Last updated on August 5th, 2024 at 01:18 pm

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While many different technologies help drive omnichannel retail, RFID technology is uniquely positioned to streamline both retailers’ and customers’ experiences. Thanks to its ability to track products in real time, RFID technology can significantly enhance inventory accuracy on the retailer side while facilitating easy in-store checkouts for shoppers. It also assists with loss prevention and returns fraud, among other features – which are revolutionizing the retail sector.

RFID, which stands for radio frequency identification, lets brands track products from their initial shipment to the point of purchase. RFID technology leverages wireless communication and electromagnetic coupling to give an item a unique identifier. This identifier then becomes an RFID tag that brands can link to particular products, in lieu of a barcode. With many retailers attempting to streamline their physical and digital shopping channels to maintain a more accurate overview of their inventory and create better in-store experiences for customers, RFID technology is rapidly rising in popularity.

Kris Barton, Senior Director of Market Development at Avery Dennison, discussed RFID’s transformative impact on retail operations during an Endless Aisle podcast episode with Marcus LaRobardiere, NewStore’s Vice President of Marketing. During their conversation, Kris and Marcus explored how brands can leverage RFID technology to glean more valuable data, improve inventory management, and provide product authentication.

Read below to learn more about how RFID technology is enhancing omnichannel retail, and listen to the full podcast episode here.

How RFID Technology IDs Retail Gaps

RFID technology’s access to real-time data enables those who leverage it to identify gaps across retail operations and inventory management practices. By giving retailers insight into these analytics, the technology can help reveal any supply chain issues, as well as consumer demand for certain products.

“The interesting thing is when people ask, ‘what does RFID do?’” Kris said. “The short answer is it tells you where your problems are. I tell people, ‘RFID doesn’t fix your problems, but it helps you see your problems.’

“I often talk about it like a flashlight in the corner,” Kris continued. “Everything looks fine over there. You put the flashlight [on] and you’re like, ‘Look at all that dust.’ What RFID does is allow you to collect a lot of data in a very precise fashion in a very fast period of time. Now you have the ability to react to real-time data.”

Kris also detailed how a variety of industries are taking advantage of RFID technology’s many benefits – not only the apparel sector.

“Apparel remains the largest penetrated group for item-level RFID,” Kris said. “But there’s a lot of other activity going on in pharmaceuticals. There’s a lot of stuff going on in aerospace, in automotive, and other industrial settings. We’re seeing these other areas see the benefits of RFID and leverage that technology to handle the gaps they’ve got.”

RFID’s Impact on Inventory Accuracy 

RFID technology is widely recognized for equipping retailers with better inventory insights. This results in retailers being able to make more informed decisions on stock levels across their locations and the types of products they carry. Inventory accuracy also helps minimize overstocking, which can significantly impact a brand’s sell-through rate.

“When I think about a typical retail environment, the inventory accuracy is going to be in the neighborhood of 65 to 70% accurate,” Kris said. “That doesn’t mean [retailers] think they have 100 items and only have 65 items across the entire store. What it means is…if you think you have five [items] and you only have four, that’s inaccurate. If you think you have five and you have six, that’s inaccurate.

“So when you are trying to capture data, it becomes a bit more tricky…like, ‘hey, what can I promise to the consumer in terms of online sales?’”

Investing in technology that yields better inventory accuracy is also helpful for companies that measure their inventory on an infrequent basis.

“Typically, retailers will do inventory once or twice a year,” Kris said. “It’s very expensive, so they don’t want to do it very often. A lot of times, they’ll do it in periods where they’ve got the lower level of inventory so that it takes them less [time] to count. But ultimately, over time, that inventory will degrade. 

“The ability to collect this data and make better decisions is really driving RFID across the board.”

How RFID Technology Reduces Returns Fraud

Another use case of RFID technology that’s growing in popularity is returns fraud. Once products receive their unique identifier, it becomes more challenging for individuals to engage in returns fraud and attempt to collect a refund or store credit for an item they didn’t purchase.

“Inventory accuracy is at the heart of almost every installation we do,” Kris said. “But some other use cases have emerged. Combining a digital ID with the garment that gives that EPC value, which is basically a serialized version of the SKU – some representation at the point of sale – is a big unlock. 

“Most retailers are utilizing a linear barcode,” Kris continued. “You’re checking out at the SKU level, not at that particular item level. So somebody brings something in – it’s another one of this particular SKU…did they buy it? You don’t know. They don’t have a receipt.

“You give them store credit. You don’t know that might have been a shrink incident. So if you have that as a 2D barcode and you’re matching that with the EPC and ringing out at that level, now you know this item has been purchased or it’s not been purchased. Returns fraud is an area that we’re seeing grow very quickly with several different retailers.”

Enhancing Checkout Experiences with RFID Technology

In addition to reducing returns fraud, one of the fastest-growing use cases of RFID technology revolves around in-store checkout experiences.

“The other one that’s been growing a lot would be self-checkout or assisted checkout,” Kris said. “We’ve all been to stores, especially during peak season, [where] queue lines are long. I could [take] all my items and put them in a basket; it rings it all up, shows it on a display. I swipe my credit card, and I’m out the door in 30 seconds.”

This method of line busting can serve as a major incentive for retailers seeking to enhance their in-store shopping experiences. They can also invest in mobile point-of-sale (POS) systems equipped with RFID technology. These solutions allow customers to check out from any point in the store using contactless payment methods, like Tap to Pay on iPhone.

Additionally, brands can use RFID technology to offer product authentication and information – such as details about the materials found within the item. If the item is sustainably made, retailers can promote that as a selling point for environmentally-savvy shoppers.

“We’re seeing some other things around product authentication,” Kris said. “If I get a digital ID, I can do consumer engagement things through a QR code and look at the origins of this or the production methodology, the material makeup – all the sustainability things people are starting to become more focused on.”

More Data = Better Omnichannel Practices

Ultimately, retailers that can collect and leverage more data will be better positioned to upgrade their omnichannel practices. With so many brands offering both digital and physical shopping options these days, the ability to more accurately manage their supply chains will streamline retail operations, reduce extraneous costs, and enhance their customers’ shopping experiences.

