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    • RETAIL / REPORT

    Unified commerce is the new default for omnichannel journeys

    Share Unified commerce: The key to orchestrating modern customer journeys
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    Products and Platforms

    TCS OmniStore™ This will open an overlay

    TCS OmniStore™: A Unified Commerce Platform for Frictionless CX

    TCS’ omnichannel retail commerce platform revolutionizes the way customers shop and helps retailers ensure frictionless and customer-centric experiences.
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     about TCS OmniStore™: A Unified Commerce Platform for Frictionless CX
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    TCS aide Kingfisher Plc à améliorer son expérience client omnicanale
    Avec TCS OmniStore™ , Kingfisher Plc a transformé son parcours de commerce unifié et modernisé l'expérience client (CX) avec des fonctionnalités telles que le self-checkout et la sauvegarde du panier.
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    30 Sep 2024

    Targeted primary research study

    TCS OmniStore™, in collaboration with RIS News, conducted a primary research surveying retail executives in the US on the current state of unified commerce platforms across the retail industry. 

    Omnistore

    In this report

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    Driving modern customer journeys

    The rise of newer channels, business models, and payment types have made commerce modernization inevitable.

    Modern customers engage with brands across multiple touchpoints ranging from mobile to web to physical stores and more, and expect a seamless experience regardless of where, when, and how they shop. The success of a brand is anchored around their ability to handle this mesh of customer journeys and deliver seamless, personalized, and convenient shopping experiences. This requires retailers to unify all channels and data.  

    Unified commerce brings together all critical data into a centralized platform, providing a single view of the truth of customers, transactions, orders, and inventory across channels. From product purchase to inventory management to order fulfillment, unified commerce ensures complete accuracy and transparency and offers improved, seamless, and personalized omnichannel retail experiences.

    What the report tells us

    77% of retailers believe unified commerce provides a seamless experience and consistent data.

    This targeted research by TCS OmniStoreTM in collaboration with RIS News revealed some interesting statistics on unified commerce. The key findings are: 

    • Most retailers understand the importance of unified commerce, but only 3% retailers currently provide a ‘truly unified experience’. 

    • Despite knowing the value of accessible single customer views, 33% retailers do not have the capability to build single views of their customers across channels. 

    • 54% retailers desire their POS to be extremely flexible, but only 7% currently possess flexible POS. 

    Read on for the full report that benchmarks the current state of unified commerce platforms across the industry and pinpoints where your peers are investing to create meaningful connections with customers.  

    How retailers view unified commerce 

    Figure 1: Perceived definitions of Unified Commerce

    Figure 1

    Perceived definitions of Unified Commerce

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    Figure 1
    Figure 1: Perceived definitions of Unified Commerce

    There is very little variation in how retailers view unified commerce, with 77% believing it means ‘seamless experience and consistent data’ (Figure 1). More than half consider it to provide a shopping experience on a single platform and the ability to have a personalized shopping experience across channels (57% and 53%, respectively). When defining unified commerce, few (13%) consider the back-end benefits, such as easier tracking of data, KPIs, and performance.

    Perceived definitions of unified commerce infograph

    Perceived definitions of unified commerce infograph

    Figure 1

    Perceived definitions of unified commerce infograph

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    Perceived definitions of unified commerce infograph

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    It appears retailers understand the benefits of unified commerce since most of them are at least working toward delivering a unified experience across channels, with 60% categorizing their organization as ‘a work in progress’, while almost a quarter (23%) are at least ‘close to providing a truly unified experience’ (Figure 2). Retailers have room to improve their customers’ experience with only 3% currently providing a ‘truly unified experience’.

    Assessment of organizations ability to deliver unified experience across channels

    Assessment of organizations ability to deliver unified experience across channels

    Figure 2

    Assessment of organizations ability to deliver unified experience across channels

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    Figure 2
    Assessment of organizations ability to deliver unified experience across channels

     

    Investments in unified commerce 

    With most retailers at least working toward offering a unified customer experience, over six in 10 (64%) are invested in the unified commerce space, with 30% being very or extremely invested (Figure 3). Only 6% are not invested. 

    Composable or all-inclusive?

