Veredus Director Sarah-Jayne Bennell looks at the evolution of omni-channel in retail.

1. The evolution of omni-channel
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The world of retail has certainly evolved significantly over recent
years. If we look back to the pre-internet era, consumer businesses
were heavily focused on the in-store customer experience. Having
the right sales professionals on the shop floor was, understandably,
a vital part of the retail executive strategy.
Fast-forward to 2014, though, and the world of the consumer is almost at the
opposite end of the spectrum. While the role of physical stores still remains
relatively important, the proliferation of communication and shopping
platforms has resulted in an omni-channel approach to consumer attraction.
And as I recently outlined for the RetailWeek Power list, 2014 alone has
already been a year of immense change for the industry as the ability
to create a seamless end-to-end customer journey via an omni-channel
approach remains the strategic priority.
Indeed, a recent report from IBM revealed the extent of the evolving
expectation of the consumer. In its Institute for BusinessValue Global
Consumer Study, IBM found that while the store remains important, it is
losing its share rapidly.The real winner was the online channel, which saw its
share nearly double to 27% of shoppers versus 14% last year.
In fact, IBM also revealed that this changing landscape is creating a new
group of consumers:
• Traditional (19% of study population) – Uses the least amount of
technology while shopping.
• Transitioning (40%) – Uses technology mostly to gather research and
other information.
• Tech-intrigued (29%) – Uses Social Handle, Location and Mobile Number
(SoLoMo) to interact with brands from browsing to buying stage.This
includes the use of social media channels, GPS tracking and text messaging
to locate stores and purchase products.
• Trailblazers (12%) – Uses SoLoMo extensively, including as a retailer
evaluation tool.
As a result of these new consumer groups, brands must now drive ‘six sigma’
lean processes from the supply chain in order to provide a high level of
service proposition. In order to support this, internal mind-sets and talent
expectations must shift to truly reflect what the future looks like.
Indeed, as Pascal Clausse,Vice President of Global Retail atAmer Sports
explained recently, the mindset of leaders now needs to be much more
focused on the 360 degree view of the whole retail experience.
“The fast-paced omni-channel revolution is a real opportunity for
retailers, but also a challenge in terms of the need for a quick evolution of
talent, particularly at a senior level. Leaders now need to have a greater
understanding of all consumer ‘touch points’ and how these tie into the
wider strategies of the business, both on and offline.
Senior professionals need to be able to bridge the activity of physical stores
with all online channels while also redefining the back office solution to
support the needs of front end teams. In effect, the best future managers will
no longer be those with specific, niche skills, but instead those with more
general experience.As a result, professionals able to manage the whole
umbrella of consumer touch points will certainly be in high demand in the
very near future.”
As this evolution continues, retail leaders will not only need to develop their
own skills to ensure company strategies are driving the right outcomes, but
also attract the best talent to support this.
The professionals of today need to be much more ‘well-rounded’ individuals
able to positively contribute to the customer experience across multiple
platforms and within global brands.They need to be comfortable using a
variety of channels to engage with audiences in a consistent manner. In
essence, they need to be able to grow in line with the industry.
However, finding and keeping these individuals will be difficult as one of my
contactsAlan Jacobs, a Non-Executive Director at organisations including
Iceland, Reiss,Austin Reed and BlueInc, explained recently:
“In an omni-channel world, retail businesses that will succeed will be those
able to attract and retain e-commerce talent with both the potential and
staying-power to progress to broader senior management positions. Bringing
the pace of decision making and the analytical skills of the e-commerce
world to other retail channels is high on the agenda of forward thinking retail
groups.
However, demand for e-commerce professionals and the rewards on offer
make it a challenge to encourage the best individuals to stick around long
enough in any one multi-channel retail company to develop the wider
management skills and know-how needed to take on a wider role.”
Exactly how retail will change in the coming years is perhaps uncertain.
However, what is clear is that the industry needs the best talent able to adapt
and evolve with the changing needs of the consumer.And as this transition
starts at the top, having the leadership teams with the right skills is critical.
Written by:
Sarah-Jayne Bennell, Director and Head ofGlobalConsumer Practice atVeredus.
Tel: 0207 932 4315 Mob: +44 (0) 7718 423 830 Email: sarah-jayne.bennell@veredus.co.uk