“The people that can have the data better in a faster period are going to be able to react better and make the right decisions,” Kris said. “Their costs are going to go down. Loss prevention is becoming a huge piece, in the U.S. especially. I also think it’s going to allow people to be a little leaner in their supply chains because they’re going to know, ‘Hey, I can ship this down here and know that when it’s gone, I can replenish faster.’”

Companies must also realize that omnichannel now plays a crucial role in retail operations – and data-driven solutions like RFID technology can truly revolutionize the sales journey for staff and customers alike.

“Omnichannel has been around for a while, but people still call it omnichannel, and to me, it’s called retail,” Kris said. “If you’re not doing omnichannel, you’re not doing retail.

“This is something everybody talks about – how do I do omnichannel? Why do I need RFID to do omnichannel?” Kris continued. “You need RFID because you need to do retail. And being omnichannel enabled is part of table stakes right now.”

“You can’t do good retail without good information about what you have and getting all those benefits that you see with RFID every day.”

To learn more about how your business can take advantage of omnichannel data, speak to one of our experts today.

Last updated on December 16th, 2024 at 09:04 pm

As retailers prime their omnichannel strategies for 2024 and beyond, three takeaways from NewStore’s annual Omnichannel Leadership Report should remain top of mind: brands must offer more omnichannel capabilities, invest in native mobile commerce apps, and embed more digital features into their stores.

While an increasing number of retailers have embraced omnichannel strategies over the last few years, they still face opportunities for improvement – especially when it comes to bridging the gap between their physical and digital shopping experiences. NewStore’s 2024 Omnichannel Leadership Report surveyed nearly 700 retail brands’ omnichannel capabilities across three unified shopping channels: mobile apps, online, and stores. The research found that brands must work on enhancing their in-store, online, and mobile offerings by connecting all three of these channels to create a cohesive, customer-centric shopping experience.

Read more about the top takeaways from the report below, and find out how your business can take actionable steps to develop a unified commerce strategy spanning all retail channels.

Takeaway #1: Brands Aren’t Maximizing Omnichannel Capabilities

While some retailers have fully leaned into omnichannel transformations, many are still not leveraging omnichannel strategies to their fullest potential. The report found that brands scored an average of 43 out of 100 when it came to taking advantage of available omnichannel solutions. This indicates that brands are missing opportunities in effectively linking their mobile, online, and physical shopping journeys.

If retailers want to undergo a true omnichannel transformation that results in customer-centric experiences – and builds long-term brand loyalty – they must start by considering several key strategic elements:

• Impact to the customer: The goal of undergoing a transformation is to improve the experience for the end user – in this case, the customer. Therefore, retailers should put themselves in their shoppers’ shoes and think, “What’s in it for me?” and “Which omnichannel features would I benefit from?”
• Changing teams’ mindsets: For a transformation to succeed, all parts of the organization must row in the same direction. Each department will play a critical role in rolling out new omnichannel features, which makes it imperative that everyone aligns on the vision and owns their part of it. 
• Focusing on in-store experiences: If a retailer has a brick-and-mortar footprint, the in-store experience may serve as the customer’s first touchpoint with the brand and set a lasting impression. For instance, if the retailer sells consumable goods, it can offer tastings in stores to entice customers and then later follow up with tailored product recommendations over email.
• Making technology invisible: Omnichannel technology should seem invisible to customers when they’re shopping in stores. Whether a sales associate with a mobile device is reviewing available inventory or a shopper is checking out via a self-service kiosk, the experience must appear seamless. And to build a deeply connected commerce ecosystem and develop better customer relationship management, it’s crucial to partner with the right technology vendors.

Creating a robust omnichannel strategy relies on many elements of organizational change. Read about how top retailers have mastered the art of omnichannel transformation and the lessons they’ve learned along their journeys.

Takeaway #2: Retailers Should Invest More in Mobile Commerce 

Although today’s consumers are more reliant on their phones than ever, many retailers’ mobile commerce capabilities haven’t evolved as much as shoppers would like. Brands with dedicated mobile shopping apps remain in the minority, and even those mobile-first shopping experiences often don’t boast the latest features to facilitate a smooth customer journey. 

The Omnichannel Leadership Report discovered that only one third of brands have a native mobile shopping app, with very few of them having invested in promoting the app. Additionally, most of these mobile apps don’t include interactive features, exclusive content, or built-in rewards programs. Even fewer apps contain capabilities like wishlists, inventory checkers, and live chat – all of which can help drive usage.

According to Statista, mobile commerce sales are expected to account for 62% of all ecommerce transactions by 2027. This makes it essential for brands to up their mobile commerce game – and their starting point should be a native shopping app.

Several outcomes of having a native mobile app include:

• Reaching customers where they are: Data.ai’s State of Mobile 2022 report found that many people spend one third of their time awake looking at their mobile device. Consumers also spent 100 billion hours in shopping apps, which underscores the unparalleled convenience of browsing and buying on mobile devices.
• Direct-to-consumer sales become easier: If a retailer wants to sell directly to consumers and bypass brick-and-mortar stores and wholesalers, a native app is the easiest option. Brands can leverage push notifications and personalized content to connect with their target customer – with minimal advertising needed.
• Increased conversions: Since mobile apps typically deliver less clunky experiences than a mobile site, consumers may spend longer amounts of time browsing, without encountering unnecessary pop-ups and ads. If they make an account for the app, it will also remember all of their information and provide a faster checkout experience. As a result, users may be less likely to abandon their carts.
• Customizable features: Retailers that build their apps from the ground up can choose from a slew of customizable features that will foster better connections with customers. These can include creating lookbooks for apparel and accessories, built-in loyalty programs with redeemable points for special perks, and free shipping just for app users.

To discover more ways your brand can boost mobile commerce sales, read all 7 Reasons Why You Need A Shopping App.

Takeaway #3: Stores Need Additional Digital Features

To stay competitive, retailers must embed more digital features into their brick-and-mortar stores. According to the report, buy now, pay later checkout options are only offered in a third of stores. The same statistic applies to stores that equip their sales associates with mobile devices to assist shoppers as they browse. If retailers want to increase foot traffic in their stores and appeal to time-strapped customers, they must find strategies to bridge the gap between their digital and physical experiences. 

If done right, the potential rewards – like increased sales, competitive differentiation, smoother customer experiences, and adaptability for shoppers to engage with brands on their preferred channels – are massive.

