Evolving Retail: The Need to Elevate Omnichannel Capabilities

The retail industry has changed dramatically in the past few years with evolving consumer habits, advancement in retail technologies, and growing competition. However, with improved technological capabilities, consumers now expect the ultimate convenience when they leverage modern retail offerings, such as buy-online-pickup-in-store and buy-online-return-in-store. To attract and retain customers in today’s retail environment, retailers must be able to cater to consumer demands across all sales channels and ensure that every touch point is seamless for the customer.

In order to achieve this, retailers must deploy advanced omnichannel solutions to provide optimal customer service. With the right technology, retailers can have a panoramic view of their operations — from stock levels and customer purchase history, all the way through to returns — simplifying retail functions for both retailer and customer alike.

Cultivating a Competitive Advantage

To stay ahead of the competition, retailers must develop a unique selling point. One effective way they can do this is by building a strong omnichannel strategy. Providing value to customers through an optimized omnichannel experience can help retailers set themselves apart from competitors. In order to add value to customers’ experiences, retailers need real-time information about consumer shopping preferences, purchase history, and frequency of purchases both offline and online. Having a unified omnichannel solution allows retailers to gain these valuable insights about their customers and enables them to tailor customer experiences.

As more businesses recognize that their customers expect consistent experiences across platforms, adoption will increase across industries. The majority of retailers believe that omnichannel strategy is important. The more brands that offer this, the more consumers will expect it.

Another significant benefit of an optimized omnichannel strategy is increased customer loyalty. Customers who have a positive experience with a retailer are more likely to stick with that brand. According to a recent survey from PWC, even if people love a brand, 59% will leave after several bad experiences, and 17% will leave after just one. Increased customer loyalty impacts positively on sales and lifetime value for retailers. Through the right omnichannel approach, appropriate technology and considerate execution, retailers can improve customer loyalty in a variety of ways, such as providing loyalty rewards that can be redeemed online or in-store.

Tech Considerations

There are numerous solutions available, and it can be difficult for retailers to determine which one is best. The most common mistake retailers make is viewing their omnichannel strategy as an add-on, and not an integral piece of their operation. This can result in a disconnect between the channels and cause unnecessary complexities due to the need to manage multiple ecosystems.

The next factor to consider is integration. Retailers must assess the integration capabilities of their back-end systems. This includes financial systems, merchandising, order management, inventory, analytics, point of sale (POS), and everything in between. It is critical to consider the cost and implications of integrating existing systems. A company may be accustomed to a certain number of transactions, but when Black Friday arrives, can it handle the volume and keep track of inventory in real-time? It is key to select the right technology partner with experience across systems and technologies.

Retailers who have an all-encompassing solution for their retail functions can better streamline their operations and increase efficiency. This can provide a comprehensive view of all retail operations in one location and can be accessed remotely from anywhere in the world. The solution should provide personalized recommendations based on data and performance, be scalable, and be open to future updates and integration.

The Future of Omnichannel

Retailers must recognize that their digital and physical sales channels do not exist in silos. Most retailers do not personalize the offline journey of their customers, and data is collected only at the point of sale rather than throughout the customer journey. This is a missed opportunity for many, especially since 76% of consumers have changed stores, brands, or the way they shop as a result of the pandemic, and consumer loyalty has been shaken.

Moreover, it is no longer enough to simply have an omnichannel solution in 2023. Rather, retailers must have a strategic plan in place to make the most of their technology investment.

In order to sustain long-term growth, retailers must connect their online presence with their physical stores, with around 73% of shoppers preferring to shop through multiple channels. Despite the growing demand for digital experiences, physical stores will not go away, however, they will take on new responsibilities to better support an omnichannel retail strategy.

These factors, along with increased personalization, and access to massive amounts of leverageable customer data, make omnichannel strategies critical for survival in the new retail era. While the process is complex, it can be greatly simplified with the right automation and technological solutions. The days of any successful brands being driven solely by one channel are over. Everything retailers do requires strong coordination of cross-functional teams — from online to in-store operations. However, as in the past, everything begins with a clear understanding of consumer expectations.

Amber Hovious

With nearly two decades of experience in corporate and channel sales, as well as marketing, Amber Hovious leads Teamwork Commerce’s fast-growing retail software organization in its global expansion. Hovious joined the company in January 2013, and in her current role, is responsible for developing and managing Teamwork Commerce’s channel programs, partnerships and strategic marketing campaigns.