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The Omnichannel Maturity Assessment

e-commerce Domination is the name of the game… can You Win?an executive Perspective from radial

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radial executive Perspective on forrester’s omnichannel maturity assessmentBy Stefan Weitz, EVP Omnichannel Technology

In a world of retail consolidation, over-distributed brands and diminishing margins, retailers struggle to

meet rising consumer demands while maintaining topline growth and margin runway. It seems that a

retail quadrant of pain has emerged…

1. Distressed retail chains are cutting costs, closing stores and narrowing in on bankruptcy

2. Forward-thinking big box stores are doubling down on innovative in-store experiences, online

shipping and delivery strategies and exclusive merchandise to build market share

3. Category-specific brands are still successful but trying to increase margins and scale their

businesses while maintaining customer expectations

4. New brands are bravely launching, with inevitably thin margins or trying to optimize their

presence in marketplaces they can’t control

Retailers and brands alike are trying to profitably invest and compete against an environment where

70% of Americans have an Amazon Prime account and the rest shop at Wal-Mart, who is also

doubling down on the consumer experience through acquisitions like Jet.com. These types of things

are causing the inevitable: Amazon and Wal-Mart will drive down costs even further while providing

the most dependable, consistent and convenient consumer experiences. As their inventory offering

expands beyond goods, becoming the everyday choice for consumers, all the brand allegiance in the

world won’t save retailers and merchants.

So retailers need to move, and move fast, to get the right strategies in place for top and bottom line

growth. From a high-level view, two pain points stand out:

1. Delivering a great experience: building out the infrastructure that’s capable of competing with

the likes of Amazon and Wal-Mart and adaptable enough to handle the surges of peak seasons,

while maintaining a memorable customer experience.

2. Profitability: having the right strategy, systems and processes in place to lift the entire value

chain out of the red and into the black.

E-commerce Domination Is the Name of the game… Can You Win?

The Omnichannel Maturity Assessment

About Radial

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in this Document

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aDDressing the challenges of Delivering a great customer exPerience ProfitablY

While there is no one-size-fits-all approach that can be applied, there are common challenges shared by retailers

of all sizes.

1. Putting the end-to-end customer experience first. A holistic plan of attack addresses friction at every

point in the purchase process: order management, payment, tax collection, fraud detection, speedy

fulfillment, shipping, in-store experiences, customer service and beyond. Here’s the kicker: all these

components must be synchronized to work across the experience.

2. the customer is alWaYs right. Not just right, but let’s face it also capricious and must-be-catered-to at

the end of the day. This includes offering them more choices, like ship from store, ship to store, in-store

pickup, buy in store, ship from supplier, etc. That means there’s an ever-increasing and desperate need for

flexible omnichannel technology and fulfillment options.

3. the fulfillment landscape is rapidly changing. Speaking of fulfillment, there are significant obstacles

that need to be solved for here, including peak hiring, rising labor costs, transportation, space utilization

and streamlining in a cost-effective manner (among others). Not to mention fulfillment models, like central,

regional and drop shipping.

4. security is a huge challenge. Retailers also need to think about the dramatically growing issue of

ecommerce fraud and how to combat efficiently so that you can focus on growing your business. How can

you make it more streamlined and effective? Ask your fraud provider: “Are you helping me convert new

orders, or simply helping me block bad ones?” The right fraud product can help increase your top line by as

much as 2.5 points.

5. lack of it systems and support. It’s a major challenge to work with no technical chops, and honestly,

most retailers and brands are still looking for the holy grail technology that is seamlessly integrated –

including best-of-breed warehouse management systems, payment and fraud systems, ecommerce order

management, and other routing technology capabilities to support the growing customer requirements.

6. flexibility is critical with delivery and return. Your customers expect a wide range of delivery options,

including minimizing the hassle of returns: next-day delivery and changing delivery post-order; customized

delivery dates up to a week or longer; free returns; and in-store returns. Can you offer that?

While these are very real challenges, they are not insurmountable. Retailers need to identify the right strategies,

and implement the right technologies and processes that enable them to drive bottom line growth by increasing

margins with scale, maximizing demand with supply, and minimizing fraud losses. While also increasing top line

by expanding your total addressable market, delivering Amazon-like customer experience to improve loyalty, and

increasing good order conversions.

