INVESTIGATIVE FEATURE
S
hopping was once a
straightforward process; a
consumer would walk into
a store and, using cash,
purchase a good or service
from a vendor. The roles of the
consumer and retailer were clear-cut:
there were no third parties involved,
and no alternate ways to make
purchases. This sounds archaic today,
because it is. The rapidly evolving
nature of technology has transformed
the retail sector to such an extent that
shopping is no longer simply a
transaction; it’s an experience. Where
technology has provided the means for
some retailers to flourish, it has been a
catalyst for the demise of others —
the likes of video rental chain
Blockbuster and bookstore chain
Borders are cases in point.A ubiquitous mechanism, technology
is available to all retail companies;
it’s how these companies choose to
engage with technology that’s
determining their success. In fact, Jack
Hanrahan, Non-Executive Director at
Sprooki and former Retail Relations
Manager at Westfield, believes that at
its core, that’s all that technology is; a
tool. “Retailers around the globe are
starting to understand that technology
is a tool, it’s not a silver bullet,” he
says. “While there is lots of money
being invested in technology by
great retailers, there’s a growing
awareness that retail is very much a
people business.”Thus technology in and of itself
has little relevance to retailers.
Technology as a mechanism to
enhance customer experience on
the other hand, is vital. “It’s all about
the tools and technologies that
are helping to deliver a great
experience,” says Jack. “The idea of
being able to personalise an
interaction is one of the holy grails
for retail moving forward.”OMNICHANNEL RETAILING
Where multichannel retailing offers
customers a number of discrete outlets
to engage with a brand, omnichannel
retailing enables consumers to engage
with more than one sales channel for a
single transaction. For instance, you
might try a pair of shoes on in a store,
Snapchat a picture of them to a friend
for a second opinion, but choose to
buy them online so that you can
compare price points and get the best
deal. When omnichannel is
successfully implemented, there are
various touchpoints at which the
consumer and brand interact. “It’s not
either/or with this whole notion of
omnichanel,” says Jack. “It’s really
about empowering the customer to
deal with a particular brand whenever
and however they want to.”While omnichannel is incredibly
liberating for consumers, it also
provides retailers with an all-
encompassing view of their customers
and how they interact across different
channels. This information can in turn
be used to personalise the customer
experience — a perpetuating cycle.
Stuart O’Neil, Head of Business at SAP
Hybris ANZ, believes customer trust
and personalised experiences, as
developed through omnichannel
retailing, are vital to the success of a
brand. “One thing that came out of a
recent report we conducted, is that
those organisations that drove loyalty
and a great customer experience, saw a
willingness from individuals to share
personalised data,” says Stuart. “This
data enables retailers to individualise
the customer experience at the front
end, making it more contextual and
relevant and keeping them loyal to
t h e b r a n d .”The emphasis on omnichannel is
therefore impacting company strategies
and structures. “Omnichannel isinfluencing corporate investments, the
way companies go to market, and who
they invest in on the board,” says Stuart.
“We’re seeing the CEO and CIO move
up in terms of importance, and the
creation of a Chief Digital Officer. From
that perspective, it’s influencing both
top line and bottom line.”From a technology perspective,
omnichannel is changing the way
organisations approach their end-to-
end retail strategy, and unless brands
embrace this evolution they fail to stay
relevant. UK-based retailer John Lewis
Partnership — which operates John
Lewis department stores and Waitrose
supermarkets — is one of the leading
examples when it comes to the
successful implementation of an
omnichannel strategy.Case study: John Lewis PartnershipAnticipating the shift to omnichannel
before it really took off, the John Lewis
Partnership’s IT Director, Paul Coby,
implemented a ‘track, know, and
manage’ strategy for the company when
he took up his position in 2011. The
objective of this approach was to track
every retail item from its production
into the hands of consumers, know John
Lewis’ consumers — what they
purchase and are likely to purchase in
the future, and manage all of the
various channels.This strategy is at the core of providing
convenience and flexibility to customers,
and has been effective for John Lewis.