2023 Omnichannel Experience Index Final

Download as pdf or txt
Download as pdf or txt
You are on page 1of 44

Digital Maturity Benchmark

2023 Omnichannel
Experience Index
IN PARTNERSHIP WITH
Market Trends
Outlook & Consumer Behavior

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
Accelerated digital adoption continues.
The accelerated path to digital offers both opportunities and challenges.
Economic Uncertainity Supply Constraints A New Age of Consumerism Focus on Sustainability

The long-term impact of high Global uncertainty and supply Digital is the default channel Environmental, social, and
inflation and shrinking GDP disruptions continue to impact for shopper engagement. From governance (ESG) factors
growth may manifest itself in product availability and watching TV on the go, to impact the purchase decisions
the coming year in increased increase costs. This is an playing a favorite playlist, to of close to 45% of shoppers
shopper value consciousness opportunity for both retailers ride-hailing — shoppers do not globally. Shoppers are actively
and margin pressure on and manufacturers to leverage see channels the way retailers looking for and willing to pay
enterprises. Although digital digital technology, reimagine do. Retailers must continue to extra for sustainable products.
commerce offers retailers a supply chains and build drive differentiation through While consumerism may
growth opportunity, they must redundancies. In the short continuous digital experience conflict with a sustainable
improve operational term, retailers will need innovation. lifestyle, a well-executed
profitability or risk margin greater supply chain agility omnichannel strategy is a
erosion. and the ability to put great foundation for retailers
enterprise inventory to its to help bridge the gap for
Source: Incisiv Research most productive use. consumers.
2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Shopper preferences and Consistency of interaction across channels
and seamless cross-channel movement.
expectations of a retailer's e.g. Let me use a coupon I found on a social channel

omnichannel experience Consistency


in-store. Or show me the available assortment based
on my chosen fulfillment method, store, and/or

continue to evolve and preferred delivery or pickup time.

increase.
Digital is the entry point to more shopper Speed of delivery, whether it involves
experiences than ever before. 93% of all shopping buying online, picking up in store, or home
journeys now begin online, up from 81% in 2020. delivery.

e.g. Give me greater control over when and where I


From planning hobby lessons, to home renovations, want my order delivered or picked up: delivery by,
Speed
to ordering groceries, to making restaurant deliver on, deliver during, and deliver at choices per
reservations, consumers think digital first. item in a single cart.

For omnichannel retailers, these ever-evolving


shopper needs have led to new and increasingly
complex challenges. Transparency about products and services
of interest, order status, and customer
service requests.

e.g. Show me where my order or service request is in


Transparency detail, including complex scenarios that include
third parties (such as appliance installation).
Source: Incisiv Research
2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Digital share of revenue continues to increase. The pandemic-driven
digital shift is here to
2.9
$95
3 stay. The share of digital
2.9
revenue continues to
$86 10%
2 increase across
1.44
100%
segments.
$76
13% 1.44

1 172%
Both the number of
0.53
0.53
purchase trips and the
0.53

0 average order value


2020 2021 2022 2020
2020 2021
2021 2022
2022
continue to increase​.
Average order value Online purchase trips per month

Source: Incisiv Consumer Survey, 10,000 respondents


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Evolving shopper preferences have profound The majority of shoppers
implications for retailers. have come to expect a
seamless omnichannel
experience. Product
35% 45% 25% category determines the
channel of purchase.
Shoppers prefer home delivery Shoppers prefer buy online Shoppers prefer curbside 40% of shoppers prefer same-day
return in store delivery delivery.

Shoppers are willing to pay an average


Operational Impact Operational Impact Operational Impact delivery fee of $5 for delivery in under 2
hours.
Medium High High

Margin Impact Margin Impact Margin Impact

7-10% 5-9% 3-6%

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Retailers need to evolve their
omnichannel strategies, and
operationalize them through the right
tools and operating models.
Most retailers were extremely quick to react to pandemic-induced
digital acceleration. The rapid cobbling together of systems to get the
job done was necessary to reduce business disruption. While fast-
paced digital adoption ensured business continuity, it resulted in
severe operational challenges (bottlenecks, customer service issues,
etc.) and margin erosion. In order to deliver a differentiated digital
experience and ensure profitable growth, retailers need an integrated
strategy, digitization, and operations plan. What are the biggest gaps
and opportunities for retailers to
Shoppers who look online for a
product before a store visit
Shoppers loyal to their preferred
retailers' digital channels
improve the omnichannel fulfillment
experience?
>62% <40% Also, which retailers provide the best omnichannel fulfillment
experience to shoppers? Incisiv's 2023 Omnichannel Experience
Index explores.

