sponsored by · introduction — 2020 has definitively taught us that digital commerce and...

SPONSORED BY

The Stakes Have Never Been GreaterNow is the time to double down on digital and omnichannel

OMNICHANNEL RETAIL INDEX 2020

Contents–INTRODUCTION 3

Methodology 5

THE STATE OF OMNICHANNEL RETAIL 6

WHAT CAN WE LEARN FROM THE INDEX? 8

Cross-Channel: Renewed Focus on Convenience 8

Buy Online/Pick Up In-Store Doubles 8

Buy Online/Return In-Store Is Table Stakes 10

The Inventory Visibility Mandate 11

Online: Elevating the Digital Shopping Experience 14

Improving Search, Refine, Sort 15

Optimizing Product Detail Page Potential 16

Social Media Approach Lacks Sophistication 18

Elevating Cart and Checkout 20

Shipping & Delivery: The Fast and Free Imperative 23

Next Day Delivery in Focus 23

Free Shipping – High Demand, Slight Decline 23

Slow Adoption of Auto-Ship/Replenishment 24

The Mobile Factor 25

Marketing & Loyalty: The Email Conundrum and Resurgence of

Loyalty 27

Missed Opportunities in Email Capture 27

Renewed Focus on Loyalty 29

Customer Service: On the Right Track 30

Ease of Communication 30

Live Chat: Catering to Instant Gratification Needs 31

In-Store: Reimagining the In-Store Experience 32

Associate Empowerment 32

Customer Data Capture Slightly Improved 33

Continued Growth of Buy Here, Ship it Anywhere…for now 33

Increased Attention on BOPIS and Omnichannel Services 34

Slow Adoption of Digital In-Store 34

Mobile Payments on the Rise 35

CONCLUSION 36

REFERENCES 38

Introduction—2020 has definitively taught us that digital commerce and omnichannel capabilities are more critical in retail than ever. Retailers and brands have relied on digital and omnichannel services to keep their “doors” open. The ability to shop online and have goods delivered to our front doors or safely being able to pick up our orders at a convenient location is the cornerstone of our new retail reality.

The COVID-19 pandemic has introduced many consumers to digital

capabilities they never have tried before. This accelerated consumer

adoption of digital commerce and omnichannel retailing may have a lasting

impact, assuming these new digital shoppers have positive experiences

from start to finish. Retailers must take this opportunity to ensure that the

shopping experience is personalized, seamless and convenient throughout.

Research has shown that companies who prioritize end-to-end personalized

experiences tend to see a higher ROI.1

As retailers scramble to navigate this new reality, meeting the demands

of both experienced and novice digital shoppers, they must also plan for

what’s next, including the reopening of brick-and-mortar retail and potential

future store closures.

3 © 2020 FitForCommerce. All rights reserved.

So, why take the pulse of the state of omnichannel retail now? While the

Omnichannel Retail Index research was conducted prior to the COVID-19

pandemic, the data provides meaningful insights to help retailers today,

as well as important benchmarks and best practices that can be applied

to prioritize and plan for a post-pandemic retail industry. Shoppers insist

on personalized, seamless, and convenient shopping experiences. If

dissatisfied, they know another retailer is only a click away.

NRF and FitForCommerce launched the Omnichannel Retail Index (“the

Index”) in 2015. The goal was to evaluate how retailers and brands from

multiple verticals were implementing key omnichannel features across

web, mobile, store, and cross-channel. The initial study found that, while

retailers recognized that omnichannel investments were key to growing

their businesses, there was a lot of room for improvement. Five years later,

while there has been progress on the adoption of individual key digital and

omnichannel capabilities, the fifth Omnichannel Retail Index reveals that,

overall, there is still a lot work to be done to meet shopper expectations.

This report outlines findings from the latest FitForCommerce Omnichannel

Retail Index and provides insight into the adoption of best practices and key

digital and omnichannel capabilities and compares the results to those of

previous years.


Methodology

The FitForCommerce Omnichannel Retail Index takes the

pulse of the state of digital commerce and omnichannel

retail. The Index examines how 125 retailers perform

against approximately 300 criteria across web, mobile,

and in-store. Through detailed and extensive mystery

shopping conducted by FitForCommerce researchers, the

Index depicts how leading U.S. retailers and brands are

delivering on the omnichannel promise.

At the end of 2019, FitForCommerce omnichannel experts

mystery-shopped and evaluated 125 well-known retailers

and brands across 20 verticals, ranging from apparel/

fashion to accessories, electronics, beauty, food and

gifts, home, and more. Benchmarking criteria, which are

constantly evolving, are based on FitForCommerce’s

extensive digital and omnichannel experience and

knowledge of current omnichannel best practices across

the entire customer journey. FitForCommerce evaluated

the compiled data and assessed the scores and rankings

that serve as the basis for this report.

For more information about the Omnichannel Retail Index

criteria and to learn how your company stacks up, please

contact: [email protected]

THE OMNICHANNEL RETAIL INDEX IS PURELY QUANTITATIVE

While the Index measures the adoption of features and functions, the

Index alone does not shed light on the implementation or performance

of a specific feature. For instance, if Retailer A and Retailer B both include

product recommendations on the product detail page, they get the

same score. The score does not take into account if Retailer A’s product

recommendations are highly personalized to the individual shopper, while

Retailer B leverages a basic product recommendation widget.

For more quantitative insights please contact [email protected].