Several of NewStore’s top ways to create an omnichannel strategy include:

• Auditing current channels: Map out all your existing channels (including website, store, mobile app, email, and social media) and try to identify any gaps in communicating with customers, especially with those who prefer to toggle between online and physical shopping platforms. 

Afterward, brainstorm the ideal customer journey and consider adding new omnichannel features to connect online and brick-and-mortar shopping experiences, whether that’s offering ship-to-store pickup options or adding mobile checkout capabilities in stores.

• Combining digital and physical experiences: A strong omnichannel strategy ensures that shoppers can start their journey on one channel and end it on another. To better bridge the gap between physical and digital shopping experiences, retailers should offer features like BOPIS (buy online pick-up in store) and universal shopping carts that let consumers add to their carts from any channel. 

Other valuable omnichannel features include inventory visibility, which allows sales associates and customers to view real-time product availability across all retail locations, and clienteling, which gives staff access to valuable customer data that can help increase shoppers’ average basket size.

• Examining your retail ecosystem: To ensure brands are equipping sales associates with the best technology to drive sales and personalize customers’ experiences, they should consider investing in an order management system, mobile point-of-sale (POS) solutions, and customer relationship management platforms.

The best part about creating an omnichannel strategy? It’s completely customizable, which forms the basis for composable commerce: giving companies the opportunity to select from a variety of vendor and commerce options that work best for them.

More Takeaways: BOPIS, BORIS, and BNPL Gain Traction

The modern omnichannel experience now counts BOPIS and BORIS (buy online return in store) as key components. While many shoppers prefer the ease of making purchases online, the convenience of retrieving their items or returning them in a brick-and-mortar store is still important. According to the Omnichannel Leadership Report, 60% of retailers’ websites offer BOPIS options, while 68% offer BORIS capabilities. 

Buy now, pay later (BNPL) also experienced adoption growth – 69% of websites now offer this short-term financing option to customers. 

Other parts of the commerce ecosystem that continue gaining popularity include loyalty rewards and free shipping. Not only do loyalty programs foster longer-lasting relationships with consumers, but they also provide retailers with more personal data to improve shopping experiences – and drive higher sales. In fact, over 80% of consumers claim they would provide more personal data in exchange for a better customer experience.

One increasingly important factor of the customer experience is free shipping. With Amazon – and its one- and two-day shipping options – capturing a large portion of the ecommerce marketplace, retailers must stay competitive by also offering free shipping. However, even free orders should arrive within three business days to meet consumers’ expectations.

Research in the Omnichannel Leadership Report found that 87% of websites offer free shipping in North America and internationally, with two-thirds of brands requiring a minimum purchase threshold to receive the free shipping perk. 

For retailers breaking into new markets and working to retain existing customers, offering loyalty programs in addition to free and fast shipping options will become must-have omnichannel strategies. 

The Case for Unified Commerce

Ultimately, omnichannel shopping will continue its rapid growth trajectory, especially as brands attempt to reach untapped markets and compete with today’s ecommerce behemoths. The biggest indicator for omnichannel success is implementing a unified commerce system that reaches shoppers on all platforms and offers a seamless customer journey, regardless of the starting point.

Brick-and-mortar experiences are still a pillar of the retail ecosystem, and brands must work to bridge the  gap between their physical and digital channels. The good news? The options are vast – and retailers can cherry-pick the vendors and solutions that best fit their needs to create a robust omnichannel strategy that will cement their stake in the marketplace.

Download NewStore’s 2024 Omnichannel Leadership Report for a deeper dive into these takeaways, and speak with one of our experts about choosing the right omnichannel solutions for your business.

Last updated on July 31st, 2024 at 08:20 am

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Advancements in technology aren’t only driving omnichannel retail – they’re also impacting how brands can enhance their in-store experiences. From equipping sales associates with mobile devices containing customer data to installing technology that scans shoppers’ bodies to determine which products fit them best, the possibilities are vast. However, customer-centricity should be at the forefront of all retailers’ efforts to personalize their shopping journeys. 

Chris Rigg, Retail Director at Ellis Brigham Mountain Sports, recently discussed the importance of brands maintaining a brick-and-mortar footprint during an Endless Aisle podcast episode with Marcus LaRobardiere, NewStore’s Vice President of Marketing. Chris and Marcus also addressed how technology can elevate in-store experiences for shoppers and demonstrate retailers’ commitment to customer-centricity.

Read below for key takeaways from Marcus and Chris’s conversation, and click here to listen to the full podcast episode.

Why In-Store Retail Experiences Remain Critical

Although many consumers opt to make purchases via online or mobile channels these days, a true omnichannel experience also encompasses in-store shopping. Some retailers may have believed that the pandemic’s effects would result in consumers moving away from wanting in-store experiences, but that has not been the case.

Shoppers still want to experience the adventure of finding new items in a physical location and then walking out with those products after paying. To reach the widest audience possible, retailers should ensure they keep up-to-date stock in their physical locations and maintain their brick-and-mortar presence.

“People still want to walk into a store, have a great experience, pay, and walk out with that product – and there’s a reward and value in it for them,” Chris said. “There’s a real desire to do something you are passionate about, and part of that journey is coming into a store and [experiencing] it.

“One of the great learnings after the pandemic was that things are different, but things are still pretty much the same as well,” Chris continued. “We came out of the pandemic and our strategy was…it’s going to move into the full omnichannel world. Stores will be experiences; there’ll be less product in there; it’ll be more showrooming and showing the great brands we’ve got and people will be happy to purchase through technology in store or purchase at home on their app.

“That hasn’t not happened, but what the last six months has shown me [is] a lot of people want to walk into a shop, drop their cash, [and] walk out with their latest jacket or snowboard. We got slightly caught out by that because we had to work very fast to make sure our stock holding was where it [needed] to be [and] make sure we had the right people in the shops to sell those products. Going forward, we are probably more positive about brick-and-mortar retail than we were two years ago.”

Evolving the Customer Journey

Brands should ensure they evolve their customer journeys to adapt to both digitally savvy and more traditional shoppers’ needs. However, they must also keep in mind that there is no one-size-fits-all approach to maximizing the customer journey, as each shopper has different needs.

“I think we’ve seen evolutions of shoppers’ journeys,” Chris said. “A shopper that is time poor, maybe cash rich, wants to walk into a shop and buy something because they need it tomorrow. 

