The retail industry has been talking about “omnichannel” for the past several years. Despite it being one of the most overused buzzwords in retail today, retailers still understand the importance of implementing an omnichannel strategy. In fact, according to a new survey from Periscope™, a McKinsey Solution, 64 percent of retailers acknowledge that “a well-defined cross or multi-channel strategy” is the top innovation that would accelerate their digital commerce growth.
Unfortunately, the survey results clearly demonstrate that retailers have not made much progress in implementing omnichannel strategies across their businesses. Only six percent of retailers surveyed described their omnichannel readiness as “Excellent—fully implemented.” So what’s going on with the remaining 94 percent? Where do the challenges lie?Of the retailers surveyed:
- 67% cited a lack of customer analytics across channels
- 48% attributed lack of omnichannel success to silos within the organization
- 45% pointed to poor data quality
- 45% said it’s due to an inability to identity customers across shopping trips
See the commonality here? Despite all the technology advancements over the last several years, data and analytics continue to be an obstacle to omnichannel success. Retailers are still operating channels in silos, giving them little insight into the much-desired 360-degree view of each individual shopper and how they move across channels.
In a press release, Periscope’s General Manager for Retail, Channie Mize, said, “The biggest challenge for retailers is the organizational change that needs to take place: The removal of organizational siloes, creation of new processes, and the forming teams that work across, rather than within, channels. These take careful planning and execution, but cannot be ignored, because without them any retailer is doomed to fail.”
Despite their frustrations, retailers continue to make omnichannel their mission – their Holy Grail, putting it front and center so they can ultimately connect the entire customer journey seamlessly – from device to doorstep. And that’s exactly what customers are beginning to demand.