Explore the latest retail operations management trends in omnichannel customer experience delivery and learn how to optimise your retail operations for maximum customer satisfaction.

I. Introduction

As retail continues to evolve and merge online and offline channels, it has become crucial for retailers to provide a seamless and personalised customer experience across all touchpoints. The expectations of retail customers are continuously rising, and businesses must adopt an omnichannel strategy to keep up with the competition. Failure to do so may result in losing business to competitors delivering the omnichannel experience customers expect. By implementing the right strategies and tools, retailers can effectively manage their operations and deliver a superior customer experience, driving customer loyalty and revenue growth. This blog will delve into the latest trends in omnichannel customer experience, best practices in retail operations management, and the benefits of working with an experienced service provider to master these practices.

II. Omnichannel vs Multichannel

While both Omnichannel and Multichannel involve the use of numerous channels for customer engagement, there are prominent differences between the two that impact the overall customer experience. Before we begin, let us explore the differences between omnichannel and multichannel approaches and why retailers must adopt an omnichannel strategy.

Multichannel refers to a retail strategy involving multiple customer engagement channels, such as brick-and-mortar stores, websites, and social media platforms. In a multichannel approach, each channel operates independently, with an individual system and CX goals. For example, a retailer may have a website where customers can place orders, but the website may need to be fully integrated with the retailer’s physical stores. Customers may be able to purchase products online, but they may not be able to return those products in-store.

On the other hand, Omnichannel is a more integrated approach that focuses on creating a seamless customer experience across all channels. For an omnichannel offering, all channels are connected and work harmoniously to provide a consistent experience for the customer. Customers can interact with the retailer through multiple channels based on convenience, and their experiences are integrated and connected.

There are several benefits to adopting an omnichannel strategy.
First, it allows retailers to create a consistent brand experience across all channels. This creates a sense of familiarity and trust with the customer, increasing loyalty and repeat business. Second, omnichannel strategies can help retailers increase sales by making it easier for customers to purchase, return or exchange products across multiple channels. For example, a customer may browse a retailer’s website and then visit the physical store to try on a product before making a purchase. With an omnichannel strategy, the retailer can seamlessly connect these experiences and make it easy for the customer and staff to complete the purchase.

Another benefit of an omnichannel approach is that it provides retailers with more data and insights into customer behaviour. By tracking customer interactions across multiple channels, retailers can better understand how customers engage with their brand, making more informed and targeted decisions about marketing and merchandising strategies.

Adopting an omnichannel strategy allows retailers to create a seamless customer experience, increase sales, and gain valuable insights into customer behaviour. As the retail landscape continues to evolve, retailers that embrace an omnichannel approach are better positioned to succeed in the long term.

III. The Role of CX in Omnichannel

Customer experience (CX) is crucial to any business strategy in omnichannel retail. CX and omnichannel are closely related because providing a seamless experience across all channels requires a deep understanding of the customer journey and the ability to meet customers’ needs and expectations at every touchpoint along their preferred route to purchase. This means that businesses must be able to collect and analyse data from all channels to gain a holistic view of the customer.

The need to deliver a seamless customer experience across all channels cannot be overstated. Today, customers expect a consistent experience, regardless of how they interact with a brand. A poor experience on one channel can negatively impact a customer’s perception of the brand, leading to lost sales and decreased loyalty. A study by Accenture found that 89% of customers get frustrated when they have to repeat their issues to multiple representatives across different channels. Furthermore, Forrester reports that about half of customers will likely abandon a purchase if they cannot find the necessary information. According to the report ‘CX Trends 2023’ published by Zendesk, 52% of customers will switch to a competitor if they have only one poor experience.

Therefore, businesses that adopt an omnichannel strategy and prioritise CX are more likely to differentiate themselves effectively, retain customers and increase sales. By providing a seamless experience across all channels, businesses can meet customers’ needs and expectations, build loyalty, and differentiate themselves from competitors.

IV. Retail Operations and the Challenges of Omnichannel CX Delivery

The rise of omnichannel has led to a shift in how retailers conduct their operations. Retailers must now integrate multiple channels to provide a seamless experience to their customers. This means that retail operations must be optimised to support an omnichannel approach.

One of the challenges retailers face in providing a seamless omnichannel experience is inventory management. With multiple channels, retailers must ensure they have complete visibility of their proper inventory and its location in real-time to fulfil orders accurately. This requires a robust inventory management system that tracks inventory across all channels and updates real-time inventory levels.

With multiple channels, retailers must ensure that orders are fulfilled accurately and promptly. This is another challenge for retail operations and requires a streamlined fulfilment process that can handle orders from multiple channels and provide real-time updates on order status.

Customer service is also an essential aspect of retail operations that impacts the delivery of omnichannel experiences. With multiple channels, customers expect to be able to receive constant support through the channel of their choice. This means that retailers must have a customer service system that integrates customer data and can handle enquiries from multiple channels, providing consistent support across all channels.