“If someone’s thinking about a longer-term purchase, they might research that online. They might actually buy it online and get it in two weeks. We can’t say what a consumer’s behavior [is] because everyone is vastly different than how they shop.”

Retail and Technology’s Symbiotic Relationship

Retail and technology will always maintain a symbiotic relationship, especially as brands seek to attract consumers around the world. Not only does technology allow for brands to compete in the global marketplace, it also enables retailers to further personalize in-store experiences with innovative features, like virtual try-on options.

“I think retail is going to be intrinsically linked with tech forever, and that’s only going to grow,” Chris said. “There’s some great innovation out there, which we continue to look at. We’ve recently been trialing foot scanners within our stores – partly from a customer experience point of view – but partly from a CRM data collection point of view.

“The logical step would be that you’ve been in our Ellis Brigham store, and you’ve had your foot scanned, and you have a 3D avatar of your foot. Now we should be able to apply that to any model on our website and get something that fits your foot. The technology’s not quite there yet, but it’s pretty close. And your ability to scan a body or a foot and apply ‘perfect fit’ to it is going to be [a] massive jumping forward in retail.”

Why Understanding Customers’ Needs is Critical

One pitfall that retailers should avoid is adopting certain technologies because their competitors are doing so. Any new technology vendor or platform should address customers’ current needs. If customers feel that their needs are being solved, they will be much more likely to increase their average basket size with the retailer.

“Understanding your customer’s needs is really key,” Chris said. “I could go and spend millions now, just phone up various companies, put retail tech solutions in, but without a need to do it. And that’s how we’ve always challenged it as a business. We will go out and we’ll talk to people about what’s out there and then we’ll look at it and go, ‘Well, actually, does that satisfy you?’

“The business has to accept that things have to innovate. And then you’ve got to find a way you can test it. You have to go back to your customer, back [to] what is the customer journey…what do they gain from this? If they’re gaining something from it, they’re going to spend more money with you.”

How Clienteling Drives Better Retail Experiences

If retailers choose to integrate the right technologies for their audiences, they will eventually gain a more holistic understanding of each customer. In turn, this will help sales associates do their jobs more efficiently and engage in better clienteling. Clienteling enables sales associates to provide more customized shopping experiences as a result of seeing a 360-degree profile of each consumer.

By investing in engaging in-store experiences and equipping staff with technology to further personalize the customer journey, retailers will be able to grow their existing client base and attract new audiences. Ultimately, leveraging technology to facilitate stronger customer connections is key – while ensuring that the human element remains present.

“I’d like to believe that human interaction will stay with us in some way,” Chris said. “Our job at the moment is to use tech to make that experience as good as possible.”

Last updated on August 5th, 2024 at 01:19 pm

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As consumers enjoy a larger variety of shopping options thanks to the globalization of retail, brands must differentiate themselves from their competition by further personalizing the customer journey. Retailers can tap into more resources than ever to accomplish this, including leveraging omnichannel platforms to bridge the gap between physical and digital shopping experiences. The growth of artificial intelligence will also likely play a role in customizing the shopping journey.

James Reid, Chief Innovation Officer at fashion retailer AllSaints, recently sat down for an Endless Aisle podcast conversation with Marcus LaRobardiere, NewStore’s Vice President of Marketing. James and Marcus discussed strategies with which brands can bring omnichannel shopping to life. From finding ways to connect in-store and online experiences to leveraging bots to provide sizing information, retailers can transform each step of the customer journey to include more personalization.

Read on for more insights from Marcus and James’s discussion, and click here to listen to the full podcast episode.

Bridging the Gap Between Physical and Digital Shopping Experiences

Today’s digitally-savvy consumers might begin their customer journey on one platform – for instance, a mobile app – and end it on another, such as in a brick-and-mortar store. To best meet customers’ evolving needs, brands must bridge the gap between their digital and physical shopping platforms to create a true omnichannel experience. This results in retailers gaining greater omnichannel insights, including holistic views of customer profiles, past and current orders, and store performance.

“I know everybody’s talked about this principle for the last 10 years, but [we] very much want to blur the line between the in-store experience and the online experience,” James said. “One of the things that the retail platform will bring us is the principle of a common account across in-store and online. We need to do that in a way that’s adding value for the customer, even down to [tracking] your receipts.

“If you want to bring a return in, we can find that transaction and refund [it] to the original payment method, which then gives us value in terms of accuracy of tracking how that’s actually working. It’s an interesting area when you start getting into that level of data, because from my perspective, the capabilities are enormous and the service we can provide off the back of it is enormous.”

How BORIS Helps Drive In-Store Sales

One way in which retailers can connect online and brick-and-mortar shopping experiences is by offering BOPIS (buy online pickup in store) and BORIS (buy online return in store) fulfillment options. This lets shoppers make purchases via mobile app or website and visit their nearest store to pick up the items or return them, if needed. The in-store visit offers opportunities for sales associates to recommend additional or alternative items that the shopper may not have initially considered.

“In terms of buy online and return in store, it’s a capability we’ve had for a little while now, and it is a footfall driver,” James said. “It’s an opportunity for cross-sell and upsell [opportunities] when the customer comes back in and maybe turning a return into an exchange if it’s a sizing challenge. So it’s always good to get an opportunity to put a customer in front of the stylists in store.”

How Bots Can Impact the Customer Journey

Retailers can also opt to leverage bots to add further personalization to their customer experiences. These can include chatbots that field shoppers’ more basic questions or bots that offer product and sizing recommendations based on customer profiles.

“One of the things we are considering is whether to put a slightly more invasive step to the online customer journey,” James said. “To put a little bot in place that says, ‘I can see you’ve put two of these in two different sizes in your basket…would you like some guidance as to which one’s going to be the better fit?’

“We’re working through how we do that, what information we base it off, et cetera.”

Balancing Personalization with Transparency

While personalizing the customer experience will likely result in greater brand affinity among shoppers – and higher sales – retailers must keep transparency around the use of customer data top of mind. More shoppers are paying attention to the ethics around data collection as artificial intelligence continues gaining popularity.

“If a customer walks into [a] store and says, ‘I’ve seen one of your black leather jackets online; I’d love to see if you’ve got that in stock,’…now, we have a number of different options available,” James said. “The ability to look up that customer from a browsing history point of view, work through with them what it is they’ve seen and give them a better service to identify, ‘Oh, you mean that one,’ in theory is great.

