The following are just some of the hurdles that must be examined and overcome when commencing the omni-channel journey:
* Capital: It will take more capital than is possibly understood and the returns may be low - but the investment is crucial because it will keep the company in the game.
* Get the basics right: Deliver on time, in full, and when it was promised.
* Ensure the omni-channel offering can compete with the pure-play online experience.
* Check the fulfilment ratings: Are they integrated or separate; fast and consistent?
* Check inventory deployment: Where's the shelf edge now?
* Is the supply chain a slick responsive?
* Does the business actually understand its channel economics?
* What about returns? Are there policies and procedures in place to handle returns efficiently and with high service delivery?
* Build a single view of customer and stock - this is crucial to success.
* Evaluate the impact of change - on staff and company leadership. Develop a plan to manage this impact.
* Staff must be appropriately trained to provide a consistent level of customer service that mirrors the smooth online experience.
* Omni-channel requires different skills, but what is glaringly obvious is that if there is no omni-channel strategic plan in place, global indicators and South
African research report companies have three years to fix this or become extinct in a hugely competitive marketplace. That is certainly the most compelling reason for change. Basically, business is now forced to re-engineer operating models and this change is being driven by customer demands.
Omni-channel roadmap
Digital commerce primarily incorporates the process of developing, marketing, servicing, selling, and finally, paying for products and services, via a digital channel. However, it needs to be understood that getting customers to engage/connect more frequently does not mean giving them more channels to choose from. What it is about is removing effort and adding appeal through the creation of a hassle-free customer experience.
Building blocks for omni-channel success
The sequence of the building blocks outlined below is not mandatory in terms of execution. Companies can implement blocks based on their immediate requirements, budget and available resources.
Creating brand awareness via social media
This may be one of the first steps required in making a customer aware that the company engages via various channels, such as Facebook and Twitter.
Advertising the product/service on social channels
Social channels such as Facebook, Twitter and Google allow companies to advertise to their potential customer in two ways: Invasively, via action adverts that pop up and invade the users' space while they are scrolling through Facebook screens or viewing what is trending on Twitter. In this instance, the user is not actively seeking information on a product, but if the advertised product is of interest, the user can, at the click of a button, be taken to the vendor's e-commerce site where they can conclude a purchase.
The use of Google for a non-invasive advertising approach is another means of raising brand and product awareness. In this instance, browsers are actively seeking information on a product and adverts conveniently direct them to the e-commerce or Web site where the sale can be finalised.
Enable cross-channel order management
Customers increasingly want to order goods through one channel and receive them through another; for example, ordering online for home delivery or store pick-up.
Enable cross-channel returns management
The capability for managing orders across channels has to be complemented by the ability to accept returns via any channel.
Implement and extend mobile point of service
Mobile point-of-sale (POS) terminals are already in use to speed up queuing, but all business sectors - regardless of whether it is financial services, hospitality or retail - need to take the concept further. Floor staff should be able to offer information and accept payment via portable devices, thus obviating queues altogether and creating mobile service points across the physical environment.
It is vital to be able to use one channel to drive traffic to another.
In SA, mobile phones are almost universally used, and one can expect businesses to increasingly integrate customers' own mobile devices into the purchasing experience. For example, growing numbers of customers are already using secure mobile payment apps to pay for purchases at the POS. While these apps are typically used in high-volume, relatively low-value transactions, often in the hospitality sector, they are poised for wider use.
Digital asset management
As part of delivering a consistent customer experience across all channels, companies require a centralised content management system in order to: Create, manage and publish all digital content to all customer touchpoints. This content would include loyalty information, special offers, brochures, advertising and more.
Cross-channel marketing
From the retailer's point of view, it is vital to be able to use one channel to drive traffic to another; for example, driving online consumers to the brick-and-mortar establishment and vice versa.
Integrate the call centre
Most enterprise organisations in SA utilise call centres. Examples include the health, insurance, mobile service providers and many more arenas where call centres are typically used to support other channels. This capability is a critical engine of omni-channel business operations. Online shoppers frequently use call centres to access specific information or expedite an order while on the Web.
Develop pop-up retail capability
Pop-up shops are emerging as a way for pure-play or multi-channel businesses to add a temporary, seasonal channels or to test a concept or format. However, pop-ups do pose significant logistics challenges.
Use store as showroom, plus order and collection point
One prediction is that stores will become part of the omni-channel mix by offering a way for shoppers to touch and feel products they have researched online. They will offer self-service ordering capabilities onsite, and also act as convenient collection points for merchandise ordered through another channel.
In SA, the most likely development is that existing stores will continue to act as channels in their own right, while providing increasing support to other channels. In line with the mobile point of service concept noted above, stores and other physical enterprise organisations, like banks, will increasingly combine real-world and digital purchasing experiences in one location.
In the third and final Industry Insight in this series, Paul Swartz will expose the crucial steps necessary for omni-channel success.
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