Loyalty Retailer

Unlocking scalable growth: a blueprint for success

Comprehensive report

Delivered a detailed report with strategic recommendations, providing clarity on current shortcomings and a roadmap for future development.

Architectural direction

Set a clear architectural direction that supports multiple brands, enabling a scalable and reusable platform across the organisation’s retail portfolio.

Cost efficiency

Identified opportunities to re-implement third-party tools, such as CRM and fulfillment systems, to save costs.

SITUATION

Overview


Established in 2022, this e-commerce retailer connects customers to a loyalty programme, allowing members to purchase premium products and accumulate loyalty points for future rewards.

Customers can choose from a curated selection of wines, beers, spirits, and non-alcoholic drinks, delivered directly to their homes, while enjoying unparalleled rates of point accumulation for use on various rewards, including flights and upgrades.

The company initially utilised a white-labeled e-commerce platform from a third-party provider. However, its long-term vision includes developing a proprietary platform owned and managed in-house. This would enhance the customer experience while improving overall returns and scalability, enabling the organisation to introduce additional storefront categories and future-proof its operations.

To support this vision, the company engaged with us to review its existing solution architecture and recommend a future-ready platform that aligns with its strategic goals. Two critical areas were identified for review: the middleware facilitating the exchange of loyalty points between customers and the e-commerce platform, and the potential transition from a native theme engine to a headless solution.

Solution

An in-depth architectural review


To ensure any future solution aligns with the company’s strategic goals, we conducted a comprehensive analysis of the existing system architecture. Our primary focus was on the two critical components identified: the middleware enabling points exchange and the potential shift from a native theme engine to a headless e-commerce solution. Additionally, we addressed several other critical areas to ensure the robustness, scalability, and future-proofing of the platform.

Our review included an in-depth analysis of current unknowns, such as state management, to ensure that session data, user states, and transaction states are efficiently managed and scalable for future growth. We also examined the database technology in use, assessing whether more scalable options, such as cloud-based databases, could offer better performance as the platform expands.

Additionally, we scrutinised the existing whitelisting and access control mechanisms, recommending enhancements to ensure that only authorised entities can interact with critical systems, bolstering security and compliance.

We evaluated the integration of third-party services, such as payment gateways and shipping providers, identifying opportunities for more efficient API management and data transformation. Additionally, we mapped the existing functionality of the current middleware application and analysed data ingress and egress processes to optimise performance.

Finally, our review extended to how the middleware interacts with external systems, including the e-commerce provider and the organisation’s loyalty platform. We also assessed the scalability of the organisation’s core technologies, to ensure the platform can handle increased traffic and data complexity as the business expands into additional storefronts and product categories.

Middleware architecture review


The existing middleware is a critical component of the organisation’s operations, responsible for brokering the exchange of loyalty points between the customer and the white-labelled e-commerce platform. Our review identified several opportunities for optimisation, focusing on improving API integration, transitioning to a microservices architecture, and implementing real-time monitoring and analytics.

We recommended enhancing the API integration between the middleware and the loyalty system to reduce latency and improve transaction processing speed. This included upgrading to modern, RESTful APIs with built-in error handling and retry mechanisms. To future-proof the middleware, we proposed transitioning to a microservices architecture using Amazon Web Services (AWS).

This approach allows independent development, deployment, and scaling of critical services such as points calculation, customer authentication, and transaction validation, ultimately improving resilience and scalability.

In addition, we suggested implementing real-time monitoring and analytics tools to track the performance and health of the middleware, enabling proactive identification and resolution of potential issues. We also recommended strengthening security protocols around data exchange and storage to ensure compliance with industry standards and protect sensitive customer information.

Transitioning to a headless e-commerce solution


The potential shift from a native theme engine to a headless e-commerce solution was another critical focus of our review. This transition would decouple the front-end presentation layer from the back-end e-commerce functionality, offering several significant benefits for the customer.

A headless solution would allow the loyalty points enabled e-commerce retailer to create a highly customisable and engaging user interface, leveraging modern front-end frameworks. This would enable the delivery of a more dynamic, personalised, and responsive shopping experience across various devices, improving customer satisfaction and conversion rates.

By decoupling the front-end from the back-end, the business would gain the flexibility to evolve the user experience without being constrained by the limitations of the e-commerce platform’s native theme engine. This approach also supports the company’s long-term vision of an internally owned and managed platform, giving their development teams full control over the front-end design and functionality. Additionally, a headless set-up would enable faster page loads and smoother interactions by delivering content via APIs directly to the user’s device, reducing reliance on server-side rendering.

Summary and recommendations


Our comprehensive review and analysis resulted in a set of strategic recommendations aimed at enhancing the e-commerce retailer’s platform to meet both current and future business needs. We proposed a phased implementation approach, leveraging a proof of concept to ensure a smooth transition and to minimise disruption to ongoing operations. Key recommendations include:

Headless transition
Scalability
Whitelisting and access control
Database technology
State management
Middleware optimisation

Tech stack

The tech stack behind the organisation’s platform plays a crucial role in supporting its operations and growth strategy. Our analysis focused on evaluating and optimising the existing technologies to ensure scalability, security, and alignment with their future business objectives.

BigCommerce
Google Cloud Platform
Amazon Web Services
IMPACT

Aligning business objectives with technology investments


Our consultancy work resulted in significant strategic insights and actionable recommendations that are set to transform the organisation’s technology landscape and support its ambitious growth plans. The comprehensive architectural review and subsequent report provided the customer with a clear path forward, aligning technological capabilities with business objectives.

A full report detailing our findings and recommendations was produced and presented to the senior leadership team. This report included a thorough analysis of the current solution’s shortcomings, particularly how the existing architecture might limit the organisation’s ability to scale and innovate in line with future plans. The report also laid out a strategic roadmap for moving forward, addressing the identified gaps and leveraging new technologies to support the long-term vision.

Our analysis has set a clear architectural direction for a solution that will not only support the business but also extend across multiple brands within the wider portfolio. This approach will save significant resources by providing a reusable platform, eliminating the need for re-engineering for each brand.

Our recommendations also included a detailed examination of third-party tools, identifying opportunities for cost savings through the re-implementation of systems such as CRM and fulfillment. The future system we proposed will enable the business to scale-up and support a robust multi-brand business. The suggested architecture of the new platform is designed to anticipate and accommodate future challenges, including subscription models and personalised customer experiences, ensuring that the retailer remains competitive and innovative.

The strategic impact of our work is substantial, offering scalability, reliability, and a thoughtful approach to rolling out future projects. The leadership team now has the critical information needed to guide their technology direction for the coming years, helping them prioritise initiatives that align with their business goals.

  • Comprehensive report

    Delivered a detailed report with strategic recommendations, providing clarity on current shortcomings and a roadmap for future development.

  • Architectural direction

    Set a clear architectural direction that supports multiple brands, enabling a scalable and reusable platform across the organisation’s retail portfolio.

  • Cost efficiency

    Identified opportunities to re-implement third-party tools, such as CRM and fulfillment systems, to save costs.

  • Scalability and growth

    Proposed a new platform that allows the customer to scale as a multi-brand business.

  • Future-proofing

    Ensured the new platform could anticipate future challenges, such as subscriptions and personalisation, keeping the customer competitive.

  • Strategic alignment

    Provided the leadership team with the necessary insights to align technology objectives with business goals, guiding their tech strategy for the next few years.

  • Value added

    Offering a ‘CTO as a service’ and a ‘Solution Architect as a Service’, we were the customer’s trusted advisor, effectively bridging business objectives with technological strategies.

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