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You've probably noticed that some stores seem to know exactly what you want, regardless of how you shop. How? That's unified commerce in action.
In this guide, we'll explore what unified commerce is, why it matters, and how it's changing the retail game.
Whether you run a small boutique or manage a large retail chain, understanding unified commerce could be the key to staying competitive in today's market.
Unified commerce is all about connecting every part of your retail operation. It brings together your online shop, mobile app, physical stores, and backend systems into one seamless experience.
Think of it as giving your business a single, smart brain that keeps everything in sync. A unified commerce platform is the technology that makes this possible.
It's the central system that keeps all your sales channels and operations working together smoothly.
This consumer behavior sparked the development of omnichannel commerce, a technological solution aimed at connecting various sales points.
While omnichannel aims to connect multiple sales channels, unified commerce integrates them seamlessly on a single platform. This integration extends beyond just sales points, encompassing all front-end channels and back-end systems.
Here’s a comparison between omnichannel and unified commerce that will help you get a clear idea about the difference between the two.
| Aspect | Omnichannel | Unified Commerce |
| Definition | Multiple channels work together to provide a consistent customer experience | All channels and backend systems integrated into a single platform |
| Customer View | Multiple customer profiles across channels | Single, comprehensive customer profile |
| Inventory Management | Channel-specific inventory, periodic updates | Real-time, cross-channel inventory visibility |
| Order Fulfillment | Often channel-specific | Flexible fulfillment from any channel |
| Technology Infrastructure | Multiple systems with interfaces | Single, unified platform |
| Customer Experience | Consistent across channels, but may have gaps | Seamless and personalized across all touchpoints |
| Scalability | Can be challenging as new channels are added | Easily scalable to new channels and technologies |
| Real-time Capabilities | Limited | Extensive |
Unified commerce can bring significant benefits to your business. Here are some of the main advantages:
Better Customer Experience
• Customers can easily shop across your website, mobile app, and physical stores
• They get personalized product suggestions based on their full shopping history
• The brand experience is consistent no matter how they choose to shop
More Efficient Operations
• You can see your inventory across all channels in real-time
• It's easier to manage orders and returns
• You spend less time manually entering data and fixing errors
Smarter Decision Making
• You get a complete view of your customer data
• Real-time analytics help you manage inventory better
• You can make better predictions about what products will sell
Higher Sales
• Personalized experiences can lead to more sales
• Features like “Buy Online”, and “Pick Up In-store” can reduce cart abandonment
• It's easier to suggest related products and increase the average order value
While unified commerce has many benefits, setting it up can be challenging. Here are some common issues to be aware of:
Technology Integration
• Old systems might not work well with new platforms
• Moving data from old systems to new ones can be tricky
• Making sure all systems update in real-time can be technically difficult
Data Management
• Keeping data consistent across all channels can be complex
• You need strong security measures to protect customer data
• You must follow data privacy laws, which can be strict
Cost
• The initial investment in new technology can be significant
• You need ongoing resources to maintain and update the system
• It might take time to see returns on your investment
Customer Adoption
• You need to educate customers about new shopping options
• New systems need to be easy for both customers and staff to use
• You need to manage customer expectations during the change
To handle the challenges of implementing unified commerce, I recommend a structured approach. Here's a guide to help you get started:
Assess and Plan
Begin by thoroughly reviewing your current setup. This involves examining your existing systems and processes, identifying pain points, and defining clear goals for your unified commerce strategy.
During this phase, develop a comprehensive roadmap that prioritizes initiatives based on their potential impact and feasibility. Create a phased implementation plan with realistic timelines and milestones.
Choose and Integrate Technology
Carefully evaluate different unified commerce platforms, ensuring they offer the scalability and flexibility your business needs for future growth. Consider cloud-based solutions for easier integration and maintenance.
Train and Test
Before full rollout, conduct thorough testing. Start with pilot programs to identify and address issues, continuously gathering feedback and making improvements along the way.
Monitor and Optimize
Once your unified commerce system is in place, regularly track key performance indicators (KPIs). Use analytics to identify areas for optimization and stay agile, adapting to changing customer needs and market trends.
Remember, implementing unified commerce is an ongoing process of refinement and improvement.
Usually, successful implementation often takes 12-18 months for a mid-sized retailer. However, the timeline can vary based on the complexity of existing systems and the scope of the transformation.
A robust unified commerce platform typically includes the following components:
1. Order Management System (OMS)
This is the central hub that manages orders across all channels. It ensures that orders are processed efficiently, regardless of where they originate.
2. Point of Sale (POS) System
3. Inventory Management
Real-time inventory tracking across all channels is essential for avoiding stockouts and overstocking.
4. Customer Relationship Management (CRM)
A unified CRM system helps you maintain a single view of your customers across all touchpoints.
5. E-commerce Platform
Your online store should seamlessly integrate with your physical stores and other sales channels.
6. Mobile Commerce
7. Data Analytics
Advanced analytics capabilities help you make data-driven decisions based on information from all channels.
In this section, we'll dive into the key metrics that will help you gauge the true impact of your unified commerce efforts. it's crucial to track the right metrics. Here are four key areas to monitor:
Customer Experience Metrics
These indicators help you gauge how well your unified commerce strategy is meeting customer needs.
Track metrics like Net Promoter Score (NPS), Customer Satisfaction (CSAT) scores, Customer Lifetime Value (CLV), and repeat purchase rates.
These metrics will give you insights into customer loyalty and the overall effectiveness of your customer experience across all channels.
Operational Efficiency Metrics
Monitor your inventory turnover rate, order fulfillment time, return rate, and cost per order.
These indicators will help you identify areas where your unified commerce system is improving efficiency and where there might be room for further optimization.
Sales and Revenue Metrics
Keep an eye on conversion rates across all channels, average order value, cross-channel sales percentage, and revenue per square foot for physical stores.
These metrics will show you how well your unified approach is driving sales and revenue growth.
Omnichannel Specific Metrics
Track the adoption rate of services like Buy Online, Pick up In Store (BOPIS), cross-channel return rates, the percentage of customers using multiple channels, and how different channels influence each other.
These indicators will help you understand how well your channels are working together and where you might need to focus on improving integration.
Regularly reviewing these metrics will help you identify areas for improvement and quantify the return on your unified commerce investment. The goal is to use these insights to continuously refine and enhance your unified commerce strategy.
IoT devices will create new retail touchpoints and data sources. Smart shelves and connected fitting rooms will enhance the shopping experience and improve operational efficiency.
AR and VR technologies are blurring the lines between online and offline shopping. Customers will soon visualize products at home or "visit" virtual stores, creating immersive shopping experiences.
Voice commerce is growing as voice assistants become more sophisticated. Unified commerce systems will need to integrate voice interfaces seamlessly with other channels.
5G networks will provide the foundation for these innovations. Faster, more reliable connections will enable robust real-time data synchronization and smoother omnichannel experiences.
Unified commerce represents the future of retail. It's not just about selling through multiple channels – it's about creating a seamless, personalized experience for your customers, no matter how they choose to interact with your brand.
While implementing a unified commerce strategy can be challenging, the benefits in terms of customer satisfaction, operational efficiency, and increased sales make it well worth the effort.
Remember, unified commerce is not a one-time project, but an ongoing journey. Stay curious, keep learning, and always keep your customers at the center of everything you do.
So, are you ready to unify your commerce and take your retail business to the next level?