Furthermore, payment and refund processing is another critical aspect of retail operations that affects the delivery of omnichannel experiences. With multiple channels, retailers must ensure that they can accept or refund payments from various channels and provide a seamless transaction experience to their customers. This requires a payment processing system that can handle payments from multiple channels and provide real-time updates on payment status.

One example of a company that has optimised its retail operations for omnichannel delivery is Target. Target has implemented a ship-from-store model, which enables the retailer to fulfil online orders from its brick-and-mortar stores. This approach allows Target to leverage its store network to complete orders more quickly and efficiently rather than relying on a network of warehouses.

Another example is Nike, which has implemented a reservation system for its popular sneakers. The reservation system allows customers to reserve their desired sneakers online and pick them up at a nearby Nike store. This approach enables Nike to manage inventory more effectively and provide a seamless omnichannel experience to its customers.

Zalando, a German-based online fashion retailer, has also implemented successful omnichannel operations. They offer various delivery options, including home delivery and pick-up from local stores. They have also implemented features such as personalised recommendations based on customers’ previous purchases and social media activity.

However, not all retailers have been successful in implementing omnichannel operations. One example is the UK-based department store Debenhams, which faced financial difficulties and ultimately went into administration in 2019. One of the factors cited for their decline was their failure to keep up with the shift towards online shopping and omnichannel retail operations.

Another challenge retailers in the UK and EU face in providing a seamless omnichannel experience is the regulatory environment. For example, the EU’s General Data Protection Regulation (GDPR) places strict requirements on how retailers collect, store, and use customer data. This can make it difficult for retailers to provide personalised experiences across all channels without running afoul of the regulations.

Moreover, in the UK, retailers also must comply with the Consumer Rights Act 2015, which sets out rules on how retailers must deliver goods and services to customers. The act covers various aspects of the retail experience, including delivery, returns, and refunds. Retailers must ensure that their omnichannel strategy is in compliance with this act to avoid legal consequences.

Yet another challenge for retailers in the UK and EU is the varying regulations and restrictions on shipping and delivery. These regulations can impact the speed and cost of delivery, affecting the overall omnichannel experience for customers. For example, some EU countries may restrict the types of products that can be shipped or may require additional taxes or fees for cross-border deliveries.

Generally, retailers in the UK and EU face several challenges in delivering a seamless omnichannel experience. They must navigate a complex regulatory environment, comply with consumer protection laws, and overcome logistical challenges related to shipping and delivery.

In conclusion, retail operations play a crucial role in delivering omnichannel experiences. Retailers must optimise their operations to support an omnichannel approach, including inventory management, order fulfilment, customer service, and payment processing. Retailers that can successfully address these challenges can provide a seamless omnichannel experience to their customers, leading to increased customer loyalty and revenue.

V. Latest Trends & Strategies in Omnichannel CX

In recent years, the retail industry has experienced a significant shift towards omnichannel customer experience (CX). Changes in consumer behaviour, technological advancements, and increased market competition have driven this shift. As retailers continue to adapt to these changes, it’s essential to understand the latest trends and strategies in omnichannel CX to stay competitive and meet the needs of today’s consumers.

One of the most significant trends in omnichannel CX is using artificial intelligence (AI) and machine learning (ML) to provide personalised experiences across all channels. Retailers use AI and ML to analyse customer data, predict behaviour, and deliver targeted recommendations and promotions. For example, a retailer might use ML to analyse a customer’s purchase history and browsing behaviour to suggest products they are likely interested in. This level of personalisation helps retailers build stronger relationships with their customers and increase loyalty.

Another trend in omnichannel CX is using social networks and messaging platforms to engage with customers. Retailers use social media platforms like Facebook, Instagram, and Twitter to provide customer service, answer questions, and promote their products. Messaging apps like WhatsApp and Facebook Messenger are also becoming increasingly popular for customer service, with retailers even using chatbots to provide instant customer support before escalation if necessary.

In addition to these trends, retailers also focus on providing a seamless experience across all channels. Customers can start shopping on one channel and seamlessly move to another without disruption. For example, a customer might begin browsing products on a retailer’s website and then continue their journey in-store, where they can see the products in person and make a purchase. Retailers use technologies such as RFID and beacons to track customer journeys and provide personalised experiences based on customer location and behaviour.

With the rise of e-commerce and the COVID-19 pandemic, omnichannel CX has become more critical than ever before. Consumers are now expecting retailers to offer a variety of options for how they shop, including online, in-store, and kerbside pickup. Retailers who can provide these options and deliver a seamless experience across all channels are more likely to retain customers and attract new ones.

To achieve a successful omnichannel CX strategy, retailers must clearly understand their customers’ needs and preferences. They also need to have the right technology and infrastructure in place to support their omnichannel operations. This includes a robust e-commerce platform, inventory management systems, and a reliable logistics network.

In addition to technology, retailers must intensely focus on employee training and development. Staff members must be trained to provide consistent customer service across all channels, whether in-store, online, or through social media. This includes training in how to use technology and how to handle customer queries and complaints.