* Online Only Assessments

APPAREL / FASHION

Abercrombie & FitchAmerican EagleAnn TaylorAnthropologieAshley StewartASOS*Banana RepublicBonobosBrooks BrothersBurberryCalvin KleinCoachForever 21GapH&MJ. CrewKenneth Cole*L.L. BeanLands’ EndLane BryantMichael KorsNet-a-Porter*Ralph LaurenRebecca MinkoffTorridTory BurchUniqloUrban OutfittersVictoria’s Secret

ACCESSORIES

BrightonClaire’seBags*Sunglass HutWarby Parker

ATHLETIC

AdidasLululemonNikePumaUnder Armour

BEAUTY

Bare MineralsBlue MercuryMAC CosmeticsSephoraUlta Beauty

BOOKS, MUSIC, MEDIA

Barnes & NobleGameStop

DEPARTMENT STORE

Bloomingdale’sDillard’sJCPenneyKohl’sLord & TaylorMacy’sNeiman MarcusNordstromSaks Fifth AvenueTargetT.J.MaxxWalmart

ELECTRONICS / COMPUTERS

AppleBest BuyMicrosoftSamsung*

FOOD / GIFT

1-800-FlowersEdible ArrangementsFTD*GodivaHarry & David*Total Wine and MoreWine Country Gift Baskets*

FOOTWEAR

ALDO ShoesCole HaanCrocsDSWFoot LockerNine West*TimberlandZappos*

HEALTH / PHARMACY

CVSGNCThe Vitamin ShoppeWalgreens

HOBBY / TOYS

Amercian GirlDisneyLegoMichaelsParty City

HOME

Bed Bath & BeyondCrate & BarrelIKEAPier 1Restoration HardwareSur La TableThe Container StoreWayfair*West ElmWilliams Sonoma

HOME IMPROVEMENT

Ace HardwareThe Home DepotLowe’sTractor Supply

JEWELRY

Blue Nile*Kay JewelersPandoraTiffany & Co.

KIDS APPAREL

Carter’sThe Children’s PlaceJustice

MARKETPLACES

Amazon*eBay*Etsy*Newegg*Overstock*Rakuten*

OFFICE

Office DepotStaples

PET

PetcoPetSmart

SPORTING GOODS

Cabela’sDick’s Sporting GoodsFanatics*REI

OTHER

BJ’sCostcoHSN*QVC*

OMNICHANNEL RETAIL INDEX

125 BRANDS & RETAILERS

20 RETAIL VERTICALS

300+ CRITERIA

WEBSTORE MOBILE SITE CROSS-CHANNEL / STORE

• Site-wide Elements• Navigation• Category & List Pages• Product Detail Pages• Cart & Checkout• Accounts & Preferences• Customer Service• Gift Cards

EXAMPLES• Social media integration• Contextual help – live chat, FAQs, confirming add to cart

• Site-wide Elements• Multi-Channel• Product Detail Pages• Checkout

EXAMPLES• Mobile optimized site• Saved cart between mobile and web• Pre-populated nearby stores• Click to Call

• Services• Signage• Shopping Tools• Purchase Experience• Return Experience• Collateral• Mobile

EXAMPLES• Buy online, pick up in-store• Buy online, return in-store• Endless aisle

OMNICHANNEL


mailto:index%40fitforcommerce.com?subject=


The State of Omnichannel Retail—

As consumer expectations for convenient and seamless shopping experiences evolve and the pace of technology advancements increase, digital and omnichannel should be on the top of the priority list for most retailers and brands. While there is still a lot of room for improvement in the overall adoption of digital and omnichannel best practices, the Index shows that there has been significant growth within specific areas, such as buy online/pick up in-store, indicating increased focus on omnichannel by many retailers and brands.

The top ten ranking retailers and brands in the FitForCommerce

Omnichannel Retail Index have adopted between 66 and 73

percent of digital and omnichannel best practices - a slight

decrease since the last Index. This does not necessarily mean

that retailer performance is getting worse. Since the Index

criteria changes year over year, the overall score may see little

change, whereas individual criteria may change significantly.

ADOPTION OF OMNICHANNEL BEST PRACTICES—

Top 10 of 125 leading retailers and

brands score between 66% and 73%

(between 68% and 78% in 2017)

51% have adopted less than 50% best practice

functionality (in 2017, 58% scored below 60%)

Average score of all retailers and

brands is just 54% (58% in 2017)


Best practices adoption refers to the adoption of features

and capabilities that are viewed as “standard” and should

be universally implemented, not the adoption of innovative

services and technologies, such as Artificial Intelligence (AI) and

Augmented Reality (AR).

The adoption average of best practice criteria for all retailers

and brands in the Index is just 54 percent, and more than

half of the retailers and brands in the Index have adopted

less than 50 percent of best practice functionality.

Across the board, retailers performed best in the in-store

category, with a 59 percent adoption rate across in-store

best practice criteria, an increase from 47 percent in the

previous Index.

It is important to note that the adoption of best practice

criteria does not guarantee retail success; other factors such

as merchandise assortment and mix, inventory availability,

marketing, acquisition debt and worldwide pandemics all impact

retail performance. However, the criteria and findings do reveal

how retailers and brands meet customer demands, and retailers

can use these insights to assess current capabilities and prioritize

their customer experience roadmap.

Web54%

Mobile57%

Store59%

Cross-Channel55%

AVERAGE INDEX SCORES ACROSS CATEGORIES—

FITFORCOMMERCE OMNICHANNEL RETAIL INDEX WINNERS (IN RANK ORDER)—

WEB

eBags

Bed Bath & Beyond

Dillard’s

Home Depot

Best Buy

Overstock

Bloomingdale’s

JCP

Blue Nile

Amazon

Dick’s Sporting Goods

Office Depot

Staples

Victoria’s Secret

Wayfair

Anthropologie

Home Depot

HSN

JCP

Petco

Sunglass Hut

Bare Escentuals

Nordstrom

Target

Timberland

Tractor Supply Co.

Carter’s

Best Buy

Target

Michaels

Home Depot

Office Depot

REI

Banana Republic

Ulta

Barnes & Noble

Nordstrom

JCP

Walmart

Microsoft

Tractor Supply Co.

Carter’s

Staples

BJ’s

MOBILE CROSS-CHANNEL

67%-73% adoption 72%-81% adoption 82%-100% adoption


Cross-Channel: Renewed Focus on Convenience

The recent rapid adoption of digital shopping has redefined retail. Seamless

and integrated shopping experiences, across all customer touchpoints, are

more critical today than ever. Even before the COVID-19 pandemic, services

such as Buy Online/Pickup In-Store (BOPIS) and Buy Online/Return In-Store

(BORIS) saw significant increases as retailers focused on meeting shopper

demands for more options and greater convenience.

The pandemic has forced retailers to quickly address areas directly related

to digital commerce and convenience, accelerating implementations of

technologies and processes that enable organizations to better serve customers

through online shopping and contactless services (such as curbside pickup).

Buy Online/Pick Up In-Store Doubles

BOPIS offers a way to bridge the digital-physical divide, making it a critical

element of the omnichannel retail experience. In a pre-COVID-19 world, retailers

that offered BOPIS also enjoyed the benefit of being able to promote potential

add-ons and impulse purchases when customers picked up orders at the store.

