Despite the cost, omni-channel is becoming the need-to-have model for retailers, and it has almost reached the tipping point of change or fail for retail organisations.
This is according to Haydn Pinnell, CEO of Argility, who notes as consumers have more choices than ever before, and the ratio of physical (in-store) purchases and digital purchases is shifting more and more towards a 50-50 ratio.
Retailers now face the challenge of doing omni-channel retailing in a digital world with systems, processes, supply chains and logistics that are geared towards traditional (in-store, and some e-commerce) worlds, he added.
Pinnell said the 50-50 world in retail speaks to the consumer's ever-increasing requirement to engage with retailers through more and more digital channels (e-commerce, mobile commerce, social media commerce, the Internet of things and wearable devices, as well as digital displays and kiosks.
Doing business in a digital economy, where customers expect to interact, consume, purchase, engage, communicate and be serviced through whatever channel (digital or physical) that they see, is complex, he noted.
It comes with a plethora of implications for customer experience, customer acquisition, retention, service, data privacy, security, supply chain, logistics and ultimately the people, processes and technologies, said Pinnell.
According to Andrew Blatherwick, non-executive chairman at Relex Solutions and non-executive director of Storeforce Solutions, omni-channel requires a new approach that transforms the organisation from silos of technologies and processes to a seamless ecosystem.
Blatherwick said to succeed, retail organisations need to fundamentally rethink how things are done and have to be prepared to set aside silos that inevitably exist.
Pinnell believes to have an omni-channel success, retailers must integrate and automate as much as possible.
"Where new technology needs to replace existing in-store, back office, warehousing or supply chain, or indeed any core system, ensure that it is flexible, adaptable and can scale with changing needs, cloud-based solutions (IAAS, SAAS, PAAS) are ideal in an omni-channel world, as they are cost-effective, elastic and scalable by nature."
Also, retailers should focus on their customer's requirements and prioritise the omni-channel journey accordingly, said Pinell.
They must also realise that employees are also your customers in certain cases, and that they are often the best positioned to understand any impact to process and customer service that change can bring, he added.
"Retailers should build their omni-channel journey step by step, plan, implement, measure and evolve each step carefully being sure to build on incremental successes while still providing the correct levels of customer service. It's going to be a balancing act."
According to Pinnell, the biggest advantage to an omni-channel strategy is the data that can be assimilated to help retailers better understand the customer requirements, spending patterns, experience and journey.
"Plan to use this data effectively, determine what you want to measure and why, and utilise the data effectively."
The key to any omni-channel strategy is the constant change that will come throughout the journey, said Pinnell. "The customer, industry and technology are constantly changing, and the strategy has to be able to cater for a step change at any point in time."
Although South African retailers' omni-channel and digital commerce initiatives are certainly behind the curve in terms of adoption, usage and ultimately revenue generation in comparison to Europe, the US and Asia, SA retailers certainly are beginning to understand the importance, and are cautiously investing in digital commerce for growth, he noted.
"In fact some early adopters are already showing significant revenues and returns on digital commerce and omni-channel strategies."
SA's digital commerce is lagging behind but retailers are aware that they will be no need to just have face-to-face shops or just online shops but business now needs both, says Pinell.
Share