Is Omni Everything?
IS OMNI EVERYTHING? – Increasing customer expectations and their demand for frictionless commerce challenges retailers globally. Consequently, almost any retailer has come across the theories around OMNICHANNEL RETAILING, which entails the connection of all available sales and distribution channels in order to provide a seamless shopping experience to customers.
While OMNICHANNEL is considered by many as the epitome of retailing that is able to meet changing customer requirements and counteract the stiff competition from online pure plays such as Amazon, Zalando and ASOS, others are more skeptical as they query the investments and organizational changes that such a strategy requires.
This study looks to weigh up the advantages – such as increased customer satisfaction as well as leaner and more efficient processes – and disadvantages – like significant investments in infrastructure and organisational structures. On its way to answer whether OMNICHANNEL RETAILING is really paying off for retailers, the study examines the various dimensions that retailers have to take into consideration when shaping a frictionless shopping experience. While tackling the question of what really drives retailers to engage in OMNICHANNEL RETAILING, the report also puts forward the most prominent challenges that retailers come across on their way towards a smooth orchestration of distribution channels. Presenting market insights from retailers from the fashion and consumer goods industry in Germany, the UK and the US, the study provides useful advice to any retailer that is looking to enhance their customers’ brand and shopping experience. The three key findings of the study are as follows.
- Building an OMNICHANNEL organization sets the foundation of establishing the right structures and setting the incentives to follow one joint goal – a goal that has the well-being of the entire corporation in mind.
- Franchising can be one of the major challenges standing in the way of OMNICHANNEL – from a contractual, infrastructural and incentive perspective.
- Steering processes across channels and aggregating data that can be leveraged later on to tailor the customer communication can only be achieved when the IT infrastructure is consolidated and aligned.