What Can We Learn From the Index?—


Enter COVID-19, and pickup in-store, for many, meant quickly adding

curbside pickup capabilities. As a result, retailers are missing out

on the upsell opportunities of BOPIS. In this new world, the shift to

digital means that in-store upsell opportunities must be replaced with

digital opportunities, such as personalized product recommendations.

Retailers must dedicate resources to extending and improving the

performance of product recommendations, enhanced content, etc.,

at all touchpoints. On this front, 52 percent of retailers are turning

to AI-driven personalization to showcase personalized product

recommendations and other enhanced options, during the BOPIS-side

of the retail experience.2

In 2016, only 33 percent of retailers and brands benchmarked in the

Omnichannel Retail Index offered Buy Online/Pick Up In-Store options.

In 2019, the adoption of BOPIS reached 66 percent, with 45 percent

offering same day pickup. The COVID-19 pandemic has catapulted buy

online/pick up in-store services into an essential part of doing business.

By some estimates, BOPIS orders have increased by as much as 200

percent in just the first half of 2020, and many retailers have extended

basic BOPIS to include curbside pickup options.

BOPIS is no longer a nice-to-have differentiator, but rather a requirement

for keeping the doors open. And today, for most, BOPIS should also include

curbside, drive-by or walk-by options.”

– Kathy Kimple, Chief Retail Officer, FitForCommerce

Buy Online, Pickup in Store – Same Day Pickup

45%27%

Buy Online, Pickup in Store

2019 2017

24%

2016

66%41%

33%

BOPIS ADOPTION 2016-2019—

Kibo, a personalized commerce cloud provider, saw an overall

increase in online orders across all clients as COVID-19 started

to spread. The company saw a 563% increase in orders made

through BOPIS in the month of April when compared to April

2019. A trend that continued into May and June.


Retailers and brands that already offered BOPIS, or were able to

implement the feature quickly, have been better positioned to

serve shoppers during a critical time. For those that have yet to

offer BOPIS or curbside pickup, there is no time like the present.

The current environment has accelerated consumer adoption

of these services, and they are likely to demand these services,

going forward.

Buy Online/Return In-Store Is Table Stakes

The ability to buy something online and return it in a local

store quickly transitioned from a “nice-to-have” to “must-have”

capability. From the shopper perspective, if they can buy through

any channel, they should also be able to return anywhere.

Offering a seamless return process across channels drives loyalty

and customer satisfaction. In a non-pandemic retail environment,

it also provides a unique opportunity to encourage the shopper

to make exchanges, substitutions, or impulse purchases while in

the store.

Offered by 83 percent, Buy Online/Return In-Store (BORIS) is

one of the most implemented cross-channel functionalities in

the Omnichannel Retail Index. Most have put in place systems

and processes to enable this service and have updated their

POS systems to enable associates to retrieve customer order

information for completing the return process.

Best Buy has a 100 percent adoption rate in cross-channel

best practices. The company has extended traditional BOPIS

options with curbside pickup and the ability to pick up orders

at alternative pickup locations including UPS stores, CVS and

other local businesses.

Buy Online/Return In-Store

83%


The vast majority of retailers indexed have also improved sales

associate training; 92 percent of sales associates are familiar with

procedures for handling the return of an online purchase, up from 87

percent in 2017.

The Inventory Visibility Mandate

Achieving inventory visibility is not easy but it is necessary to fully

deliver on the omnichannel promise. Shoppers expect the ability

to quickly identify if and where a given product is available – online

or in a store. They expect multiple options for getting their orders,

fast delivery, and in-store endless aisle services, all of which require

inventory visibility across all channels.

To provide the optimal omnichannel experiences that customers

demand, retailers need systems and processes that facilitate

complete and real-time insight and synchronization of inventory

across all stores, warehouses, and vendor warehouses.

The Index reveals that retailers increasingly recognize the critical role

of inventory visibility for elevating the customer experience across

all channels. Sixty-seven percent of multichannel retailers highlight

in-store product availability online, either on category or product

detail pages, an increase from 39 percent in 2016.

ACCESS CUSTOMER ORDER INFORMATION VIA POS—

57%

68%2019

2017

0 10 20 30 40 50 60 70 80 90 100

CROSS-CHANNEL INVENTORY LOOKUP—Store – Look Up Item in Other Store/Online

72%66%

Web – Display Product Availability In-Store

2019 2017

61%

2016

67%56%

39%

Web – Search/Filter by Store Availability

32%27%

16%


Inventory lookup on category page search filters, which

enables shoppers to refine search results by store

availability, remains underutilized, adopted by only 32

percent of retailers.

Real-time inventory management is also necessary to

enable retailers to recommend similar products when an

item is sold out.

Inventory lookup is also a critical factor in optimizing the

in-store experience. In 2016, 61 percent of retailers enabled

store associates to find products that were not available

in the store at a different store location or online. In 2019,

the adoption rate was 72 percent, suggesting that retailers

continue to assign greater focus on servicing customers

and continue to invest in the tools and processes

necessary to empower associates to further elevate the

shopping experience.Target.com leverages inventory visibility to help shoppers easily find

what they are looking for. Shoppers can set their local stores to filter

and easily view products available for pickup.

In-Store Lookup

2016 61% | 2019 72%


Retailers that personalize as many touchpoints as possible

across marketing and shopping channels are more likely

to achieve 300% ROI or more. This is according to Kibo

Commerce's fourth annual personalization study which

compared multichannel personalization return on investment

across shopping and marketing customer touchpoints. To pool

the findings for The Rise of Personalized Commerce Study, Kibo

surveyed 400 ecommerce executives across North America and

EMEA from a broad spectrum of retail industries.

Kibo's findings indicate that ROI is much higher for companies

that philosophically believe that personalization belongs in both

marketing and shopping touchpoints, rather than only on one or

the other. This insight applies to the entire ecommerce journey.

These retailers are also in the best position to quickly pivot the

business to meet changing customer behaviors and deliver

personalized messaging to accompany their customer journeys.

Meanwhile, retailers that say personalization is best for only

shopping or marketing channels were 50% less likely to earn

3X ROI.

