The retail and hospitality sectors face unique challenges when it comes to connectivity. From ensuring seamless customer experiences to maintaining secure payment systems, the demands on your IT infrastructure are significant. In this guide, we outline common connectivity problems for the retail and hospitality sectors, recommend appropriate wireless solutions from the latest technologies available, and highlight the benefits these technologies can bring to retail and hospitality operations, above and beyond solving existing issues.
Common connectivity problems in retail and hospitality
RetailConnections.co.uk reports that poor digital connectivity costs UK retailers £3.4billion per year1 and this figure is also reported to be in the billions for the hospitality sector2. We know that maintaining robust and reliable connectivity is essential in delivering excellent customer service and ensuring operational efficiency in these sectors. However, it’s clear that many retail and hospitality organisations struggle with persistent connectivity issues that can significantly impede their operations.
But the challenges don’t stop there. Retail organisations are continuing to adapt to increasing customer demands, a declining high street and a growing online presence while hospitality establishments are facing the true cost of living with less people eating out and increased food costs through the supply chain, and both sectors face increased customer interest in the carbon footprint and sustainability in the buying choices they make.
With so much to consider, ensuring your network infrastructure is fit for purpose and supports smooth operations every step of the way, shouldn’t be a problem to add to the list. We’ve collated the most common connectivity problems faced by retail and hospitality sectors, and then we present the latest wireless solutions that address them, to help inform your connectivity decision-making:
- Downtime:
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- Issue: Frequent network outages disrupt sales transactions, booking systems, and customer interactions
- Impact: With internet downtime costing UK businesses more than £3.7billion last year3, loss of revenue significantly impacts businesses along with reducing customer satisfaction and straining employees
- Security vulnerabilities:
- Issue: 88% of UK companies have suffered a security breach in the past 12 months4, and with retail and hospitality organisations being prime targets for cyber attacks due to the handling of sensitive customer and payment data, it’s a good idea to ensure your connectivity is watertight
- Impact: Data breaches can lead to compromised customer trust, legal consequences, and financial losses
- Slow network speeds:
- Issue: 23% of people in the UK suffer from slow or very slow internet connections5, which hinders online sales, point-of-sale (POS) systems, inventory management, and guest services
- Impact: Lowered productivity, inefficiency, and dissatisfaction among customers and employees
- High infrastructure costs:
- Issue: According to the Financial Times, the UK is burdened with significantly higher infrastructure costs than European peers6, and maintaining wired infrastructure is costly and often requires extensive physical modifications, especially in large or multi-location venues
- Impact: Strained budgets and diverted resources from enhancing customer experience or expanding services
- Scalability issues:
- Issue: With 1.5 million UK homes still not connected to the internet7, the ability for customers to shop or book tables online becomes more difficult and the ability to expand wired networks to new locations or to meet increased demand during peak times is cumbersome and time-consuming
- Impact: Delays in service expansion and inability to quickly adapt to changing business needs
Wireless solutions and their benefits
In response to the persistent connectivity challenges faced by the retail and hospitality sectors, wireless solutions emerge as a powerful and transformative option. Advanced technologies offer robust, flexible, and secure alternatives to traditional wired networks. These innovations not only address the specific pain points of downtime, security, and scalability but also unlock new levels of efficiency and customer engagement.
5G Technology:
- Solution: Ultra-fast wireless communication standard offering high speeds and low latency ensuring you can respond to customer requirements and take payments quickly
- Benefits:
- Speed: Enables real-time data transfer and seamless customer interactions
- Reliability: Reduces downtime with stable connections, critical for peak business hours
- Scalability: Easily expandable to meet growing demands, such as pop-up shops or seasonal surges
Wi-Fi 6:
- Solution: The latest Wi-Fi standard that provides faster speeds and improved performance in high-density environments, such as hotels, restaurants, and retail stores
- Benefits:
- Capacity: Supports more devices without sacrificing performance, essential for guest and customer connectivity
- Efficiency: Reduces latency and enhances user experience, vital for POS systems and mobile apps
- Security: Incorporates advanced security features to protect customer data
IoT (Internet of Things):
- Solution: A network of interconnected devices that communicate and share data across your retail store or hospitality establishment and with other stores or establishments within the chain
- Benefits:
- Automation: Streamlines operations through automated inventory management, guest services, and environmental controls
- Data: Provides valuable insights through real-time data analysis, enhancing customer personalisation and operational efficiency
- Efficiency: Improves resource management, such as energy usage in hotels or stock levels in retail stores
Managed Services Providers (MSPs):
- Solution: Third-party experts who manage and maintain your IT and connectivity infrastructure so you can focus on the things that truly matter, attending to your customers’ needs
- Benefits:
- Proactive monitoring: Identifies and resolves issues before they cause disruptions, ensuring consistent service delivery
- Security: Implements strong security measures and regular updates to protect sensitive customer data
- Cost efficiency: Reduces the need for in-house IT resources, lowering overall costs and freeing up budget for customer-facing enhancements
- Expert support: Provides access to the latest technologies and expert support, allowing you to stay ahead in a competitive market
Implementation and transition advice
Successfully adopting wireless solutions requires careful planning and execution to ensure a smooth transition and optimal performance. We’d advise retail and hospitality businesses to assess their current infrastructure, identify specific connectivity challenges, and develop a tailored implementation strategy. From deployment to ongoing management, each phase of the transition should be meticulously managed to minimise disruptions and maximise benefits. In this section, we outline the critical steps for implementing wireless technologies, including assessment, deployment, and continuous management, to help businesses seamlessly integrate these advanced solutions into their operations.
- Assessment and planning:
- Evaluate current connectivity infrastructure
- Identify specific challenges and goals, such as enhancing guest Wi-Fi or improving in-store technology
- Develop a tailored implementation plan that aligns with your business objectives
- Deployment:
- Install and configure wireless solutions, ensuring minimal disruption to daily operations
- Ensure seamless integration with existing systems, such as POS, CRM, and reservation systems
- Conduct thorough testing to ensure reliability, especially during peak business periods
- Ongoing management and support:
- Utilise MSPs for continuous monitoring and maintenance to prevent downtime
- Regularly update and upgrade technologies to keep pace with industry advancements
- Provide training and support to staff for smooth operation and to maximise the benefits of new technologies
Next steps
Wireless solutions offer a transformative approach to overcoming the connectivity challenges faced by the retail and hospitality sectors. By leveraging technologies such as 5G, Wi-Fi 6, and IoT, and partnering with Managed Services Providers, businesses can achieve greater efficiency, enhanced security, and improved customer experiences. These innovations not only address immediate connectivity issues but also pave the way for future growth and adaptability.
To explore how these solutions can be specifically tailored to meet your business needs and to discuss your unique challenges, contact us today. Let’s work together to create a seamless, secure, and efficient connectivity infrastructure for your retail or hospitality operations.
Sources
1 Retailconnections.co.uk – Revealed the hidden cost of poor in store connection article
2 Statista – Digitalization of hospitality worldwide article
3 IT Pro
4 www.csoonline.com Cyber Security Statistics you need to know
5 Fairinternetreport.com
6 The Financial Times
7 Ofcom