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
While retailers have adopted many capabilities for a seamless omnichannel
experience, they still have a long way to go to fully meet shopper expectations.

Inventory Visibility Frictionless Fulfillment Sustainability Cost & Payments 360-Degree Service

69% 84% 53% 83% 94%

Allow shoppers to check Offer the option of buy online, Offer sustainable packaging Offer gift card as a mode Have a return policy
in-store inventory pickup in store (BOPIS) for products of payment available

7% 5% 15% 32% 7%

Provide a schedule for Offer locker collection Offer sustainable shipping Allow use of multiple payment Offer the option to schedule
new product launches service options options for the same order return pickup

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Omnichannel Experience Index
Methodology & Approach

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
Incisiv's 2023 Omnichannel
Frictionless Fulfillment Cost & Payments
Experience Index assesses top
Availability, speed, and Fulfillment costs to the
omnichannel retailers' digital convenience of fulfillment customer and payment options
ordering and fulfillment 45 attributes 21 attributes
34 attributes 22 attributes
capabilities across 4 key
areas. Inventory Visibility 360-Degree Service
Availability of information at Resolution, returns, and
The index is comprised of the top
the crucial decision points customer assistance
omnichannel retailers across 7 different
16 attributes 22 attributes
industry segments. Each retailer's
15 attributes 17 attributes
omnichannel capabilities and experience
Incisiv's
were assessed using an observational
Omnichannel
methodology.
Experience Index

115 104 7
retailers benchmarked digital capabilities assessed segments covered: apparel, consumer
104 retailers benchmarked in 2021 88 capabilities assessed in 2021 electronics, department stores,
general merchandise, grocery, health
Unless stated otherwise, all data in this report is from Incisiv's 2023 Digital Maturity Benchmark. and beauty, and specialty
Text in green indicates 2021 data

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
Each assessment area includes table Illustrative examples of table stakes and differentiating experiences
stakes and differentiating
experiences designations. These are
Inventory Cost &
defined based on their overall level of Visibility Payments
adoption, perceived value by
shoppers, and impact on key • Inventory visibility in cart view • Visibility of delivery cost by fulfillment
performance indicators (KPIs), such • Callouts for new arrivals, bestsellers method
as average order value (AOV), • Availability of fulfillment options on the • Payment options: credit/debit card, gift card,
conversion traffic, and customer product page PayPal
satisfaction. • Advanced product filters: in-stock, mode of • Membership programs that include delivery
fulfillment, delivery time, stock quantity benefits, loyalty program with delivery
Table Stakes • Pre-order and back-order of out-of-stock benefits
Foundational capabilities are required products • Payment options: wallets, Buy Now, Pay Later
• Suggested stores for out-of-stock products • "Subscribe-and-save" product subscriptions
to address key shopper expectations
today. The absence of these
capabilities has a negative impact on Frictionless 360-Degree
digital performance KPIs. Fulfillment Service

Differentiating Experiences
• Variety of fulfillment options: BOPIS, • Self help tools: FAQs, policies
Advanced capabilities that address ROPIS, curbside etc. • Return online purchases to store
important emerging shopper • Availability of order tracking information • Cancel order before shipping
expectations. The presence of these • Order pickup alerts • Flexible return options: schedule return
capabilities has a positive impact on • Expedited fulfillment (2-hour, 30 minutes, pickup, return while picking up curbside, drop
digital performance KPIs. same-day) at third party location (UPS/FEDEX etc.)
• Delivery timelines basis destination code • Digital customer engagement with shopping
• Product customization assistants, 1-to-1 appointments, etc.
2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Omnichannel Experience Index: Rating Categories.