“Personalized commerce prioritizes a one-to-one customer

experience across every touchpoint including shopping,

fulfillment, and marketing channels. This research shows a

holistic personalized commerce approach earns retailers

significantly higher ROI than personalization in only marketing

or only shopping channels ,” said Lisa Kalscheur, CMO at Kibo.

Additionally, the study reveals that advanced, or AI-driven,

personalization use is now common throughout most

marketing channels, with 75% of marketers using it across

mobile app, on-site, and in-store channels. Across personalized

product recommendations, 52% report utilizing advanced

personalization, which matched the percentage of those using

it to personalize shipping or BOPIS offers.

A WORD FROM OUR SPONSOR:

How Personalization Across All Channels Improves ROI–

PROVIDED BY


https://kibocommerce.com/resource-center/personalized-commerce-study/?utm_source=Omnichannel%202020%20Report&utm_medium=PDF%20Link&utm_campaign=Omnichannel%20Retail%20Index%202020

Online: Elevating the Digital Shopping Experience

Digital commerce sales continue to take a greater share of overall retail

sales. In 2019, ecommerce represented 16 percent of total retail sales,

up from 14 percent in 2018.3 The COVID-19 pandemic has completely

turned retail upside down, accelerating digital adoption for both retailers

and consumers alike, and the 2020 statistics will undoubtedly show a

significant uptick in the digital share of overall retail.

Digital is driving new shopping behaviors, making it even more important

for retailers to double-down on digital, ensuring that they master basic

best practices and quickly adopt capabilities that enable superior

customer experiences.

Most consumers agree that the digital shopping experience should be

seamless, fast, convenient, secure and easy. In addition, according to

recent studies, the most important factors for digital shoppers include:

• The ability to easily search for and find products

• Free shipping and returns

• The ability to buy online/pick up in-store

• Positive reviews and feedback

In digital commerce, how retailers execute the basics can make or break

the entire shopping experience. These capabilities should be table

stakes; however, the Omnichannel Retail Index reveals that retailers, in

many areas, trail behind shopper expectations.

BUY

Pleasurable

Easy

SeamlessFast

Convenient

Secure


Improving Search, Refine, Sort

Retailers have significantly improved their ability to help

shoppers find what they are looking for through search

and filtering capabilities. Most retailers have adopted table

stakes functionality such as site search with auto-complete/

auto-suggest (90 percent, up from 81 percent in 2017) and

faceted navigation on category pages, allowing shoppers to

select multiple attributes to narrow their search (96 percent,

up from 84 percent in 2017).

While the adoption of sort and refine basics (such as

leveraging customer ratings parameters) have increased,

there is still a lot of room for improvement.

The ability to sort results by customer ratings is offered by

57 percent of retailers in the Index. Only 31 percent include

a feature to filter results by ratings on the category page.

AUTO-SUGGEST/COMPLETE TABLE STAKES—

90%

Office Depot allows shoppers to refine product listings in many

ways including ratings. The site also includes ratings for individual

products on the page, allowing shoppers to easily spot high-rated

products. The company also allows shoppers to sort by ratings.

Office Depot leverages strong search functionality with accurate

search results and including auto-suggest and recent searches.


As previously highlighted, the ability to search and narrow product

results by store availability is critical, yet only 32 percent offer this

feature. While the adoption seems fairly low, it has doubled since

2016 and is expected to significantly increase this year.

Optimizing Product Detail Page Potential

While the adoption of best practices on the product detail page

overall has increased, the Index pinpoints several areas with

significant opportunities for improvement.

With a 90 percent adoption rate for product recommendations

on product detail pages, most retailers have mastered the basic

upsell, yet more sophisticated upsell opportunities are lacking.

While the “complete the look” feature has increased year-over-

year, it is only offered by less than half of the retailers in the Index

(44 percent up from 33 percent in 2017).

The vast majority of retailers are missing out on the opportunity

to increase cart size before the shopper clicks through to the cart

and checkout. Only 10 percent include threshold messaging on

the product detail page, reminding the shopper that she needs to

spend a certain amount to qualify for an additional benefit, such as

free shipping.

REFINE—

By Subcategories 83%

96%

31%

Faceted Navigation

By Reviews/Ratings

32%By Store Availability

By New Arrival 76%

52%

57%

By Best Selling

By Customer Rating

35%By Featured

SORT—

10%ThresholdMessaging

44%Completethe Look

90%Recommended

Products

20

40

60

80

100

UPSELLING ON THE PDP (2020)—


Lending credibility and trust, reviews and ratings are

consistently considered among the primary factors

influencing online purchases. The majority of retailers

in the Index (86 percent) include ratings and reviews

on product detail pages; however, only 44 percent of

retailers allow customers to upload photos along with

their reviews.

While most indexed retailers recognize the importance

of high-quality product imagery, the Index reveals

that there is still room for improvement when it comes

other visual content. In a COVID-19 reality, with limited

opportunities to touch and try products before buying,

imagery and visual content such as video and customer

photos become even more critical.

Ninety-four percent provide more than one product

image on the product detail page, 78 percent include

color swatches, and 74 percent include alternate

product photos for each color swatch. Despite

consistent year-over-year increases in the adoption of

videos on product detail pages, just 44 percent include

videos. Only 8 percent include 360-degree product

views. As the importance of digital commerce continues

to grow, the adoption of these features is expected to

increase, as well.

eBags prominently displays threshold messaging on product detail

pages for products with a lower price point than their standard Free

Shipping threshold, reminding and encouraging shoppers to add more

to cart to qualify for free shipping.

Overstock offers cash rewards to customers for posting reviews

online. The retailer ties these into its loyalty program by offering

double rewards to Overstock loyalty members. The initiative not only

encourages customers to share their feedback but recognizes and

rewards loyalty members.


The inclusion of user-generated content is on the rise, yet less than

half of retailers in the Index utilize customer photos to complement

product photography on the product detail page. Forty-four

percent allow shoppers to upload their own product images on the

product detail page and just 37 percent pull in user photos from

social media.

An increasing number of retailers have adopted product detail page

features to support today’s omnichannel shopper. These include

wish list/favorites, allowing shoppers to save products and access

later from any device (offered by 76 percent, up from 69 percent in

2017) and in-store product availability, which is critical for BOPIS.