“People understand and appreciate there’s a lot of information gathering and tracking that goes on in the background, but it becomes a different response when you put it in front of their face. It’s something we are very cognizant of – to make sure that we are not being overly invasive, but doing it in a way that’s win-win for the customer,” James continued.

“And that win-win works in a number of different ways because it helps get better accuracy; it will help with gathering customer feedback. For example, you’re trying a particular jacket on and maybe the sizing is slightly [off] in terms of the customer expectations, so you end up sizing up. We can feed that back into the design cycle and through the supply chain to [fine]tune what we are producing to better match those customer expectations.”

Maintaining a Customer-Centric Focus

However retailers choose to revitalize their customer journeys, they must ensure they always maintain a clear vision and commitment to putting consumers’ needs first.

“You have to be very clear about what you’re looking to achieve and what’s driving you to achieve that,” James said. “The customer being the boss…having that as a guiding principle informs everything else. 

“For me, the goal is to maximize access for the customer however they choose to deal with us, whether that’s online or in-store or through a concession or through a third party. We have to meet the customer wherever they are, and we have to provide the service they’re requiring. And that strategy is working very well.”

To learn more about how your business can further personalize your customer journey, speak to one of our experts today.

Last updated on August 5th, 2024 at 01:20 pm

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The rapidly evolving digital landscape has significantly impacted the retail industry, making it easier than ever for retailers to reach potential customers worldwide. However, continuing to foster customer loyalty and enhance shoppers’ in-store experiences remain top priorities for many brands.

That’s where the practice of clienteling comes to life – by incorporating human connection into the essence of retail. Kaitlin Gottlieb, Senior Director of Omnichannel at UNTUCKit, emphasizes clienteling’s critical role in building long-term connections between customers and store associates.

What is Clienteling?

Clienteling helps store associates offer personalized shopping experiences by giving them a full 360-degree profile of the customer. Associates can leverage clienteling to message customers on a mobile app and search for a specific shopper in a database. They can also access shoppers’ purchase histories to recommend products they may like, and note customers’ personal preferences – such as sizes and styles – in their digital profiles.

How Clienteling Empowers Store Associates

During an Endless Aisle podcast interview with Marcus LaRobardiere, NewStore’s Vice President of Marketing, Kaitlin discussed the symbiotic relationship between technology and store associates. While today’s world grows increasingly digital-first, particularly for many shoppers, technology should not replace store associates’ roles in assisting with the customer journey. Instead, technology should augment their roles. Equipping in-store staff with the right technology solutions will provide additional opportunities for personalizing the shopping experience for each individual.

Read below for several key insights from Marcus and Kaitlin’s conversation, and click here to listen to the full podcast episode.

How Clienteling Fosters Better Customer Connections

As retailers consider strategies to boost in-store traffic, leveraging clienteling should be a priority. Clienteling helps bridge the gap between the physical and digital worlds by offering store associates valuable customer data that they may not obtain as easily without the help of technology.

This data then facilitates more personalized in-store interactions with shoppers, which could result in greater brand affinity and more sales. As an example, store associates can leverage data from customer profiles to cross-sell or upsell products that the customer may not have initially considered.

“Clienteling is fostering relationships and all about getting them back,” Kaitlin said. “And so associates [are] able to not only engage with customers that they connect with, continue to text them, but influence and inspire them across all different product categories – perhaps for another family member or friend.”

The Intersection of Human and Tech Collaboration

Although many consumers are no stranger to shopping on digital platforms, human interactions are still paramount to retailers’ success. When store associates gain access to the right technology, they can do their jobs more efficiently. This increases employee engagement and reduces the potential for staff turnover.

“The best technology enhances the store associate’s role and allows them to focus on [being] beneficial in that face-to-face contact,” Kaitlin said.

Additionally, store associates can collect valuable feedback from customers on digital tools that will enhance their shopping journeys. This could include adding a new feature to a mobile app or improving an existing function. This results in continuous optimization to improve the in-store experience.

How Apps Fuel Collaborative Shopping Experiences

Store associates can also leverage retailers’ mobile apps to further collaborate with customers on creating personalized looks. Some brands enable app users to virtually try on items and receive customized product recommendations. 

“I love that the app for associates oftentimes becomes a collaborative tool with the customer,” Kaitlin said. “It’s almost like you can dive into the product in the fitting room and then [say], ‘Let me show you some inspirational ways to wear it.’ 

“Our products often are easy to flip through those product images to really enhance [the shopping experience]. It’s really easy to pull up the app and demonstrate what this looks like on the model wearing the product and bring it to life that way, in addition to all of the amazing visuals that we have in our stores.”

This type of clienteling can increase customers’ average basket size by helping them create new outfits or garner inspiration for gifts for family and friends.

The Need for Personalized Retail Experiences

Per Kaitlin, customer engagement does not encompass a one-size-fits-all approach. She underscores that retailers must offer personalized experiences that resonate with a slew of customer personas.

She cited Sephora as a prime example of a retailer providing personalized in-store experiences to different types of customers. Those who visit a Sephora store can select a shopping basket in one of two varieties: a black basket that indicates their openness to being helped by a store associate or a red basket that signals a preference to be left alone while shopping.

Other retailers may opt to leverage clienteling to follow up with customers via text or mobile app about new inventory they may like or to inform them that their preferred product’s size or style is now available. 

“Not every customer wants to text when they leave the store; it’s not for everyone,” Kaitlin said. “But when you identify, connect, and find that genuine, authentic relationship, it’s natural to want to stay connected.”

How Retailers Can Maximize Clienteling 

Retailers can maximize their efforts to build stronger customer brand affinity via clienteling by embracing a growth mindset and striving for continuous optimization. This extends to technology – such as taking feedback from shoppers about certain app features that would augment their experiences – as well as improving one-to-one human interactions. 

Brands should obtain a clear focus on specific challenges or needs they are trying to address and be willing to innovate – even when it’s risky. And if they experience failure, they can treat it as a learning experience that will fuel faster growth in the future.

Ultimately, retailers can foster more loyalty with consumers by leveraging technology’s massive reach while remaining rooted in key elements of human connections – such as personalized interactions and consistent communication. This type of approach to developing a unique customer journey not only builds brand advocates among individual shoppers, but it may extend to their friends and family as well.

