In retail, the blend of online and offline shopping demands a seamless, personalised customer experience. Here’s how retailers are adapting to meet these evolving expectations
New Delhi: In today’s fast-paced retail environment, customer expectations are at an all-time high. The once fragmented world of retail, divided into separate online and offline experiences, has rapidly evolved into a unified, omnichannel ecosystem where customer satisfaction hinges on seamless integration across all touchpoints. The COVID-19 pandemic, a catalyst for digital transformation, has accelerated the need for businesses to adapt to this new paradigm. Retailers who fail to embrace omnichannel strategies risk falling behind in a competitive landscape.
“Omnichannel is simply about being available for the customer when and where they want it,” said Anil Menon, Chief Information Officer, Lulu Group India highlighting the essence of this approach.
The concept of omnichannel, while not new, has gained unprecedented significance in recent years. Before the pandemic, retailers proudly declared themselves omnichannel, but the reality was often different. COVID-19 forced businesses to rapidly adopt digital solutions, revealing that true omnichannel success requires viewing the customer as a single entity, regardless of the channel they choose to interact with.
“Looking at your customer as a single, unified view is the simplest definition of omnichannel,” said Vinod Kapote, Head – IT at Trent Ltd.
This perspective underscores the importance of consistency across all channels, from brick-and-mortar stores to e-commerce platforms, ensuring a cohesive customer experience.
Shift from Omnichannel to Omni-Experience
As businesses continue to refine their omnichannel strategies, the focus has shifted from simply integrating channels to delivering a holistic “omni-experience.”
Jyoti Deswal, Director- Etail & Large Format Retail Business, Lenovo India emphasizes that “channel is one part, which is more internal to the organization…for the customer, it’s the brand and the product they are looking at.”
This shift underscores the importance of managing customer interactions across all touchpoints, creating a seamless experience that transcends the boundaries of individual channels.
However, achieving this omni-experience is no easy feat. Deswal notes that while omnichannel brings multiple benefits, it also presents significant challenges. For instance, when Lenovo first implemented omnichannel strategies, they faced hurdles such as integrating franchisee stores with their online platform, addressing data security concerns, and ensuring real-time inventory updates.
Overcoming challenges in Omnichannel implementation
The journey to omnichannel success is fraught with challenges, particularly in technology and people management. Vaskar Bhattacharya, Strategic Business Development Head at Ginesys, explains that early adopters of omnichannel in India faced difficulties in integrating disparate technology stacks. “There were major concerns around data coherence, seamless transfer of information from one system to another, and creating a seamless customer experience,” he said.
People and process management also play a crucial role. Bhattacharya points out that the retail industry, unlike manufacturing, has historically been less evolved, with rudimentary processes and untrained staff. Store managers and online commerce teams often operate with different priorities, leading to a lack of coherence in operations. Overcoming these challenges requires clear standard operating procedures (SOPs) and a unified approach to omnichannel retail.
Personalization and Real-Time Inventory Visibility
As retailers strive to deliver a seamless customer experience, personalization has emerged as a key driver of omnichannel strategies. “Personalization is driving omnichannel,” said Suman Guha, Chief Product and Technology Officer, at Reliance Retail.
Customers today expect consistent, personalized interactions with brands, whether they are shopping online or in-store.
Real-time inventory visibility is critical to delivering on these expectations. Abhinav Midha, Vice President of Sales at GoKwik, highlights that “from a consumer perspective, everything available on your website or store should be available in all shapes, sizes, etc. Whenever they go right.” Failing to meet these expectations can result in lost customers and a negative impact on brand reputation.
The challenge of maintaining real-time inventory visibility is particularly acute for traditional retailers with extensive physical store networks. Digital-first brands have an advantage in this regard, having built their systems around a single warehouse and full inventory visibility from the start. In contrast, legacy retailers must navigate the complexities of integrating store inventories with online systems, a task that requires significant technological investment and process changes.
Navigating Inertia and Embracing Change
The transition to omnichannel is not just about technology; it also requires overcoming organisational inertia. Kapote of Tata Trent shares that Westside, a large offline retailer, initially struggled with the inertia of being content with their existing store operations. However, the realization that they needed to cater to customers across multiple channels pushed them to embrace digital transformation. This included updating obsolete systems and creating a digital core to support their omnichannel efforts.
Vaskar Bhattacharya from Ginesys echoes this sentiment, noting that the triggers for adopting omnichannel strategies vary across retailers. For some, like Berilush, a digital-first brand expanding into physical stores, the challenge lies in integrating online and offline operations. For others, like VMart, a large-format retailer, the focus is on leveraging online commerce to gain a unified view of customer behaviour.
Deswal of Lenovo aptly summarizes the need for change, stating, “In today’s world, it’s very easy to replicate the product you are selling, the service you are offering. The only thing where you can differentiate yourself from the others is the customer experience that you are providing.” This differentiation is increasingly tied to the ability to deliver a seamless, personalized, and omni-experiential journey for customers.
Future of Omnichannel Retail
As retailers continue to navigate the challenges of omnichannel integration, one thing is clear: the future of retail lies in the ability to deliver a seamless, unified customer experience across all channels. The journey is complex, requiring investment in technology, process improvements, and cultural shifts within organizations. However, those who successfully embrace these changes will be well-positioned to meet the evolving expectations of today’s consumers and stand out in a crowded marketplace.
The rise of omnichannel retail is not just a trend; it is a fundamental shift in how businesses interact with their customers. As retailers continue to innovate and refine their strategies, the focus will increasingly be on delivering not just products, but exceptional experiences that keep customers coming back.
Based on a recent panel discussion held at the Phygital Retail Convention 2024 in Mumbai
