By Daniel Binder
THE SHIFT TO OMNI
The key to retail success in 2022 and beyond requires continued investment that commits a fully integrated OMNI Channel experience. The shift to OMNI Channel has been swift as the industry has evolved from a traditional brick and mortar environment, to E-Commerce then to Multi Channel, where customers shopped in distinct but disconnected channels to OMNI Channel, a fully integrated shopping environment.
Coming out of 2021, OMNI Channel represented upwards of 50% of a retailers’ sales with significantly higher purchase frequency from their customers, stronger retention yielding strengthened bottom line margins.
THE NEED FOR AI
In addition to embracing an OMNI Channel business model, retailers can position themselves for success by leveraging AI (artificial intelligence) to significantly optimize inventory with precise allocation at the right time and place across channels.
THE PERSONALIZED EXPERIENCE
Customers now expect a curated shopping sophistication that delivers an extra special highly personalized on line and off line experience at any time, from anywhere with seamless fulfillment. Optimal customer experience is made up of individual touch points over a variety of channels to connect and enable the customer to pick up where they left off on one channel and continue the experience on another. Convenience and the customer expectation for personalization will require pragmatic innovation. The modern retail strategy is beyond just expanding websites and new location openings.
Customer spending habits are forever changed. They will continue to evolve into a continuous customer experience.
THE L.I.S.T.
Looking ahead, success is about integrating THE L.I.S.T, our acronym for Logistics-Supply Chain, Inventory, Organizational Structure and Smart Technology. These are the four core foundational pillars to support an OMNI experience. This experience is comprised of a robust logistics and supply chain enabling real time inventory, building robust data driven, digitally savvy, AI knowledgeable operating structures that adopt modern processes and techniques anchored by creative merchandising. These pillars, supported by intelligent technology, are the new imperative for a technologically-savvy digitally-charged customer and enable the retailer to build out an OMNI Channel strategy.
We refer to this as The L.I.S.T. Logistics-Supply Chain, Inventory, Structure, and Technology and it reflects the core foundational pillars that enable a retailer to build out an OMNI Channel strategy. These core foundational pillars are not executed in isolation; instead, they need to be looked at together by viewing the customer journey from end-to-end. They are as interconnected as the modern shopping has become.
Omni Channel transformation is about adopting and integrating The Retail L.I.S.T.
