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Microservices Journal Authors: Liz McMillan, Blue Box Blog, Kevin Jackson, Pat Romanski, Alena Prokharchyk

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L2 Releases INTELLIGENT REPORT: OMNICHANNEL in Partnership With RichRelevance

A decade of omnichannel investments such as cross-channel inventory management and ship from store capabilities are paying dividends for retail giants as they reshape their brick and mortar footprint. In 2013 the showrooming phenomenon, consumers browsing products in store and purchasing online, garnered a great deal of media attention but now the tides have turned: data suggests consumers are more prone to “webrooming” – researching online or on mobile and purchasing in-store.

L2’s Intelligence Report: Omnichannel, created in partnership with RichRelevance, examines the efforts of 100 retailers to drive customers from clicks to bricks and back again. L2 attempts to determine brands and best practices that are removing organizational and technological barriers to deliver a true omnichannel experience.

Download an excerpt of the report:

http://l2thinktank.com/research/omnichannel-retail-2014

Study highlights:

  • 50 percent of offline retail sales will touch digital channels by September 2014.
  • Omnichannel success requires uniting e-commerce and physical store teams via alignment of technology, incentives, and training of on- and off-line associates.
  • Of the 100 brands tracked in our 2014 Omnichannel Retail study only 6 percent have real-time inventory visibility online and only 26 percent offer in-store pick-up.
  • Gucci is the only brand in the luxury category to launch inventory visibility since L2’s 2013 study, joining Tourneau as the sole luxury retailer with in-store inventory visibility.
  • Only 5 retailers (Best Buy, Crate & Barrel, Home Depot, Sears and Walmart) leverage the information stored to a consumer’s account in order to seamlessly deliver in-store inventory information.
  • Of the 8 department stores benchmarked in the study, 75 percent provide inventory visibility – Barney’s and Bergdorf Goodman are the only holdouts.
  • Retailers such as Macy’s and Coach that are deploying omnichannel strategies are seeing growth that surpasses Amazon due to their leveraging of stores as assets.

Comments on the news:

  • “We believe the most successful organizations will bring customers to the center of their sales strategies and will make the requisite investments in systems, incentives, and attribution models, using digital as the connective tissue.” – Maureen Mullen, Head of Research & Advisory, L2
  • “Omnichannel success requires retailers to use technology and data to deliver real value to shoppers in terms of convenience, experience and connection. There is a sea change occurring in retail as merchants tap into personalization, location data and new devices to deliver real-time experiences that support the shopper in her goals.” – Diane Kegley, CMO, RichRelevance

ABOUT L2

L2 is a subscription business intelligence (“BI”) firm focused on digital competence of consumer brands. We provide our member brands with actionable, data-driven insights on their digital performance. The L2 Digital IQ Index® is the globally recognized benchmark for digital performance. By analyzing more than 850 data points across Site & E-Commerce, Digital Marketing, Social Media, and Mobile & Tablets – we quantitatively diagnose brands’ digital strengths and weaknesses and rank peer-to-peer performance. For more information, please visit: www.l2thinktank.com.

ABOUT RICHRELEVANCE

RichRelevance is the global leader in omnichannel personalization. Ranked #1 for personalization in both the US and EMEA, RichRelevance is used by more than 175 multinational companies to create a data-centric, single view of the shopper, delivering the most relevant experiences across web, mobile and in-store. RichRelevance drives more than one billion decisions every day, and has generated over $10 billion in sales for its clients, which include Target, Costco, Marks & Spencer and Priceminister. Recently, the company opened its cloud-based platform through its service-oriented architecture (SOA) to accelerate “Relevance in Store”—a strategic omnichannel initiative that enables clients to seamlessly merge disparate data sources and build applications that adapt to where, when and how consumers shop today.

Headquartered in San Francisco, RichRelevance has been recognized as a “Best Place to Work” and a “Most Engaged Workplace” in the Bay Area for numerous years, and serves clients in 35 countries from 8 offices around the globe. For more information, please visit www.richrelevance.com.

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