate faster

Gartner revealed that fostering business innovation is the primary catalyst for 65 per cent of organisations investing in digital commerce. Indeed, it’s through composability that retailers can get innovations to production faster because they are implemented without dependencies in a modular, agile way. 

For example, by implementing composable commerce, the fashion brand Express has been able to add five significant capabilities to its digital experience in only three months. 

3 – Reduce total cost of ownership 

Instead of significant upfront costs associated with all-in-one suites, retailers can select third-party vendors that best fit the business needs, both technological and financial. With composable commerce, retailers can subscribe to a single needed resource – like John Lewis and Checkout powered by Commercetools – instead of paying for an entire platform with an unnecessary feature set.

We have lowered our operations costs, reduced our time-to-market, made it easier to recruit talented employees, and vastly improved our mobile experience,” said Tina Likke Kristensen, senior manager, non-food commerce, at Salling Group. “We received an award for the best German-connected retail solution and… we’re just getting started.”

Over time, retailers can reduce the total cost of ownership (TCO), as expenses related to extensions, feature development, deployments, etc, are optimised. 

4 – Increase sales and revenue 

Using composable commerce enables retailers to automate sales journeys and engage customers the way they want. This translates into increased revenue, as experienced by the Denmark-based manufacturer of high-end consumer electronics, Bang & Olufsen.  

The company aimed to strengthen D2C sales online and decided to take commerce to the next level with composable. They integrated all sales channels into a single omnichannel strategy, leading to a 60 per cent increase in conversion rate across 28 online stores. 

5 – Make complex commerce simple 

Commerce is complex, especially when retailers have multiple brands and are present in several markets. These lead to a high amount of data, frontends, touchpoints, and vast catalogues. Handling this complexity is only possible with modularity, best-of-breed and maximum flexibility powered by composable commerce.  

For example, the conglomerate of brands Berlin Brands Group required a solution to handle the complexity of creating a unique look and feel for 10+ web shops across the European Union. Composable commerce helped them fulfil complex requirements and fully customise experiences. 

Berlin Brands Group has multiple brands under one roof and sells a large catalogue of products in several European countries,” said Hauke Rahm, VP of customer success at Commercetools. 

“Choosing a best-of-breed composable architecture with a powerful API platform underneath from Commercetools was the only answer. Now they can tailor each of their brands’ web presences to be distinct and add multiple currencies and languages to their online stores seamlessly.

In the evolution of e-commerce – from desktop and mobile to omnichannel – retailers that previously relied on all-in-one suites are switching to composable commerce and don’t look back. This future-proof transformation will establish the foundation for captivating customer experiences, innovation, and revenue growth.

Author: Manuela Tchoe.