These fantastic four superheroes of digital transformation are finally earning their stripes
The theories are sound, the strategies are clear, the plans are robust – from a purely ideological perspective, CIOs in retail have all the evidence they need to round up their data and put it to work in the digital stores which are fast becoming the only way to ensure success in a tech-enabled industry.
But, as the saying goes, an ounce of practice is worth a ton of theory, and it can be tricky to clear the commitment hurdle without some pretty compelling evidence to prove your business case for transformation. As with all emerging business concepts, retailers who aren’t prepared to take the long view rely on those who are more forward-thinking to take the risks and make the case for them.
Fortunately for the more cautious CIOs, the early adopters and pioneers who saw what was happening to the industry and decided to take a leap of faith are now seeing some solid results coming from four fundamental initiatives:
Retailers that are weathering the current economic storm have embraced “omnichannel” as a given. No longer something to aspire to or build into a five year plan, allowing customers to shop wherever and however they choose is fast becoming a standard strategic element which is making a significant difference to the bottom line. According to Forrester, retailers have seen omnichannel customers spending up to 22 times more than single-channel shoppers, with digital touchpoints driving all sales.
Colleagues empowered with tools to provide a cross-channel experience are also proving their worth – 35 percent of customers expect them to be able to check product availability, and 47 percent expect them to provide roaming checkout/payment facilities.
The message from Forrester is clear – omnichannel is not only worth it, it’s essential: “A truly omnichannel operation…will optimize revenue, deliver capital efficiencies, spawn operational efficiencies, and improve the customer experience overall. Leading retailers are building the supporting technology, skills, processes, and organizational structures to develop these capabilities, even if this journey is complex.”
According to Julio Hernandez, Global Customer Lead at KPMG International: “As part of an integrated customer-centric business model, customers expect that goods can be delivered or picked up wherever they are located. They want their orders consolidated, they want shipping bundled with service, and they want to be able to return things easily.”
Forrester backs this up – as much as 60 percent of online sales are now picked up in-store, with up to 40 percent of customers buying additional products when they arrive to collect their goods. And a number of retail groups have reaped the benefits of “flexible reverse logistics” by building global returns policies, cutting costs by around 50 percent in the process.