    Once buy-in or investment in the unified commerce space is established, retailers need to consider the ideal composition of the platform. More than a third (37%) envision a platform pieced together using the best components available—a ‘composable, best-of-breed ecosystem approach’ (Figure 4). In comparison, over a quarter (27%) think that an all-inclusive platform would be the best option (‘all-in-one platform from a single vendor’). Other retailers (20%) would select a standard commerce platform requiring small customizations, and the choice of 17% of retailers would be a fully customized platform built ‘from the ground up.’ 

    What customers really want 

    Retailers recognize there are several elements significant to customers as they shop. For almost six in 10 (57%) retailers, a consistent experience across channels is top two in importance for their customers (Figure 5). Related to the overall experience, 30% of retailers think their customers place very high importance on consistent pricing and promotions across channels, eliminating the need to check prices across a retailer’s channels. Product availability and faster checkout are also important for an ideal shopping experience. However, retailers think customers place less importance on loyalty programs, return policies, personalized selling, and the availability of in-store tablets. 

    Personalization always matters 

    Unified commerce platforms also allow retailers to offer their customers a more personalized shopping experience. As more than half work toward offering customers an integrated shopping experience across channels, personalization capabilities shouldn’t be ignored. Personalized marketing and digital advertising (57%), personalized recommendations (50%), and personalized offers available at digital touchpoints (46%) are retailers’ top personalization capabilities (Figure 6). However, it seems more difficult to offer it in stores, with only 18% currently able to make personalized offers available at store touchpoints. Fewer retailers have capabilities related to the connection of platforms and channels. Only 21% have identity-matching capabilities across platforms, while less than one in five (18%) have the ability to personalize content or images across all their channels.

    Viewing Slide 
    FIGURE 3 FIGURE 3 Press enter to view image in full screen

    FIGURE 3

    Organization's level of buy-in/investment in unified commerce space

    FIGURE 4 FIGURE 4 Press enter to view image in full screen

    FIGURE 4

    Ideal composition of Unifies Commerce platform

    Ideal composition of Unifies Commerce platform

    FIGURE 5 FIGURE 5 Press enter to view image in full screen

    FIGURE 5

    Customer experiences significant to shoppers retailers rated most/very important

    Customer experiences significant to shoppers retailers rated most/very important

    FIGURE 6 FIGURE 6 Press enter to view image in full screen

    FIGURE 6

    Organization's current personalization capabilities

    Organization's current personalization capabilities

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    The future of commerce is all about brands having the ability to handle the mesh of customer journeys and delivering seamless, personalized, and convenient shopping experiences. This requires retailers to unify all channels and data to obtain a single view of customers, transactions, orders, and inventory across channels.

    SHANKAR NARAYANAN

    President, Business Group Head, Retail Cluster, TCS

    How flexible are POS platforms?

    Investments in point-of-sale (POS) platforms is likely necessary for most retailers as they work toward unified commerce. Over half (54%) of retailer respondents desire an extremely flexible checkout platform, but only 10% respondents say they currently offer that level of flexibility (Figure 7). In fact, almost one in five (17%) characterize their current POS platform as having very little or no flexibility. 

    Flexibility and Innovation of point of scale (POS) platform

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    7%

    CURRENT

    Current POS is extremely or very flexible

    54%

    DESIRE

    Ideally desire POS to be extremely or very flexible

    Figure 7

     

    Building a single view of customers 

    Retailers who know their customers can easily provide optimal shopping experiences consistently across channels. The capability of building a single customer view helps retailers to learn about their customers by keeping data in one place on shopping habits and product preferences gathered from different channels. Almost half (47%) of retailers use a customized single data platform to build single views of customers across channels, while one in 10 (10%) opt for an off-the-shelf customer data platform (Figure 8). Despite the value of easily accessible single customer views, a third (33%) of retailer respondents do not currently have the capability to build single views of their customers across channels. 

    Unified commerce capabilities that matter most

    Although uniform commerce platforms offer a variety of capabilities, retailers say that POS and e-commerce are the most important, with 74% and 59%, respectively, saying they are the top two important points (Figure 9). Few find other capabilities, including order management systems (OMS), inventory, product information management, workforce management, payment gateway, and content management system, as important to their organizations. Many of the retail respondents do not consider workforce management to be an important unified commerce platform capability, with almost two-thirds (64%) rating it as least important (ranked as in the last two). 

