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.
The other day, I stopped by my bank’s ATM to get some cash. After entering my card and PIN and while waiting for my money (during which I was a captive audience), I was presented with an ad for a new service from the bank. Unfortunately, the ad’s call-to-action was a message telling me to call the bank’s 1-800 number to find out more.
I had just encountered one of the broken or inadequate cross-channel experiences that millions of customers face every year.
This is a lose-lose situation: In this case, the bank knew — or should have known — a heck of a lot about me as a customer, yet it failed to use context* to design a better experience and guide me seamlessly across touchpoints. And as a result, the bank also failed to cross-sell me any products or services.
Forrester defines cross-channel behavior as any instance in which a customer or prospect moves from one touchpoint to another when completing an objective. Today, cross-channel goes way beyond online-to-offline transitions; going forward, these interactions will only increase in frequency and importance. Digital executives at banks are left with a tangle of customer journeys across various touchpoints (see image below).
In the race to keep up with skyrocketing consumer expectations around omnichannel commerce experiences, many retailers moved quickly to roll out omnichannel fulfillment capabilities without fully understanding the incremental expense of operating these programs. Today, retail executives are beginning to shift their focus towards profitability: moving from implementing to optimizing their omnichannel fulfillment initiatives.
In our new report Build A Profitable Omnichannel Fulfillment Program, we asked a number of eBusiness leaders and industry experts to share the processes, tools, and best practices they used to assemble profitable omnichannel fulfillment programs. Our research indicates that retailers can optimize their omnichannel fulfillment capabilities by:
Enabling product visibility and order orchestration. Omnichannel fulfillment initiatives—think endless aisle, ship-from-store, click and collect—are completely dependent on the ability for customers, associates, and retail selling systems to be able to accurately pinpoint the location of every product across the enterprise. Further, having a robust distributed order management system (OMS) can help retailers reduce the cost of fulfilling orders by orchestrating across all stores and distribution centers.
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.