Mapping Your Journey to Omnichannel Adoption
Much has been said about omnichannel strategies this year, but most retailers are still experiencing inertia when it comes to achieving full implementation. According to an October survey conducted by the Hay Group, only 14 percent of retailers reported having an omnichannel strategy in place, while 64 percent said their strategy is "still in progress."
Retailers who find themselves a part of this majority are still working to connect the dots between traditional brick-and-mortar processes and e-commerce integration. A comprehensive understanding of how to leverage quality data for omnichannel success is needed to move forward in 2014. Let's break down the retailer's journey toward this evolution.
1. Learn how customers interact with product data. Today's consumers are pressed for time, so it's typical to hear them say shopping online is simpler, provides better deals and offers more control than shopping in-store. The first step in understanding the omnichannel opportunity is to align customers’ experiences with product data. What are the keywords shoppers are searching for? Are the right products displayed in the search results?
Unfortunately, most current digital information about products is inconsistent, which leads to customer frustration. A GS1 global research study found that 74 percent of consumers consider it important that product information is trustworthy. Additionally, 38 percent wouldn't purchase the product if they didn't trust product information found on their smartphone, and 35 percent would never use an app again if it contained incorrect product information. Once you know what your customer expects, you can better align consumer-facing operations and supply chain practices to adapt to their behaviors and attitudes.
2. Standardize your data. Retailers are mixed in their approach to data. While some participate in a seamless fulfillment experience, created upon a foundation of scalable, repeatable processes, others adopt a more traditional, siloed view of channels that relies on custom-made, proprietary data solutions.
Omnichannel demands accurate item identification to enable visibility and accuracy throughout the supply chain, giving retailers a complete sense of which products are "available to promise." Many industry insiders agree that RFID technology represents the future of true product inventory visibility and have already reaped the benefits of transforming their businesses into full-scale omnichannel operations using item-level RFID. This is just one example of how standards help businesses create, maintain, analyze and use information to collaborate effectively with trading partners to the ultimate benefit of both the industry and consumer.
3. Optimize your data for e-commerce. Taking standardization a step further, GS1 US, an information standards organization, recently released Voluntary Guidelines for Exchanging Extended Attributes for eCommerce to support the exchange of consumer-facing product attributes in several categories, including apparel, footwear, jewelry, cosmetics and home products. This data extends beyond the traditional supply chain information already exchanged between retail buyers and sellers to support consumer requirements for rich online product details. The guidelines serve as a springboard for all trading partners to analyze and improve their current internal capabilities, and will help them place a strong emphasis on the product attributes consumers deem essential in making online buying decisions.
Ultimately, all signs point to data consistency being the driver of omnichannel success, with real-time inventory being the vehicle. Not only does this mean quick inventory checks, but sales associates who embrace omnichannel can suggest substitute products and even upsell to better products — all of which will rely on thorough, accurate information and a global language in which to communicate.
Melanie F. Nuce is vice president of apparel and general merchandise at GS1 US, where she leads the GS1 US Apparel & General Merchandise initiative.