Laggards offer a severely Followers offer a basic Challengers offer a Leaders offer the richest
lacking omnichannel omnichannel experience, seamless omnichannel omnichannel experience
experience, missing even addressing most table- experience built on a solid within and across retail
some basic table-stakes stake capabilities. Their foundation of capabilities. segments. They lead in the
functionality. experiences lack depth and They offer some adoption of differentiated
are light on the adoption of differentiated experiences experiences and are
differentiated capabilities. but lack the depth and functionally mature across
coverage of leaders. most assessment areas.

Adoption of table-stakes capabilities: Adoption of table-stakes capabilities: Adoption of table-stakes capabilities: Adoption of table-stakes capabilities:
Medium Medium-High High High
Adoption of differentiators: Low Adoption of differentiators: Low Adoption of differentiators: Medium Adoption of differentiators: High

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
Retailers rated as Omnichannel Experience Leaders, in alphabetical order.

Overall Leaders.
Incisiv recognizes these 20 retailers and
brands as Overall Omnichannel
Experience Leaders within and across
retail segments.

They are the benchmark for


omnichannel experience in 2023,
offering differentiated experiences
across the shopping journey.

The full leaderboard is available at the


end of this report.

2023 Omnichannel Experience Index New to leader pack in 2023


In partnership with Blue Yonder and Microsoft
01 | Inventory Visibility
Accurate Inventory Insight at
Purchase Decision Points

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
INVENTORY VISIBILITY: OVERVIEW WHY IT MATTERS WHAT WE ASSESS

Inventory visibility is a With digital becoming the first point of This section evaluates the availability,
customer interaction in more than 90% completeness, and accuracy of information
must for customer
of purchases, inventory visibility and at important customer decision points in
retention. accuracy are the top experience priorities the shopping journey. The attributes
It is no longer good enough for for retailers. assessed, if present, would greatly improve
retailers to offer shoppers an customer trust and lower cart
expanded online assortment abandonment.
through one inventory view and
endless aisle strategies. 46% of shoppers 16 total attributes assessed,
check stock availability online before including:
Shoppers want to know exactly visiting a store to make the purchase.
what products and services are • Availability of product callouts like new
available to them in the context of arrivals and bestsellers.
• Tagging/flagging items that have low
their needs. 34% of shoppers
inventory or are out-of-stock.
would switch brands if their preferred
Can I get it delivered tomorrow? Is • Presence of back-in-stock dates or
product was out-of-stock.
it available at my local store for notification options for them.
pickup? Can I quickly view nearby • Availability of fulfillment options on
stores where it is available? Can I every page of the purchase journey
back-order it if it is out-of-stock?
Only 13% of shoppers (listing, product display, cart).
wait for their product to come back in • Filters for various fulfillment options,
stock at their preferred retailer. stock-outs, and delivery speed (<2
hours, same-day). ​
Source: Incisiv Research
2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Retailers rated as Omnichannel Fulfillment Experience Leaders in Inventory Visibility, in alphabetical order.

Leaders in Inventory
Visibility.
Incisiv recognizes these 17 retailers and
brands as leaders in Inventory Visibility
within and across retail segments.

Building upon a solid foundation of


table-stake capabilities, they lead in the
adoption of differentiated inventory
visibility capabilities.

The full leaderboard is available at the


end of this report.

2023 Omnichannel Experience Index New to leader pack in 2023


In partnership with Blue Yonder and Microsoft
INVENTORY VISIBILITY: OVERVIEW

Department stores lead in Lowest Highest


the adoption of advanced Adoption Adoption
filters and callouts on the
listing page.
The adoption of functional capabilities varies
significantly by retail format.
Consumer electronics Store inventory visibility General merchandise
60% Industry average adoption: 70% 82%
Department stores have comprehensive
advanced options to filter by fulfillment
options, as well as inventory callouts.
Grocery Nuanced filters by fulfillment option Department stores
General merchandise retailers offer full in- 27% Industry average adoption: 50% 70%
store inventory visibility.

Consumer electronics Inventory callouts: new, limited Department stores


7% inventory 90%
Industry average adoption: 68%

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Areas of high growth: inventory and new Areas of low growth: filters and stock
product information. notification.

