One of my first jobs was as a sales associate at a clothing store, after which mall shopping lost any of the leisurely appeal it once held. I still find myself folding clothes I didn't unfurl and fixing hanger hooks to all face the same direction.Chalk it up to knowing how the sausage is made, or perhaps a logical side effect of working in eCommerce research, but I do most of my shopping online these days.
The store shopping experience hasn’t changed much since my time as a sales associate. But that’s all about to change. We’re at the beginning of a retail transformation: The growing percentage of retail revenues driven by eCommerce and the influence of digital technologies on consumer behavior and expectations alike means that retailers are being forced to reevaluate the value proposition of the store. The result? A digitally enhanced retail store.
Today, a mix of technologies are coming together to marry the online and offline experiences to revolutionize in-store shopping and the role of the physical store. However, we’re still in early stages. Many of these initiatives remain in experimental phases, and glaring success stories are few and far between. Despite the rarity of iron-clad business cases for these initiatives, eBusiness professionals and their colleagues in store operations are forging ahead.
Together with eCommerce technology analyst Adam Silverman, I recently published a report laying out the current state of digital store initiatives and the promising opportunities a digital store overhaul represents for retail. Some of the ways retailers are transforming retail stores include:
The prospect of remote collection lockers and click & collect points replacing London Underground ticket offices sparked a round of strikes last week, creating havoc for commuters. The second round of planned strikes was only narrowly averted this week.
Transport for London’s (TFL) proposal to close 240 underground ticket offices and replace them with automatic ticket machines will result in a proportion of job losses for station staff but present an opportunity for TFL and UK retailers alike, by:
Responding to the popularity of click and collect in the UK. Forrester’s Consumer Technographics® Retail Survey data shows that UK shoppers are responding to retailers’ omnichannel fulfillment capabilities, readily adopting click & collect services. UK grocery stores Asda, Waitrose and Tesco are not waiting for the closure of ticket offices. They are already setting up trials for click & collect services at selected stations across the London Underground network. The click and collect service will allow shoppers to order their food online before a cut-off point during the day, for collection at their local station on their way home in the evening.
The bank I mainly use for my daily banking needs does not offer that many examples of great customer experiences. The two reasons why my family continues to use that bank are the high number of ATMs in the area where we live and a very customer-oriented branch advisor. Our most recent interaction with that bank (but not with that advisor) delivered yet another example of “great” customer service across channels, an experience that will likely cause us to look for a new bank. The chances that this yet-to-be-determined bank can offer better cross-channel capabilities at least at some point in the future are not bad at all: Many financial services firms are evolving beyond using just a single channel to get in touch with their customers (see the figure below).
With growth comes investment, so given that eBusinesses across the globe continue to experience double-digit compound annual online sales growth, it should come as little surprise that 66% of these same firms are planning to increase their investment in commerce technology in 2014. In my latest research report “Commerce Technology Investment And Platform Trends — 2013”, Forrester polled 49 eBusiness leaders to understand their investment and technology implementation plans for the next 12 months. Here’s what the top of the investment priority list looks like:
Omnichannel Execution. Omnichannel initiatives have become a major focus for every retailer and brand with a physical brick-and-mortar presence. eBusiness teams (and their counterparts in store operations) are rushing to implement the following programs among others: pickup-in/ship-to store, store inventory visibility, ship from store, and associate enablement.
eCommerce Replatforming. eCommerce platforms are the backbone of any digital channel, and replacing legacy home-grown systems or outdated (and often unsupported) platforms remains a top priority. With these platforms now supporting omnichannel programs such as “buy-online, pick-up in-store”, having a scalable and flexible platform that can support future growth is an imperative.
So either you are back, or you were with me all along. But now you are wondering “Ok, so what is the difference?” Let’s look at what the two terms really mean. Omnichannel doesn’t have a formal definition, though here’s what the oracle that is Wikipedia says…
“Omni-Channel Retailing is very similar to, and an evolution of, multi-channel retailing, but is concentrated more on a seamless approach to the consumer experience through all available shopping channels, i.e. mobile internet devices, computers, bricks-and-mortar, television, catalog, and so on.”
On the other hand, Forrester defines agile commerce as…
“An approach to commerce that enables businesses to optimize their people, processes, and technology to serve customers across all touchpoints.”