“One customer has a great experience – you’re probably going to tell a lot of your friends and family about that experience,” Kaitlin said.

Interested in learning how your business can use clienteling to enhance the customer journey? Speak with one of our experts today.

Last updated on July 25th, 2024 at 04:58 pm

There are many different omnichannel shopping options today. One of the ways to best adapt to customers’ needs is for retailers to provide quick order fulfillment. They can do this by leveraging smart order routing.

Investing in automated processes like smart order routing can remove friction from the fulfillment cycle, facilitate more inventory movement, and keep customers happy with fast deliveries. Let’s learn more.

What is Smart Order Routing?

Smart order routing enables brands to automate the process of selecting a location from which to ship orders to their purchasers. Shipping locations can include a specific brick-and-mortar store, warehouse, or distribution center.

With smart order routing, brands can configure specific rules that instruct their order management systems how to fulfill and order based on their business requirements. For instance, they may ship items from the store located closest to the customer, a ranked location (such as a warehouse with a high number of inventory items), or any location containing the biggest share of items in a shopper’s order.

What Routing Challenges Do Retailers Face?

Brands can face many order routing challenges, especially as their customer bases grow. For example:

• Rising shipping costs
  One effect of reaching widespread audiences is that retailers will need to ship purchases across bigger distances. 
• Fast delivery expectations
  Ecommerce behemoths like Amazon have influenced consumers to expect rapid shipping options, such as same-day or two-day delivery.
• Tracking up-to-date inventory
  If retailers don’t maintain inventory accuracy, it can be difficult to manage inventory across multiple locations and accurately allocate orders. 
• Complex order management systems
  Many legacy order management systems (OMS) have made it complex for retailers to set up routing logic and prioritization rules.

Read below to learn how smart order routing can benefit both retailers and consumers.

Top Benefits of Smart Order Routing for Retailers

Strategic order fulfillment

Smart order routing allows for retailers to leverage several types of locations to assist with quickly filling orders. This lets brands leverage ship-from-store fulfillment options, which enable them to fill online orders at brick-and-mortar locations and ship them to nearby customers in lieu of relying on fulfillment centers, which may be far away.

Not only does this type of fulfillment model help save on shipping costs because packages travel over shorter distances, but it also helps ensure greater stock availability. Distribution centers only have a finite number of each product, but stores tend to carry inventory that appeals to their local clientele. Therefore, it’s likely that the store closest to the shopper will have their products in stock and be able to ship them quickly. This also frees up space at physical locations to receive new inventory.

In addition to leaning on physical stores, distribution centers, and warehouses, brands may opt to use wholesale routing. With wholesale routing, retailers allow external wholesale companies to fulfill orders when they no longer have the customers’ requested items in stock.

For example, an in-store shopper may want to purchase a style of pants that’s no longer in stock. If the pants aren’t available at any other location and the retailer has enabled smart order routing, a store associate can send a fulfillment request to the wholesale company. If the wholesaler fulfills the order, the retailer will receive a smaller profit but will succeed in achieving customer satisfaction.

Ultimately, strategic order fulfillment yields many benefits, spanning lower shipping costs, greater customer happiness, easier omnichannel returns, and faster delivery times.

Sustainable shipping

As many retailers make more concerted efforts to bring sustainability into their businesses, smart order routing provides several ways of doing this. Brands can leverage item-level ordering to fill an entire order from one location. This cuts down on split shipments, which translates into using less packaging material and saving on complex transportation costs.

Furthermore, smart order routing empowers brands to create more sustainable shipping experiences by avoiding item markdowns. Brands can opt to fulfill orders from a location that is preparing to mark down inventory. This practice enables brands to offload inventory that isn’t selling before sending it to a landfill.

Not only do these practices help foster a more sustainable world, but they also may drive more loyalty among environmentally conscious shoppers.

Increased customer satisfaction

If orders can ship from the closest location to the customer, shoppers will experience faster shipping options at a lower cost. Customers who receive their purchases more quickly, and spend less or spend nothing on shipping fees, will have higher satisfaction.

Even more, smart order routing can help prevent stock outs by directing orders to the store or warehouse with available inventory. Similarly, by reducing the need for manual intervention in the order fulfillment process, smart order routing can help minimize errors in order processing. When customers can purchase items they want, and receive the correct items and quantities they ordered, they are more likely to be satisfied with their shopping experience. 

In summary, smart order routing enhances the efficiency and accuracy of order fulfillment, which may encourage shoppers to continue ordering from that retailer, as opposed to shopping at a competitor next time. The increased brand trust in the short-term will lead to a lifetime of customer loyalty.

How A Flexible OMS Enables Smart Order Routing

Retailers can leverage a flexible order management system to support smart order routing. A flexible order management system tracks all inventory on one platform. It also displays all purchase data on a dashboard, making it a one-stop shop for up-to-date inventory information. This data then helps predict which items will need reordering and manages returns with more efficiency.

Additionally, flexible order management systems support item-level order routing. This form of smart order routing helps brands optimize their product fulfillment to lower costs and shorten delivery times. It also allows customers to choose their preferred form of order fulfillment, such as shipping, BOPIS, or curbside pick-up.

Fulfillment for the Future

As retailers consider ways to enhance their omnichannel fulfillment options, investing in a flexible OMS with smart order routing should be a top priority. Not only will this help scale the business, but it will also provide a better customer experience. Retailers will benefit from greater inventory oversight and more sustainable shipping practices. Meanwhile, lower shipping fees and quick delivery options will increase customers’ loyalty in the long term.

Want to learn more about our flexible order management system? Reach out for a demo today.

Last updated on July 25th, 2024 at 04:58 pm

As retailers invest in expanded omnichannel shopping options to reach wider audiences, consumers gain access to more inventory than ever before. This gives brands the opportunity to leverage various strategies to increase shoppers’ average basket size – and boost their revenue. 

Retailers can deploy many tactics to encourage shoppers to spend more in a single transaction. Additionally, consumers who increase their average basket size by purchasing extra items may continue buying those items in the future. This lessens their chances of shopping at a competitor and enhances the likelihood for future repurchases.

What Does Average Basket Size Mean?

Average basket size measures the number of products sold in a single purchase. To calculate average basket size, divide the total number of items sold by the number of transactions.

