Time To Assess Your Omnichannel Maturity

It's a fact: Every time customers are exposed to improved shopping experiences, their expectations are immediately reset to a new higher level. Today’s empowered customers expect seamless brand interactions across every touch point, forcing organizations to replace outdated thought-processes and legacy systems with new ways of doing business. That said, many digital strategy and commerce leaders are either not sure where to start, or simply failing to deliver excellence within customer journeys through existing omnichannel capabilities. Forrester’s Omnichannel Maturity Assessment tool, created by Claudia Tajima and myself, helps organizations discover their current maturity level, and understand what steps they need to take to reach omnichannel mastery. 

The assessment challenges organizations to evaluate their retail business across three dimensions:

  • Digital customer experience
  • Digital operational excellence
  • Omnichannel customer engagement

Organizations must score themselves across seven modern omnichannel capabilities that leading retailers are executing today:

  • Enterprise inventory visibility
  • BOPIS
  • Ship-from-store
  • Ship-to-store
  • Endless aisle
  • Omnichannel value adding services
Read more

Your Customers Have Abandonment Issues

Omnichannel fulfillment services have indubitably piqued the interest of today’s retail leaders; nearly one-third of the retail organizations we surveyed already support “buy online, pick up in store” (BOPIS) functionality or have plans to implement the technology by the end of next month.  However, proponents of omnichannel fulfillment are starting to recognize that simply offering services like BOPIS does not in itself lift the bottom line. eBusiness professionals must actively ensure that these initiatives are driving real profits for their business, leaving no stone unturned in their quest to maximize conversion and minimize costs.

In our new report Abolish Abandon Rates For In-Store Pickup, Forrester explores how BOPIS order abandonment—or situations in which BOPIS users cancel or fail to collect their purchase from the store—threatens the success of these programs due to lost sales, unnecessary layaway of inventory, wasted associate time, and sunk interchange fees. We provide insights into why and how frequently customers abandon their orders, as well as the actions you can take to increase BOPIS profitability. Our research indicates that:

  • "Buy online, pick up in store" no-shows are more common than you think. BOPIS users canceling or failing to collect their online purchases from the store is a shockingly frequent occurrence. Indeed, 29% of US online adults who have used “buy online, pick up in store” services in the past three months have abandoned at least one BOPIS purchase in this time frame. And if your company targets Millenials, the prognosis is even worse: 38% of BOPIS users ages 18-24 and 48% of users ages 25-34 have failed to collect at least one BOPIS purchase within the past three months.  
Read more

Introducing Forrester's Omnichannel Commerce Playbook

Today we announce the launch of our brand new Omnichannel Commerce Playbook! In its many forms, omnichannel is quickly resetting customer expectations, and redefining what it means to deliver seamless, fully-integrated commerce across the enterprise. This playbook provides a structured framework to help eBusiness leaders strategically  plan, launch, and maintain omnichannel capabilities and services.   

Customers today forge paths to purchase that seamlessly cross channels, screens and stores.  For example, U.S. consumers in 2015 spent a whopping $1.5 trillion in-store that originally started or were influenced along the way by digital touchpoints. Retailers who offer omnichannel fulfillment are directly responding to customer expectations for this seamless experience. As such, services like ‘buy online, pick up in store’ and ‘ship-to-store’ drive store traffic and provide significant, measurable benefits to retailers and customers alike.

However, omnichannel commerce goes far beyond fulfillment; the full spectrum of omnichannel capabilities encompasses marketing, merchandising, and even customer service. This playbook helps eBusiness professionals analyze and deliver the omnichannel services that are right for their customers, including how to measure their impact and then optimize over time.

The Omnichannel Commerce Playbook will help you:

1. Analyze the business impact of omnichannel integration. Understanding how to identify and quantify the projected net value of omnichannel capabilities and services translates into a strong business case that drives an organization's overall omnichannel strategy and road map.

Read more

Announcing The Forrester Wave: Mobile Commerce And Engagement Platforms, Q1 2016

Robust mobile commerce platforms are no longer a “nice to have” for retail organizations. A recent Shop.org and Forrester Research survey indicates that smartphone sales accounted for 17% of total retail sales in 2015, and that sales from smartphone devices grew 53% year-over-year.

With mobile’s stake now planted so firmly in the ground, it is critical that the technology solutions used to support transactional mobile sites and apps provide the scalability and flexibility required today to stay ahead of the innovation curve tomorrow. With this in mind, we are pleased to announce that the Forrester Wave evaluation of mobile commerce and engagement platforms is now live.

Among mobile commerce and engagement platforms, which Forrester defines as commercial solution partners for the technology, development, and/or ongoing support of their mobile websites and/or mobile apps, we have identified four core competency traits. These include:

  • An obsession for mobile commerce trends and metrics. The best of these vendors do not just build and support mobile technology; they live and breathe mobile commerce — it's in their DNA. This means they are at the forefront of what works and what doesn't when it comes to how mobile experiences support conversion metrics.
  • A continually evolving, common platform on which they support all of their clients. Unlike traditional agencies, these vendors are not building tailored capabilities for each client. Instead they onboard all of their clients onto a common (often software-as-a-service [SaaS] based) platform.
Read more

Same-Day Delivery: Delivering Profits Or Just Parcels?

Instacart’s recent $2 billion valuation suggests many believe same-day delivery to be the next standard for fulfilling online orders. Online and mobile food ordering service GrubHub recently showed its commitment to delivery by announcing the acquisition of two players in the food delivery space, DiningIn and Restaurants On The Run. Amazon, too, has been expanding its already robust same-day (and same-hour) delivery initiatives in an effort to compete with the immediacy of in-store shopping, and a number of large multichannel retailers have followed suit in the hopes of beating Amazon at its own game. But can same day delivery models be used efficiently in retail without having a negative impact on profitability? Despite the hype and flashy headlines, the business case for same-day delivery remains largely uncertain—and key questions such as, “Will customers use it?” remain unanswered.

Our newly published report, Avoid The Rush And Deal With The Realities Of Same-Day Delivery, addresses these questions (and more!) for eBusiness leaders thinking of taking the same-day delivery plunge. We find that:

Read more