Social Media Approach Lacks Sophistication

Study after study show that product content shared on social

media by peers and influencers is extremely likely to influence

purchase decisions. Many shoppers also rely on social media for

inspiration and browsing for new products. While social commerce

has yet to gain broad consumer adoption, social media companies

are increasingly investing in transactional capabilities. Due to a

greater reliance on digital and social in the current environment, this

might be the year that social commerce finally takes off.

While most retailers have mastered basic social media tactics, many

could benefit from a more engaging social media approach.

PRODUCT DETAIL PAGE BEST PRACTICE FUNCTIONALITY (2019)—

360 view 8%

10%

20%

Threshold Messaging

Delivery Rate Provided

34%User-Generated Q&A

Live Chat 38%

42%

44%

Video

Complete the Look

44%Upload Pictures

Recently Viewed 48%

76%

78%

Wish List/Favorites

Color Swatches

86%Reviews and Ratings

90%Recommended Products

12


Ninety-four percent of retailers in the Index link to their social media

accounts with icons in the header or footer, a 15 percent increase

since the last Index. Less than half allow shoppers to share and like/

pin/tweet from the product detail page and only 28 percent enable

shoppers to email products to themselves or friends.

More engaging social media functionality has yet to reach above

the 50 percent adoption threshold. Forty-four percent allow

shoppers the ability to upload customer photos and just 37 percent

pull photos posted on social media into the online experience.

BASIC SOCIAL MEDIA ON SITE—Social Media Icons in Header or Footer

94%

Social Media Share on PDP43%

Email to Friend on PDP28%

LEVERAGE UGC ON SITE—User Can Upload Photos

44%

User-Generated Q&A34%

Pull Photos from Social Media via Hashtags37%

Crate & Barrel features customer photos on the homepage and

individual product pages. These social media campaigns engages

existing customers and results in broader visibility on social media

while also providing shoppers on the site with authentic and relatable

visual content to help the make informed purchase decisions.

Home Depot includes customer-generated Q&A on the website.

Shoppers can ask a question online that can be answered by other

shoppers, the retailer or manufacturer of the specific product.


Customer-powered Q&As on product detail pages, adopted

by 34 percent of retailers, present another opportunity to seize

the collective power of user content to engage customers and

help guide purchase decisions. Retailers and brands that have

incorporated user-generated Q&As report positive results and,

while the adoption of this functionality has increased by 11

percent, there is a lot of room for growth.

Elevating Cart and Checkout

Friction, transparency, speed and security are typically the main

areas of focus when it comes to cart and checkout functionality.

Each of these areas are constantly evolving as retailers work

toward streamlining the purchase process.

The most implemented best-practice cart feature, adopted by

95 percent of retailers in the Index (a 10 percent increase), is

automatically saving the cart, enabling shoppers to leave a site,

return on the same device, and continue shopping where they left

off.

While “save for later” functionality, allowing shoppers to save

products in the cart for future shopping sessions (when logged

in), is extremely useful to today’s multi-tasking, multi-device

shopper, it is only offered by 37 percent of retailers in the Index.

Nike includes a “Move to Favorites” feature in the cart. When the

shopper adds an item to favorites, it is added to a “favorites” list

located below the cart. Clear separation of the page ensures the

customer is reminded of these products on future visits and, when

logged in, the saved list can be accessed across devices.

SAVING THE CART—

Save for Later37%

Saved Cart95%


Shipping cost and delivery estimates are critical decision factors for

many shoppers. Providing estimated shipping costs in the cart is one

of the most widely popular cart best-practice features, adopted by 72

percent of retailers in the Index. Delivery timing estimates, however,

are only provided by 25 percent of retailers, presenting an immediate

opportunity to optimize cart functionality.

Taking advantage of upsell and cross-sell opportunities at the cart level,

70 percent of retailers in the Index include product recommendations

in the cart, while just 32 percent include threshold messaging (i.e.,

encouraging shoppers to buy more to get free shipping or other

promotions). In a digital-first retail environment, upsell opportunities at all

digital touchpoints, become even more critical. Retailers that go beyond

traditional product recommendations and master threshold messaging

have a greater chance of optimizing sales.

Retailers continuously aim to remove friction during checkout – the easier

and faster the process, the more likely a conversion. Since more and

more transactions are conducted on mobile devices, providing an easy

and seamless mobile checkout process is more important than ever.

Delivery date is a key factor in the purchase process. Customers want

to know exactly when to expect delivery of their purchase; simply

offering an expected shipping date is no longer sufficient. While it is

72%

PROVIDE ESTIMATED SHIPPING COSTS (2019)—

Bloomingdale's prominently displays product recommendations at

the cart level to take advantage of upsell and cross-sell opportunities.

UPSELL IN THE CART—

Threshold Messaging32%

Product Recommendations70%


helpful to provide delivery dates at the product page level and in

the cart, at checkout it is the “bare minimum” best practice that all

retailers should aim to provide (and deliver on). The Index reveals

that retailers are increasingly taking steps to meet this customer

demand – 46 percent provide a delivery date at checkout, up from

35 percent in 2017.

Along with an easy user interface, offering multiple payment options

is equally important in providing a seamless checkout process. With

the increased use of mobile, retailers are slowly adopting mobile

payments. Beyond traditional credit cards, Paypal remains the most

adopted payment method offered, while mobile payments are slowly

gaining traction. More and more retailers are also starting to offer

new payment models such as “buy now/pay later” and payment

installment plans, further broadening their target audience.

Total Wine & More prominently displays threshold messaging in

the cart highlighting the quantity needed to qualify for a promotion.

The retailer also provides multiple shipping options, shipping costs

and estimated tax at the cart level.

NON-TRADITIONAL PAYMENT METHODS OFFERED AT CHECKOUT—

Chase Pay5%

Apple Pay7%

Masterpass10%

Visa Checkout13%

AMEX Express Checkout15%

Other Payment Methods (e.g. Affirm)38%

Paypal80%

17%Edit ProductAttributes in

Checkout

23%Auto-Populate City

& Zip Fields

46%Delivery Date

Provided

20

40

60

80

100

57%Optional Account

Creation

CHECKOUT BEST PRACTICES—


Shipping & Delivery: The Fast and Free Imperative

A standard set by Amazon, speedy delivery is a high priority for

shoppers. At the same time, they increasingly expect free delivery

of items they buy online. According to a recent study, 75 percent of

consumers surveyed expected delivery to be free even on orders under

$50. For some shoppers, “fast and free” has driven their embrace of

BOPIS, which allows them to get items quickly at a local store and avoid

shipping costs. To remain competitive, retailers must focus on making

it easy, fast, and inexpensive (preferably free) and safe for shoppers to

receive their purchases.

