Are we going to make it?
Following on from part 2 – Stumbling, pushing and colliding, we take a look at how retailers are measuring their omni-channel performance, and whether all that time and money invested is worth it.
When it comes to measuring omni-channel performance, the most popular KPI used by retailers is profit per order (62%), with number of new customers (57%) and customer feedback (54%) coming in at positions two and three respectively (figure 1). The least favourite metric, sadly, is also perhaps the most important: retained revenue, with only 26% of respondents identifying it as an omni-channel KPI.
Those spending the most on omni-channel are keeping a close eye on profit per order, with the number of new customers acquired and customer transition between channels being the two other areas of interest for the big spenders. Our conservative investors are tracking the highest number of KPIs and seem most concerned with revenue, customers acquired, profit per order, profit per customer, retained revenue and customer feedback.
What are the results?
Of those surveyed, 25% claim that they are seeing a strong return on investment when it comes to omni-channel. And a further 23% were optimistic that they would see a return within 2 – 5 years, as planned. At the other end of the scale, 23% admitted that the return was “acceptable”, whereas 20% said that omni-channel is costing more than it’s making.
When it comes to investment level, those spending the most are apparently on track, with our biggest spenders already seeing a return or expecting one within five years. And who’s losing out? Those in the middle – perhaps they spent too much, but not quite enough, because our conservative spenders are seeing a return which can be described as “acceptable”.
What does the future hold for omni-channel?
Despite this, there is a strong feeling that more investment is required. 70% agreed that omni-channel is important enough to warrant greater investment going forward. And only 11% of respondents had any doubt about this. But, as Eric Fergusson, Head of Retail Services at eCommera, advises, retailers must start looking at the bigger picture when it comes to omni-channel, in order to guarantee both an optimal customer experience and a healthy ROI. Eric adds, “Retailers nowadays are so diverse, with different customers, products and pricing, so it’s important for them to realise that a one-size-fits-all approach simply doesn’t work. Retailers must start to think realistically about which services they should be offering to their customers, all with profit, ROI and customer experience in mind. To succeed at omni-channel and maximise ROI, retailers must not only offer customers more choice and convenience, but also optimise systems and process - such as having a single view of stock and a single view of customer.”
If you missed parts 1 and 2, take a look now to find out how retailers are deciding which omni-channel services to offer, as well as how they think they’re doing and what’s holding them back from true omni-channel success:
And if you’d like to find out more about measuring and maximising your omni-channel ROI, download our omni-channel consulting brochure.