Originally posted in PCR Magazine January – February 2024 

Amber Hovious, VP of marketing and partnerships at Teamwork Commerce discusses how to balance online and brick-and-mortar retail operations in 2024.

According to a survey by Bank of America, 42% of customers intend to spend more online over the next 12 months, with convenience being the key driver. The trend seems to be already in action, with 2023’s Black Friday weekend generating $38 billion in online sales, indicating an increase in online shopping. Meanwhile, there was also a significant consumer appetite for in-store shopping experiences. According to McKinsey, 85% of customers planned to purchase at least one item in-store in the 2023 holiday season.

The ability to try products physically remains significantly valuable. While one sales channel may outpace the other in the shortterm based on consumer preferences, both online and offline fulfilment are crucial for retailers to thrive in today’s environment – where consumers demand convenient experiences that best suit their evolving needs. Retailers need to be able to effectively manage operations across both brick-and-mortar and e-commerce.

The Balance between Offline and Online: Why is it Important?

Today, customers have unique needs and diverse shopping preferences. Some favour the ease of purchasing online, while others place a higher value on the tangible experience of shopping instore. Simultaneously, there exists a segment of shoppers who embrace hybrid shopping models where they browse online and make purchases in-store. In fact, an anticipated 53% of UK consumers plan to conduct online research before making any major purchases in 2024.

Whether to deliver convenient and seamless shopping experiences or to maximise sales, having an appropriate presence over both offline and online platforms is necessary. Relying solely on one channel can make a retail business vulnerable to potential disruptions. Finding the right equilibrium between offline and online is critical. Ensuring a balance between channels can help retailers cater to their customers’ diverse needs.

Amid ever-changing trends that influence both online and offline realms, the right balance between offline and online can help retailers swiftly adapt to market trends, allowing them to stay relevant and competitive in the face of changing consumer preferences. Using a blended approach, retailers can have access to multiple touchpoints that help them engage with customers, gaining increased opportunities to win consumer loyalty. It also allows them to diversify their risk. For instance, during Covid-19 retailers with a strong online presence continued to serve customers even when physical stores faced restrictions.

To strike the right balance between their offline and online channels, retailers must create a frictionless omnichannel environment for their customers, allowing them to browse online, make purchases, and even return or exchange items in-store. This integrated approach can significantly improve overall customer satisfaction. The key lies in integrating physical stores with online platforms to create a unified shopping environment.

Brick-and-Mortar and Online: The Need to Connect the Two

There is no denying that omnichannel retail has taken the industry by storm. However, there is significantly more that needs to be done by retailers to capitalise on opportunities provided by the omnichannel boom. Retailers must connect their physical stores with online sales channels to boost visibility for their customers and themselves alike. If the customer has ordered an item using the Buy Online, Pickup Instore (BOPIS) service, they should be able to track their order in real-time. This helps shoppers confidently walk into the store knowing exactly whether their order is ready for pickup, eliminating any guesswork.

Weaving their physical stores with their online platforms in real-time, retailers can deliver a unified and consistent experience across all touchpoints, maintaining an omnichannel synergy. Shoppers can research products online, make purchases in-store, and use online services for post-purchase support, creating a cohesive and positive overall experience.

Retailers can deploy an all-encompassing retail solution that demonstrates a great user interface and is well-integrated with wider retail solutions such as inventory management, customer relationship management (CRM), point-of-sale (POS), order management and clienteling.

By managing their entire retail ecosystem from a single software, retailers can have more real-time visibility of their business. They can gather more comprehensive data on customers’ shopping behaviour, in-store inventory, warehouse stock, and online orders. Retailers can use this information to make informed and personalised decisions related to pricing and discounts. Retailers can also use real-time data to optimise their inventory, minimising overstocks and stockouts. This, in turn, enhances the overall efficiency of the supply chain and enables retailers to seamlessly adapt to the continually evolving preferences of consumers.

Consumer Preferences in 2024

Despite continued economic pressures in 2023, consumers demonstrated strong levels of resilience. However, the industry saw customers becoming considerate about their purchasing decisions. As 2024 unfolds, shoppers are likely to remain cautious about their spending which can make the market more competitive.

When it comes to shopping, physically trying items in-store and experiencing human interaction is an evergreen consumer preference. However, due to an influx of options available in the market, it is not easy to attract, and more importantly, retain customers. To stand out, retailers need to deliver unparalleled, convenient and personalised shopping experiences instore. From mobile POS to automated self-checkout, retailers can use a number of innovations to revamp their in-store shopping experience.

As retailers prepare to enhance the in-store shopping experience, they must not overlook the value of a seamless online shopping experience. According to forecasts, retail sales from mobile commerce in the UK are expected to surpass the £100 billion mark by 2024. As a result, retailers must streamline their mobile purchasing process to reduce shopping cart abandonment and ensure a frictionless customer experience.