Next Day Delivery in Focus

Sixty-nine percent of retailers in the Index offer Next Day Delivery

options. Same Day Delivery is offered by 20 percent of retailers.

Though Same Day Delivery is a competitive differentiator, it requires

significant logistical and fulfillment investments. Retailers must carefully

evaluate if it is worth the investment, based on customer demand,

conversion impact and cost.

Free Shipping – High Demand, Slight Decline

Freight represents a significant line item cost on the P&L, which was

traditionally recouped via added shipping charges. However, increased

NEXT DAY/SAME DAY DELIVERY—

Same Day Delivery20%

Next Day Delivery69%

REI provides detailed information on estimated delivery dates for

multiple shipping methods.


customer demand for free shipping has driven more and more

retailers to look for ways to control costs.

Most retailers have realized that offering some form of free shipping

is necessary to win the shopper. Seventy-five percent (a slight decline

from 2017) offer free shipping as a standard option and not part of a

promotion. Fifty-four percent of retailers in the Index have a minimum

order value requirement for free shipping. Free unconditional free

shipping is offered by only 21 percent.

Like free shipping, free return shipping is in high demand by

shoppers. Most retailers recognize that offering free returns is an

impactful sales conversion tool; however it represents a large strain

on the P&L. As a result, despite significant consumer demand, it

is not surprising that the adoption of free return shipping is only

experiencing a slow increase.

Slow Adoption of Auto-Ship/Replenishment

While FitForCommerce has seen increased interest in auto-ship and

replenishment services in the past year, especially within verticals

such as beauty, the adoption has been fairly slow thus far. The

COVID-19 impact on retail will likely accelerate adoption of these

features, especially for those companies that had the feature on the

roadmap prior to the pandemic.Nordstrom is one of the few retailers in the Index that offers

unconditional free shipping and returns anywhere in the US.

Free shipping is not part of a promotion and there is not a

minimum order value required to qualify.

FREE SHIPPING—Free Shipping With Threshold – Standard

54%

Free Shipping Without Threshold – Standard21%

FREE RETURN SHIPPING—

201635%

201950%


The Mobile Factor

Recognized as an integral part of omnichannel retail, bridging online

and offline and supporting shoppers at all touchpoints, retailers in the

Index meet basic mobile requirements with responsive sites, saved bag

between platforms and email optimized for mobile devices.

While many retailers and brands in the Index provide mobile apps, the

numbers are slightly declining. Seventy-one percent have an iPhone

app, down 5 percent, and 66 percent have an Android app compared

to 71 percent in 2017.

An increasing number of retailers are including more advanced features

such as digital loyalty, product scanning and visual search. Some are

also experimenting with self-checkout. These features, along with

contactless payments, allow for a safer in-store shopping experience,

enabling shoppers to easily retrieve product information and self-serve

checkout with limited store associate interaction. A recent study shows

that 55 percent are leveraging AI-driven personalization on their mobile

apps to deliver personalized messaging as determined by contextual

information like weather, location, and guest preferences.4

Responsive Website82%

Save Bag Between Platform90%

Mobile-Optimized Email98%

H&M uses mobile to

engage shoppers at home

and in-store. Shoppers can

activate in-store mode to

search in-store selection,

find favorite items in-store,

check for available sizes or

colors, and find similar items

in stock or in stores nearby.

66%Android

71%iOS

MOBILE APPS—


Leaving a lot of room for improvement, SMS notifications are only

offered by 28 percent of retailers. Those that do provide opt-in SMS

notifications, use them to communicate shipping and pick up alerts,

customer service updates and even promotions.

In an omnichannel world, where shoppers are basically married to

their mobile devices, and with BOPIS and curbside rapidly gaining

broader adoption, retailers should consider investing in SMS

notifications to provide timely and helpful communication.

Wayfair consistently ranks high in the mobile category, with the

adoption most of the mobile best practices for both app and

mobile optimized site. The retailer also consistently innovates

with new mobile features to engage customers such as its “view

in room” augmented reality feature.

The Children's Place allows shoppers to opt in to receive

order updates via text messages.

DIFFERENTIATING MOBILE APP FEATURES—

Self-Checkout2%

Visual Search18%

Product Scanning30%


Marketing & Loyalty: The Email Conundrum and Resurgence of Loyalty

Email is consistently considered one of the most affordable, reliable

and effective tactics for customer acquisition and retention when

executed effectively across channels and devices. Research also

reveals that email presents the largest channel opportunity for AI-

driven personalization, since most retailers (56 percent) only leverage

outmoded personalization tactics such as testing, segmentation

and targeting.5 It is therefore surprising that many retailers still

do not embrace all opportunities to capture customer emails and

information to personalize and optimize the customer experience.

In a perfect omnichannel world, email and loyalty programs work

seamlessly across touchpoints. Loyalty programs provide meaningful

value to customers and can be a powerful retention tool. While

loyalty programs were losing steam in previous years, the Index

findings indicate a loyalty resurgence.

Missed Opportunities in Email Capture

Despite the fact that email is a marketing priority for most retailers,

the Index reveals that retailers do not take full advantage of

opportunities to capture valuable customer information. Most

retailers in the Index hide email signup in the footer and only 39

percent offer an incentive for shoppers to provide their emailWhen visiting Lands' end, first-time shoppers are welcomed with

a popup offering a generous incentive for joining the mailing list.

Email Sign-up in Footer

86%87%

Email Sign-up in Header

14%8%

Email Sign-up Pop-up

43%45%

Email Sign-up Incentive Online

42%39%

2019 2017

EMAIL SIGN-UP—


addresses. Only 8 percent of retailers in the Index include email

signup in the header and less than half display an email signup

pop-up form on their sites.