VI. 5 Best Practices for Mastering Omnichannel CX in Retail Operations

To deliver a seamless omnichannel customer experience, retailers must implement best practices aligning their digital and physical channels. Here are five best practices for mastering omnichannel CX in retail operations:

Seamless Integration: Retailers must seamlessly integrate all channels to enable customers to move effortlessly from one channel to another. This includes integrating inventory systems and data analytics tools, providing real-time updates, and ensuring a consistent user experience across all channels. UK-based fashion retailer ASOS has successfully integrated its inventory systems across all channels, enabling customers to view real-time stock availability across all channels. This integration allows the company to offer customers the option to purchase items online and pick them up in-store, providing a convenient and efficient experience.

Personalization: Retailers must personalise the customer experience to provide a more engaging and relevant experience. Personalisation can include product recommendations, promotions, and customised content matching the customer’s preferences. The German retailer Zalando uses data analytics to personalise the customer experience. The company collects customer purchase history, browsing behaviour, and social media activity data to provide personalised product recommendations and targeted promotions. This has resulted in increased sales and customer retention.

Data-Driven Decision Making: Retailers must use data to make informed decisions that improve the customer experience. This includes analysing customer behaviour, tracking key performance metrics, and using data to optimise marketing and merchandising strategies. French retailer Decathlon uses data analytics to optimise its merchandising and marketing strategies. The company collects data on customer behaviour across all channels, including in-store, online, and social media. Decathlon uses this data to optimise its product assortment, pricing, and promotions, resulting in an increase in online sales.

Efficient Inventory Management: Retailers must have efficient inventory management systems to ensure that products are available across all channels. This includes real-time inventory updates, efficient order fulfilment processes, and automated replenishment systems. UK-based retailer John Lewis has implemented an efficient inventory management system that allows the company to offer customers a click-and-collect service across all channels. John Lewis uses real-time inventory updates to ensure products are available for collection in-store or via a third-party collection point within a couple of hours of ordering.

Integrated Customer Service: Retailers must provide integrated customer service across all channels to resolve issues quickly and efficiently. This includes providing a range of customer service options, such as email, phone, chat, and social media, and ensuring customer service agents have access to real-time data. Dutch retailer Coolblue provides integrated customer service across all channels, including email, phone, chat, and social media. Coolblue has a dedicated customer service team trained to provide personalised support and resolve issues quickly.

By implementing these best practices, retailers can master omnichannel CX and provide a seamless experience for their customers across all channels.

VII. How Experienced BPO Companies Can Help Retailers Master Omnichannel CX

Mastering omnichannel CX is easier said than done. It requires the implementation of best practices such as seamless integration, efficient inventory management, personalised experiences, and data-driven decision-making. As a result, many retailers are turning to experienced business process outsourcing (BPO services) companies to help them quickly and effectively master these best practices.

One key benefit of working with an experienced CX service provider is the ability to provide retailers with access to cutting-edge technology and tools. These companies can leverage the latest inventory management software to help retailers streamline their supply chains and ensure that products are available across all channels. This allows retailers to reduce costs and ensures that customers have access to the products they want when they want them.

Another benefit of working with a BPO company specialising in omnichannel retail is its ability to provide retailers with access to a team of skilled professionals who are experts in managing retail operations. For example, Taskaler can provide retailers access to experienced retail professionals who can help them create personalised experiences across all channels. Taskaler can also offer retailers access to data analysts who can help them make intelligent, data-driven decisions and optimise their inventory management processes.

Moreover, BPO companies can help retailers improve customer service by providing access to advanced customer support tools. This not only helps retailers improve their customer satisfaction but also helps them reduce their support costs. EU-based fashion retailer Zalando has reduced its inventory costs while improving its overall customer satisfaction by outsourcing its CX operations.

In conclusion, mastering omnichannel CX is essential for retailers looking to stay competitive in today’s retail landscape. However, it requires the implementation of best practices such as efficient inventory management, personalised experiences, and data-driven decision-making. Experienced companies like Taskaler can offer retailers a quick and effective pathway to implement these best practices and deliver a seamless omnichannel customer experience. Moreover, they can also benefit from access to cutting-edge technology, skilled professionals, and advanced customer support tools that Taskaler offers, leading to improved customer satisfaction, reduced costs, and increased sales.

VIII. Conclusion

In conclusion, the importance of omnichannel customer experience cannot be overstated for retailers. With increasing competition and the shift towards digital channels, it has become critical for retailers to provide a seamless and personalised experience across all touchpoints. Adopting best practices such as efficient inventory management, data-driven decision-making, and proactive gathering and utilisation of customer feedback can vastly improve the management of retail operations and help retailers master omnichannel CX.

Furthermore, working with an experienced BPO service company like Taskaler can offer several benefits, including cost savings, faster implementation of omnichannel strategies, and access to expertise and technology. Taskaler is geared to help retailers overcome the challenges of managing retail operations and deliver a superior customer experience across all channels. Ultimately, retailers that can successfully master omnichannel CX will be well-positioned to thrive in the ever-evolving retail landscape.