Digital services are now expected as standard by consumers, with retailers needing to adapt or risk their losing business altogether, according to a report from Kibo, a cloud-based omnichannel platform.
For consumers, in-store pickup combines the ease of shopping online with the promptness of purchasing from a local retailer. But while it's been revealed that this method isn't any more efficient than just buying in-store, that hasn't stopped brick-and-mortar shops from adopting and promoting this service - nor has it dissuaded customers from using it.
Retailers worldwide lose a staggering $1.75tr annually due to the cost of overstocks, out-of-stocks and needless returns, according to research released from retail analyst firm IHL Group, commissioned by OrderDynamics, a Big Data prescriptive analytics software company.
Although the term "omnichannel" has become most associated with success in retail and consumer goods, few companies are confident in their omnichannel abilities, according to a new study by Ernst & Young and the Consumer Goods Forum. They blame the supply chain.
In recent years, a growing number of retail RFID use cases have clearly demonstrated the benefits of being able to track inventory at the item level, leading to better shelf replenishment and fewer out of stocks. Many retailers quantify the benefits of reducing out of stocks not just at the item level (potential lost sales) but at the transaction level, since retailers closely track the number of items that comprise the average transaction (e.g. 3.6 items/sale). Using that example, an out-of-stock item (especially in a core category such as denim) could result in lost sales of an additional 2.6 items that were to be purchased with it.
You need to understand the requirements around speed of delivery, and the cost. Clients often come with questions like, "My customers want next-day delivery, what is it going to cost me to deliver that?" And the short answer is, "it depends."