Whether shopping in-store or online, sustainability is one of the key factors that will influence consumer preferences in 2024. According to Statista’s Consumer Trends 2024 report, sustainability and ethics are at the forefront of shoppers’ decision-making. In fact, ethical spenders will make purchases from eco-friendly brands even during challenging times. It is clear that sustainability isn’t just a buzzword anymore, and retailers need to act now.

Ultimately, driving sustainability is likely to be on par with providing high-quality shopping experiences. With growing cautious spending and the rise of conscious consumerism, delivering high value to the customer, sustainably, should be a priority for retailers to drive revenue and earn consumer loyalty. Those who can deliver top-tier omnichannel experiences sustainably can well cater to evolving consumer preferences in 2024.

Originally published on: Forbes

The growth of e-commerce and the development of multiple new sales channels might have created convenience for consumers when it comes to shopping, but they can just as easily create operational complexity for retailers, who are keen to deliver seamless shopping experiences. Today, retailers need to manage multiple platforms and technologies at once, and efficiently, to cater to consumer demands.

Managing several technologies across a retailer’s entire operation—from supply chain to shop floor—is not a typically simple task. Technologies that are not properly integrated can create several issues that arise from a range of factors, including slow updates, human error from manual data input and the use of outdated information. In a fragile chain of complex technology, it only takes one inaccurate piece of information to disrupt an entire ecosystem.

Retailers must take an all-encompassing approach to their technology stack—one that is connected at all touchpoints and operates seamlessly in real time. Importantly, this holistic approach to retail operations must be built on a foundation of robust, reliable and accurate technology. With an integrated technology stack, retailers can manage their entire retail ecosystem more effectively.

From efficiency and improved decision-making to the ability to deliver personalized shopping experiences, an all-encompassing approach to retail technology can help retailers manage operations effectively and provide services to customers that drive loyalty and long-term business success.

Boosting Supply Chain Efficiency

A competitive edge in the past, omnichannel experiences have now become a must-have expectation of shoppers, according to the 2022 Retail Personalization Index Retailer & Consumer Survey. This is also consistent with McKinsey’s analysis in 2021 that positioned omnichannel as “a requirement for survival” in the retail industry.

In order to facilitate omnichannel offerings, such as same-day delivery, buy online, pick up in-store (BOPIS) and buy online, return in-store (BORIS), retailers need a highly efficient supply chain. From delayed customer deliveries to poor replenishment practices that lead to out-of-stock items on shop floors, inefficient supply chain operations can damage customer loyalty.

Shoppers demand a fast and seamless experience that caters to their convenience. To win their loyalty and maximize sales, retailers need to maintain appropriate inventory levels across all locations and provide seamless order fulfillment.

Traditional supply chain practices require warehouse staff to manually track inventory movement. It results in a time-consuming process that is prone to human error and incorrect readings. As a result, retailers are provided with inaccurate and often outdated data. This can negatively impact retailers’ decision-making related to inventory, order procurement, stock distribution and reallocation. This can further result in unnecessary transportation, storage costs and poor replenishment, leading to out-of-stock items.

Equipped with a range of supply chain technologies that communicate in real time, retailers can gather relevant and accurate data that empowers them to make smarter decisions, faster. Integrating inventory and order management solutions within the same ecosystem, for example, can create real-time visibility of products, allowing retailers to make more informed decisions related to stock.

If an item is selling fast, retailers can identify it early and reallocate stock transport to ensure adequate replenishment. What’s more, with integrated order management, shipments can be automatically generated based on orders received from different platforms, allowing retailers to deliver products quickly and efficiently.

Top-Tier Customer Experiences

According to Statista, 94% of customers believe a positive shopping experience makes them more likely to shop with a retailer again. Convenient and tailored shopping experiences are not only crucial to boost consumer loyalty, but also to make shoppers spend more.

In fact, 80% of business leaders believe personalized shopping experiences can lead to increased consumer spending. However, 50% highlight that gaining access to accurate data to personalize shopping experiences is a challenge.

By connecting a range of customer-centric applications such as customer relationship management (CRM), clienteling and point-of-sale (POS), retailers can not only meet shopper demands but remain adaptable to their evolving needs. With each of these technologies operating together, retailers can gain access to a wide range of information at the touch of a button and deliver high-quality shopping experiences seamlessly.

From sizes to product preferences, CRM and clienteling software can allow staff to quickly access information and personalize each interaction they have with a customer. Integrating these technologies with a mobile POS application, all hosted on a tablet, retailers can tailor interactions with customers; provide exclusive discounts and personalized offers; and complete transactions in a streamlined and highly efficient manner.

Ultimately, this can significantly reduce the time customers spend waiting in checkout queues and improve the overall shopping experience. Customers leave the shop floor feeling valued, having received a bespoke and streamlined experience.

Leveling Up Predictive Analysis

To make the most effective decisions, retailers must take each area of their business into account. From warehouse racks to in-store shelves, retailers need to have clear visibility of their entire ecosystem in real time.

An all-encompassing approach to retail technology enables retailers to generate this visibility through automated reports such as monthly analytics, forecasts and recommendations based on historical data. This can help retailers make accurate predictions about consumer trends more effectively. For example, they can identify bestselling products around a specific event, such as Black Friday, and increase stock around those items to increase sales.

