Understanding Performance Metrics within an Omnichannel Strategy
Retailers are used to tracking numbers, and for brick-and-mortar stores, those numbers might be looking bleak. However, if you’re moving forward with the highly recommended omnichannel strategy, you’ll need to adjust how you view those numbers. The traditional models of monitoring store sales and revenue growth do not take into consideration customer experience performance (CXP), which is rapidly evolving as an essential metric. Understanding performance in the scope of an omnichannel strategy involves counting all customers, not just those who make a purchase.
All channels should be integrated as one unit.
As your departments can no longer function independently from one another when embracing omnichannel strategy, your revenue statements, likewise, can no longer exists as separate data points. It’s crucial to consider total traffic plus conversion, which is essentially an understanding of how a certain percentage accounting for mobile traffic will be different than in-store. Your business and marketing channels are no longer separate, which forces the need to understand your margins within one profit and loss (P&L) statement. The entire premise of an omnichannel strategy is to unify customer goals, prompting the merger of your accounts as well.
On-time delivery inspires loyalty.
With a cross-department mentality, even your sales professionals must consider how a retailer’s delivery standards will impact profits. Consumers are demanding convenience, and consistent and prompt delivery practices are a top concern within customer satisfaction metrics. Consumers could be ready to make a purchase, only to realize that shipping will take a week or more. In an era where free two-day shipping (thanks largely to Amazon) is the norm, you’ll lose sales if delivery isn’t meeting expectations. Keep in mind, it’s not retailers like Amazon that consumers are loyal to, but fast and reliable delivery.
Monitor the returns, profitable or not.
Although purchasing and delivery are important factors to consider, the success of your omnichannel strategy depends largely on performance metrics that are not directly related to sales. Retailers must pinpoint which leads are generating revenue and what clicks result in purchases. This is key to understanding which strategies are working, highlighting those that require adjustment.
Are customers frequenting a specific channel? Is your Facebook platform performing better than Twitter? Do consumers browse via social media but purchase in-store? By understanding where engagement with customers is most effective, retailers can determine the direction of their omnichannel strategies. Brick-and-mortar stores especially can capitalize on the customer experience and in-person interactions, gathering data that dictates the nature of a retailer’s online presence.
Measuring financial data alone will continue to leave gaps in a retailer’s omnichannel strategy. Performance metrics must identify consumer movement between platforms and where the retailer is seeing the most traffic. This ensures that resources are being allocated most efficiently, resulting in a better ROI. Sales are critical numbers, but in the current industry, sales are no longer enough.