Woolworths Pick Up at Keysborough South Australian omnichannel retailers need to focus more on creating a consistent, seamless experience for their customers across their bricks-and-mortar stores, online presence and mobile sites or apps, according to SAP’s 2017 Australian Digital Experience Report released this week. While 43 per cent of consumers use five or more channels when dealing with a brand, 87 per cent of engag
ements actually take place across two or more channels. In general, 35 per cent of consumers are dissatisfied, down five per cent from last year’s report.
“Successful omnichannel retailers have understood their channels aren’t just digital. They’re your physical stores, store assistants, the person who delivers the parcel, the service agent who looks after your dishwasher or broken down whitegoods,” explained head of SAP Hybris ANZ Stuart O’Neill.
“Channels aren’t just on your mobile phone either, although it’s absolutely a basic requirement and it’s not just your PC. Your channel is the heart and lungs of your brand and the way you interact and talk to individuals.”
The report also found that those brands that offer customers interaction across multiple channels saw a lift in their net promoter scores (8 per cent versus -1 per cent) and customer loyalty (43 per cent), in comparison to those that offer a single channel.
It also revealed that 33 per cent of shoppers are happy with the digital experience in multichannel environments, compared to 22 per cent in single-channel engagements.
While customers now expect to engage with a brand across various channels and touch points, the expectation is that they will receive a consistent experience all channels. However, those businesses that focus on only two or three channels have seen a huge increase in customer loyalty and advocacy, said O’Neill. Retailers that have more touchpoints often struggle to be across them all at the same time.
“Very clearly, we’re seeing that if you’re going to do multiple channels, pick a few and do them really well. Otherwise, customers get a lot of glitches but no substance,” he explained.
“My advice is if you’re going to give me a channel experience, make sure you’ve got the infrastructure and the organisational set-up to support that, so you’re able to deliver a great customer experience, no matter where I touch your organisation.”
According to the report, ninety-two per cent of leaders reported that they have mature digital transformation strategies and processes underway to improve their brands’ customer experiences. Seventy per cent have seen significant value from digital transformation in customer satisfaction and engagement.
Grocery leads the way
It looks like the retail groceries sector is leading the way for digital experience, while their websites (41 per cent), email (37 per cent) and shopfronts (50 per cent) were rated as the best channel experiences.
However, mail (19 per cent), social (17 per cent) and web chat (nine per cent) were rated as the worst performing.
“For the first time, [some grocery brands] have made a foray into what an online space may look like, they’ve given us options and access to be able to purchase online. Previously, we didn’t have that, so there’s been a huge uptick in terms of acceptance that these guys are doing things right, they’re doing what I want, when I want and how I want,” said O’Neill.
“They give the same price online or in-store and understand the things I’m concerned about. If you’re talking about just buying a camera, then risk and security about that large price purchase is most important to me, but in terms of groceries, it’s the quality of the food that’s important – how do I know it’ll be as fresh as if I picked it myself in the store? That’s part of the value of grocery stores – the touch and feel – so grocery stores are starting to position [their brand] so customers can see the person who’s picking your fruit and vegetables.”
In fact, just a few months ago, Woolworths announced their plans ramp up their omnichannel experience, including the recent rollout of its in-store grocery pick-up. CEO Brad Banducci also revealed that the supermarket has plans to eventually impelement drive-through and on-demand delivery within three years.
What we really want to do is provide our customer with a multitude of options in how they shop with us, whether its in-store, pick-up at store, pick-up at the front of store, pick-up via drive-through or home delivery – at a designated time or express within one hour,” he told investors in August.
“We have an aspiration to activate every one of those opportunities…for food in the short-term and longer term with food, drinks and general merchandise.”