Platformization: The Retail Strategy You Can't Afford to Ignore

Key Components of Platformization: What You Need to Succeed

Retail moves fast — sometimes too fast. There's constant pressure to scale, to personalize, and to be everywhere your customers are. And to make matters worse, your current systems are probably slowing you down. 
 
Enter platformization. It’s a strategic approach that allows you to connect your sales, inventory, and customer engagement systems under one cohesive platform, so your business runs like it should: smoothly, intelligently, and always one step ahead of your customers' expectations.

In this blog, we'll talk about what platformization really means, how it beats piecemeal systems, and why it's essential for the modern retailer:

What Does Platformization Really Mean?

There's a constant push-and-pull between customer expectations and operational capacity. Consumers want seamless, omnichannel experiences, meanwhile businesses struggle to manage data scattered across disjointed systems.
 
Platformization eliminates these silos. Instead of cobbling together various tools and software to manage different aspects of the business — inventory, customer service, marketing, sales, and supply chain — platformization connects all of these functions under one umbrella. Think of it as building a cohesive, unified ecosystem that allows your entire retail operation to work in sync.
 
ThirdChannel's retail platform, for example, integrates real-time sales data, inventory levels, customer engagement metrics, and store performance into a single source of truth. You don’t have to chase down reports or pull data from different systems. You just see what’s working, spot the bottlenecks, and decide what’s coming next  — whether it’s when to restock, where to allocate marketing spend, or how to improve in-store experiences based on actual customer behaviors. 

How Fragmentation Is Quietly Costing You

Maybe one department thinks it’s making the right call, but they’re doing it based on outdated or incomplete information. Or, a customer places an order online only to find out the product is unavailable when they get to the store. Or maybe it’s the promotions that launch, but real-time inventory can’t keep up.
 
Retailers tend to accept these disconnects as the cost of doing business, but they’re actually symptoms of systems that were never designed to scale together. And even though these aren’t headline-making problems individually, they erode performance day after day.
 
That’s why 60% of retailers plan to increase their investment in data analytics over the next year. They know that the gap between data collection and actionable insights is where revenue is either captured or lost. They're realizing that fragmented systems undermine their entire operations, leading to missed sales, frustrated customers, and inefficiencies that slowly drain profitability. 

Key Components of Platformization: What You Need to Succeed

If platformization sounds powerful, it’s because of the specific components that make it work. Let’s look at three key pieces that put platformization above what traditional systems can offer:

  1. Integrated Systems. True platformization allows your core systems to actively improve one another. Marketing knows how sales are performing, so they can adjust their promotions in real-time. Customer service can resolve issues faster because they have complete access to the customer’s journey across every channel. Inventory teams can forecast demand more accurately because they’re pulling from a unified dataset, not guessing based on last month’s numbers. When you integrate all of your systems, you stop playing catch-up and start being proactive.

  2. Data Unification. Data delayed is data wasted. But a retailer using platformization doesn’t have to wait for end-of-week reports to adjust their strategy. For instance, if your system shows a high volume of online cart abandonments for a particular product, your marketing team can instantly trigger a retargeting campaign to entice sales. Being proactive pays well, too: companies that use data analytics effectively are 23% more profitable than those that don’t because they’re acting on insights, not assumptions.

  3. Cloud-Based Infrastructure. Whether you’re preparing for a seasonal surge, adding an eCommerce channel, or expanding into new markets, traditional systems can buckle under the weight of increased demand. Cloud-based platforms remove those limitations. They allow you to scale your business as fast as you need to, without worrying about upgrading servers, expanding databases, or reworking your entire IT setup. Plus, your teams can access the platform from anywhere, whether on the retail floor, in the warehouse, or working remotely.

How to Get Started with Platformization

If you’re ready to unify your systems, here’s how to get started:

  1. Assess What’s Already Working (and What Isn’t). Before you think about new technology, take a close look at your existing systems. Where are your teams losing time? Are there data delays between departments? Are departments relying on different data sets? Identifying the gaps will show you where platformization can make the most immediate impact.

  2. Select a Platform That Supports Your Omnichannel Strategy. Companies with strong omnichannel strategies retain an average of 89% of their customers, so there's a strong incentive for retailers to find a platform that ensures consistent, connected experiences across every channel. Look for a system that unifies both sales and field data, provides real-time updates, and scales with your growth. And choose a platform built by people who understand the unique demands of retail — because experience matters when it comes to solving your challenges.

  3. Align Your Teams to Boost Adoption. Platformization doesn’t work if teams are still stuck in their old ways. Ensure every department — from marketing to operations—understands the value of the upgraded system. Provide training that goes beyond technical use and highlights how the platform benefits everyone by making their jobs easier, faster, and more efficient.

Your Path to Platformization Starts Here

Retail’s future belongs to brands that can move quickly, scale efficiently, and deliver consistent, personalized experiences across every channel. Platformization gives you the infrastructure to make this happen, turning fragmented operations into a unified, growth-ready system.
 
To explore how platformization can elevate your retail strategy, schedule a demo. We'll show you to grow smarter, run faster, and connect better with your customers by bringing all of your systems together. 

Published by Nick Ahrens, VP Sales and Strategy October 17, 2024
Nick Ahrens, VP Sales and Strategy