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.
We’ve all been told time again that the in-store shopping experience is undergoing seismic change. Technologies such as beacons, omnichannel fulfillment and in-store analytics have promised to change the definition of how a retail store engages with customers. And although iron-clad digital store success stories are few and far between, stores will continue to chase the digital store dream despite not knowing the precise endgame. A handful of market leaders are implementing digital store initiatives that will act as lighthouses to the rest of the industry, showing a glimpse of what's possible with the right strategy.
In 2016, Forrester believes that:
Digital operational improvements will emerge as the golden child of store digitization. Trying to engage shoppers with shiny new technologies makes for some pretty flashy headlines, but does little to boost the retailer’s bottom line. On the other hand, store operations-focused technologies have shown early, but real, results. Tools such as in-store analytics and associate task management are ushering in a new era of store efficiency, using real-time insights to help associates understand what needs to get done and when. The smartest retailers will start combining data from sources like online behavior, in-store analytics, supply chain, and labor planning to make operational decisions in real time.
Customers today simply want efficient, effortless service, and are increasingly using chat as a way to get to the information that they are seeking. Chat usage rates have risen in the past three years — from 38% in 2009 to 43% in 2012 to 58% in 2014. We find that all demographics - young and old - are comfortable with chat. Chat can cost less than a voice call, especially for organizations that allow their agents to handle multiple chat sessions simultaneously. Its no wonder that there are hundreds of case studies that showcase the power of chat.
The chat vendor landscape is crowded, and recently I profiled the capabililties of 21 vendors. Because of the wealth of vendors in this space, you have to be clear about your chat strategy, and your core requirements. Here are 5 questions to help you articulate your goals for chat.
Contact center outsourcers have gotten a bum rap. Customers frustrated with offshore accents, agents with no power to actually solve problems, and overly scripted interactions have complained, sometimes loudly, about the practice. Comedians have mocked offshore agents, often mercilessly. In particular, the shared services outsourcing model in which a single agent supports multiple brands at the same time has come in for a real savaging. Check out this Funny or Die video for just one the literally dozens of such comedic rips on outsourcers.
In many ways, brands set themselves up for such criticisms by focusing on outsourcing simply as a way to take costs out of their businesses. That focus on efficiency left little room for the types of excellent service that built customer loyalty. Today, however companies’ motivations for outsourcing customer support are changing and options for onshore or so-called near-shore outsourcing have expanded. Contact center outsourcing actually remains quite vibrant. For example, more than two-thirds of telecommunications technology decision-makers at companies with midsize or larger contact centers report they are interested in outsourcing some or all of their contact center seats or have already outsourced them. So, it is clear that outsourcing is not going away; brands, however, are starting to look at outsourcers for new types of interactions.
Millennials: We can’t seem to get enough information about them. Recent reports that focus exclusively on how Millennials use new technologies have misled eBusiness execs into believing that they must focus primarily on Millennial dollars.[i] But as my colleague Sucharita Mulpuru discusses in her latest report, the kids are overrated.
History has shown us that technology innovation has an impact on all generations —even if adoption rates and motivations differ by age. We even see this trend when examining the role that mobile devices play in the consumer purchase journey today. For example, although 26- to 34-year-olds lead in tablet adoption, 35- to 44-year-olds show the highest levels of tablet use during the research process —more than a quarter of US online researchers within this age group use a tablet!
As far as digital store initiatives go, iron-clad success stories are notoriously hard to come by. Mobile point-of-service (mPOS) is one of the few digital store technologies that has garnered the attention and investment dollars of retail executives—but the return on investment has been nonetheless elusive. Despite large-scale deployments by a number of leading players (including Nordstrom, Urban Outfitters, and Bloomingdales, among others), key questions such as “will this drive incremental revenue?” and “which use cases deliver the most customer and retailer value?” remain. Our newly published report “The Business Case For mPOS Is Associate Enablement” answers these questions and addresses common opportunities and challenges for eBusiness leaders rolling out an mPOS program. In the report, we find that:
Consumers expect digitally-enabled associates to facilitate in-store engagement. Retailers must change their thinking and start to view mPOS as more than just a “mobile cash register.” When shoppers see a store associate armed with a mobile device, they expect to receive contextualized assistance when and where they want it. In addition to ringing up sales in aisle, your associates should be prepared to use their devices to access enterprise inventory, provide product information, and give personalized product recommendations.