2023 2021 2023 2021

Availability of fulfillment
Search listing callouts 67% 41% options on product listing 47% 38%
page

Inventory status in cart


44% 28% Back-in-stock notification 18% 10%
view

Pre-order new / out- Filter for delivery time


20% 7% 19% 19%
of-stock products option

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
INVENTORY VISIBILITY:
SPOTLIGHT

Product availability at nearby store Filter based on different delivery options.


locations.
40% of shoppers value a retailer sharing information on inventory 67% of shoppers want their purchase to be delivered within the next
levels, yet only 22% of retailers provide transparency of stock business day. Currently, only 18% of retailers offer a filter for expedited
availability across stores. delivery.

Academy Sports + Outdoors recommends alternate locations where Neiman Marcus provides shoppers with delivery timeline filters to enable
stock is available and fulfillment options for out-of-stock products. them to choose the most appropriate product.

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
INVENTORY VISIBILITY: SPOTLIGHT

Spotlight: Bed Bath & Beyond In the past year, 48% of shoppers have
tried a new brand because their preferred
Bed Bath & Beyond provides real-time information on the number of units left, in-store
one did not have stock. With supply
availability, and estimated delivery dates on the product detail page.
disruptions set to continue, retailers must
extend their definition of inventory
availability to inventory that is not
currently on hand.

30% of shoppers
switch stores if their preferred product is
not available and 70% will switch brands.

Only 17% of retailers


flag out-of-stock items on their product
listing page.

Stock availability and status. Only 18% of retailers


Shoppers' expectations are constantly changing and their expectations for a seamless provide back-in-stock notifications.
shopping experience is higher than ever. They want timely and real-time information on
stock availability in-store and online.

55% of shoppers want to browse products online and check what’s available in nearby stores.

36% of retailers in the leader category provide real-time inventory status, while 67% of
retailers assessed have inventory status callouts (selling fast, in-stock, out of stock etc.) Source: Incisiv Research
2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
02| Frictionless Fulfillment
Ease and Convenience of
Placing and Receiving Orders

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
FRICTIONLESS FULFILLMENT: OVERVIEW WHY IT MATTERS WHAT WE ASSESS

Omnichannel fulfillment Availability of omnichannel fulfillment This section assesses the experience of
options like BOPIS and curbside has become placing and receiving an order through the
from digital revolution
widespread but it is seamless execution and different fulfillment methods offered. The
to operational evolution. customer satisfaction that will deliver ease of ordering is directly correlated to
Retailers with mature fulfillment returns for the retailer. conversion and retention.
capabilities pre-pandemic saw
>150% growth in digital sales.
Retailers that lagged were forced
65% of shoppers 45 total attributes assessed,
into action and introduced new expect the promised delivery/pickup including:
experiences, such as BOPIS and time to be met.
curbside pickup, in record time. • Availability of multiple delivery/pickup
timelines and scheduling options.
Offering a complete flywheel of
50% of shoppers • Ability to place orders using third-party
are dissatisfied with the availability of platforms and brand apps.
online and store-based fulfillment
products for pickup (vs. 74% in 2021). • Availability of options to schedule
is now table stakes. Retailers need
to focus on operational execution. delivery and pickup.
Delivery speed, the ability to • P​ost purchase delivery assistance (order
customize, and order visibility will 1 in 5 shoppers tracking, real-time order status, order
drive differentiation and provide a use the locker pickup service when update/delay notifications).
competitive edge. available. • Information on estimated delivery dates
and best/sustainable delivery options
based on shopper location.

Source: Incisiv Research
2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Retailers rated as Omnichannel Experience Leaders in Frictionless Fulfillment, in alphabetical order.

Leaders in Frictionless
Fulfillment.
Incisiv recognizes these 23 retailers and
brands as leaders in Frictionless
Fulfillment within and across retail
segments.

Building upon a solid foundation of


table-stake capabilities, they lead in
the adoption of differentiated
frictionless fulfillment capabilities.

The full leaderboard is available at the


end of this report.

