What is needed for Omni-Channel to be successful for Retail?

Sitting at home during the COVID-19 situation, I can't help but wonder what it would take and how long it would take for things to return to normal or is this the new normal.

The retail industry is one of the worst impacted industries where store associates working in the stores (non-essentials) are either losing jobs or are worried about their jobs if the situation doesn't improve anytime soon. Having worked in the retail industry as a technologist for more than 15 years, it is but natural for me to think about how the retail industry will revive once we are out of this phase.

Omni-channel is a strategy which in my opinion could make a difference here. Many of the retailers are already on this journey and this could be the way for the retail industry to bounce back sooner than later.

Omni-channel in simple terms means seamless commerce across all channels where retail operates be it online, physical stores or phone customer services. It is the integration of services across channels providing a seamless experience for customers.

There are multiple initiatives retailers are implementing to enable omnichannel like Buy Online return in-store (BORIS), Buy Online Pick up in-store (BOPIS), Find Inventory in store (FIS), Online Orders in store, Ship from Store, Orders through customer service. Retailers are also ensuring the common Loyalty programs across channels and earn-redeem of the loyalty points across channels.

Below are some of the essential elements that in my opinion are key to successful omnichannel implementation in retail.

Real-time inventory picture across channels -

This is an asset that a retailer should invest in, to bring the inventory visibility to all channels i.e. online, stores, customer service, social media platforms and not stale information as it could cause order cancellations or no sale.

Only if physical stores applications have visibility to the distribution centers or warehouse inventories, online orders can be placed from the store for the products not immediately available in the stores. Similarly, only if the e-commerce order management system is aware of physical store inventory positions, an order is placed on site but can be fulfilled from a store or can be given an option on the website for a customer to pick up the item from the nearest store.

Similarly, customer service representatives should have a real-time inventory picture for both Distribution Centers and the stores, so they can provide a seamless experience to the customers on the phone.

The consolidation of the inventory systems needs to happen in real or near real-time for these initiatives to be successful.

Pricing sync across channels -

The most frustrating thing about visiting a retail store I have experienced is to see a lower price online and a higher price in the store or vice-versa.

While I agree stores or online can have its local pricing or promotions, the need is for the store level or e-commerce price to be available to all channels for seamless commerce and for the omnichannel initiatives to live up to the expectations.

Loyalty profile sync across channels -

Loyalty is one of the important strategies for retailers to keep the customers coming back for more and to redeem their benefits.

If we have disconnected loyalty systems or if we get loyalty points by using the website or mobile app but not when we call customer service or when we visit the store, then this breaks the seamless customer experience.

Like Inventory and Price, loyalty systems need to be in sync real/near-real-time for customers to earn and redeem the benefits they earned. This will not only make the customer happy but also a confirmed sale for the Retailer.

There are multiple factors to make any omnichannel initiative successful in any Retail setting. In my humble opinion, the above three factors set the basis for future success and with technology in place, this is a no-brainer.

Feedback, Comments, Discussions welcome!