American omni-channel practices: what do you score?
Thursday, May 17, 2018

American Omnichannel Practices: What’s Your Score?

Finding it hard to keep customers, lately? Been testing out strategies that amplify the customer experience? Then, certainly by now, you know that omnichannel retailing is your best bet. But it seems that our understanding of omnichannel practices varies in the industry. It seems that all of retail is on edge with big name retail closures like Toys’R’Us, and Sears being on my pundit watch lists. A such, understanding what really makes up omnichannel for customers, is crucial.

What is Omnichannel?Omni-channel should be the seamless integratability of all purchasing channels, to enhance the customer journey.

Omnichannel is the seamless integration of all purchasing channels. The intention is to make customer buying experience as smooth and easy as possible. Furthermore, using this definition, we ran global research that analyzed the websites of retailers to determine from a customer’s perspective, how available omnichannel services actually are. Our findings are part of the Omni-1000 that shows how many retail sub-sectors are doing. We also took the research and graded the 330 American retailers on their omnichannel pratices, rating them from 1 to 5.

Surveys vs. Customer Views

It is clear that the US retail market has a lot of cqatching up to do.There have been the odd report stating that a majority of retailers already have omnichannel working. But, when put to the test, the Omni-1000 research did not find this. It is crucial to understand where the American retail market stands in modern retail practices. The categories graded from the research are ecommerce/shipping, click and collect, inventory visibility, and returns. So are American retailers doing well?

How did America do?

Let’s just say, American retailers may not be as good at the omnichannel game as they thought. From the research, it is clear that the US market has much catching up to do. From a customer’s standpoint, they expect omnichannel capabilities that are equivalent to a 4.5- 5.0 score.

 

 

Your Omnichannel Score

score graph

Collecting a full retail market view on omnichannel results in the graph above. As you can see, most retailers in the USA scored about 1.3 out of 5. This is too low a score for customer expectations about omnichannel. The scary part is that more and more customers are learning about in-store pickup services. That means more customers are going to want to try it, and ultimately use it. Retailers in the US barely managed to reach the 4 threshold. However, this must be improved for today’s convenience seeking, omnichannel practices loving customer. Don’t lose heart. There are many ways to improve a retailer’s omnichannel score. Ultimately, the higher the score, the better you are servicing your customers. Naturally, a better the service level, leads to a higher customer satisfaction. That should ultimately lead to improved sales. An easy example is to offer click and collect – Buy Online Pickup in-Store (BOPIS).

Why Does This Matter To You?

We here at OrderDynamics also believe in the revolution of retail. We believe the customer’s interest always need to come first. Each retailer has their own needs. Discovering your true needs and omnichannel pain points is key to your retail health. Give us a call for a free discussion about how your retail chain scored on the Omni-1000. Contact us for a quick discussion.

Author:  

Rida Talpur is OrderDynamics’ Jr. Marketing Coordinator, and resident retail-loving millennial. She has completed a B.A. from the University of Toronto, as a specialist in Journalism. Rida has interned with prominent names in Canadian journalism including The Toronto Star, and Canadian Living Magazine.

 

 

Related:

Four Lessons for U.S. Retailers from OrderDynamics' Omni-1000 Want to Know More About Distributed Order Management? 5 Ways to Control Chronic Returners