Omni Channel Retailing -Are you prepared to win?
I wanted to buy a new smartphone and my brand engagement began with a Facebook recommendation from a friend who kept raving about his new possession, Galaxy S5. Interested, I googled the phone on my tablet, went to the product site to understand new features and also watched its video on You Tube. After reading expert and user reviews on CNET and exhaustive price search, I ended up buying it online from Best Buy, and picking up the same day at a store next to my home.
Today's empowered digital consumer has dynamic, non-linear shopping journeys. They are demanding and have more power and choice than ever before. With rapid evolution in consumer buying behavior, emergence of new technologies and constantly changing competitive landscape, retailers need to rethink their business and operating model to stay relevant. As retailers transform, they will need to focus on 4 key dimensions to successfully convert an anonymous buyer to an engaged consumer.
- Delivering consistent Consumer experience: Consumers expect the retailers to know and inspire them at every touch point, make shopping easy and convenient while valuing them for their loyalty, influence and life time value. For this, retailers need to know their consumers and their interactions across channels, engaging them early with inspirational content and easily searchable rich product information, providing access to enterprise wide inventory alongside personalized offers and flexible payment, shipping, and return options. Retailer will need to understand different paths to purchase and be there at every touch point to optimize the buying process.
- Flawless Execution to match consumer expectation of product assortment, location, price, delivery and service. Retailers are taking on several measures to bring in agility in their supply chain. For example, leading retailers are now shipping products for online orders from stores closer to consumer to not only improve delivery time but also reduce shipping costs Retailers are also accessing social network data to refine demand forecasts and localize assortments. Retailers are leveraging predictive analytics to ensure inventory availability at the right place and time to minimize stock outs and reduce mark down.
- Retailers also need an integrated, flexible and scalable digital platform powered by a common data set and technology services hub, ready to be tapped into from anywhere and any device. Such a platform will enable integration of business functions often spread across different departments and enable a single view of the customer, order, product information, inventory and price across channels. This foundation is crucial in driving consistent experience as consumers suspend and resume transactions across channels. This will also bring in increased agility to add new capabilities and onboard newer markets.
- Last but not least, organization structure needs to align to reduce channel silos. Several leading retailers have created roles like 'Head/VP of Omni channel' as a step towards eliminating channel boundaries. Other retailers have reorganized by brands in order to deliver a unified customer experience across channels. Changes in the operating model also ushers in new processes, system, and shift in roles and responsibilities which needs to be managed deftly.
Omni channel transformation has a profound impact on an organization's value chain. Hence, it is imperative to have a clear vision and a multi-pronged strategy focused on consumer, operations, technology and change management to be successful. What strategies have you focused on to enable Omni channel? I'd love to hear your thoughts, especially challenges faced in transforming your organization.