Stefan Weitz, EVP of Technology, is responsible for leading the planning and execution of Radial’s corporate

strategy, including defining the portfolio of global products, product marketing, and inventing technologies

to deliver the industry’s best post-click commerce solutions. Prior to joining Radial, Stefan spent 17 years at

Microsoft where he served in key engineering and strategic roles to help turn whitespace opportunities into

viable business lines.

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the omnichannel maturity assessmentassessment: the omnichannel commerce Playbook

by Brendan Witcher and Claudia TajimaMay 9, 2017

FOR EBuSINESS & CHANNEl STRATEgY PROFESSIONAlS

forrester.com

Key Takeawaysassess omnichannel maturity across three DimensionsTo evaluate the current state of an omnichannel program, organizations must rate themselves across three areas: digital customer experience, digital operational excellence, and omnichannel customer engagement.

Discover Your Positioning based on forrester’s maturity frameworkForrester’s omnichannel maturity framework assesses organizations and places them in one of four maturity levels. These maturity stages help leaders understand where they stand and what they most need to improve in the near term to reach the next stage.

Plan next steps and investments based on assessment outcomesDigital business professionals should use the omnichannel maturity assessment to define their program goals, develop a strategic plan, and create a road map to work toward greater digital operational and customer experience excellence.

Why Read This ReportSupporting an omnichannel fulfillment program is table stakes in retail today. Organizations need to assess their omnichannel maturity to understand their current state and compare it with their desired state. This report reveals why capabilities need to change, why customers are demanding more, and target areas for improvement. Communicating these gaps is challenging, and this assessment will help eCommerce professionals explain where their company stands against the competition so the executive team can guide the strategic plan to the next level.

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© 2017 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

© 2017 Forrester Research, Inc. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 uSA+1 617-613-6000 | Fax: +1 617-613-5000 | forrester.com

Table Of Contents

Organizations Must Enhance Omnichannel Capabilities

The Three Dimensions Of Omnichannel Maturity

Measure Your Omnichannel Program Across Technology, People, Process, And Customers

Omnichannel Assessment Categories

Rate Yourself On The Omnichannel Maturity Scale

Recommendations

Discover Opportunities Using Forrester’s Omnichannel Assessment

Supplemental Material

Related Research Documents

Omnichannel Requires Scoring A Trifecta With Technology Solutions

One Customer, One Organization, One P&l

Your Strategic Plan Is The lynchpin For Omnichannel Success

e-commerce domination is the name of the game…can you win?radial executive Perspective on forrester’s omnichannel maturity assessment

by Brendan Witcher and Claudia Tajimawith Fiona Swerdlow and Meredith Cain

May 9, 2017

http://www.forrester.com/go?objectid=RES129244





http://www.forrester.com/go?objectid=BIO7744



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Organizations Must Enhance Omnichannel Capabilities

Rising expectations for omnichannel programs are initiating changes to people, processes, and customer experiences at retailers.1 Today, customers expect seamless interactions with brands across multiple touchpoints, forcing organizations to shed legacy ways of thinking and acting and instead replace them with new ways of doing business. However, most eCommerce leaders do not know where they are lagging the most in delivering omnichannel experiences to customers: Only about half of digital business professionals report that they have the right metrics in place to measure the effectiveness of the omnichannel experience.2 Organizations need to understand where to start, which initiatives will have the biggest impact to their business, and what mature companies are doing well.

The Three Dimensions Of Omnichannel Maturity

The omnichannel maturity assessment evaluates how organizations execute their retail business, spanning capabilities across operations, customer experience, and engagement. Most retailers understand that executing well on operations and customer experience is key to a successful omnichannel program (see Figure 1). However, the range of maturity for delivering omnichannel is wide: 47% of digital business leaders surveyed acknowledge that they do not have the right processes in place to implement their omnichannel fulfillment strategy.3 Organizations must understand customers’ high expectations for omnichannel services and be aware of the nuances within customer experience that can ruin an otherwise good interaction.

figure 1 DOX And DCX Drive great Omnichannel Experiences

Digital operationalexcellence

New digitallyenhanced products

and services

Data and insights

Enterprise

Customer

Digital customerexperience

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measure Your omnichannel Program across technologY, PeoPle, Process, anD customers

