How the Cloud Gives Small Retailers Advantages the Big Guys Have Long Enjoyed

Cloud software is no longer something for bleeding-edge businesses and trailblazers. That trail is thoroughly blazed. All kinds of businesses are now comfortable using cloud services like Google Docs and Dropbox storage, and they're enjoying the benefits of cloud technology — e.g., being able to access information from any internet connection and easily share/collaborate on projects.

These stand-alone services are merely the first stage of businesses using the cloud. Businesses are now combining multiple cloud business software solutions to create powerful and efficient systems. This is a trend that will only continue to grow.

As a web-based point-of-sale (POS) software provider, Vend is thoroughly on board with the power of the cloud. For example, Vend recently moved an office of 60 people, but because all its systems are on the cloud, the company only lost half a day of productivity — the time spent crossing town.

I'd like to share a few examples of cloud services that give the little guys in retail the kind of business tools that used to only be available to the big guys with deep pockets — tools that rival the complex and expensive customized ERP setups that the large operators have long used to mine data and sell product.

Indeed, one of the coolest things about the cloud revolution is the power it puts into the hands of independent retailers.

Big Data for the Little Guy or Gal
We know how data works online. Google Analytics is an incredibly powerful tool for online retailers. Understanding how many anonymous visitors land on a website and how many of those convert into paying customers can give webmasters valuable, real-time feedback on how changes to a website affect conversion rates.

Now retailers can do the same thing in their brick-and-mortar stores with cloud-based software. Information collected from people passing by is processed into easy-to-read data, allowing businesses to see how much foot traffic there is in the vicinity, how many shoppers came in, and the number of people who completed a purchase.

Retailers are able to translate this in-store data into actionable steps to increase efficiency and reduce costs. For instance, retailers can determine how many store associates to put on the floor at any given time, when to roster staff breaks, how to allocate tasks, and more.

Customized Payments
Mobile payments, digital wallets and even new currencies (e.g., Bitcoin) are changing the way people buy things. And we're not talking about the future, we're talking about what's happening now.

The idea of paying for items using a smartphone isn't a novel concept. In fact, for quite some time now, PayPal has been offering check-in capabilities that allow customers to pay using their phone, eliminating the need for cash or credit cards.

It gets better. PayPal has gone one step further in making the customer experience even easier thanks to Beacon, a low-frequency Bluetooth technology that enables customers to pay for their merchandise without even taking out their phone.

Users of the PayPal app can program devices to "check in" to their favorite stores and even accept payments automatically for specific retailers, all without removing their devices from their pockets. In short, they can give themselves a shopping experience that's entirely hands free.

Beacon technology lets retailers personalize each consumer's shopping experience even more. For instance, whenever a shopper checks in using their PayPal app, the retailer will be able to view their name and purchase history with their brand. This paves the way for meaningful interactions and better customer service — and a quicker coffee in the morning.

This trend reminds me of the first days of the iPad — you looked at it and saw it was cool, but what was even better was knowing that all around the world people were busy building apps to make it even better. Here's to an exciting time to be in business, and to being in the cloud.

Vaughan Rowsell is the founder and CEO of Vend.