2023 Omnichannel Experience Index New to leader pack in 2023


In partnership with Blue Yonder and Microsoft
FRICTIONLESS FULFILLMENT: OVERVIEW

Grocery retailers lead the Lowest Highest


industry in newer and Adoption Adoption
faster fulfillment options.
Grocery retailers provide a comprehensive
set of fulfillment options and capabilities:
third-party delivery, 2-hour pickup,
Consumer electronics Curbside pickup Grocery
curbside, lockers, etc. In addition, they lead
40% Industry average adoption: 67% 80%
the industry in the adoption of store
communication for delivery coordination
and other customization requests.

Apparel Same-day pickup Grocery


Consumer electronics, department stores,
52% Industry average adoption: 70% 87%
and apparel retailers continue to lag the
industry in adoption of same-day pickup and
scheduling capabilities.

Department stores Schedule delivery Grocery


10% Industry average adoption: 32% 87%

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Areas of high growth: order delivery and Areas of low growth: order pickup and
tracking. promising.

2023 2021 2023 2021

Third-party delivery
48% 32% Reached the store update 19% 16%
integration

Order tracking
95% 77% 2-hour pickup 32% 32%
information

Delivery timelines
Same-day delivery 52% 43% 31% 31%
available on product page

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
FRICTIONLESS FULFILLMENT:
SPOTLIGHT

Visibility to exact product delivery date. Capability to schedule pickup.


75% of shoppers expect their purchases to be delivered within two days More than 70% of shoppers cite convenience and order visibility as the #1
or less, thus transparency about the delivery timeline is vital. Displaying factor for shopping online. Shoppers prefer retailers who offer the
the delivery timeframe provides much-needed clarity to the shopper. capability to schedule their delivery or pickup. Currently, only 31% of
However, only 9% of retailers show order dates per destination code on retailers offer the option of scheduling a delivery and pickup.
the product listings pages.

Petco provides exact delivery date for the selected zipcode/address on Walmart gives shoppers the flexibility to schedule order pickup at their
the product listing page. convenience.

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
FRICTIONLESS FULFILLMENT: SPOTLIGHT

Spotlight: Target Speed of delivery has gradually become


one of the top three purchase decision
Target via its Shipt service offers shoppers multiple options for expedited delivery: same-day
influencers, along with price and return
delivery, guaranteed delivery within an hour, pickup within 2 hours, etc.
policy.

56% of shoppers
have abandoned their carts due to
concerns about delivery time.

Only 21% of retailers


provide delivery within 2 hours.

Only 32% of retailers


allow shoppers to schedule a delivery at
their desired time.

Expedited fulfillment.
Retailers are faced with the challenge of not only providing expedited delivery and multiple
delivery options, but they also need to ensure seamless execution while managing costs.

Shoppers are looking for expedited fulfillment options and are willing to pay a small premium
for it.

73% of shoppers consider expedited order delivery to be a key component of omnichannel


experience. Source: Incisiv Research
2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
03 | Cost & Payments
Delivering Outsized
Value for Money

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
COST & PAYMENTS: OVERVIEW WHY IT MATTERS WHAT WE ASSESS

This section evaluates the fulfillment


Transactional Loyalty in online shopping is low; 45% of
online shoppers defect for better deals. options available, costs associated with
approach to trust and each method, the different membership
Retailers have to make the value tangible
loyalty. for the shopper beyond the product and programs offered by retailers.

Retailers' free shipping option is a make the experience frictionless.


half-truth our consumerist society
believes. With the amount of value
some big box and online retailers
79% of shoppers 21 total attributes assessed,
value unlimited free delivery programs
offer, shoppers forget they pay for including:
and offerings from retailers.
shipping through their
• Availability of costs associated with
membership.
different fulfillment options.

Most retailers benchmark 50% of shoppers • Presence of multiple payment options


like gift cards, mobile wallets, loyalty
themselves against Amazon's are more likely to abandon a purchase if
points, and buy now, pay later options.​
shipping speed and Target's store their preferred mode of payment isn't
• Availability of membership programs
fulfillment. Few do so against the available.
that provide delivery benefits (free
outsized value their membership
shipping, faster delivery options).
programs deliver to members,
creating a lock-in effect that 65% of retailers • Ability to choose from a variety of
offer free shipping for a certain period to delivery options (BOPIS, home delivery,
drives high retention, repeat
draw in shoppers. locker). ​
orders, and customer lifetime
value.