This metric helps brands track their overall performance. It also tracks the purchase rates for individual products, which can help retailers determine which merchandise is selling well and which isn’t.

Average basket size differs from average order value (AOV). Average order value measures the median amount consumers spend in each transaction instead of the number of items they purchase.

Read below for several ways to increase shoppers’ average basket size while building customer loyalty.

10 Proven Strategies to Increase Average Basket Size

Retailers that increase customers’ average basket size will benefit from earning more revenue via fewer transactions. Therefore, they must roll out strategies to make the additional purchases worthwhile for consumers. This includes the following tactics, which all help support an omnichannel selling experience.

1. Upsell and Cross-Sell Products

These retail techniques enable store associates to drive more sales based on tailored recommendations. Upselling provides customers with reasons to buy higher-margin items. As an example, associates can upsell by showing customers a high-end jacket instead of a last-season jacket currently on sale.

Cross-selling is the act of recommending a complementary product to a customer – typically from another category. For instance, a store associate may suggest a workout top to match the style of leggings that a customer wants to buy. Retailers can leverage upselling and cross-selling tactics individually or in tandem to grow their shoppers’ average basket size.

2. Offer 1:1 Shopping Appointments

Retail associates can also leverage upselling during one-on-one personal shopping appointments. If a customer likes a specific product, the store associate can bring higher-end versions of that product to the fitting room. This results in shoppers receiving a personalized experience while gaining exposure to items they may not have initially considered. 

One-on-one shopping appointments can help grow customers’ average basket size by giving them an opportunity to visit a brick-and-mortar store and see the inventory firsthand. Consumers may not be able to envision how products look and fit on them when shopping online. However, experiencing a personal styling appointment – where the store associate can show complementary products, colors, and styles – may prompt them to buy more on the spot instead of putting items in their online shopping cart for later consideration.

3. Build Connections Through Clienteling

Retailers can also target shoppers who aren’t available to visit for one-on-one appointments by engaging in clienteling or remote selling. Store associates can reach out to loyal customers or a segmented list of customers via text or email about new arrivals or to make recommendations. Generally, these are folks with robust customer profiles – containing information such as preferred sizes, past purchase history, etc. – which makes it easier for associates to identify outfit building opportunities.

These types of interactions may sway an undecided customer on making a purchase – or even surprise the shopper with items they may not have stumbled upon themselves – resulting in the customer buying more items.

4. Deploy Retail Promotions

Brands can enhance their omnichannel selling experiences and boost average basket size by offering a variety of retail promotions. They can mix and match promotional tactics based on the desired length of time for the promotion.

Examples of retail promotions include percentage discounts (which advertise a percentage off a particular product, such as 50% off swimsuits) and free shipping options. Other examples comprise gifts with a purchase and tiered promotions (which provide higher discounts for purchasing more products).

Tiered promotions are especially effective in increasing average basket size. They motivate shoppers to buy more items in a single transaction to receive the advertised discount. They also enable the retailer to save on shipping costs, as they can bundle all purchased items into one package. 

5. Leverage Buy Online Pick Up In-Store (BOPIS)

Buy online pick up in-store (known as BOPIS) enables customers to make purchases online and retrieve them at brick-and-mortar stores for free. It also allows them to pick up their orders quickly if the items are in stock – usually within several hours. Curbside pick-up also falls under the BOPIS umbrella. It allows shoppers to pick up their purchases by having a store associate bring them straight to their cars.

BOPIS and curbside pick-up attract shoppers by providing convenience without any shipping fees. If customers know they have limited time, they may choose to add more items to their shopping carts and select a BOPIS or curbside pick-up option to get more value out of their shopping trip.

6. Lean Into Loyalty Programs

Loyalty programs can help increase customers’ average basket size by incentivizing them to achieve certain rewards. This may include awarding members points for each purchase they make, which they can then redeem for discounts or free products. Other programs offer evergreen perks like free shipping with no minimum purchase amount. Loyalty programs may also feature personalized rewards, such as deals that coincide with members’ birthdays.

As customers earn rewards for their spending, retailers offering this tactic will reap larger orders while cultivating long-term loyalty.

7. Ensure Inventory Accuracy

Retailers should ensure they maintain inventory accuracy so that customers can access the most up-to-date products in stock. Brands can determine their inventory accuracy by dividing the number of products counted in a specific location by the number of items marked in the online inventory system.

Inventory accuracy enables store associates to spend more time recommending products or upselling services instead of checking which items are in stock. 

It also helps track returns and exchanges. Therefore, consumers may choose to increase their average basket size if they spot a recently returned item that’s now available for purchase.

8. Optimize Store Layout

Retailers can leverage inventory accuracy to optimize their store layout. This enables them to feature best-selling products in sections with greater foot traffic. An optimized store layout may also include mobile point-of-sale devices stationed throughout the store to facilitate faster checkout experiences.

Additionally, this tactic helps brands become more strategic with encouraging add-on purchases. For example, an apparel retailer may display small-ticket items like socks, scarves, and other accessories next to the checkout counters. As a result, consumers who spot an enticing item may be tempted to add it to their overall purchase at the last minute – therefore increasing their average basket size.

9. Enable an Endless Aisle Experience

The components of an endless aisle shopping experience can significantly affect shoppers’ average basket size. Endless aisle technology allows store associates to access and sell products from any brick-and-mortar location, distribution center, or warehouse. Consequently, it lets associates assemble an omnichannel shopping cart if customers want to purchase items directly from the store and from another location. For instance, if a shopper seeks to buy two shirts in different colors but the store only carries one of the colors, the associate can purchase the other color from a warehouse and combine both items into one transaction.

Ultimately, this technology makes it simpler for store associates to increase shoppers’ average basket size by offering access to inventory in multiple locations.

10. Offer Product Bundles or Kits

A product bundle or kit is a sales strategy that involves grouping and selling items together, often at a reduced price compared to purchasing them individually. These special offerings simplify the shopping experience for customers and serve as an incentive to encourage them to buy more. They may also introduce customers to items from your catalog that they may not have considered otherwise, thereby enhancing the versatility of your product range.

Some retailers provide bundles or kit promotions as a standard part of their business model, such as offering a discounted yoga mat or water bottle when a customer purchases a workout top and matching bottoms. Others use them for exclusive collections or during holiday seasons. Both of these examples are effective in increasing your customers’ average basket size, all the while optimizing your inventory management and boosting sales.

