Is there any industry that has more buzzwords than retail?
We’ve thought about it and we’re not sure there is. We get it, buzzword fatigue is very real. Just scroll through LinkedIn and after five minutes you’ll be dying to bang your head against your desk if you see another mention of omnichannel or microservices or ecosystems.
But sometimes it’s worth picking through the noise and seeing what all the fuss is about. That’s why we’re going to dive into unified retail commerce.
In today's rapidly evolving retail landscape, the concept of unified retail commerce is more crucial than ever. As a CIO, CTO, or operations manager, you're likely familiar with the challenges of integrating various sales channels to provide a seamless customer experience.
But what exactly is unified retail commerce, and why does it matter?
What is unified retail commerce?
Unified retail commerce is a modern, dominant business strategy that provides retail consumers with a continuous experience as they browse, transact, acquire, and consume, regardless of touchpoints.
Unlike multichannel or omnichannel strategies, which often operate in silos, unified commerce ensures that every interaction a customer has with your brand—whether online, in-store, or on a mobile device—is synchronized in real-time. This means that inventory, customer data, and transactions are seamlessly integrated across all platforms.
In short, unified retail commerce is the next evolutionary step of the omnichannel retail strategy, solving the cross-channel problem. You’re not only connecting your channels, you’re merging them to one completely accurate and fully transparent real-time ecosystem.
According to Gartner, unified retail commerce relies on three core pillars to support the business strategy:
Unified front and back ends:
This involves having a single view of the customer (unified front end) and a single view of the retailer (unified back end). It's not just about the customer experience but also about robust internal back-end collaboration. For instance, having one accurate view of inventory across the enterprise reduces costs and risks associated with excess inventory and ensures robust operational execution in line with customer expectations.Experience-led:
Delivering excellent customer experiences depends on providing excellent employee experiences. Deeper, more personalized interactions between associates and consumers lead to higher engagement and conversion rates. Unified commerce enhances the associate experience by providing them with the tools and data they need to serve customers better.Composability:
This involves creating an organization made from interchangeable building blocks. It supports business agility and resilience by allowing retailers to respond creatively and rapidly to changes. This modular approach helps retailers mirror customer shopping expectations in near real-time and become more resilient in disruptive environments.
Often mistakenly considered just a front-end solution, a true unified commerce strategy integrates powerful back-end collaboration.
This includes:
Accurate inventory management:
A real-time, enterprise-wide view of inventory reduces costs and risks associated with excess inventory and ensures efficient fulfillment.
Integrated digital and physical touchpoints:
Stores serve as strong execution hubs, supporting future immersive experiences and ensuring seamless transitions between online and offline interactions.
Improved employee experience:
Empowering store associates with the tools and data they need to deliver personalized customer experiences enhances engagement and drives conversions.
Why unified retail commerce matters
Let’s look at this example…
Your customer, let’s call her Emily, comes into one of your stores looking for a particular dress she’d seen online. As she walks in, she’s greeted by one of your store associates holding a tablet.
In a matter of moments, your store associate is able to engage with Emily, and show her the dress on the tablet. They can quickly see if it’s in stock and where it’s in stock. If it isn’t in the store, they can point Emily to the nearest store where it is in stock or arrange for it to be delivered to Emily’s home. They can also see any related products that might go well with the dress and show these to Emily too.
Then throw in a hassle-free checkout through a mobile POS, complete with a digital receipt and Emily signing up to your loyalty scheme (because your CRM is integrated with your POS) and everyone is smiling from ear to ear.
In short, with unified commerce you can instantly enhance and improve your customer experience by providing customer convenience across stock availability, purchase, payment, delivery and return, alongside harnessing the power of personalization with clienteling.
Not only does it benefit your customers, it empowers your store associates by turning the point of sale into a point of service. When your associates have real-time product, inventory, customer and order information they provide a better service. They can turn returns into exchanges, using the power of upselling algorithms and selling or reserving products from any store or distribution center.
While both omnichannel and unified commerce bridge the gap between your different sales channels, unified retail commerce is the better strategy for delivering a seamless customer experience and significantly reduces the risk of your customers having poor experiences.
Look at it in the context of these figures:
60% of customers say they would be more loyal to retailers if they would let them purchase an out-of-stock item in-store and have it delivered to their home.
53% say they would be more loyal to a retailer that lets them buy things online and return them in-store.
39% say they would be more loyal to a retailer that enabled them to shop in-store and finish shopping online, or vice versa.
The benefits of unified retail commerce strategy
Enhanced customer experience
Imagine a customer walking into your store, having browsed your online catalog the night before. They expect to find the same products, prices, and promotions in-store as they did online. With unified commerce, this expectation is not only met but exceeded. All information is consistent and up-to-date, creating a frictionless shopping experience that can significantly boost customer satisfaction and loyalty.
Real-time inventory management
Real-time inventory visibility is a game-changer for retailers. Unified commerce platforms allow you to track stock levels across all channels. This not only improves operational efficiency but also enhances customer trust, as they can rely on accurate stock information whether they're shopping online or in-store.
Improved sales and order fulfillment
Unified commerce bridges the gap between different sales channels. For instance, if an item is out of stock in one store, it can be fulfilled from another location or directly from the warehouse, ensuring the sale is not lost. This capability not only boosts sales but also optimizes the use of inventory across the network.
Future-proofing your business
The retail landscape is constantly changing, with new technologies and customer behaviors emerging all the time. A unified commerce platform provides the flexibility to adapt quickly, ensuring you stay ahead of the curve. Whether it’s integrating new payment methods, expanding to new sales channels, or leveraging advanced analytics, unified commerce equips you with the tools you need to succeed.
The future of retail: adapting to emerging customer behaviors
Customer behaviors and expectations are continually evolving. Today’s consumers demand convenience, speed, and personalization. They want to shop anytime, anywhere, and expect a seamless transition between online and in-store experiences. Unified retail commerce is the key to meeting these demands.
By leveraging unified commerce, retailers can gain a comprehensive view of customer interactions and preferences, enabling personalized marketing and tailored shopping experiences. This data-driven approach helps in anticipating customer needs and delivering services that delight every single time.
Unified commerce is not just a trend; it's the future of retail. By breaking down silos and creating a seamless, integrated experience, you can meet and exceed the expectations of modern consumers. It’s time to elevate your retail strategy and unlock new opportunities for growth.
So why now?
According to Gartner, the need for business agility and exceptional customer experiences has now accelerated. According to insights from Gartner’s 2024 CIO Agenda, 80% of CIOs are planning on increasing investments in both cloud platforms and application modernization.
To summarize, retailers must build interconnected systems that create a unified approach to business architecture and customer touchpoints. By investing in a Unified Commerce Platform, you can provide consumers with a fluid experience across all channels.
By embracing a unified retail commerce strategy, you position your business to deliver exceptional customer experiences, drive operational efficiency, and stay ahead in a competitive market. The future of retail is unified, and the time to act is now.
Take the first step, by downloading the 2024 Gartner Market Guide for Unified Commerce Platforms Anchored by POS for Tier 2 Retailers.
The guide provides invaluable insights and a comprehensive look at the solutions that can transform your retail operations. Equip your business with the knowledge to make an informed decision about the future of your retail business.
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