The rapid advances in the technology landscape and proliferation of digital have taken customers beyond multi-channel to an Omnichannel retail
experience. Global retailers that include the likes of Macy’s, Saks and
Lowe’s have already moved in this direction enabling customers to shop
anytime, anywhere and enjoy consistent and delightful experience.
Omnichannel
retail aims at enabling sales initiatives through multiple channels –
online, brick and mortar stores, social media, events, mobile, and the
usual traditional sales efforts; at the same time creating consistent
and uniform customer experience
at each sales touch point. The channel operations are connected at the
back end to provide the integrated, customer specific information
whenever required. The availability of customer information across all
channels through regular information sharing enables store
representatives and online customers view the same data anytime,
anywhere.
However, building an Omnichannel capability is easier
said than done. It needs a totally integrated operation across all
customer touch points - store operations, marketing, call center, and
digital (which includes all forms of non-store-based commerce). This is
made all the more difficult because the traditional organizational
structure creates siloes.
To take an example, let’s look at
product and customer data. Data is generated in-store through
point-of-sale systems, e-commerce and m-commerce platforms, the contact
center, and other systems. This information is collected and stored
across different systems because retailers have traditionally kept sales
channels independent of one another. These systems generally don’t get
the necessary attention to turn that data into real information assets.
Rather than having a central repository that can syndicate product
information out to the various channels, retailers create product
assortments based on sales channels.
On the customer side, CRM
systems are often struggling to get a single view of the customer.
Customer information is among the most valuable assets in retail but it
is rarely utilized properly. An order fulfillment system may be the
lifeline of an Omnichannel
experience but its deployment is usually deferred citing high
investment costs, lack of integration with existing systems and lack of
time and resources dedicated to deployment.
Technical problems
apart, siloed skills create their own issues. Disconnects exist between
retailer’s business and technical staff. Open conversations are rare
between the Chief Marketing Officer (CMO) and the Chief Information
Officer (CIO) around people, processes and technology. There are
separate heads for all the functions - marketing, finance,
merchandising, HR, stores, who report into the CEO or the President.
Very few people who have the holistic understanding of the business
requirements are available and all of them are among the topmost C-level
executives. Unfortunately their hands are always too tied up to take up
and drive an operation like the creation of Omnichannel retail capabilities.
Organization
level ownership, commitment and accountability is needed to break these
silos and to drive synchronization and alignment. Since such a
capability cannot be built without active involvement, monitoring,
facilitation and support from the leadership, the creation of a
dedicated senior level position responsible for Omnichannel becomes an
imperative for the success of this initiative. This will be the
omni-channel officer or Chief Omni Channel Officer, who has a good
understanding of all the customer touch points, a holistic understanding
of business needs and a direct reporting to the top leadership.
The
Chief Omni Channel Officer will manage the development of strategies
that will integrate the company’s stores, online and mobile activities;
take on responsibility for systems and technology, logistics and related
operating functions. It could also be a position different from the
traditional Chief Marketing Officer (CMO) in the sense that it is
becomes a P&L role where he/ she will also be looking after revenue
generation activities along with a reasonable share of the
profitability. Chief Omni Channel Officer will look after the store
level/ digital level execution and will also be responsible for the ROI
on marketing investment. Undoubtedly, the Chief Omni Channel Officer
will have to play the prime role in accelerating digital growth while
inseminating an organic acceptance of Omni-channel best practices across
all departments of a company in such a way that it doesn’t affect the
current high performing channels.
The ideal Chief Omni Channel
Officer should be a candidate with an experience in store operations,
call center operations, digital and marketing which is very hard to get.
Someone with a strong digital/ marketing experience and exposure to the
other business functions should be a good enough to handle the role
properly.
Essentially, the operationalization of Omnichannel is an
exercise in managing change and it should start at the very top with
the leadership making it clear in no uncertain terms that this is one
initiative that has been sponsored by them. All the stakeholders, right
from the customer support executives in the stores to the senior C-level
executives should brace up to whole heartedly support the initiative.
Ultimately how effective an initiative has been depends as much on how
it has been accepted as on how it has been implemented. This is critical
to convert the Omni-channel investment into tangible long term returns
and strategic advantage.