The adoption of opportunities to capture email in the store was

increasing prior to COVID-19; however, these efforts may take a

backseat to more essential safety priorities, as brick-and-mortar

locations start to reopen. Pre-COVID-19, 42 percent of store

associates asked shoppers for email addresses (at any point

during the shopping journey), and 37 percent offered to email

store receipts to customers. Only nine percent offered incentives

for providing emails in-store.

Despite the growing importance of personalized customer

experiences and a mandate for customers to be in control of

their personal data, online preference centers, used to manage

account settings and personal information, lack focus overall.

Fifty-four percent of retailers in the Index allow customers

with an account to manage general settings and control

communication preferences, but just 14 percent include options

to control the frequency of communication received from the

retailer.

Smart retailers go beyond basic account settings and capture

information, such as sizing and style preferences, to help

optimize and personalize communication with customers.

Store Associate Asks for Email

31%42%

Store Can Email Receipt

28%37%

Store Incentive to Provide Email

5%9%

2019 2017

Manage Communication Frequency13%

Reorder Capabilities from Purchase History24%

Track and Redeem Loyalty Points24%

Manage General Settings54%

PREFERENCE CENTER/ACCOUNT SETTINGS—


Renewed Focus on Loyalty

Previous Omnichannel Retail Index findings showed disappointing

growth in the area of loyalty initiatives. The latest Index, however,

reveals double-digit growth in the adoption and promotion of both

online and offline loyalty programs.

Eighty-one percent offer loyalty programs online – up 13 percent

from 2017. In-store signup for loyalty programs is offered by 72

percent, and 54 percent offer an incentive to sign up (up from 30

percent in 2017).

While in-store loyalty signup may decline in a post-COVID world,

digital loyalty programs present opportunities to improve customer

engagement, provide personalized experiences and encourage

sales. Retailers can differentiate their loyalty programs by offering

more than points to redeem for product discounts, (relevant

experiences, complimentary services, etc.). In addition, customers

are great influencers, and retailers should consider offering

rewards for sharing product content and reviews on social media.

Loyalty Program Offered Online

68%81%

In-Store Signup for Loyalty Program

53%72%

Incentive to Sign Up for Rewards/Loyalty Program

30%54%

2019 2017

Aldo Shoes promotes its loyalty

program in-store with signage

that includes a QR code, making

it easy for shoppers to join.


Customer Service: On the Right Track

Most consumers agree that a poor customer service experience can

have lasting impact on their perception of a brand, and a negative

impact on their loyalty, no matter how great the product is. With a

greater reliance on digital, the customer service function is more critical

than ever.

Ease of Communication

Today’s digital shoppers are used to having multiple ways to contact

retailers – whether by phone, email, SMS, live chat, social media, or direct

contact with a store associate. They expect to easily get in touch with a

customer service representative to ask questions or resolve issues.

The majority of retailers in the Index offer two or more ways for

shoppers to reach customer service and communicate with them.

However, there are a variety of ways those options are made visible and

accessible to shoppers throughout the site experience or at any point

along the path to purchase.

Most provide a customer service link in the header, but only 16 percent

provide contact details directly in the header. Only 35 percent provide

any kind of customer service contact information on the product detail

page. Twenty-five percent include customer service contact options in

the cart, whereas 53 include the details in checkout.

CONTACTING CUSTOMER SERVICE—Multiple Ways to Contact Customer Service

90%

Customer Service Element in Header16%

CUSTOMER SERVICE ON PDP, CART AND CHECKOUT—Customer Service Contact Info on Checkout

53%

Customer Service Contact Info in Cart25%

Link to Customer Service Section from PDP21%

Customer Service Phone Number on PDP7%

Customer Service Email on PDP4%


With the growing importance of digital in today’s retail environment,

exceptional customer service is essential. Easy access to great

customer service instills shopper confidence.

Live Chat: Catering to Instant Gratification Needs

Live Chat is a popular feature among the “instant gratification” digital

consumer. Live Chat makes it easier to get quick answers to questions

and swift resolution of issues.

Following a slow start, the majority of retailers in the Index now

embrace Live Chat anywhere on the site - 75 percent up from 56

percent in 2017. Live Chat on the product detail page however is still

trailing behind slightly.

Live Chat is expected to continue to gain traction and, as the

technology improves, leverage more AI capabilities. Chatbots will

likely automate many Live Chat functions, helping consumers with

customer service issues, including updated item arrival times and

loyalty program membership numbers and rewards totals.

LIVE CHAT—Anywhere on Site

56%75%

On Product Detail Page

35%38%

2019 2017

Sephora takes its live chat functionality to the next level,

enabling shoppers to chat live with other sephora shoppers.


In-Store: Reimagining the In-Store Experience

Before COVID-19, retailers were feeling the pressure to reinvent the in-

store shopping experience. Enter COVID-19 and the pressure is still on,

but priorities are shifting. Retailers are reimaging the store footprint,

how to use retail locations for new fulfillment models, and new ways to

leverage digital to provide a safer shopping environment.

Associate Empowerment

To offer the best service possible, store associates must have access

to product information and customer data at their fingertips. Since

the last Index, the adoption of in-store best practices has increased

slightly, suggesting that retailers are more focused on better servicing

customers to avoid losing a sale and that they have put in place

relevant technologies and improved associate training.

Access to customer profile data is enabled by 59 percent of retailers

in the Index and 77 percent of associates can look up items from

other store locations or online. The use of tablets or mobile devices

to enable associates to quickly and easily look up inventory, product

information, or customer profiles while engaged with shoppers on the

store floor has doubled.

In a post-COVID-19 world, it is likely that new tools and mobile app

features will provide some of these services as well.

ASSOCIATE TOOLS TO ELEVATE IN-STORE EXPERIENCES—Associates Have Mobile POS for Transactions

6%7%

Associates Have Tablet/Mobile Device

15%34%

Associates Can Look for Item Online or in Another Store

66%72%

Associates Have Access to Customer Data

57%59%

2019 2017

COLLECTING CUSTOMER DATA IN-STORE—Associates Ask for Email Address

31%27%

Associates Offer Incentive for Sharing Email Address

5%9%

2019 2017

42%

2%

2016


Customer Data Capture Slightly Improved

In order to successfully execute on any omnichannel channel strategy,

retailers need to capture and easily access customer data. Retailers in

the Index have become smarter about empowering store associates

with the tools and proper training to capture key data. At a minimum,

associates should be expected to capture email data for remarketing.