How Omnichannel Technology Impacts Average Basket Size

Retailers can use a variety of tactics to enhance customers’ average basket size. However, one of the simplest ways to achieve this goal is to leverage technologies like mobile point-of-sale (POS) solutions. Mobile POS enables brands to equip their store associates with mobile devices as they move throughout the store. Associates can then access up-to-date inventory and personalized data to make customized recommendations and upsell or cross-sell products.

Omnichannel technologies – paired with strategies like loyalty programs, retail promotions, and BOPIS and free shipping options – offer the best chances at expanding shoppers’ average basket size while providing a seamless customer experience.

Interested in learning how you can increase customers’ average basket size while growing a loyal audience? Reach out for a demo today.

Last updated on July 25th, 2024 at 05:00 pm

In today’s digital era, many aspects of retail are going contactless – from payments to inventory tracking. One technology that’s powering the ability to visualize inventory across its shipping and purchase life cycles is RFID. Thanks to RFID solutions, retailers can transform the way they approach their inventory management. This allows for more product visibility, streamlined operations, and additional contactless payment options.

RFID technology also provides benefits to consumers and removes friction from the in-store shopping experience. It enables shoppers to quickly scan products and check out via mobile point-of-sale (POS) solutions. Ultimately, the benefits of RFID technology in retail have made it a vital asset to brands. It especially aids retailers that want real-time data to gain better insights on their products and their consumers’ shopping habits.

What is RFID?

RFID stands for radio frequency identification. It’s a form of technology that enables retailers to track items from initial shipment to point of purchase. RFID technology encompasses four major components: RFID tags, receiving antenna, RFID readers, and software.

The RFID system uses wireless communication and electromagnetic coupling to assign a unique identifier to an item. These unique identifiers become RFID tags that brands can link to specific products. RFID technology has started to eclipse the popularity of barcodes, as it offers real-time data updates and the ability to identify items not in direct view. 

Kris Barton, Senior Director of Market Development – RFID at Avery Dennison, recently sat down for an Endless Aisle podcast to discuss the rapid adoption of RFID technology in the retail industry.

“What RFID does is allow you to collect a lot of data in a very precise fashion in a very fast period of time,” said Kris. “When I think about a typical retail environment, the inventory is going to be about 65 to 70% accurate. The ability to collect this data and make better decisions is what really is driving RFID across the board.”

For more insights on the benefits of RFID in retail, listen to the full podcast and read on below.

“When I think about a typical retail environment, the inventory is going to be about 65 to 70% accurate. The ability to collect this data and make better decisions is what really is driving RFID across the board.”

Kris Barton, Senior Director of Market Development – RFID at Avery Dennison

Top 4 Benefits of RFID Technology in Retail

RFID technology offers many benefits to retailers, with the following notably streamlining experiences for store associates as well as shoppers.

1. Achieve High Levels of Inventory Accuracy and Supply Chain Visibility

Inventory management is crucial to both retailers and consumers. It allows brands to view real-time information on sales, stock levels, and consumer demand for specific products. This then lets retailers make more informed choices about which products to stock, reducing out-of-stock situations and minimizing overstocking.

Meanwhile, real-time supply chain visibility allows consumers to browse up-to-date products online or via mobile. They may then choose from a variety of fulfillment options at the point of purchase, such as buy online pick up in-store (BOPIS), same-day delivery, and ship-to-home. RFID solutions also offer a faster returns process, which saves consumers time.

2. Enable Omnichannel Fulfillment

RFID technology’s real-time tracking analytics offer numerous ways to streamline retail operations and fulfillment. The ability to quickly locate products via tags enables store associates to order more inventory as needed. They can also quickly find customer-requested items in the store.

If the customer’s desired items aren’t available in a particular location, associates can check nearby stores’ stock. This omnichannel approach to fulfillment helps staff ensure that customers can receive the items they need.

3. Improve Loss Prevention and Product Management

Another benefit of RFID technology in retail is its ability to support better inventory management across many sectors. For example, RFID tags can monitor certain product temperatures and alert if moisture compromises storage conditions. They can protect luxury goods by including product authentication information as well.

RFID technology also helps manage smaller products, including beauty items. It can monitor the number of items left on shelves to ensure that shelves always remain stocked, displaying all available options to shoppers.

Additionally, RFID systems offer discreet anti-theft solutions. If an individual attempts to leave a store with a stolen product, that product’s RFID tag will transmit a wave to the nearest receiver and alert the staff. This results in greater loss prevention.

4. Enhance the Customer Experience

RFID technology can serve as a shopping companion for customers, especially when used in smart fitting rooms. Retailers that offer RFID-enabled fitting room experiences enable shoppers to walk inside with their items and access personalized information about other available product styles and colors, as well as styling suggestions. This can also be an optimal way for brands to upsell other products and services. 

While consumers enjoy a completely customized shopping experience, brands will also gain important data. This can include data around shopping habits, such as conversion rates for items brought into fitting rooms and information on which products garner the most interest.

Another common use of RFID technology in retail is for line busting in stores. This occurs by supporting seamless and faster checkout experiences. Line busting is when store associates leverage mobile technology to help customers quickly move through lines at brick-and-mortar retail locations.

Mobile point-of-sale (POS) systems or self-service kiosks with RFID technology can scan products and let customers check out from anywhere in the store – without encountering long lines. Shoppers can also use contactless payments to make purchases, which results in a much more convenient experience. Solutions like Tap to Pay on iPhone capture payments via platforms including Apple Pay, physical credit cards, store gift cards, and more. Ultimately, contactless payments help drive more sales, especially during peak shopping periods.

How RFID Technology is Powering Omnichannel Retailing

The many benefits of RFID technology in retail underscore why it’s a staple in the commerce ecosystem. As brands consider strategies to enhance in-store experiences for sales associates and shoppers, investing in RFID-enabled solutions offers a significant return on investment. RFID technology also allows retailers to seamlessly manage their digital and physical offerings, as well as forecast potential best-selling products or shopping trends.

This ability to monitor inventory across its lifecycle and personalize consumers’ shopping experiences – all within one technology’s system – helps brands become true omnichannel retailers. 

Speak with one of our experts today to learn how your business can reap the benefits of RFID technology in retail.