Today more retailers are seeking unified commerce—or a seamless customer experience irrespective of channel. According to Zendesk, “87% of customers think brands need to put more effort into providing a seamless experience.”
And the benefits for retailers are significant. In fact, a study done by Google found that omnichannel shoppers have a 30% higher lifetime value than those who shop using only one channel.
While brands refer to this as a “unified commerce” approach— the foundation of being able to achieve unity throughout your supply chain is built on an omnichannel retail mindset.
What is unified commerce? How does an omnichannel strategy impact brand experience? In this article we'll walk through how brands are building a cohesive unified commerce strategy.
Before we dig into exactly what omnichannel retail is, let’s set the context for how shopping channels have evolved over time.
In the fall of 2018, the once dominating retail giant, Sears, filed for Chapter 11 bankruptcy. As news of the big-box downfall spread, people began to reminisce about the days of catalog shopping.
To many modern consumers, the idea of browsing a catalog, filling out a paper form, and mailing a check for payment seems almost unbelievably antiquated. Yet Sears successfully sold everything from clothes, jewelry, firearms, livestock, to even mail-order “kit homes” you could build yourself.
But as competition grew, and Sears stayed the course with the same retail model, the beloved brand, in the words of the Wall Street Journal headline, “lost the American shopper.”
Sears is a case-study-worthy tale of a brand not adapting to a changing retail landscape—and assuming that what has always worked will continue to yield the same results. However, retailers now know that the world of commerce is incredibly dynamic, and there is a sense of Darwinism’s survival of the fittest for those that won’t (or can’t) adapt.
Retail began mostly as a single channel model, where consumers expected to visit a brick-and-mortar store to purchase. Eventually, new channels began to emerge.
For example, a retailer would have “store” inventory separate from ecommerce inventory, making it complicated and cumbersome if a consumer purchased something from one channel but need to return/exchange in a different channel. Retail associates wouldn’t necessarily know how to “pick, pack, and ship” an item to consumers.
While multichannel gave consumers more options for shopping, it often led to complex retail operations, disparate systems, and complicated reporting.
In 2010, retailers began to look for an approach that extended beyond multichannel.
Omnichannel retail (omni meaning “all”) links every retail channel together to build a seamless customer journey. Research shows that consumers are interacting with brands on a variety of channels and becoming more and more “channel agnostic.”
Simply put—consumers are looking for a unified brand experience, whether they are browsing a brick-and-mortar store, shopping on their smart phone, or buying online and picking up in the store.
The statistics for “omni-shoppers" show that they tend to spend more (both transaction size and lifetime value) and have a higher customer retention rate. So as retailers aim to target new customers, get them to engage with their brand, and keep them coming back for more—an omnichannel approach has proven an effective way to do so.
While sales and revenue can drive omnichannel strategies, there are many more benefits to a unified commerce experience:
Order Routing & Orchestration - What unique workflows or routing requirements does your brand require? Do you have a tool that offers advanced logic routing based on business best practices like ship complete, split shipment, or proximity? What about unique workflows for dropshipping and retailer requirements?
The technology stack (or set of technology tools) behind your brand either prohibits or enables you from executing the customer experience you aim to create. For many retail brands, the "secret sauce" to creating an omnichannel customer experience is through leveraging an order management system (OMS).
Not sure if OMS is the right option for you? Here are 3 Signs Retailers Need an OMS.
An order management system effectively covers the entire lifecycle of your orders—from click to doorstep—and gives your brand fulfillment capabilities and visibility you don't have without OMS. But not all order management solutions are created equal. Understand your options for order management systems and their short and long-term benefits.
Ship from store
Build-A-Bear is known for its unique in-store experiences where children can create their own furry friends to take home. With the increase in online shopping, Build-A-Bear mirrored that unique in-store experience on their website. They give customers the option to include online-recorded voice messages with their gift—allowing family members to send special messages even while they are apart.
To keep up with the influx of online orders, Build-A-Bear turned their retail spaces into micro distribution centers (in just four weeks) through their use of their order management system. Not only did this keep stores operational during the pandemic, but now, Build-A-Bear has an infrastructure in place for a broader distribution network and the ability to offer a true omnichannel customer experience.
Curbside Pickup
A recent study found that 33% of millennials who developed the habit of using curbside pickup during the pandemic plan to continue to do so. The immediacy of fulfillment that curbside pickup provides appeals to many shoppers—especially when some brands like Dick's Sporting Goods, have orders ready in as little as one hour. By showcasing local store inventory on their storefront, retailers can provide their customers with an additional convenient way to pick up their orders.
Marketplace Selling
Omnichannel retail doesn't solely mean fulfillment options. It also includes how consumers expect the same experience with a brand even on different selling channels. Take for example, Native Shoes. Their customer experience needs to extend to any location where their shoes are being sold whether it's Amazon, Zappos, Walmart, etc.
One way they can ensure that experience is being upheld is by having full visibility into all of their inventory in all of their different selling channels. This allows them to allocate inventory where needed to not lose out on any potential sale due to "out of stock" messaging.
Whether you are a seasoned omnichannel connoisseur, or just now assessing how to adapt your retail strategy into a true unified experience—one thing is clear— customers are in the driver’s seat and they are on the omnichannel highway.
But heading towards a unified brand experience doesn’t mean you have to abandon your historic brand identity. Who knows what Sears could have become if they were open to adapting their business model to meet consumer preferences? Perhaps they would still be competing with other retail giants that have stood the test of time?
The CEO of Levi’s, Charles Bergh, points out that brands should “…have one foot rooted at the heritage of the past to make sure we understand where we came from, and one confident step forward in terms of driving innovation forward.”
A unified commerce experience is not only a step forward — it is a step towards where the customers already are.