Customer Centricity Helping to Modernize E-Commerce

Q: What underlying technologies enabled SkillNet to facilitate effective collaboration between e-commerce channels, IoT devices, and social commerce?

A: SkillNet’s vision centers around crafting modern commerce experiences that seamlessly integrate various shopping channels, whether online, in-store, on mobile devices, or through kiosks. We believe that commerce, regardless of the channel , and  whether it is business-to-consumer (B2C) or business-to-business (B2B), should be customer-centric, seamless, convenient and personalized. Our expertise lies in creating buying experiences that drive brand loyalty.

To achieve this, we leverage cutting-edge technologies that are agile, composable, and headless. Agility is paramount in today's fast-paced digital landscape. Our approach involves being responsive and adaptable to the ever-evolving demands of the market. Composable applications allow us to swiftly integrate diverse components, creating innovative and tailored business models. The headless architecture, which decouples the user interface from the foundational platform, enables us to continually innovate on experience without disrupting the underlying technology foundation.

Q: What technological tools does SkillNet leverage to enhance customer personalization, and how has this approach impacted client satisfaction and retention?

A: The cornerstone of customer-centricity lies in a deep understanding of the customer and in making pertinent data seamlessly available throughout the organization. We start this process by delving into our clients’ business and understanding their end customer, how they buy, and how they interact with the brand across channels. 

We employ state-of-the-art technological solutions, both in-store and within digital commerce platforms, to enhance customer personalization. Our partnerships with industry leaders, such as Oracle, SAP, Salesforce, Adobe, and emerging players like commercetools, VTEX, Spryker, Mirakl, and Unirgy, enable us to use powerful platforms that encompass a wide range of commerce applications. We customize these foundational platforms, tailoring them to facilitate unique customer journeys. In essence, our approach combines consulting, system integration, and engineering capabilities to place our clients' consumers at the heart of every business process.

Q: What challenges has SkillNet faced when re-platforming e-commerce solutions for its clients, and how does SkillNet optimize the user experience?

A: We prioritize a business-first approach when re-platforming e-commerce solutions. Rather than immediately delving into the technology, we first understand our clients' needs and define the challenges they face. Our advisory focuses on clearly defining the problem at hand, steering our clients away from blindly following technology trends and encouraging them to align to their customers' preferences and requirements.

A significant challenge lies in striking a balance between existing technology investments and the need for modernization. We advocate for a meticulous analysis of clients' technology portfolio. Rather than advocating for a complete overhaul, we identify specific components that require modernization. This approach allows us to create a strategic roadmap. By taking a careful, incremental approach, we ensure that existing systems are not disrupted entirely, preserving the continuity of customer experience.

To facilitate this transition, we leverage top-tier composable platforms and employ modern, DevOps-based engineering practices. We systematically break down the silos of monolithic applications, transforming them into simpler, composable applications. This meticulous, piece-by-piece approach has proven highly effective for the majority of our clients, ensuring a seamless transition while safeguarding the integrity of customer interactions.

Q: What benefits does omnichannel bring to SkillNet in helping retailers achieve not just seamless but immersive experiences for their end customers? 

A: The evolution from the traditional multichannel retail to the omnichannel approach has been transformative. In the past channels operated independently within their own silos, each efficient within its domain. Omnichannel emerged as a game-changer, enabling customers to seamlessly traverse channels — buying online and picking up in-store, reserving online and returning in-store, and other versatile journeys. Remarkable success stories have emerged as a result. Pioneering companies like Liverpool, Walmart, Coppell, and Mercado Libre are leading the way in the adoption of omnichannel strategies in Mexico.

We are now witnessing a paradigm shift toward modern, unified commerce. This approach acknowledges that rather than a fixed set of journeys, customers craft their unique journeys, dynamically weaving through various channels, discovering products, making purchases, and advocating for brands. So we should stop looking at the customer from the lens of multiple channels altogether, in how we are organized and how we develop technology. Therefore, the benefits of unified commerce are no longer a matter of debate; they are imperative in today's commerce landscape. It is no longer about what a business wants to offer; it is about meeting the demands of its empowered consumer. 

Q: What differentiates shopping behaviors in Mexico and Latin America?

A: Latin America is a very interesting market. With a population of 130 million and a robust US$1.4 trillion economy, Mexico stands out in the region. The country also has a strikingly young population, with a median age of 29 years. This young demographic is digitally native, boasting of 98% mobile penetration and 70% internet penetration. 

E-commerce constitutes about 10% of Mexico’s overall retail landscape and its penetration is growing at a 24% annual rate, driven by social commerce, mobile technology, and the innovative mindset of the young population. This demographic compels companies to innovate swiftly, leading to remarkable advancements in the region. Latin America and Mexico are witnessing innovations in commerce and customer experience that often surpass developments seen in some well-established markets.