    Key benefits of unified commerce 

    Unified commerce platforms provide a host of benefits that help build customer relationships. Still, most retailers (76%) consider a seamless shopping experience to be one of the top two most important benefits (Figure 10). Over six in 10 (61%) also find a 360-degree view of the customer to be a key advantage despite a third of retailers not having this capability. Significantly, fewer respondents consider increased basket size and reduced time spent on integration or maintenance to be important benefits.

    Unified commerce capabilities: upgrade status

    With continuous advancements in technology, upgrading unified commerce capabilities is vital in providing customers with an optimal shopping experience. Most have upgraded or are in the process of upgrading real-time order and inventory visibility across channels (80%) and unified pricing and promotions (76%) (Figure 11). Retailers also appear to appreciate the importance of learning about their customers, as many have at least started major upgrades to capabilities related to data-driven insights (67%) and unified customer views across channels (63%). Clienteling and virtual assistance are capabilities few or no retailers have upgraded, with over four in 10 (41%) and a third (33%), respectively, having no plans to do so. However, over half (57%) of retailers have plans to upgrade virtual assistance capabilities within the next 24 months. 

    Viewing Slide 
    FIGURE 8 FIGURE 8 Press enter to view image in full screen

    FIGURE 8

    Type of platform used to build a single view of customer across channels

    Type of platform used to build a single view of customer across channels

    FIGURE 9 FIGURE 9 Press enter to view image in full screen

    FIGURE 9

    Importance of Unified Commerce platform capabilities (ranked top 2)

    Importance of Unified Commerce platform capabilities (ranked top 2)

    FIGURE 10 FIGURE 10 Press enter to view image in full screen

    FIGURE 10

    Importance of Unified Commerce platform benefits (ranked top 2)

    Importance of Unified Commerce platform benefits (ranked top 2)

    FIGURE 11 FIGURE 11 Press enter to view image in full screen

    FIGURE 11

    Unified Commerce capabilities - upgrade status

    Unified Commerce capabilities - upgrade status

    YOUR OPINION MATTERS

    What does ‘unified commerce’ mean to you?

    No disparate channels Seamless and consistent Personalization View orders in one place Omnichannel checkout

    Thank you!

    We have got your response

    METHODOLOGY

    The survey was conducted among top executives across various retail segments in the USA.

    This study spanned two weeks (from June 16 through the end of June 2022), targeting retail executives from both large- and small-scale retail chains. Almost half (47%) of respondents work at retail companies with at least $1 billion in annual revenues, and over a third (37%) have more than $5 billion (Figure 12). 

    Respondents were recruited across specialty (30%), grocery or convenience or drug (23%), mass market or general merchandise or discount (20%), and apparel (20%) retail segments, with 7% categorizing themselves as ‘other’ (Figure 13). 

    Almost half (47%) of respondents work in IT or technology (Figure 14), with over half (53%) having a job title of vice president or higher (Figure 15), and a third (33%) are directors. 

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    Figure 12 Figure 12 Press enter to view image in full screen

    Figure 12

    Annual revenue

    Annual revenue

    Figure 13 Figure 13 Press enter to view image in full screen

    Figure 13

    Retail segment

    Retail segment

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    Figure 14

    Core business function

    Core business function

    Figure 15 Figure 15 Press enter to view image in full screen

    Figure 15

    Job title

    Job title

    Key findings

    The targeted research revealed some interesting statistics on unified commerce.

     

    Key findings

    Key findings

    Figure 16

    Key findings

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    Figure 16
    Key findings
    Figure 16: Assessment of organization’s ability to deliver unified experience across channels

    Figure 16

    Assessment of organization’s ability to deliver unified experience across channels

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    Figure 16
    Figure 16: Assessment of organization’s ability to deliver unified experience across channels

    Your ticket to omnichannel success

    To remain competitive, retailers need to gain momentum in creating their ideal unified commerce environment. 

    As technology advances, retailers have more opportunities to connect with their customers through various channels, offering them the convenience of shopping ‘anywhere at any time’. Customers are looking for a consistent shopping experience regardless of the channel they choose. Most retailers understand the importance of making that seamless experience available to their customers, but only a few are currently equipped to deliver it. However, there are many retailers working toward that goal by starting or upgrading their unified commerce technologies.

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