Forty-two percent of store associates ask for a customer’s email

address at some point during the shopping journey, a 11 percent

increase from 2017; however, only 9 percent offer shoppers an

incentive to share their email information.

As mentioned earlier, retailers have increased focus on loyalty

programs. Seventy-two percent encourage shoppers to register for

a loyalty/rewards program and 54 percent offered an incentive for

signing up in the store.

Continued Growth of Buy Here, Ship it Anywhere…for now

The adoption of Buy In-Store/Ship Anywhere capabilities has

consistently increased since the first Omnichannel Retail Index. In 2015,

14 percent of retailers offered the ability to buy in-store and have

item(s) shipped anywhere. In 2019, 73 percent offered this option,

signaling a growing focus on shopper convenience with multiple

purchase and delivery options. In a post-COVID-19 world, however,

this service may become less relevant as in-store priorities shift.

IN-STORE REWARDS/LOYALTY PROGRAMS—Sign Up for Rewards/Loyalty In-Store

53%72%

Incentive to Sign Up for Rewards/Loyalty Program

30%54%

2019 2017


Increased Attention on BOPIS and Omnichannel Services

With an increased focus on BOPIS and curbside, as well as in-store

safety, retailers must prioritize and improve store design and signage.

Only 17 percent of retailers in the Index have designated a separate

location in the store for pickup orders and only 22 percent provide

clear signage to direct customers to pickup locations.

Overall, the use of signage to promote omnichannel services has

increased from 40 percent to 49 percent, indicating a greater focus

on accelerating those initiatives. However, half of retailers are still

missing out on the opportunity to cross-promote channels and

omnichannel services.

Slow Adoption of Digital In-Store

Only 19 percent of retailers in the Index have adopted digital tools

such as kiosks and tablets to improve the in-store experience. In

addition, few have implemented features to optimize the in-store

experience via apps. Despite recognizing the importance of easy

access to product information, just 18 percent feature QR codes or

other forms of scannable signage via apps.

Before COVID-19, these digital tools and mobile app features

represented a huge missed opportunity to make it easier for

customers to find information and make informed purchase

PICK-UP ORDERS—Signage Indicating Online Order Pickup Locations

22%

Separate Location for Pickup17%

Office Depot features dedicated sections in store for same-day

BOPIS orders and lockers to pick up older orders.


decisions. Today, retailers may be forced to accelerate adoption of

digital in-store tools, with new features such as gesture and voice, to

provide a safer and more integrated shopping environment aligned

with new customer behaviors.

Mobile Payments on the Rise

While mobile payments did not take off at the speed that some

industry experts initially expected, the adoption is finally increasing.

The acceptance of one or more forms of mobile payments in the

store increased from 23 percent to 56 percent in 2019. The adoption,

along with that of contactless payments, is expected to significantly

accelerate in the near future.

Accepts Mobile Payments

23%56%

2019 2017

56%

MOBILE PAYMENTS IN-STORE—


Before the COVID-19 pandemic, digital and omnichannel

commerce was steadily rising as a strategic priority for retailers

and manufacturers. Today, the pandemic has catapulted digital and

omnichannel to the top of the priority list. Retailers and brands that

already embraced digital and omnichannel capabilities are one step

ahead, today and in a post-pandemic retail world.

At FitForCommerce, we used to say that a strong digital and omnichannel

strategy was needed to grow and thrive. In today’s COVID-19 world, we

now know that a winning digital and omnichannel strategy is needed just

to survive.

– Bernardine Wu, Founder and CEO, FitForCommerce

Consumer demands for personalized, seamless, and convenient

shopping experiences, coupled with technology advancements, set

the roadmap for the future of retail. Retailers and brands constantly

work to provide more compelling and seamless shopping

experiences but, as the FitForCommerce Omnichannel Retail Index

reveals, many struggle with keeping pace with shopper demands.

While some retailers have improved omnichannel capabilities over

the past years, many have yet to adopt standard functionality that

Conclusion—


should be table stakes by now. The harsh reality that

many retailers and brands face today leaves no room for

slow adoption – if dissatisfied, shoppers know another

retailer is only a click away.

Retailers and brands should use the Omnichannel Retail

Index to evaluate current capabilities and develop a

prioritized roadmap for meeting customer demands to

help them do more than just survive in the future.

HOW DO YOU STACK UP?

You dedicate time, resources, and budget toward delivering the best

customer experience possible. But, are you truly meeting customer

expectations? How do you compare to your competition? Get your

Omnichannel Retail Index score along with industry and competitive

insights that will influence your strategy and decision-making.

Email [email protected].



References—1 https://kibocommerce.com/resource-center/personalized-commerce-study/

2 https://kibocommerce.com/resource-center/personalized-commerce-study/

3 https://www.census.gov/retail/index.html






https://www.census.gov/retail/index.html



Kibo’s Personalized Commerce Cloud is a unified, headless platform that combines AI-driven

personalization from industry leaders Certona and Monetate, omnichannel commerce, and

distributed order management.

Global clients like Office Depot, Taco Bell, and Patagonia rely on Kibo to optimize across the

web, mobile, search, in-store and across each and every fulfillment touchpoint for a truly end-

to-end personalized commerce experience. Retailers can easily manage supply chain logistics,

ecommerce and marketing personalization through one system, centralizing strategy, increasing

agility, and gaining valuable customer insights that maximizes return on investment.

To learn more, visit kibocommerce.com

A BIG THANK YOU TO OUR SPONSOR–

https://kibocommerce.com/?utm_source=Omnichannel%202020%20Report&utm_medium=PDF%20Link&utm_campaign=Omnichannel%20Retail%20Index%202020

FitForCommerce is a leading boutique consultancy that helps hundreds of online and

multichannel brands and retailers make informed digital, ecommerce and omnichannel

retail investment decisions. Leveraging years of experience, state-of-the-art tools, strategic

diligence and tactical planning, FitForCommerce helps brands and retailers define strategies

for growth, improve the customer experience, plan and hire the right organization, and find

“best fit” technology solutions. fitforcommerce.com

Email [email protected] to learn more about the Omnichannel Retail Index and how

you stack up.

http://fitforcommerce.com

sponsored by · introduction — 2020 has definitively taught us that digital commerce and...

Documents