2023 Omnichannel Experience Index Final
2023 Omnichannel Experience Index Final
2023 Omnichannel Experience Index Final
2023 Omnichannel
Experience Index
IN PARTNERSHIP WITH
Market Trends
Outlook & Consumer Behavior
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
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.
1 172%
Both the number of
0.53
0.53
purchase trips and the
0.53
Inventory Visibility Frictionless Fulfillment Sustainability Cost & Payments 360-Degree Service
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
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
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
Overall Leaders.
Incisiv recognizes these 20 retailers and
brands as Overall Omnichannel
Experience Leaders within and across
retail segments.
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.
Availability of fulfillment
Search listing callouts 67% 41% options on product listing 47% 38%
page
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.
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.
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
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 • Post 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.
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
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.
56% of shoppers
have abandoned their carts due to
concerns about delivery 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.
Option to pay via PayPal 84% 70% Multiple shipping options 95% 91%
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.
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
Leaders in 360-Degree
Service.
Incisiv recognizes these 20 retailers and
brands as leaders in 360-Degree Service
within and across retail segments.
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.
Schedule service
Initiate returns online 62% 51% 20% 18%
appointments
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.
Only 7% of retailers
offer the option of scheduling return
pickups.
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.
www.blueyonder.com