Omnichannel Retail Guide Chapter 5
Implementing an omnichannel strategy means you have a huge load of data. Without the ability to extract meaningful insights, these data will be wasted and your next move is lost. Hence, you need updated Omnichannel KPIs (Key Performance Indicators) to measure the omnichannel performance and its progress towards your objectives. This chapter will provide omnichannel measurement metrics to track your omnichannel efficiency.
In business, the “gut feeling” of the marketer is important, but not that much in the digital era.
In this ever-changing market, no genius mind can sense accurately the business performance via a ton of data across channels.
That is why setting and tracking KPIs is very important, especially in an omnichannel business.
The company must handle information from many touchpoints, which are highly integrated with each other.
Without linked and systematic KPIs to track, there is no way to measure the effectiveness of omnichannel performance.
For example, an increase in online revenue can be resulted from a “catchy” promotion in stores.
Typically, in the first stage of omnichannel execution, KPIs are vital for retailers to measure omnichannel performance i.e. whether the strategy fits their businesses, or which are the most effectively invested channels.
In addition, without omnichannel KPIs, misunderstanding can easily happen due to the complexity of customer behavior and internal procedure.
Obviously, some previously-preferred KPIs become outdated because they do not consider the interactive ecosystem of all channels. This results in wrong traction and decision.
Hence, tracking KPIs in omnichannel businesses is a more complicated task, which requires a new set of omnichannel measurement metrics.
As retailers are now empowered by technologies, a new key performance indicator (KPIs) system with various tools and omnichannel data-centralized management is now promising for efficiency.