Source: Incisiv Research

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
Retailers rated as Omnichannel Experience Leaders in Cost & Payments, in alphabetical order.

Leaders in Cost &


Payments.
Incisiv recognizes these 15 retailers and
brands as leaders in Cost & Payments
within and across retail segments.

Building upon a solid foundation of


table-stake capabilities, they lead in the
adoption of differentiated cost &
payments capabilities.

The full leaderboard is available at the


end of this report.

2023 Omnichannel Experience Index New to leader pack in 2023


In partnership with Blue Yonder and Microsoft
COST & PAYMENTS: OVERVIEW

Department stores lead the Lowest Highest


industry in the adoption of Adoption Adoption
payment options.

Department stores and apparel retailers have


the most mature digital payment
capabilities: PayPal, gift cards, and the Grocery Option to pay via PayPal, gift card, Department stores/apparel
option to redeem loyalty points as payment. 27% Apple Pay 100%
Industry average adoption: 74%
Grocery retailers have added unique payment
options like Supplemental Nutrition
Assistance Program (SNAP), Electronic
General merchandise Free shipping for all orders Consumer electronics
Benefits Transfer (EBT), and others but still
0% Industry average adoption: 11% 40%
lag other segments in offering a choice of
payment options.

Grocery Redeem loyalty points as payment Department stores


7% Industry average adoption: 56% 100%

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Areas of high growth: payment options. Areas of low growth: shipping cost.

2023 2021 2023 2021

Option to buy now pay Free shipping as part of


70% 46% 35% 30%
later the loyalty program

Option to pay via PayPal 84% 70% Multiple shipping options 95% 91%

Option to pay via Apple


37% 22% Free shipping on all orders 12% 11%
Pay

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
COST & PAYMENTS:
SPOTLIGHT

Free delivery on orders for loyalty members. Membership program for delivery.
Free shipping significantly influences the purchase decisions of at least 82% of shoppers are willing to reach the minimum order amount to earn
75% of shoppers. Shoppers are drawn to retailers' loyalty programs to free delivery. Paid membership programs that offer free delivery have
access value-added benefits, such as discounts and free delivery. become a motivating factor for shopper engagement and an opportunity
Currently, 35% of retailers offer free delivery as part of their loyalty to offset delivery costs. Presently, only 23% of retailers offer delivery
programs. membership programs.

Macy's offers free shipping for its Star Rewards members. Target offers shoppers memberships that reduce delivery costs to zero,
making purchases more cost effective.

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
COST & PAYMENTS: SPOTLIGHT

Spotlight: Williams Sonoma Delivery costs have become an important


factor in determining purchase decisions.
Williams Sonoma offers shoppers free standard shipping on all purchases for an annual fee of $99
Shoppers now expect free shipping for
for its Reserve membership program.
their purchases and consider extended
delivery timelines to be a drawback.

Another essential factor in purchase


decisions is the flexibility to pay by their
preferred method.

Only 11% of retailers


offer free shipping on all orders.

Only 23% of retailers


provide a membership program for
delivery benefits.
Delivery membership program.
More retailers now offer free shipping as part of their loyalty program or on purchases of
select merchandise, as shoppers desire low-cost methods of fulfillment. Free shipping has
become one of the most compelling reasons to make a purchase.

62% of shoppers consider free delivery as an important consideration for purchase decisions.

65% of shoppers would be interested in joining a loyalty program if it offers premium delivery
service. Source: Incisiv Research
2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
04 | 360-Degree Service
From Conflict Resolution to
Customer Engagement