Q: What strategic partnerships is SkillNet cultivating to enhance its presence in the Mexican market?

A: Our presence in the Mexican and Latin American markets spans more than six years, during which we made substantial investments and explored exciting opportunities for innovation in unified commerce. To bolster our efforts, we have forged strategic partnerships in three key areas. First, in customer partnerships, we established relationships with forward-thinking entities such as Office Depot, Almacenes García, C&A Group, Andrea, and Grupo Komax. Through these partnerships, we encourage the exchange of ideas not only among our customers but also between regions, bridging insights from Latin America, the United States, and the European Union.

Second, we cultivated robust solution partnerships with leading technology vendors. Our global collaborators include industry giants like Oracle, SAP, Salesforce, and Adobe, as well as emerging players like commercetools , Spryker, VTEX, Mirakl, and Unirgy. We also allied with cloud infrastructure providers, such as Amazon and Oracle Cloud. As our service portfolio expands, we continuously add new partners in various domains, including merchandising, supply chain solutions, loyalty programs, point-of-sale (POS) systems, e-commerce, content management, data solutions, integration, and payments, and analytics. These partnerships bolster our capabilities, ensuring seamless experiences for our clients and their customers.

Finally, SkillNet is committed to nurturing local talent and building a robust ecosystem. We established SkillNet Mexico as an entity last year, enabling us to hire local talent and create a network of like-minded service providers. This collaboration enriches our capabilities, allowing us to offer comprehensive solutions that cater to diverse client needs effectively.

Q: What challenges do retail companies face in Mexico, and how does SkillNet assist its clients in overcoming and navigating these challenges?

A: Mexico’s retail landscape presents unique challenges, but its relatively lenient regulatory environment allows for rapid growth. As the industry matures, regulatory complexities emerge.  Taxation is a significant challenge, particularly concerning the Added Value Tax (VAT) for digital and e-services. Companies are grappling with adapting their technology solutions to ensure accurate collection and withholding of VAT. Additionally, the intricate realm of cross-border taxation, involving international customers buying from Mexico or Mexican customers buying from international sites, poses another evolving challenge. 

Secondly, data privacy regulations, such as the federal law on protection of personal data held by private parties (LFDPDP), are constantly evolving. SkillNet supports clients in safeguarding sensitive customer data, as the company understands stringent data privacy laws akin to the UN’s General Data Protection Regulation (GDPR), which are becoming increasingly relevant in Mexico and Latin America. 

Finally, digital payment regulations are another pivotal area. Recent legislation in Mexico prohibits suppliers from charging additional fees for credit card transactions, promoting digital payments over cash. As the regulations evolve, businesses will need to invest in agile technologies that can adapt quickly to such changes. However, SkillNet’s work in modernizing legacy commerce applications and replacing them with composable, headless ones, allows companies to adapt faster.

Q: What challenges does SkillNet encounter in staying at the forefront of technological advancements?

A: Over the past 25 years, technology has disrupted every industry, with the pace of disruption continually accelerating. We find many clients wanting to adapt the latest technology trends like Gen AI, or AR/VR, blockchain and others without first thinking about how these investments align with their business needs. SkillNet’s distinctive approach places a strong emphasis on prioritizing business needs over chasing technology trends. Modern technology, in our view, is an enabler to business, not an end goal by itself. This approach helps us cut through the noise and tech jargon, enabling us to invest strategically in areas that are vital to our clients' success.

Another significant challenge lies in talent acquisition and retention. The competition for skilled professionals is fierce, making it essential to find the right talent, keep them motivated, and ensure their long-term engagement. However, SkillNet is proud of its employee-centric approach. We invest internally, nurturing our talent pool and fostering an environment where our employees thrive. Maintaining a team of experienced domain experts is essential for adding substantial value to our clients.

Budget constraints pose another challenge, which SkillNet tackles through strategic investments and cloud technologies. We advocate for remote work, using cloud technology not only internally but also extending these practices to our clients. 

Are you ready to set yourself up for success in 2024? Join us at Mexico Business Summit 2023, the must-attend B2B conference for Mexico’s business leaders!

Taking place on Nov. 28-30, 2023, at Expo Santa Fe in Mexico City, this high-level multi-industry conference offers unmatched opportunities to get inside perspectives on key industry trends, access actionable business intelligence, generate pre-qualified leads and identify new opportunities in a unique cross-industry networking environment.

Mexico Business News offers you an exclusive MX$2,000 ticket discount by using this code: MBS2023MBN2000.

Don't miss this opportunity and get your tickets here: https://mexicobusiness.events/MBS/2023