Stage 1: Siloed
In the first stage, retailer’s focus is product-centric and transactional. They only have basic supply chain processes and data flows in place. There’s no clear omnichannel strategy and operations are siloed.
For example, you may have a point of sale (POS) running in your retail store and a website, but they are not integrated. They have separate orders, customer data, and products. There are efforts to connect different parts of the system, but they are ad hoc and inconsistent.
Retailers might not have firm KPIs in place to track the effectiveness of their operation. Even if they do, retailers are suffering from low quality and incomplete data, as the databases are siloed.
Stage 2: Early-stage omnichannel
Retailers in early-stage omnichannel are shifting towards a customer-centric focus. You have an omnichannel strategy, roadmap, plan, and timeline in place. There’s integration between some channels. You have a basic view of the customer and offer a better experience.
An example would be a retail system where the online website, offline POS, and warehouse are connected. Order, customer, and product data can flow between these channels.
Businesses at this stage have started documenting retail processes. The staff are competent and minimum standards and best practices are emerging. Retailers are tracking performance with quantitative KPIs such as profitability.
Stage 3: Mid-stage omnichannel
Mid-stage omnichannel retailers embrace customer-centric values and contextual insights. There’s an emphasis on simplifying retail processes and aligning them to customer journeys. As a result, retail processes are more cohesive and strategic.
Mid-stage businesses dedicate resources to implementing best retail practices, training staff, and staying current. Internal operations are integrated and collaborate robustly to match customer expectations across all channels. Retail data begin to provide insights across some but not all channels. Tracking quantitative KPIs such as customer engagement is becoming more prominent.
Stage 4: Omnichannel
Omnichannel retailers embed customer-centric values in their culture. They deliver a consistently positive customer experience across channels. They enjoy a single and real-time view of order, inventory, product, customer, supplier, and more.
Omnichannel retailers test and iterate new techniques to improve their operations and enhance customer journey. Predictive analytics and customer experience KPIs begin to drive their next steps.
Stage 5: Optimized omnichannel
Retailers in this stage offer optimized customer experience with complete integration and alignment. Their team has an in-depth understanding of retail and their system. Optimized retailers continually review and innovate their process.
Their retail model is evolving as the industry grows. They are seeking cutting-edge retail technology and opportunities. These include cooperating with customers and partners to develop new services.