How SD-WAN solves key retail challenges

The past three years have been challenging in many ways for the retail industry and this uncertain reality isn’t going anywhere. The industry continues to face challenges; the cost-of-living and energy crisis, and expected period of economic downturn, are understandably unsettling for all sectors, with retail particularly hard hit in a recessionary period.

Retailers need to adapt to smarter technology that can not only support their in-store operations and ensure an excellent customer experience and guarantee secure customer payments and business data, but that can also help them to transition into a truly omnichannel offering: improving customer experience and operational efficiency -- all of which are crucial in these uncertain times. 

Many retailers are embracing this challenge and using it as an opportunity to rethink the way in which they do business to ensure long-term survival and profitable growth. One key solution is through implementing a Software-Defined Wide Area Network (SD-WAN). 

SD-WAN offers a more flexible approach to connectivity and can potentially provide improved network performance, along with more granular visibility and cost savings compared to traditional network technologies such as Multiprotocol Label Switching (MPLS).

SD-WAN can also provide central orchestration and management, and along with that, network simplification. This can help Managed Service Providers to provide an improved service reducing the time required to deploy sites (shops) and services, which can be critical for retailers who often need to respond quickly to market requirements. As SD-WAN is an overlay technology that can be positioned on top of the underlay, it can be deployed onto existing connectivity, whether that be traditional MPLS, Direct Internet or even 4G/5G. This provides retailers with real freedom of choice when it comes to procuring connectivity services. 

Enhancing the in-store experience

The use of technology in-store is rapidly growing as consumers demand a far more integrated shopping experience, with the lines increasingly blurred as to what happens in a physical retail store and what happens online. It is no longer enough to simply offer products -- consumers want a shopping experience; from free charging hubs, streamed TVs, smart mirrors, video, and digital signage to the scanning of codes -- the pressure on retailers to make a consumer’s experience as engaging and integrated as possible is a clear trend and one that shows no sign of slowing. 

To fulfill customer expectations and to utilize these technologies, retailers need to fundamentally check that their networks are fit for purpose, reliable, and secure. SD-WAN solves the challenge of enhancing the in-store experience by improving network uptime, performance, and redundancy. It also provides the retailer with the ability to support modern technologies, and the latest cloud-based apps, whilst also prioritizing business-critical applications such as payments. 

SD-WAN can provide retailers with the peace of mind of not having to worry that their payment systems might be affected because of a lack of network resiliency and increased demands on bandwidth as a result of increased in-store digital features such as customer Wi-Fi or digital signage.

Brand protection 

It is more important than ever for brands to protect their reputation as consumers expect excellent customer service each time they shop. Online review sites and social media platforms are an open source for consumers to criticize a single bad experience, no matter how big or small. Whether that be the speed of service, an issue at checkout or payment -- depending on the need and ability of a competitor it could see consumers shopping elsewhere and ultimately harming the brand’s reputation.

It’s therefore crucial for retailers to build an infrastructure that is resilient and able to prevent service disruptions regardless of circuit availability. SD-WAN can provide automatic failover when a service impacting event is detected. Multiple circuits can be bonded or utilized at a single location to provide resilience and increased performance by utilising all available bandwidth. By constantly monitoring the circuits and configuring application service level agreements (SLAs), SD-WAN knows the optimal path to send business-critical traffic at any given time. We all know how frustrating it can be when the card machine doesn’t work at the till, or the webpage suddenly crashes when trying to complete a checkout online -- SD-WAN can help ensure that the customer’s experience, be that in store or online, isn’t hampered by network disruption or outages.

SD-WAN is proving to be an invaluable technology, whether that be for enhancing customer experience, enabling business growth or protecting the retailer and its customers from security threats -- with both new and old challenges impacting the industry, it’s time for retailers to think differently as we enter 2023.

Image credit: Momius/ depositphotos

Stephen Amstutz is Head of Strategy and Innovation at Xalient.