Lightspeed Commerce Inc. is investing in it’s sales force and tailoring its software to raise the company’s economic outlook in North America and Europe, the CEO says.
The Montreal-based e-commerce company says it is undertaking a ‘very disciplined transformation’ to prioritize growth by hiring more people to reach new establishments while improving software to connect retailers with consumers.
“We’ve been investing in outbound sales, salespeople in North America retail and European hospitality,” says Dax Dasilva, adding Q3 revenue is up from a year ago.
He says investments in personnel are directly tied to the company’s recent acceleration in expanding operations to more stores. He says expansions have increased five per cent in the first quarter to seven per cent.
“European hospitality is more field reps going restaurant to restaurant in major European centres, and in North America retail, it’s outbound remote reps calling into key verticals like apparel and footwear and sport and outdoor businesses, leading with our wholesale platform that’s called NuOrder. So those reps are a big investment,” says Dasilva.
He says 150 reps were hired to ramp up productivity and plans are in the works to hire more, particularly in retail businesses.
He says outbound sales efforts fueled a 21 per cent growth, adding 2,600 net new locations.
In addition to investments in people, Lightspeed says it has also been building software specifically for the North America market to have a “really incredible deep retail expertise in high complexity, inventory centric verticals.”
“That’s where we have the best close rates, the highest rate to win, the biggest competitive moat and differentiation now, with our wholesale platform built right into the retail POS,” says Dasilva.
The POS system connects brands and retailers online with consumers to purchase items they want to sell.
Expansion plans for Europe
The company noticed a trend that is seeing a decline in alcohol consumption by younger consumers and has been targeting restaurants that provide mocktails and different food items to attract a younger crowd in Europe he says.
“We have a tool called benchmarking trends for restaurants in Europe, where it can do some spying for you,” says Dasilva. “It can tell you what other restaurants in your area that are in our network, anonymized, of course, what they’re charging for drinks, what they have on their menu that maybe you don’t in terms of a mocktail or an idea and what time are they doing their happy hour.”
The company has been conversing with Michelin star full-service, table-service restaurants, resorts and hotels owners to expand its footprint in Europe.
“As a restaurant owner, you want to be on top of that, or you might be missing out on an opportunity,” says Dasilva.
He says restaurants in Europe are recommending Lightspeed to others, which also fuels growth.
“It’s a little bit of a support network within their neighborhood,” says Dasilva.
He says the company’s previous strategy, was to sell software to fit all markets around the world, which he says, resulted in a low return on investments.
With files from the Canadian Press
With files from Julia Stratton, BNN Bloomberg
