Composable commerce is becoming increasingly important for the construction industry as companies work to meeting evolving customer demands in an ever-more digital world, writes Carole Breetzke of Brave Bison
Construction companies are on the cusp of an all-out digital revolution. 68% of businesses are already using artificial intelligence (AI), and those who invest in new technologies report 1.4% higher revenue growth.
In our digital-first world, the construction industry is finally recognising the importance of having a strong tech stack that caters to the ever-fickle consumer demand.
But so many are capping their own potential by sticking to monolithic e-commerce solutions, which lack the flexibility to dynamically – and effectively – cater to their B2B or B2C customers. Today, adaptability and customisation are the driving forces of success, and composable commerce emerges as the key to channelling these forces.
Composable commerce allows businesses to integrate best-of-breed components into a bespoke technology stack. For construction companies, this means the flexibility to adapt quickly to market changes, manage complex supply chains and pricing requirements and provide personalised experiences for both B2C and trade customers. It’s not just a technological upgrade but a strategic pivot that construction companies like MKM are already leveraging for growth.
Why composable commerce matters in construction
The construction industry encounters several unique challenges.
Managing large inventories can overwhelm systems, while complex pricing structures lead to inconsistencies and complicate sales. Serving both professional contractors with various specialties and DIY enthusiasts puts a strain on resources, necessitating diverse products and approaches.
Additionally, the need for different measurement units, sales formats and custom cutting services is not compatible with a standard product option approach. Traditional e-commerce platforms often struggle with these demands due to their inflexibility, rigidity and high costs.
They also lack personalised experiences; when 71% of consumers expect personalisation, it wouldn’t not make business sense to serve the same experience to a generalist builder, a plumber and a DIYer.
Composable commerce solves these issues by allowing companies to cherry-pick the best solutions for their specific needs. Essentially, it’s a way of supercharging every cog in the machine and ensuring the online experience does not simplify the complex offer available offline.
This flexibility is particularly crucial for businesses like MKM, which operates across multiple branches with unique product selections and pricing models.
It’s not uncommon for construction companies to have hyper-local offerings due to the bulky nature of their goods and regional preferences in construction materials.
By embracing composable architecture, MKM was able to integrate local stock and pricing data across its various branches, delivering a highly personalised customer experience.
The benefits of composable commerce are clear: construction companies can reduce their Total Cost of Ownership (TCO) by shifting enquiry to direct sale and self-service operations, scaling their vending capabilities across multiple locations and improving customer retention by delivering stronger omnichannel experiences. In fact, MKM saw a 16% increase in site traffic and a 2% uptick in revenue after implementing a composable commerce solution.
The uptake of composable commerce in construction
The construction industry is beginning to recognise the importance of composable commerce.
While 72% of retailers have already adopted composable strategies, the construction sector is still in the early stages.
But the shift is gaining momentum, as companies are looking to invest in scalable and adaptable architectures in a context where market consolidation is a common factor forcing companies to change technology when converging systems with their parent or sibling organisations.
As more construction companies adopt composable commerce, those that remain tied to monolithic systems will find it increasingly difficult to differentiate themselves and compete.
Why composable commerce is a strategic Imperative
Customer expectations in the construction industry are evolving rapidly. Contractors and DIYers alike demand more personalised and seamless online experiences. Those with the best tech stack deliver on these expectations the best – so if a company isn’t willing to upgrade its platform, it might as well take itself out of the running.
Composable commerce provides the agility and resilience needed to thrive in this competitive landscape. There are five key ways that it helps building material vendors stay competitive:
Accelerating the implementation of new features by 80%, allowing companies to quickly respond to new trends, customer demands and competitive pressures.
Delivering highly personalised experiences to customers by integrating components designed for specific tasks, such as localised pricing and stock management.
Eliminating expensive upgrades and reducing technical debt, enabling construction companies to manage costs more effectively.
Scaling operations in real-time to accommodate multiple markets, channels and business models, which is crucial for companies with multiple branches or divisions.
Facilitating seamless omnichannel experiences by decoupling front-end and back-end systems, allowing for efficient management of multiple touchpoints, including online, in-store and mobile.
These capabilities not only improve operational efficiency but also have a significant impact on the bottom line. For example, after implementing composable commerce, MKM experienced a 77% boost in average time spent on page, indicating higher customer engagement and satisfaction.
Implementing composable commerce: Key considerations
While the benefits of composable commerce are clear, construction companies must consider several strategic factors to maximise its potential:
Choose components that align with business objectives. For example, MKM’s choice of BigCommerce for e-commerce capabilities and Bloomreach for content management ensured that their platform could handle the specific demands of their business.
Ensure seamless integration. Composable architecture relies on different components working together smoothly. For MKM, this meant integrating multiple systems to ensure a cohesive customer experience across all touchpoints.
Plan for change management. Transitioning to a composable architecture requires a shift in mindset and processes. MKM’s success was partly due to its hybrid Agile approach, which allowed for flexibility and adaptation throughout the project.
Address potential data silos. The decoupled nature of composable architectures can lead to data silos if not managed properly. A robust data integration strategy is essential for ensuring seamless operations.
Manage increased complexity. Composable commerce can increase management overhead. However, investing in sophisticated monitoring and management tools can help keep teams focused on critical tasks while avoiding bottlenecks.
Thriving in the digital era of construction
Composable commerce isn’t the “maybe later” on the digital agenda – it’s the “do or die”. As the industry continues to evolve, forward-thinking companies like MKM who are leveraging composable commerce are gaining miles on their competitors.
By adopting composable architecture, construction companies do more than just cut costs and deliver exceptional customer experiences – they futureproof their entire business, bolstered by a tech stack that keeps them in-step with trends, demands and sudden changes, so that they always stand tall in a crowded market.
The post Building the future: Why composable commerce is a strategic imperative for construction companies appeared first on Planning, Building & Construction Today.
