Cost efficiency, adaptability and outstanding shopping experiences - these are the goals of all...
In today's e-commerce landscape, compelling and seamless shopping experiences have become the cornerstone of business success. In fact, 46% of customers will buy additional products if they receive a personalized experience, according to a recent Forbes study.
The same study found that more than half (53%) of respondents care just as much about the shopping experience that a company offers as the products or services it provides. And 49% said that the relationship that retailers nurture with their customers is equally important to the selection of products or services.
Composable commerce and MACH architectures offer the strategic and technological capabilities to meet these demanding customer requirements. However, retailers, manufacturers and brands need more than just a modular software architecture. Because this can only develop its full potential if it manages to fulfill the central "why" of your strategy.
Maybe that sounds too philosophical for you? Then reconsider your opinion. The "Golden Circle," a globally recognized thinking and management model of successful companies, can also be applied to a modern omnichannel strategy.
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A Bit of Theory: The Golden Circle by Simon Sinek
The Golden Circle is a popular thought model developed by management consultant Simon Sinek. He first introduced it in 2010 in a TED Talk titled "How Great Leaders Inspire Action" - one of the most viewed videos on TED.com to date.
The model looks at why some companies are more successful than others, from Apple to Tesla to Home Depot. Sinek notes that there is a pattern among all innovative companies: instead of being concerned with the "what," i.e., what your company does, they put the meaning, the "why," at the center of their action.
- The “Why” is at the center of the Golden Circle and asks the question of purpose, cause or belief. It describes the motivation of an enterprise or the goal of an action.
- The “How” explains the processes or principles that put the “why” into practice. It’s a concrete approach to turn goals into realit,y or deliver value to your customers.
- The “What” describes the specific product or service that a company offers or implements. Although this is often the most communicated aspect, it is simply the result of the preceding "Why" and "How".
The Golden Circle can also be applied to Composable Commerce. By focusing on the "Why", retailers, brands and manufacturers can create consistent and engaging customer experiences that are supported by the "How" and "What." This enables them to successfully position themselves in a competitive marketplace and sustain customer loyalty.
Seamless Customer Experience as the Goal of Digital Transformation
"In a composable commerce project, companies often get lost in the technical functionality of the various applications," explains Maximilian Schunk, partner manager at Algolia. "However, they should never lose sight of business value, and must prioritize it accordingly."
The “Why”: Consistent Customer Journeys for Long-Term Customer Relationships
Building Composable Commerce means creating coherent and seamless experiences across all touchpoints that delight your customers. This is the true value driver behind a successful unified commerce strategy. Your business and digital strategy should tie into the "Why" of this. This is how you ensure that initiatives are going in the right direction.
The “How”: MACH Architecture as the Technological Framework
To accommodate increased customer demands, retailers need a highly flexible, scalable and future-proof IT ecosystem. And how do you build this modular tech stack? With the proven MACH architecture.
MACH stands for the four principles of Microservices, API-first, Cloud-native and Headless. The IT architecture enables your company to quickly adapt to changing market conditions and implement innovative best-of-breed solutions without restrictions.
The “What”: Composable Commerce for E-commerce Success
In turn, the MACH architecture is the foundation for building Composable Commerce: an approach that analysts Gartner predicted as early as 2020 would be an indispensable means for retailers to future-proof digital commerce experiences.
Composable Commerce enables companies to combine various commerce solutions in a single tailored e-commerce platform.
This results in individual business components (“Packaged Business Capabilities”, or PBCs for short) that are converted into digital e-commerce services, such as search functions, shopping carts, check-out carts or after-sales promotions.
It’s important to know that a composable tech stack entails a not-insignificant degree of complexity. This is where a Digital Operations Platform can help, by orchestrating unified customer experiences and multiple composable commerce vendors, and coordinating data, microservices and capabilities across them. To get an idea of what's possible, check out our guide to the top omnichannel examples in e-commerce.
However, the approach goes far beyond the technical component: rather, every decision for or against an application is chosen strategically and from the customer's perspective. Which brings us back to the “Why” and closes the circle.
Conclusion: The Golden Circle of Customer Experiences
Understanding the Golden Circle of "Why, How, What" can help retailers develop a successful unified commerce strategy. With the Actindo Core1 digital operations platform, companies can create a flexible, scalable and unified customer experience that ultimately fulfills the "Why."
Actindo Core1 is MACH-certified and the world's most flexible Digital Operations Platform for digital commerce. The powerful platform unifies, orchestrates, and automates all business processes on a central platform.
In addition, marketplaces and systems from external service providers can be seamlessly integrated via numerous interfaces. Thanks to its API-first and headless nature, Core1 can be integrated both as a central solution or step-by-step into existing legacy system landscapes.
With more than 15 years of experience, and as a global leader and pioneer in DOP and ERP for e-commerce, Actindo is your reliable partner for the implementation of a composable tech stack. Contact us for a free, no-obligation appointment where we can discuss the implementation of your goals together.
“At Actindo, we've made it our mission to enable sophisticated transactional business models beyond retail, e-commerce, and desktop and to be responsible for driving and delivering the single point of truth for composable commerce and control customer-centric experiences in the unified commerce era.”