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Opinion piece

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VoIP and retail
The retail sector is seeing an increasing number of organisations implementing advanced communications technology and using it in a variety of different ways, notes Gene Reynolds, senior consultant at CC

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Unified communications (UC) technology and applications like Voice over Internet Protocol (VoIP) have been around for a while now but for a long time were sold largely on the back of their ability to reduce, and in some cases completely remove, telephony expenditure. This technology has developed a great deal over the years and retailers are discovering that there are now a wide range of different, and persuasive, reasons to integrate voice and data networks.

As internet speeds and applications have improved, retailers have become increasing aware of the opportunities that using the right technology can provide. Retailers with effective IT departments are finding that through convergence and the use of UC applications they have been able to add real business value to their organisations. A good example of this is Dreams, Britain’s leading bed specialist. When the organisation recently bought eight stores in Scotland it was on the proviso that they were open and operational in a very short timeframe. Using WAN integration and a 3G mobile phone connection, Dreams was able to connect the new stores to its existing networks temporarily until permanent broadband links could be installed. This meant that the new locations could be open in a matter of weeks rather than months.

It is capabilities like this that make it more obvious why advanced communications technology like UC is appealing to larger businesses that are typically divided over many disparate locations. In the retail sector UC is helping these businesses to maintain brand continuity across multiple locations. As the sector has evolved over time, one of the biggest challenges faced by retailers has been sustaining personal customer relationships that are a key part of securing customer loyalty. When the retail industry operated in much smaller customer facing environments these relationships would develop naturally.

Today, retailers strive to maintain brand continuity as a way to reinforce customer relationships. VoIP and UC networks can be used very effectively to ensure that both stores and staff stay synchronised with one another. UC provides the ability to interact from a single interface, see where colleagues are at a given time and, through the use of presence based communications software, see if they are online, away or busy. In addition, the software allows staff to indicate how they would prefer to be contacted at any specific time.   

UC technology is also proving useful with the store support side of retail including call centres with integrated store communications removing the need for a different phone number for each individual store location. Valuable sales resources are freed up by allowing user-friendly voice response access for common customer enquiries such as the nearest store location, opening hours and delivery status. A common complaint in call centres is that a great deal of agents’ time is wasted navigating a multitude of different applications and systems. UC helps alleviate this problem through the integration of desktop applications with voice communications.

The use of VoIP allows call centres to provide significantly improved customer service by adopting techniques including intelligent call routing, home working and incorporating other methods of communication like instant messaging and email. The customer can also be provided with a more personalised service. When customer contact is made, a record of previous interactions/complaints/enquiries can be programmed to appear instantly on the agent’s screen. In addition, customers can be contacted via the medium of their choice including telephone, SMS, email, IM or fax. These capabilities are proving useful in the struggle to maintain brand continuity and re-establish more personal relationships with the customers.

As previously mentioned, VoIP is very effective at reducing telephony charges. Call charges for internal communication are removed and the cost of outbound telephony can be reduced by nearly 50 per cent while the addition of a GSM Gateway has saved some companies sums in the region of £25,000 per annum in the cost of calls to mobiles. Other attractions of this technology include a more efficient way of communicating with suppliers. Retailers that set up UC channels with suppliers can arrange to have depleted stock automatically reordered, while staff will be in a better position to provide customers with up to date information regarding the arrival of additional supplies. Additional retail applications which can sit on top of a UC network include CCTV and ADSL in individual branches allowing a functionally rich internet, enabling efficient communication of internal policy, training and procedures.

UC and VoIP technology is proving itself in the retail environment and those organisations that use it realise that it has a lot more to offer than simply reducing call charges. Innovative retailers are using the advanced communications technology in improve procedures and customer experience. While the benefits mentioned here are attractive, it is important for organisations to do their research and find out which is the best UC solution for them and the best way to implement it. With a business critical area like communications it is imperative that implementation runs smoothly and is successful first time. Retailers considering UC and VoIP should consult with experts to ensure that the system installed provides all the functionality that they require.

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