New Report Reveals Causes of Omnichannel Failure – Poor Forecasting/Labor Allocation and Siloed Systems for Store Associates
New Research from RIS News Discusses Why Retailers Struggle to Execute Omnichannel Processes and the Need for Real-Time Software to Drive Proactive Response to Customer Demand
Reflexis Will Present Some of These Findings at the IBM Amplify Conference on May 13
DEDHAM, Mass. – Retailers give high value to processes such as “Buy Online, Pickup in Stores” and “Ship from Stores” for their potential to build brand loyalty and increase sales — but they give low ratings to stores’ ability to execute omni-channel strategy. In a new report called “Revealing Causes of Omnichannel Failure,” zero retailers surveyed said stores “always” provide a seamless and satisfying omni-channel shopping experience; furthermore, 66 percent of retailers said stores “sometimes,” “almost never,” or “never” deliver to customer expectations. “A big reason for many of the failures is the inability to execute an omnichannel process in a seamless, real-time way at the store level,” said Joe Skorupa, Group Editor-in-Chief of RIS News, in the report.
Other highlights of the research, which was sponsored by Reflexis Systems, include:
- The biggest challenges retailers cited preventing stores from executing omnichannel tasks in a timely and efficient manner were:
- 43.2% responding to last minute issues (stock-outs and customer order changes)
- 40.5% use of manual error-prone tools such as paper pick lists and back-office terminals (no mobile devices)
- 40.5% lack of order management software and no network-wide visibility
- 32.4% inability to forecast and allocate labor for both omni-channel and traditional store tasks
- The top “pain points” identified by retailers that stand in the way of executing omnichannel and customer engagement strategies are:
- 64% too many siloed systems and managers use too many systems/devices
- 53% difficulty in forecasting and allocating labor for omnichannel
- The most significant gap between “value” placed on a process and “ability” to execute was in automated generation of optimized labor schedules; but retailers also struggle to respond to overtime alerts, labor law violations, and stock-outs
“This survey indicates that across the board retailers have varying levels of failure to execute omnichannel effectively,” Skorupa continued. “Make no mistake about it: omnichannel is a disruptive force that requires as much organizational work as it does technology. To get omnichannel processes operating in an effective and satisfying way, a retailer has to go beyond the technology to store operations and include a new level of real-time communication, labor management, and best-practice execution.”
“Recent surveys indicate consumers are dissatisfied with the omnichannel experience provided by retailers. The results of this RIS News survey reveal the underlying reasons retailers struggle to execute on their omnichannel promise: too many siloed systems and an inability to consistently respond using best practices to interruptions, changes, and workforce matters,” said Murtaza Ghadyali, Senior Vice President, Product Management, for Reflexis. “Siloed retail departments hamper the ability to respond in stores to evolving customer demand. High labor turnover rates, combined with the cost of learning dozens of store-facing applications make training impractical. Retail must respond proactively in real time.”
“The good news for retailers is that by implementing a platform of workforce management and real-time store execution solutions, retailers can solve traditional labor operations and task execution challenges while efficiently executing new omni-channel processes to improve the online-to-store customer experience,” said Brett Friedman, Senior Vice President of Global Sales and Marketing for Reflexis. “Reflexis StorePulse® provides a mobile, real-time store execution platform that enables proactive response to last minute trends and interruptions impacting stores. StorePulse provides a single dashboard to view alerts and notifications and update back-end systems — even legacy programs that are not mobility-enabled — without ever leaving StorePulse. With Reflexis StorePulse, retailers can ensure best practice response to sudden interruptions and consistent execution of go-to-market, labor operations, and omnichannel strategies.”
About Reflexis Systems, Inc.
Reflexis is the pioneer in real-time store execution and workforce management solutions that enable retailers to execute their customer engagement strategy flawlessly and uncover profit. The Reflexis platform of real-time store execution, task management, KPI/compliance, time and attendance, and labor scheduling (including budgeting, forecasting, and employee self-service) enables retailers to align store labor/activities to corporate goals and institutionalize best-practice response to real-time metrics and alerts.
For the past 14 years, more than 200 of the world’s best retailers in multiple vertical categories have reported dramatic improvements in store-level compliance with corporate strategies; higher productivity of corporate, field, and store employees; and increased revenue and profitability after implementing Reflexis workforce management solutions. Reflexis StorePulse® (patent pending) synchronizes store-level activities with real-time KPIs, alerts, and customer demand. Stores can systemically execute best practices to provide a greater quality of customer engagement, leading to higher revenues.
Reflexis Systems, Inc. is privately held and headquartered in Dedham, Massachusetts and has offices in Atlanta, London, and India. For more information, visit reflexisnew.wpengine.com. Follow Reflexis on: LinkedIn | Facebook | Twitter | YouTube | Google+ | Instagram
Reflexis Systems, Inc.
David L. Andrews, (781) 493-3351
Director of Marketing Communications
OP Choudhary, 44 (0) 1256 857310
Head of Operations, EMEA
About RIS News
RIS News, published since 1988, is read by over 22,000 retail executive decision makers. RIS writes about how retail businesses can benefit through the use of technology. RIS covers Customer Management & Marketing, Store Systems, Enterprise Operations, Supply Chain/Inventory Management, Merchandise Management, and Cross-Channel Strategies. For more information, visit RIS News at www.risnews.com