By Melanie Nuce, VP of Apparel and General Merchandise, GS1 US
While 79% of retailers expect sales growth to be better in 2014, a whopping 94% have not fully executed an omnichannel strategy, according to SPS Commerce. It’s time to consider what steps will propel you into the future of retailing.
10. Know your shoppers. According to Retail Systems Research, creating a consistent customer experience remains the most valued capability for retailers, but 54% of retailers say their biggest inhibitor is that they do not have a single view of the customer across channels. Know who you’re reaching and how, including the degree to which they use mobile.
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9. Make “room” for webrooming and showrooming. Mobile devices have made it second nature for shoppers to compare prices, read reviews and learn about specific product details instantly. Embrace the fact that shoppers might browse online and then head to a store to make their purchases (webrooming), or even browse in the store and buy online at home (showrooming). Shoppers who employ both strategies usually have more money to spend than shoppers using only one channel at a time.
8. Track how products are moving in real-time. Using RFID and GS1-128 barcodes to tag, identify and track individual items, cases and pallets provides real-time inventory accuracy across your entire network, leading to reduced labor costs and greater efficiency. For example, retailers that have implemented EPC-enabled RFID programs in their stores have achieved stunning inventory accuracy — as much as 99% — and significant sales increases. Exploring game-changing technology and standards to enhance source-to-store visibility can mean delivering the coveted seamless customer experience.
7. Step out of the silo. Proprietary product identifiers have long been used for internal business purposes, and by definition, are usually incompatible with other systems, creating unnecessary costs and complications for business processes between trading partners. Integrate your store and online systems to allow for scalable, repeatable processes, improved visibility and better execution.
6. Educate yourself. Many sessions at the 2014 NRF BIG Show confirmed that this is an exciting time in our industry. Nearly every day, analysts report changes in consumer behavior, and thought leaders discuss via social networks, webinars or podcasts valuable new strategies for success. Gain a competitive advantage by joining retail community educational initiatives and events.
5. Turn your store into a distribution center. Major brands and retailers are showing that a backroom store operation can play a valuable role in fulfilling online orders and orders from other locations. For example, Macy’s has been very public about its omnichannel strategies. Many of their stores have added shipping capabilities, allowing them to fill both online orders and orders from other locations where an item is out of stock.
4. Listen to social data. Being able to integrate social feedback into your larger operation can help you capitalize on the widely reported buying power of the Millennial generation. Take advantage of opinions, photos and even hash tags that consumers share on social networks, as well as documented purchase history and preferences to not only react to consumer expectations but anticipate their needs.
3. Think of your brand as a community. Connect with shoppers in a relevant manner that makes them feel valued, not “sold to.” Consider this: nearly 80% of Amazon’s approximately 500 measurable goals relate in some way to customer objectives. If your goal is to become a successful omnichannel retailer, you need to gain trust from customers that will lead to brand loyalty.
2. Turn a “walk out” into a sale. Train your sales associates on the omnichannel strategy. Show them how to assist customers in-store with ordering online if they can’t find what they’re looking for. It’s true that some customers will still showroom their way through the store and go home to complete the sale on their own. But wouldn’t you rather try to guarantee your competitor does not end up scoring the sale?
1. Use standards to your advantage. So much of what has been outlined in this blog relies on consistent, high-quality data. Standards, global product identifiers and extended product attributes support market needs to aggregate, store, and deliver data to both trading partners and consumers.
GS1 US, an information standards organization, recently released Voluntary Guidelines for Exchanging Extended Attributes for e-Commerce to support coloration on extended product attributes in several categories including apparel, footwear, jewelry, fashion accessories, beauty products and home products. This product data extends beyond traditional supply chain information and supports the need for rich online product details. The guidelines serve as a spring-board for all trading partners to improve their current internal capabilities and will help them quench consumer thirst for instant information.
By ultimately aligning supply chain operations with the expectations of the customer, retailers can capitalize on new sales opportunities and optimize their businesses for future success.
[See the accompanying infographic for this piece at www.gs1us.org/knowyourshoppers.]
Melanie Nuce is VP of Apparel and General Merchandise at GS1 US and is responsible for leading the industry engagement strategy to drive broader adoption of GS1 Standards and GS1 US solutions for the apparel and general merchandise industries. In her role, she guides the GS1 US Apparel & General Merchandise Initiative by working with industry stakeholders to identify business needs and develop standards-based approaches to address them. Ms. Nuce is a frequent speaker at educational seminars and industry tradeshows.