To keep pace with the competition, retail leaders must identify the most critical areas for improvement in their business with Forrester’s self-assessment tool (see Figure 2). The three dimensions of omnichannel maturity are:

› Digital customer experience (Dcx). Forty-nine percent of uS online adults reported using “buy online, pick up in-store” or “reserve online, pay, and pick up in-store” options when shopping online.4 “The whole omnichannel experience is a very, very real fact of life, and it has changed the dynamic of how a customer shops and what’s important to them in terms of the department store experience,” explains Kathryn Bufano, president and CEO of Bon-Ton Stores.5 The DCX assessment questions ask retailers what they are doing to improve omnichannel customer experience across all interactions.

› Digital operational excellence (Dox). The number of retailers that offer omnichannel fulfillment capabilities is set to increase by 42% by 2018, but organizations put themselves at risk of alienating customers if they launch before perfecting the logistics of each program.6 The DOX dimension of the assessment focuses on specific operational competencies, including management of people and processes, which retailers must identify, plan, manage, and optimize to meet the expectations of today’s omnichannel shoppers. This includes training store associates on how to execute omnichannel programs. For example, 85% of uS online adults feel that it is important for retailers to offer an order tracking service, so retailers need to have a reliable system for providing this service.7

› omnichannel customer engagement. While DOX and DCX are mostly focused on fulfillment, a retailer’s holistic omnichannel strategy would be incomplete without the ability to deliver seamless customer engagement. An example of this is mobile apps that offer an “in-store” mode to contextualize and personalize the physical shopping experience. Twenty-eight percent of uS online adults check into a location-based app with their phone every time they enter a store, and another 41% check in sometimes, so offering this form of digital to physical engagement has merit.8

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figure 2 The Omnichannel Maturity Assessment Tool

Points Scale

We currently do not offer and do not plan to offer this capability.

We currently do not offer but plan to offer this capability in the next 12 months.

We have this capability fully launched in market, but we have a significant amount of work to do.

We have this capability fully launched in market but feel we still have some room for improvement.

We have this capability fully launched in market and feel that it is fully optimized.

1

2

3

4

5

Omnichannel capability maturity assessment (100 points total)

Enterprise inventory visibility

Are you using systems and technology to fully support accurate and reliable representation of in-store inventory through online channels and vice versa?

Does your enterprise inventory visibility program improve customer experiences, effectively adding significant value to the shopping journey, and provide exposure to all inventory available for purchase?

Have you fully digitized the operational aspects of BOPIS, using in-store tools and processes that increase store traffic and allow for efficient pick/pack processes, as well as monitoring and measuring order events?

Does your “buy online, pick up in-store” program meet customer expectations by creating better and more efficient customer experiences than traditional paths of purchasing in a store?

Operations

Experience

Operations

Experience

Buy online, pick up in-store (BOPIS)

Enterprise inventory visibility total

Buy online, pick up in-store total

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figure 2 The Omnichannel Maturity Assessment Tool (Cont.)

Ship-from-store

Is your ship-from-store program ful lling online orders for customers in ways that reduce operational costs and help you sell more full-price inventory and thereby avoid markdowns?

How well does your ship-from-store program enable customers to receive orders signi cantly faster than using distribution centers?

Is your ship-to-store program designed to reduce costs without causing disruptions with in-store or logistical operations?

Are you proactively offering a ship-to-store program that adds clear value to the shopping journey, offers free shipping on both heavy/bulky and low-price-point items, and signi cantly improves the customer’s online shopping experience?

Operations

Experience

Operations

Experience

Ship-to-store

Ship-from-store total

Ship-to-store total

Endless aisle

Have you invested in robust tools and technologies, as well as a structure for people and processes, that make ordering in-store as easy as ordering online and create “save the sale” opportunities for store associates?

Have you made it possible for customers to buy any inventory located anywhere in the enterprise from all of your in-store locations, and have you built an ef cient system for keeping customers aware of their order status?

Have you optimized your in-store returns program, increasing exchange/repurchase rates in-store and making the returns/exchanges seamless and automated all the way through to nal disposal?

Are you marketing your omnichannel returns program as a key value proposition for your customers, and are processes in place to ensure a high-quality, frictionless customer experience?

Operations

Experience

Operations

Experience

In-store returns of online orders

Endless aisle total

In-store returns of online orders total

Total score:

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figure 2 The Omnichannel Maturity Assessment Tool (Cont.)

Do you have a specific individual/team that is solely responsible for the execution, quantity, and quality of the omnichannel services?

Are your in-store associate digital tools available to help customers find products, research products, and resolve order/service issues?

Are your store associates incentivized on any order that occurs in the store or online from customers within a certain radius of the store?

Do you capture and measure your associates’ performance and support of programs through secret shoppers or surveys of omnichannel shoppers?

Do you heavily promote and market your omnichannel programs both online and offline?

Do your in-store customers have access to their online carts or wishlists via a stationary in-store device?

Do you have an app that has specific in-store functionality (e.g., wayfinding, shopping lists, coupons, in-store inventory mode, etc.)?

Are your offers, promotions, and ability to use gift cards consistent online and offline, and are your prices consistent across channels with an explicit price-matching policy?

Operations

Experience

Level 1

Level 2

Level 3

Level 4

Omnichannel value-added services

Maturity stage

0-25

26-50

51-75

76-100

Points

Total score + optional points:

Omnichannel value-added services total

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omnichannel assessment categories

When filling out the assessment, digital business pros must take an honest look at their operational efficiencies and customer experiences in every category to fully assess their maturity levels, even if they don’t offer a service. Why? Because customer expectations are constantly set — and reset — by what other retailers, financial services firms, and travel companies offer in the market, regardless of what a retailer might choose to do.9 For this assessment, there are seven key omnichannel capabilities:

1. enterprise inventory visibility. IKEA shows online customers exactly what inventory levels it forecasts to have on hand in a particular store (see Figure 3).10 Seventy-two percent of uS online adults believe it is important for retailers to offer real-time inventory visibility, but as IKEA illustrates, evaluating your capabilities across DOX and DCX goes much further.11 On the operations side, are you using RFID to track inventory? Is inventory visibility updated in real time online? For DCX, can the shopper see when an item will be back in stock? Can customers see local in-store inventory through an app? Answering “yes” to these kinds of questions means you’re adding value to the customer journey and the offering is strong.

2. buy online, pick up in-store (boPis). Today, 64% of uS online adults believe it is important for retailers to offer BOPIS. These programs are not only efficient; they actually delight customers.12 Do you have a digital system to track shelf locations where store associates hold BOPIS orders until pickup? Optimizing in-store pickup can even create add-on purchases: As long ago as 2015, Kohl’s found that between 15% and 20% of BOPIS orders resulted in additional in-store purchases.13 Plus, 65% of uS online adults who use BOPIS expect their order to be ready within an hour — do you notify your customers that quickly that their order is ready for pickup?14 The bottom line for strong BOPIS customer experience is whether you are meeting customer expectations and creating a more efficient shopping experience than buying in-store.

3. ship-from-store. Target’s EVP and COO John Mulligan notes that ship-from-store helps the company reduce shipping times, save costs, and balance inventory.15 Today, Forrester data showed that by the end of 2016, 72% of retailers expected to offer some form of ship-from-store.16 When assessing operational capabilities, ask these questions: Do your associates have handheld devices with scanners for picking and packing items? Do you have an effective, digitized system to track packing materials in stores? Are you able to effectively balance and clear inventory to avoid markdowns? From a DCX perspective, do your customers have the option to select “ship complete orders” (slower) or “ship separate orders” (faster)? Do your commerce sites show estimated delivery dates? Do you deliver nearly all ship-from-store orders to customers within three days?

4. ship-to-store. Customers see value in and are using ship-to-store for a variety of reasons: For example, in its Q3 2016 earnings call, shoe retailer DSW fulfilled nearly 28% of its online orders from one of its 500 stores, using both ship-to-store and BOPIS.17 The best ship-to-store programs automate tasks, reduce costs, and avoid disruptions in-store. Ask yourself questions such as whether your replenishment centers and online distribution centers are in the same location, in turn allowing you to combine online orders with store shipments. Are you able to track and account for

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additional in-store orders that occur when a customer comes in to pick up a ship-to-store order? On the DCX side, is inventory at both distribution centers and other store locations utilized to assure orders are fulfilled in a timely manner? Do you offer free shipping on all ship-to-store orders?