The relentless winter in Boston has finally come to an end! Encouraged by the lukewarm temperatures and sight of grass (which we haven’t seen here in months), I set my sights on a new pair of running shoes. Now, where to begin? I can get suggestions from my coworkers, peruse user reviews on my phone on the bus ride home, actually touch and feel the product in person at a sports shop nearby, watch video ads at home on my tablet . . . the list goes on.
The rise in the adoption of mobile devices has made the consumer purchase journey — which already involves multiple channels, devices, and interaction points — even more complex and fragmented. To help professionals understand how and why consumers use mobile devices along the multistep purchase path, we used Forrester’s Technographics® 360 methodology, which combines behavioral tracking data, online survey data, and market research online community responses. We found that:
Almost two-thirds of consumers still use traditional methods to first learn about products —offline sources commonly provide the first impression.
Smartphones enable customers to source pre-purchase product information right from the palm of their hand, but few actually make the purchase using a mobile device
Mobile devices give consumers flexibility if they choose to engage with a brand or retailer post-purchase —from email and text messages to online communities and social networks.
Omnichannel initiatives have dominated eBusiness priority lists for a few years now, and leading retailers have been doubling down their investments in omnichannel fulfillment technology. Most of the focus, however, has gone toward store fulfillment of online orders and click-and-collect functionality. Why did these capabilities rise to the top? Because of their clear financial impact on the business, as well as minimal impact on store and associate processes.
But considering that roughly nine out of ten retail sales still take place offline, a much larger opportunity exists when retailers leverage inventory while the customer is shopping within a store. By offering the ability to fulfill out-of-stock items from any location within the enterprise, endless aisle tools offer a scalable tactic for retailers to drive incremental revenue. Today's endless aisle programs allow retailers to:
Meet customer expectations. Consumers expect the conveniences of eCommerce—including virtually unlimited inventory and assortment—regardless of whether they’re shopping online or in the physical store. Forrester data shows that in the event that an item is out of stock, over half of US online adults would opt to have a store associate order the item for them if they could get it shipped for free. Offering endless aisle capabilities means never having to say you’re sorry to customers looking to buy your products.
The in-store shopping experience is increasingly being transformed into a digitally enhanced experience for both the customer and retailer. Technologies such as beacons, retail store analytics, and store fulfillment programs are rapidly changing the definition of how a retail store operates and engages with customers. While 68% of customers use a mobile device while in a store, retailers are just beginning to take an active role in that in-store digital experience.
Forrester believes that, in the future, retail stores that drive convenience, service, and relevant personalized experiences through the use of digital store technology will succeed. Why? Because today. customers show an affinity for digital store technology. In fact, 66% of luxury apparel customers are more likely to shop with a digitally-enabled associate. Those retailers who wait on the sidelines are at risk of maintaining the status quo and may only grow marginally.
In the Age of the Customer, consumers are increasingly empowered. They decide where, when, and how they engage with organizations as they shop. European consumers are using multiple devices along their path to purchase and almost a quarter are buying online from outside their home market. This is a growth opportunity for retailers in larger eCommerce markets where online retail sales growth is slowing. These cross border buyers are a valuable target group and more likely to use mobile devices as they shop.
Yet researching and buying across multiple devices and touchpoints is not restricted to those that are happy to buy online from other countries. Across the board, consumers are using smartphones and tablets more frequently and across multiple contexts. Forrester’s updated mobile and tablet commerce forecast predicts that mobile and tablet commerce combined will account for 20% of online sales in 2014 increasing to 49% of online sales by 2018.
Mobile phones, smartphones in particular, bridge the gap between digital and physical shopping experiences. In 2015, European consumers’ increasingly multitouchpoint shopping behavior will heighten eBusiness professionals’ attention on the influence of digital across the customer journey and into stores.
Forrester believes that, for Europe, 2015 will be a year of experimentation. We predict that: