A recent survey byManhattan Associates Inc. and IHL Group has uncovered a strong correlation between omnichannel fulfilment maturity and margins.
The survey found retailers that optimise digital customer journeys see substantial improvements in their margins — anywhere from 3 to 8 points higher than retailers who have not optimised. However, despite these results, less than thirty percent of the retailers surveyed have optimised these processes.
Consumer demand for more personalized shopping experiences is driving the creation and expansion of omnichannel fulfillment services, such as buy online pickup in-store (BOPIS), ship from store and curbside pickup. Historically, retailers scrambled to patch together multiple, disparate legacy systems in an attempt to satisfy growing fulfilment demands. However, many retailers have realised that these fulfilment methods often carry additional costs and complexity which have cut into their margins, creating the need to optimise digital customer journeys.
“With expanding fulfilment options and rising customer expectations, the retail market is rapidly growing in complexity,” said Greg Buzek, president of IHL. “Retailers need to quickly pivot to solutions designed and engineered for the way consumers shop today and into the future. Those who have optimised these customer journeys are racing ahead in profitability. Those who have not are losing many points of margin on every sale.”
“The best way to deliver profitable and effective omnichannel experiences is through the use of a unified commerce platform that was created specifically for the way we shop today,” said Chris Shaw, senior director, Product Marketing and Analyst Relations for Manhattan Associates. “Manhattan Active Omni is the most advanced unified commerce solution ever engineered. It is the first of its kind and specifically designed to deliver profitably on every omnichannel promise.”
Commissioned by Manhattan Associates and conducted by IHL, a global research and advisory firm, the survey was completed by over 300 retail brands in North America.