5. endless aisle. When customers are shopping in a store and the product they are looking for is unavailable, 76% of online adults are likely to have the store place an online order and ship the product to them for free.18 For your endless-aisle operations, is ordering in-store as easy as ordering online? Can your customers self-serve and order through a stationary in-store device such as a kiosk? Can your associates perform checkout in-aisle with a mobile point of service (mPOS) device? Do your systems measure ROI by tracking in-store “save the sale” situations? As for customer experience, can your customers access and purchase any sellable inventory from any location that the inventory may be? Do you ship endless-aisle orders free to customers, regardless of whether they are shipped to a store or to the customer’s home?

6. returns. JC Penney processes more than 90% of online order returns at a store, turning its stores into real assets for this part of the customer experience.19 This service is a wise move: 87% of uS online shoppers believe it is important for retailers to offer free returns of online orders, and 79% of these respondents feel the same way about the ability to return online purchases in-store.20 When assessing your returns operations, ask yourself this: Does your policy allow customers to return items they purchased online in all of your stores? Do you accurately allocate returns on online orders back to the online channel so they do not negatively impact sales/returns ratios at stores? For customer experience, does your returns program create value and a frictionless experience for the customer? Do you heavily promote your “buy online, return to store” program online to help customers buy with confidence? Can your customers go online to initiate a return?

7. omnichannel value-adding services. Customer engagement for omnichannel creates seamless customer experiences, and a good example is Starbucks’ app where customers order coffee online for in-store pickup. When evaluating your own engagement services, this goes beyond just having an app. Retailers need to deliver value to customers that incentivizes them to use an app and share contact information. To assess your omnichannel engagement maturity, consider these questions: Do you heavily promote BOPIS and ship-to-store online and offline? Do your associates have the tools and incentives in place to execute on your omnichannel programs effectively? Do you have an app that has specific in-store functionality and delivers value your customers need?

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figure 3 IKEA’s Website Shows Expected In-Store Inventory At The Item level

Source: IKEA website

rate Yourself on the omnichannel maturitY scale

Forrester has identified four stages that organizations and digital business pros go through as they build an omnichannel program. Depending on your score, you’re currently in one of the following four maturity phases:

› maturity level 1. Your organization has not yet embraced omnichannel enablement or invested in the key services and capabilities you need to offer to compete. To move forward, leadership must let go of old business practices and commit to innovating your omnichannel offerings across DOX and DCX first and foremost. What’s the payoff? JC Penney’s CEO Marvin Ellison explains, “[An omnichannel] process allows [us as] a 114-year-old retailer to leverage all of our assets — our stores, associates, our inventory, our digital platform and supply chain — to reduce our costs and serve our loyal and valued customer.”21

› maturity level 2. Your organization is investing in emerging omnichannel that enables technology and services. Now you also need to refine the operational processes that let you provide consistently good customer experiences across your entire operation. For example, The Home Depot has placed successful bets on its omnichannel investments. Speaking of its BOPIS program, CFO Carol Tomé notes, “We had to invest in the experience that our customers wanted.”22

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› maturity level 3. You execute operational capabilities well (no small feat), but you lack the services and tools to consistently deliver enjoyable customer experiences. Your task now is to improve customer experience capabilities to get you to the next maturity level. Retailers should use data insights to better understand customer preferences and improve their experiences. For example, 72% of uS online adults like to receive shipping status notifications via text message or email, so retailers must offer this service to create a more enjoyable and complete customer experience.23

› maturity level 4. Omnichannel masters lead the retail market with strong operational and customer-facing capabilities. Organizations at this level may still have room for improvement to engage with customers, create a single view of the customer, and personalize interactions across the shopping journey. Beefing up an app so that customers want to use it when they enter the store is one way masters can continue to improve — and in the process gather even more customer data. Twenty-two percent of uS online adults who are smartphone shoppers have used a loyalty mobile app even when they’re not in a store, and 27% have used one while in a store.24 For example, in exchange for the customer’s data, Sephora’s Color IQ app provides distinct value to customers by matching makeup with skin tone and personalizing the customer’s shopping experience.25

recommendations

Discover Opportunities using Forrester’s Omnichannel Assessment

Evaluating your omnichannel capabilities requires that you first establish a baseline. use the common questions and industry standards described above as a model when grading yourself in each of these categories. Digital business pros who take this assessment must understand that:

› Your Dox score reflects strength of metrics, training, security, Qa, and store design. Across each assessment category, there are reoccurring operational best practices for retailers. As in all aspects of business, put metrics in place to measure success for each omnichannel fulfillment service. For example, retailers that offer in-store pickup must measure in-store wait times, add-on sales, and customer satisfaction. We hear from retailers anecdotally that it’s a best practice to train associates twice a year so that they continually brush up their skills and learn new processes and services. As you introduce new options for pickup, build in security procedures to prevent mixups and theft. For example, The Home Depot allows customers to designate another person to pick up their online order, so you may need to require customers picking up in-store to show their ID.26

› great Dcx requires retailers to communicate, recommend, and ship right. To evaluate their omnichannel customer experience, retailers should continually assess customer interactions and determine if they are meeting customer expectations. For example, retailers should send relevant product recommendations (e.g., for complementary products and services) with order confirmations and ship notifications. Customers should be able to track notifications and have the option to customize the type of alerts they receive, whether SMS or email.

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› omnichannel engagement challenges retailers to deliver value with personalization. The first step is to understand your customer pain points and then provide a helpful service that delivers value to the customer in their moment of need. Nike’s flagship store in New York has running, soccer, and basketball “trial zones” where customers can test shoes on treadmills, turf, and courts before they buy.27 Not only does this experience help customers find the best shoe for their running style, but it also helps the customer become a better athlete. In return, Nike gains rich customer data and can build a single view of the customer across touchpoints.

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Supplemental Material

surveY methoDologY

Forrester fielded its Forrester’s Q2 2016 global eBusiness And Channel Strategy Professional Online Survey to 133 eBusiness and channel strategy professionals. The panel consists of volunteers who join on the basis of interest and familiarity with specific marketing and strategy topics. For quality assurance, panelists are required to provide contact information and answer basic questions about their firms’ revenue and budgets.

Forrester fielded the survey from April to July 2016. Exact sample sizes are provided in this report on a question-by-question basis. Panels are not guaranteed to be representative of the population. unless otherwise noted, statistical data is intended to be used for descriptive and not inferential purposes.

Forrester Data Consumer Technographics® North American Retail And Travel Online Benchmark Recontact Survey 1, Q3 2016 (uS) was fielded in May and June 2016. This online survey included 4,400 respondents in the uS between the ages of 18 and 88. For results based on a randomly chosen sample of this size, there is 95% confidence that the results have a statistical precision of plus or minus 1.5% of what they would be if the entire population of uS online adults (defined as those online weekly or more often) had been surveyed.

Forrester weighted the data by age, gender, income, and region to demographically represent the uS online adult population. The survey sample size, when weighted, was 4,399. (Note: Weighted sample sizes can be different from the actual number of respondents to account for individuals generally underrepresented in online panels.) lightspeed Research fielded this survey on behalf of Forrester. Survey respondent incentives include points redeemable for gift certificates.

Endnotes1 Of the 20 retailers evaluated in the 2015 Forrester Omnichannel Functionality Benchmark, only five met the

expectations of 58% of European online adults and 47% of uS online adults in Forrester’s consumer surveys who buy or reserve online for in-store pickup and expect their orders to be ready to collect within an hour. See the Forrester report “2015 Retail Omnichannel Functionality Benchmark.”

2 Source: Forrester’s Q2 2016 global eBusiness And Channel Strategy Professional Online Survey.


4 Source: Forrester Data Consumer Technographics North American Retail And Travel Online Benchmark Recontact Survey 1, Q3 2016 (uS).

5 Source: Nicole Chynoweth, “Bon-Ton CEO, president rolls with daily challenges of evolving retail industry,” Central Penn Business Journal, December 23, 2016 (http://www.cpbj.com/article/20161223/CPBJ01/161229921/bonton-ceo-president-rolls-with-daily-challenges-of-evolving-retail-industry).