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
360-DEGREE SERVICE: OVERVIEW WHY IT MATTERS WHAT WE ASSESS

This section assesses all aspects of post-


Customer service as a In the absence of physical interactions,
customer satisfaction has to evolve from sales service, including the ease with which
differentiator and shoppers can contact customer service or
a call center resolution function to a
value driver. proactive customer engagement and get their queries resolved, return policies,
Over the past 2-3 years, customer satisfaction engine that directly and engagement practices.
service has evolved from post- contributes to shopper loyalty.
purchase issue resolution to an
omnipresent medium of trust
development. 95% of shoppers 22 total attributes assessed,
remain loyal to a retailer with self-service
including:
In the omnichannel world, return processes.
transparency, convenience, and • Availability of self-help tools,
relevant, personalized including live chat options and FAQs.
communications are pillars of 86% of shoppers • Information on product returns (in-
trust and satisfaction. Can I track store and online return policies,
will pay 15% more for a seamless customer
my order, along with the detailed initiating and tracking returns).
service experience.
service request, including complex • Ability to schedule and interact with
scenarios involving third parties brand experts (video/audio
interactions).
(like appliance installation)? Do 68% of shoppers
you provide refunds for returns? • Availability of assisted shopping tools,
Do you track queries and are likely to use digital communication product repair options, and the ability
complaints through to closure? channels with store associates. to book in-store appointments.

Source: Incisiv Research
2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Retailers rated as Omnichannel Experience Leaders in 360-Degree Service, in alphabetical order.

Leaders in 360-Degree
Service.
Incisiv recognizes these 20 retailers and
brands as leaders in 360-Degree Service
within and across retail segments.

Building upon a solid foundation of


table-stake capabilities, they lead in the
adoption of differentiated post-
purchase service capabilities.

The full leaderboard is available at the


end of this report.

2023 Omnichannel Experience Index New to leader pack in 2023


In partnership with Blue Yonder and Microsoft
360-DEGREE SERVICE: OVERVIEW

Department stores and Lowest Highest


consumer electronics Adoption Adoption
retailers have the most
advanced customer
service capabilities.

Consumer electronics retailers have a high Grocery Live chat Department stores
adoption of self-serve and assisted order 27% Industry average adoption: 78% 100%
canceling, and returns and refund options.
Department stores have the most
comprehensive live chat options.
Grocery Track returns online Consumer electronics
Grocery and health and beauty retailers lag 13% Industry average adoption: 62% 100%
in the adoption of customer service
capabilities.

Health and beauty Cancel orders online Consumer electronics


25% Industry average adoption: 50% 80%

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Areas of high growth: self-help tools. Areas of low growth: customer engagement.

2023 2021 2023 2021

Contact store for Schedule audio/video


95% 73% 24% 18%
customer service consultations

Book appointment for


Live chat 78% 67% 34% 29%
assisted shopping

Schedule service
Initiate returns online 62% 51% 20% 18%
appointments

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
360-DEGREE SERVICE:
SPOTLIGHT

Ability to schedule a return pickup. Flexibility to modify orders before delivery


or pickup.
49% of shoppers actively check the retailer's return policy before 30% of shoppers indulge in impulse buying and need the flexibility to edit
purchasing and seek convenient options. The ability to schedule a their final order. At present, 23% of retailers currently provide shoppers
return pickup gives shoppers flexibility and convenience. Currently, access to make order modifications.
only 7% of retailers give shoppers the option of return pickups.

Walmart offers shoppers various options for returns, including the GAP allows shoppers to modify orders until a specific time before the
ability to schedule the return pickup at their convenience. delivery or until the pickup process begins.

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
360-DEGREE SERVICE: SPOTLIGHT

Spotlight: The Home Depot Shoppers want their overall purchase


experience to be smooth and seamless,
The Home Depot provides its customers with comprehensive customer support, comprising live chat,
making customer service essential.
contact via text message, and email. Additionally, it gives shoppers the option to schedule return
pickups and the chance to drop off returns at a UPS location.
Seamless returns are also an essential
factor driving purchase considerations.
Shoppers want the flexibility to be able to
cancel or return their order if they feel
dissatisfied.

Only 7% of retailers
offer the option of scheduling return
pickups.

Only 28% of retailers


Self-help tools and returns provide the option to drop off returns at
Retailers are amping up customer service by offering self-service options, as well as end-to- UPS/Fedex/USPS locations.
end issue tracking and closure.

81% of shoppers expect a full self-service support setup while making an online purchase,
while 70% prefer chat-based customer support and only 25% prefer voice support.

