Manhattan Unveils First Unified Commerce Benchmark for Specialty Retail in Europe
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Insights
The recent benchmarking study conducted by Incisiv, which evaluated 50 specialty retailers across Europe, provides valuable insights into the state of Unified Commerce in the retail sector. The study highlights the integration of digital and physical shopping channels as a significant factor for retail success. A key takeaway is the emphasis on a seamless 'Unified Basket' experience, where 40% of leaders personalize promotions and offers across channels, compared to just 6% of non-leaders.
This suggests that retailers who invest in technology to synchronize online and in-store experiences can gain a competitive edge. The study's identification of brands like Adidas and H&M as leaders in this space indicates that large, well-established brands are setting the benchmark for the industry. For investors, this could signal which companies are likely to capture greater market share and consumer loyalty through advanced customer experience strategies.
An important aspect of the findings is the 'Guided Inspiration' in search and discovery, which refers to the ability of retailers to help customers find products that resonate with their preferences. This capability is not just a technical feature but a strategic approach to customer engagement. It suggests that retailers who are able to leverage data analytics and AI to provide personalized shopping experiences are likely to outperform those who do not.
For stakeholders, investing in such capabilities could lead to increased customer satisfaction and repeat business, which ultimately drives revenue growth. Retailers that fail to adapt may see a decline in customer retention and market share. The long-term implications include the potential reshaping of the retail landscape, where personalization becomes a key differentiator.
The 'promising and fulfilment' aspect of the study dives into the operational efficiencies of the supply chain in a unified commerce environment. The ability to accurately promise and fulfill orders across channels is critical in meeting customer expectations. This level of service requires a sophisticated supply chain infrastructure that can handle complex logistics.
Retailers that excel in this area are likely to see improvements in inventory turnover and reduced costs associated with overstocking or stockouts. This efficiency can be a significant driver of profitability. Conversely, retailers struggling with fulfillment may face customer dissatisfaction, increased returns and higher operational costs. For investors, the operational capabilities in promising and fulfillment can be indicative of a retailer's potential for long-term operational excellence and cost management.
The Unified Commerce Benchmark for Specialty Retail in
Based on data from actual purchases, returns and customer journeys across digital and physical channels, the benchmarking reveals common attributes of successful retailers and opportunities for retailers to improve customer value and operations. Of the 50 retailers benchmarked, four brands emerged as overall leaders in Unified Commerce: Adidas, H&M, Leroy Merlin and M&S.
Below are some of the key findings from each of the four categories assessed:
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Unified Basket: The biggest point of friction in today’s retail customer experience is due to the loss of context when transiting between the physical and the digital. Leaders in cart and checkout understand that a unified cart or basket is a foundational capability when it comes to that all-important connection across channels;
40% of leaders show personalised promotions and offers on product description pages and cart, compared to6% of non-leaders. -
Guided Inspiration: Leaders in search and discovery help shoppers discover meaningful products, making shoppers feel good about their purchase decisions, with
100% of leaders publishing detailed content on sustainability practices. They offer capabilities such as product recommendations, back-in-stock notifications, and product sourcing information, while40% of Leaders offered real-time inventory visibility on product detail pages and personalised recommendations on home pages. -
Flawless Fulfilment: Leaders in promising and fulfilment make sure shoppers’ product pick-up or delivery experience is as good as their shopping journey. Not only do leaders meet or beat their delivery promises consistently, they do also so while being more environmentally friendly too. Offering shoppers greater post-order flexibility, including complete or partial cancellations, and greater delivery/pick-up options are all areas leaders excel in.
60% of leaders offer shoppers the ability to cancel orders post-purchase compared to28% of non-leaders. -
360 Degree Service: Leaders in the service and support segment offer shoppers a wide variety of service options; from in-store assistance to call centres, social media support to live agents on their website and mobile app. Importantly though, they offer seamless continuity, consistent quality and always-on availability across channels and services. They empower shoppers to self-serve most of their service needs with
92% of Leaders supporting in order modifications, returns and exchanges via chat/call and75% offering their customers the ability to return purchases to drop-off locations.
Henri Seroux, senior vice president, EMEA at Manhattan Associates commented: “
“Unified Commerce holds great promise for retailers and the key to it lies in not only seamlessly joining digital and in-person experiences, but also linking all the data and systems that enable them too,” said Paul Tepfenhart, Global Director Retail and Consumer Strategy at Google Cloud. “Manhattan Associates’ partnership with Google Cloud on this latest benchmark provides retailers with a data-based roadmap to deliver a unified commerce strategy that makes it easier for both customers and store associates to reliably locate the right products online and instore.”
“The European benchmark findings illustrate progress and investment are being made in addressing table stake capabilities such as channel integration, efficient search, payment options, sustainability choices and fulfilment. However, retailers are lagging in adopting many high impact differentiating capabilities and driving operational excellence,” said Tim Stoddard, General Manager and Senior Vice President EMEA, Zebra Technologies. “The results underline the importance of real-time optimised inventory visibility, front-line associate engagement, and elevated customer experience as key pillars to the delivery of Unified Commerce.”
Amarjot Mokha, Chief Operating Officer at Incisiv added: “In a fast-paced European market, retailers must continually innovate and adapt if they are to keep pace shifting consumer trends. Retailers embracing a Unified Commerce approach are able to go beyond simply selling products, to a place where they can craft experiences that resonate beyond country borders. This type of customer connection drives strong business growth, up to 3X higher revenue opportunities and creates the type of brand connection and customer loyalty every retailer covets.”
Click here to view the complete 2024 Unified Commerce Benchmark for Specialty Retail in
Methodology:
Incisiv first developed a detailed parameterised list of Unified Commerce customer experience capabilities. Then, based on shopper insights, retailer executive surveys, retailer digital and store performance data, and segment-level KPI benchmarks, it organised key capabilities into Table Stakes and Differentiating Experiences.
Incisiv then developed an objective list of 50 retailers across five European countries and three Specialty Retail segments, choosing a mix of top omnichannel retailers by revenue, across apparel and footwear, home and DIY and luxury. All retailers had to be in good financial health, as determined by a combination of factors including their debt rating, and rate of store closures.
Incisiv’s team of customer experience analysts then conducted comprehensive shopping journeys, including real purchases and returns, across both physical and in-person channels. Assessed retailers were then scored based on the adoption of customer experience capabilities, the efficacy of each capability, and the consistency and quality of experience.
Based on their score, brands were organised into one of four performance categories - Leaders, Challengers, Followers, or Laggards - each with a statistically significant difference in capability maturity and impact on performance.
About Manhattan Associates
Manhattan Associates is a global technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.
Manhattan Associates designs, builds, and delivers leading edge cloud and on-premises solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240305822976/en/
For all media enquiries please contact James Canham-Ash (+44 1189 228001) or email James at jash@manh.com
Source: Manhattan Associates Inc.
FAQ
What is the focus of the real-world analysis conducted by Manhattan Associates Inc. (MANH) in partnership with Google Cloud and Zebra Technologies?
Which companies collaborated with Manhattan Associates Inc. (MANH) in conducting the study on Unified Commerce?
How many retailers were assessed in the Unified Commerce Benchmark for Specialty Retail in Europe?
Which four brands emerged as overall leaders in Unified Commerce according to the study conducted by Manhattan Associates Inc. (MANH)?
What is identified as the biggest point of friction in today's retail customer experience according to the findings?