The Takeaway

With fastidious customers, tighter pursestrings and razor-thin margins impacting the retail landscape, the market is becoming increasingly competitive. Those who can make their operations highly efficient are likely to drive more profitability.

An integrated technology stack offers retailers a great opportunity to simplify their retail operations and manage them more effectively while providing a wider range of options for their customers. This allows them to remain flexible to changing consumer demands, future-proofing their businesses while also driving customer loyalty for long-term success.

Click here to find out more about how Teamwork Commerce can help your retail brand deliver strikingly accurate inventory

Customer Experience is Still King

Omnichannel, loss prevention, the introduction of AI and everything else demonstrated at NRF had one thing in common: the vast majority of it is designed to improve the customer experience, whether in-store or online.

Consumers continue to dictate the movements of the retail sector. Ultimately, they are the defining factor in any retail technology deployment and businesses are recognizing this. In 2024, following a couple of tough economic years for businesses and consumers alike, retailers must continue to cater to their customers in every way possible. If they don’t, they risk alienating consumers and losing out on their business to competitors.

A Big Year Ahead

2023 was a complex year for the retail industry. However, one of the biggest takeaways from NRF 2024 will be the renewed optimism and enthusiasm for the coming 12 months.

With a flurry of new technologies breaking through and a keen focus on delivering value in every deployment, retailers and their technology partners are looking to push innovation at every opportunity this year. We cannot wait to see how it all unfolds…

Want to transform your retail operations in 2024? Book a demo with the team today.

Originally published on: TotalRetail

Competition plays a huge factor in the retail industry. Operating in a highly saturated market, retailers must constantly work towards meeting their customers’ expectations quickly while providing a high-quality experience. With price and convenience being the two biggest factors affecting consumer purchase decisions, retailers must find ways to keep costs down while continuing to streamline their operations to create convenience at every touchpoint.

From handling customer inquiries and conducting transactions to processing online orders, streamlining retail operations not only generates a competitive edge but also empowers staff to deliver high-quality customer service. This leads to satisfied customers, increased sales, and stress-free employees.

Retailers can transform their business by streamlining practices across three key areas of their organization: supply chain, shop floor, and omnichannel operations. By creating efficient workflows that benefit both customers and staff, retailers can generate a significant advantage over their competitors.

Dealing With Demanding Shop Floors

Busy stores, demanding customers and staff shortages can quickly create difficult situations for retailers. Making sure customer demands are met quickly and efficiently should be a top priority. Not only does this reduce the risk of a chaotic shop floor, but it also plays an integral role in driving sales and retaining long-term customers.

Mobile point of sale helps tackle these challenges, enabling retailers to provide exceptional customer service even with a limited number of in-store associates on the shop floor. Compatible with mobile devices, even in offline mode, staff can conduct transactions from anywhere in-store, helping minimize queuing while increasing productivity. Importantly, customers can receive a high-quality service, receiving fast assistance for transactions and minimizing the amount of time spent waiting on the shop floor.

The Role of Inventory Management in Stock Visibility and Supply Chain Efficiency

Several retail challenges are rooted within the supply chain itself. One particular issue for many retailers is that they’re stuck with a poor view of stock, resulting from inaccurate inventory management. This leads to a range of issues, including waste, unfulfilled orders, and increased costs from transport and storage.

In order to drive operational efficiency, retailers must find ways to organize their stock management. With the right technology deployed, retailers can take control of their inventory and alleviate these ongoing challenges. Managing every unit on hand, retailers can create real-time visibility of stock that optimizes a retailer’s supply chain operations. It enables retailers to make better replenishment decisions, faster, while minimizing waste and minimizing transport and storage costs — improving sales opportunities and growing profits.

The Benefits of Effective Order Management Systems in Fulfilling Online Orders

An additional benefit of a streamlined supply chain and inventory management operation is that it sets a foundation that enables omnichannel fulfillment. However, there are few that do so effectively. The right order management system (OMS) can help retailers achieve that.

Investing in an OMS, which can support sales from any channel and create a seamless purchase workflow, can be directly connected to a retailer’s e-commerce platform, providing an automated solution to generate shipments. Orders can be placed from multiple locations and fulfilled from anywhere. Deploying an omnichannel offering allows customers to shop however they please. Equipped with a range of fulfillment options, such as buy online, pick up in-store (BOPIS), ship from store, and even buy online, return in-store (BORIS), customers are provided with a number of options that creates convenient experiences.

With a seamless transition between several channels, retailers can deliver high-quality customer service that nurtures relationships and creates loyalty.

The Retail Trifecta

Mobile POS, inventory management, and OMS are three key pieces of retail technology that, when deployed together, help deliver efficient retail operations and optimized practices across shop floor, supply chain and omnichannel operations. With these three technologies operating together in an all-encompassing approach to retail technology, retailers can also provide unparalleled customer experiences, creating strong customer loyalty and long-term business sustainability.