With rising customer expectations for a seamless ‘one-brand’ experience, many retailers have hit a wall because their omnichannel efforts can’t meet today’s retail demands.
Here Kelly Brown describes six major omnichannel retail challenges and explains how a unified commerce approach helps to create the relevant and tailored omnichannel experiences your customers now expect.
Customers today are delightfully unreasonable, and expect to transact when, where and however they want. They don’t care how you achieve it and will reward you if you have it - or shop elsewhere if you don’t.
Retailers are responding by integrating their physical and digital channels to deliver new omnichannel experiences that align with customer expectations.
However, it’s complicated.
Many retailers have taken a hard look at their ecommerce capabilities over recent years, but most are still searching for ways to create connected and adaptable experiences within stores. They have legacy solutions that are no longer fit for purpose and have bolted on solutions for the digital space that don’t easily integrate.
And they struggle to support their customers’ current omnichannel demands, let alone the ‘phygital’ shopping journeys now expected by post-pandemic, digitally savvy consumers.
If you’re looking at how to keep pace with customers, here are the most common challenges retailers face as they build their omnichannel systems, and how they can be remedied with a unified commerce approach.
Inventory that isn’t real time
Managing inventory is a retailer’s biggest challenge — no matter their size. It’s also the biggest cost. Many retailers launched digital commerce channels without getting their inventory right and can only access rudimentary sales and inventory positions. That prevents them from offering the ‘buy anywhere, fulfil anywhere’ options that are best for customers and most profitable for them.
The solution: Optimise inventory and availability
One of the most compelling benefits of unified commerce is a single view of stock across all stores and DCs. This means you can quickly see where inventory is and therefore the fastest place to fulfil from. You’ll improve inventory accuracy, reduce stock requirements, minimise fulfilment costs and get products to customers faster. And you’ll increase sales by using ranging and fulfilment capabilities that enable you to sell products across channels (and even sell products not normally stocked within any channels).
Blending physical and digital experiences
Services such as click-and-collect, ship-from-store, find-in-store and returns anywhere are all just table stakes today. Many retailers implemented quick-fixes at the start of the pandemic to swiftly get new capabilities up-and-running, but now need a long-term unified solution to connect backend systems and deliver the omnichannel experiences customers expect.
The solution: Create relevant and agile experiences
With a unified inventory you can increase your purchasing, ordering and fulfilment options to provide customers with frictionless experiences and access to your entire range from any location. A single platform gives everyone across channels and stores the ability to view all customer touchpoints in real time. And you can extend your range across more sales channels such as in-store kiosks, shoppable screens, pop-up stores, concessions and mobile devices.
Obtaining a single view of the customer
Today consumers don’t think in terms of channels. They now expect a “one-brand” experience that lets them shop at any time, using any channel, from any device, at the best price. But if you’ve got siloed backend systems and processes that mean your customers must deal with inconsistencies and gaps, you simply cannot offer a seamless customer experience.
The solution: Personalise your customer experience
The ability to see each customer’s shopping preferences and purchase history across all channels is critical for building personalised shopping experiences. With a unified commerce platform providing a holistic view of your customers, you can better plan your pricing and promotion strategies and get the right offer or message to the right customer, at the right time and right place. By creating remarkable customer experiences that meet or even exceed consumer expectations, you can ensure customers return, again and again.
Integrating data silos
Retailers use multiple customer-facing and back-office systems, spanning POS, mobile apps, inventory management, ecommerce, CRM, fulfilment, finance, marketing and more. Often loosely connected with manual processes and custom integrations, these omnichannel solutions are fragile, inefficient and costly to maintain.
The solution: Lower cost of ownership
A single commerce platform gives you a leaner and more flexible architecture that reduces the need for reconciliation and manual processes to maintain and manage data and functions, and there is only one system to secure. Exposing data and functions (rather than moving and replicating them) makes integration faster and standards-based, improving efficiency, decreasing errors and increasing accuracy. Third parties can easily plug in, building the ecosystem of retail software, tools, resources and devices you can add and change to match your business needs.
Adding modern technologies and capabilities
To keep pace with consumer demands for omnichannel services, retailers need to create and deploy new apps, services and channels. However, connecting legacy systems with modern technologies requires custom integrations, and creating new brand experiences is complex, costly, time consuming and risky.
The solution: Accelerate speed to market
With a single platform, there’s less work required to plug in and implement new functions across channels, test cycles are reduced, and you’ll use development capacity more effectively. You can run experiments to test new customer experience innovations and easily move the successful experiments into enterprise-wide operations. These improvements in IT efficiency and flexibility let you launch new tools and services to meet business demands and start seeing revenue benefits faster.
Unifying employee experiences
After years of underinvestment and now a labour crunch, many retailers are playing catch-up with the employee experience. Their stores often lack the tools and systems that enable their people to deliver the relevant and personalised customer experiences that match online shopping’s price, speed and convenience.
The solution: Boost in-store productivity and sales
By arming your store staff with the right customer data and tools, combined with AI-driven recommendations, they can more easily make decisions, provide personalised upselling advice, sell inventory at any location and serve customers faster, anywhere in the store. You’ll enhance customer interactions, improve the employee experience and increase conversions.
Can you keep up with your customers’ expectations?
Retailers are unifying their backend systems to create the seamless and convenient experiences customers now expect. If you’re experiencing technology challenges that prevent you from unifying your physical and digital experiences, get in touch. We’d love to help you develop the ability to create a compelling in-store experience harmonised with a digital offering for competitive advantage.