Source: Incisiv Research


2023 Omnichannel Experience Index
In partnership with Blue Yonder and Microsoft
Leaderboard

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
Leaderboard
Apparel Consumer Electronics Grocery Speciality
As part of its 2023 Omnichannel 7 For All Mankind
Abercrombie & Fitch
Apple
Best Buy
7-Eleven
Albertsons
Ace Hardware
Academy Sports + Outdoors
Leaders
Experience Index, Incisiv assessed
Aeropostale DELL Technologies Casey's Advance Auto Parts
115 retailers across 7 different Allbirds Dyson Giant Eagle Ashley
industry sub-segments. The American Eagle Outfitters GameStop ​ Giant Food AutoZone
Aritzia H-E-B Barnes & Noble
complete list of assessed retailers Department Stores
Calvin Klein Hy-Vee Bass Pro Shops
is provided here. Belk
Carter's Ingles Markets Bed Bath & Beyond
Dillard's
Claire's Publix Canadian Tire
Hudson's Bay
Coach QuikTrip Chewy
Each retailer assessed was given an Foot Locker
JCPenney
ShopRite Crate & Barrel
Kohl's
overall rating, as well as a GAP Sprouts Farmers Dick's Sporting Goods
Macy's
functional area rating across Hanes Market Guitar Center
Neiman Marcus
J.Crew Wegmans Helzberg Diamonds
research and discovery, online Levi's
Nordstrom
Whole Foods Market Hobby Lobby
Saks Fifth Avenue
ordering, fulfillment, customer Men's Wearhouse Winn-Dixie Jo-Ann Stores
T.J. Maxx
Michael Kors Kay Jewelers
engagement, and service. Incisiv's
New Balance General Merchandise Health & Beauty Lowe's
analysis found: Nike Big Lots Bare Minerals Mattress Firm
Ralph Lauren BJ's Wholesale Club Bath & Body Works Michaels Stores
Stitch Fix Costco CoverGirl Office Depot
• 20 Leaders Tommy Hilfger O'Reilly Auto Parts
Dollar Tree CVS Health
• 35 Challengers Tory Burch Family Dollar Estée Lauder Petco
• 36 Followers Under Armour Five Below GNC PetSmart
Urban Outfitters Kroger Kiehl's Pottery Barn
• 24 Laggards Vans Meijer MAC Cosmetics REI
Victoria's Secret Sam's Club Rite Aid Staples
Target Sally Beauty Supply The Container Store
Get in touch to request detailed
Walmart Sephora The Home Depot
information about your rating, or Shiseido Tiffany & Co.
to request a custom benchmark. The Vitamin Shoppe Tractor Supply Company
Walgreens Williams Sonoma
Zales

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft
IN PARTNERSHIP WITH
Incisiv's 2023
Omnichannel Fulfillment
Experience Index is
based on insights from ABOUT INCISIV ABOUT BLUE YONDER ABOUT MICROSOFT
its proprietary digital
maturity benchmarking Incisiv is a peer-to-peer executive Blue Yonder is the world leader in Microsoft enables digital
methodology. network and industry insights digital supply chain transformations transformation for the era of an
firm for consumer industry and omnichannel commerce intelligent cloud and an
executives navigating digital fulfillment. Our end-to-end, cognitive intelligent edge. Its mission is to
NEXT STEPS disruption. business platform enables retailers, empower every person and every
manufacturers and logistics providers organization on the planet to
• Request a custom benchmark for to fulfill customer demand from
Incisiv offers curated executive achieve more.
planning through delivery.
your brand learning, digital maturity
benchmarks and prescriptive www.microsoft.com
• Share this report with a friend or Blue Yonder's Commerce and Order
transformation insights to clients
Management (OMS) solutions
colleague via email or social across the consumer and
transforms customer experiences
technology industry spectrum.
media with an augmentative, microservices-
based approach which delivers the
www.incisiv.com rapid time-to-market, scale, and
performance businesses need from
inventory availability, order,
orchestration, and fulfillment to help
you gain a competitive edge.

Blue Yonder – Fulfill your Potential™

www.blueyonder.com

2023 Omnichannel Experience Index


In partnership with Blue Yonder and Microsoft

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy