In the fallout from the pandemic, the term “omnichannel” seems both out of date and yet more vital than ever, according to a study from consulting firm EY. That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information. The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
Five-Part Strategy for Omnichannel Retail Success
The steps EY suggests include:
1. Operational Cohesion
Is your operating model and data framework separated between e-commerce and physical stores? Or have you developed a unified unit centered around delivering a seamless customer experience? This integration ensures that both online and offline channels work in harmony, providing a smooth and consistent customer journey regardless of how or where consumers choose to engage. Bridging the gap between digital and brick-and-mortar platforms not only enhances customer satisfaction but also improves overall operational efficiency.
2. Understanding Your Customer
With consumer centricity at the heart of operations, are you analyzing all touchpoints to build a holistic view of preferences, behaviors, and buying patterns? This means leveraging data analytics to gain deep insights into what drives customer decisions. By understanding these pivotal aspects, retailers can tailor their offerings and marketing strategies to better meet customer expectations, thus fostering loyalty and repeat business.
3. Advanced Stock Management
Given accurate customer insights, how are you utilizing sophisticated analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed? Advanced stock management involves not just keeping track of inventory levels but also predicting future demand based on data trends. This ensures that products are always available where they are most likely to be purchased, reducing the risk of overstock or stockouts, and improving the overall customer experience.
4. Logistics Alliances
Having ensured your customers find what they want where they want it, how are your logistics strategies adapting to deliver choices to them rapidly and efficiently? Effective distribution partnerships are crucial for meeting customer expectations on delivery times and reliability. By collaborating with the right logistics partners, retailers can ensure quicker, more efficient delivery services, which is a key factor in customer satisfaction and retention.
5. Strategic Property Management
EY recommends several crucial steps. First, understand the current state by performing a comprehensive assessment. Second, set clear goals aligned with this initial analysis to create a focused plan. Third, identify potential quick wins and long-term opportunities that align with organizational priorities. Fourth, design a strategic roadmap, ensuring you have the right balance of tactical and transformational projects. Fifth, develop a robust governance framework to ensure accountability and track progress diligently. Sixth, build a skilled team to drive these initiatives, investing in training and upskilling as needed. Seventh, implement pragmatic solutions gradually, beginning with those that deliver immediate value. Eighth, continuously monitor, measure, and refine to adapt and optimize outcomes. Finally, foster a culture of continuous improvement and innovation, encouraging feedback and collaboration across all levels of the organization. Together, these steps create a comprehensive approach to achieving substantial and sustainable progress.