6 Per retailers surveyed, 57% currently offer customers omnichannel fulfillment services, while another 24% plan to offer this kind of service by the end of 2018.

Source: Forrester’s Q2 2016 global eBusiness And Channel Strategy Professional Online Survey.


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9 As empowered customers blend their digital and physical experiences, they expect companies to serve up the right solutions, products, or services in their moments of need, irrespective of channel, device, or touchpoint. To read about how connected devices have changed customers’ behaviors and attitudes, see the Forrester report “The Rise Of The Empowered Customer.”

10 Source: Allison Enright, “Ascena Retail group adds more omnichannel tactics to chase profit,” Internet Retailer, December 6, 2016 (https://www.internetretailer.com/2016/12/06/ascena-retail-group-adds-omnichannel-tactics-chase-profit).



13 Source: “Kohl’s (KSS) Kevin Mansell on Q1 2015 Results - Earnings Call Transcript,” Seeking Alpha, May 14, 2015 (http://seekingalpha.com/article/3183926-kohls-kss-kevin-mansell-on-q1-2015-results-earnings-call-transcript?page=11-2015-results-earnings-call-transcript?page=11).

14 When asked, “When you use ‘buy online, pick up in store,’ when do you expect to be notified that your items are ready for pickup?” 65% of uS online adults who use the service answered that they expected them to be ready within an hour. Source: Forrester Data Consumer Technographics North American Retail And Travel Online Benchmark Recontact Survey 1, Q3 2016 (uS).

15 John Mulligan, executive vice president and chief operating officer of Target, stated: “This [ship-from-store] capability reduces shipping times given the proximity of these stores to the vast majority of the uS population. With that proximity to guests, we also save on shipping, helping to relieve the pressure from shipping growth in our P&l. . . . It also allows us to balance our inventory across our store and network, maintaining in stock [goods] while reducing markdowns in store locations with heavy inventory.” Source: Matt lindner, “Target now ships online orders from more than 1,000 stores,” Internet Retailer, November 16, 2016 (https://www.internetretailer.com/2016/11/16/target-now-ships-online-orders-more-1000-stores).


17 Source: Matt lindner, “Stores fulfill nearly 30% of DSWs online orders,” Internet Retailer, November 28, 2016 (https://www.digitalcommerce360.com/2016/11/28/stores-fulfill-nearly-30-dsws-online-orders/).


19 Source: Matt lindner, “J.C. Penney says store closings wont hurt its omnichannel efforts,” Internet Retailer, February 24, 2017 (https://www.digitalcommerce360.com/2017/02/24/jc-penney-says-store-closings-wont-hurt-its-omnichannel/).


21 Source: April Berthene, “J.C. Penney keeps its eye on its prized omnichannel shoppers,” Internet Retailer, January 8, 2017 (https://www.internetretailer.com/2017/01/08/jc-penney-keeps-its-eye-its-prized-omnichannel-shoppers).

22 Source: “Why The Home Depot Is One Of The Most Innovative Companies Of 2017,” Fast Company, February 13, 2017 (https://www.fastcompany.com/3067483/most-innovative-companies/why-the-home-depot-is-one-of-the-most-innovative-companies-of-2017).



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25 The retail store is in the midst of major change, upending business models, formats, and locations that have been in place since the dawn of the suburban mall. Today, customers are empowered by information and increasingly expect streamlined and personalized experiences both online and in stores. To document this trend, Forrester surveyed eBusiness leaders to understand how they think about and plan to invest in digital store technologies. See the Forrester report “State Of Digital Store Investments 2017: Firms Must Prioritize Digital Operations.”

26 Organizations today must have a comprehensive strategic plan that aligns their internal teams with a single vision for omnichannel excellence. However, because omnichannel commerce continues to evolve quickly, eBusiness pros must often build their strategic plans in the face of technology, organization, and measurement challenges that they are still discovering. For help building strategic plans to gain executive buy-in, guide the company on its omnichannel journey, and set the foundation for a strong road map, see the Forrester report “Your Strategic Plan Is The lynchpin For Omnichannel Success.”

27 Source: Susan Reda, “Nike’s SoHo flagship leads transformational charge into the future of sports retail,” Stores NRF’s Magazine, March 15, 2017 (http://stores.org/2017/03/15/stay-and-play-2/).




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