“True competitive advantage in the evolving omnichannel world depends on a retailer’s ability to deliver an authentic, integrated, customer-centric shopper experience across all channels and touch-points.”
That is the opening paragraph in the executive summary of IBM’s ‘Authenticity and advantage in an omnichannel world’. Conceived in 2013, the IBM Omnichannel Capability Index Survey determine how 169 European retailers, of which 33 were from the UK, are providing their customers with an authentic omnichannel experience.
“85% of consumers expect a seamless experience across all retail channels, 86% want to use technology when shopping and 50% want to use multiple devices.’
IBM Institute for Business Value
Although IBM argues that retailers wishing to grow their market share and profitability must look at ways to transform their business strategy, technology platform and operating model to facilitate omnichannel, not one retailer in the study provides a complete experience to their customers.
IBM’s definition of omnichannel enables consumers to engage with retailers consistently and seamlessly regardless of the channel (i.e. in-store, online, via social media, etc.) or location and comprises three vital elements:
- Seamless integration between all channels (physical shops, online, mobile, social media and more), enabling a customer to move fluently between each touchpoint as they shop
- Transparent visibility of transactional and behavioural data to enable a truly personalised offer to satisfy each customer’s shopping preferences
- A customer-centric operating model to ensure that everyone has an easy and rewarding shopping experience that reflects their lifestyle and level of technological capability
In the survey, IBM assessed retailers against 75 performance criteria in 13 different categories, including:
- Awareness
- Integrated marketing
- Price strategy
- Product presentation
- Supply chain
- Home delivery
- Returns
- Click and collect
- Service
- In store
- Call centre
- Online
- Mobile and social
- Social media
- Mobile website
- Mobile app
IBM reported a great deal of inconsistency amongst retailers across each of the 75 criteria. A ‘universal price strategy’ was most consistently reported across all retail channels, while integration and delivery of an eCommerce service in-store (for example consumers able to check-in with their smartphone when collecting purchased goods in-store) was the most inconsistent with only 9% rating. Retailers highlighted mobile apps, click and collect, and home delivery services as the next most important areas for future development.
The UK fared relatively well in the study, with the top five retailers scoring an average of 73 across all criteria. This is partly due to the relative maturity of the UK eCommerce market. IBM says that
“The most successful retailers will be those that make the leaps and investments necessary to their front-office, back-office and big data capabilities now to get ahead of expectations and satisfy ever-increasing customer demands.”
Interested in future trends in retail? Why not take a look at ‘Can your delivery and transport management software meet the needs of e-tailing in 2025?’ which looks at research from DHL about the changing face of the supply chain.
Posted by Paul on 16th September 2014.