Comment: getting omni-channel right
In this opinion piece, eCommera chief executive Mark Fagan discusses how retailers can improve their omni-channel operations to provide the most consistent customer experience.
Two years ago, creating an integrated omni-channel strategy was becoming an important objective. Forward-thinking retailers had the luxury of trial and error and the chance to evolve slowly to create a seamless customer experience.
That luxury has now gone. Today, in an era of instant consumer gratification, retailers need to deliver that experience quickly and effectively – and profitably. They have to get omni-channel right to provide that great and consistent customer experience every time.
The opportunities presented by successful omni-channel are compelling, not least the rapid growth and fast-track geographic expansion. However, omni-channel retailing requires both successful technology integration and a radical change in people and processes; in essence it requires a new retail mindset.
The pace of evolution of the retail business model is phenomenal – as are the growth figures. Most retailers are targeting double digit growth, with a significant number aiming for upwards of 50% from the online channel, compared with just 3% to 7% in store.
But, look beyond the appealing top line figures and the risk/reward equation is a little less compelling. Online may be growing fast but while in-store sales are typically profitable, the evolving online business cost model is far less predictable. Furthermore, omni-channel is more complex than it may first appear. Just consider the huge rise in demand for click and collect which has created new challenges in logistics and fulfilment.
As a result, retailers are beginning to recognise the need to join up technology, people and process change to achieve omni-channel success. A single view of stock, a single view of the order and a single customer view are essential technology changes. It is then creating the right in-store incentives, understanding the reverse logistics cost model and identifying synergistic new markets that can make or break an omni-channel business.
Retailers are under huge pressure to get this model right, quickly. From a great mobile experience to slick click and collect or creating a single customer view – with the omni-channel model retailers have the chance to achieve faster and faster change, deliver that best-in-class experience and critically, anticipate customer needs.
The challenge is that there is no time to go through the motions. Successful omni-channel is hard and it is expensive – and it is a continual process of evolution and change. This is just the start of the journey.
