Customer Centricity – The Path to Omnichannel Excellence

This blog post frames the results of a study recently published by adesso that impressively demonstrates the importance of consistent customer orientation and the strategic use of modern technologies for retail. In order to meet the growing demands of customers, it provides a practical insight into how retailers can optimize their processes and strategies. Based on empirical findings, this blog post offers concrete approaches for successfully combining theory and practice in order to create sustainable competitive advantages. A must-read for anyone who wants to actively shape retail and make it future-proof.

In an increasingly digital and connected world, customers are faced with ever more options. Online, in stores, on mobile devices, on social media – it is possible to find out about products, test them or buy them at any time and in almost any place. At the same time, expectations of a smooth interaction with the brand are constantly growing, demanding a seamless shopping experience across all channels.

360° customer view: the basis for loyalty and competitive success

At the same time, a 360° view of customers is of fundamental importance for retailers in order to create coherent and personalized experiences at every stage of the customer journey. Those who consistently focus on customer centricity and omnichannel excellence will be able to exceed customer expectations, gain their loyalty and thus successfully hold their own against the competition.

It sounds like a simple principle: understand your customers' needs and offer them what they expect and more. But what are the prerequisites for achieving this?

Crucial aspects of a successful omnichannel strategy

To ensure that all sales and service channels work together harmoniously, a deep understanding of the business model and technical knowledge of the company are essential. Our experience shows that the key building blocks for a successful omnichannel strategy are the elimination of data silos, the availability of real-time information, the use of customer relationship management systems (CRM) and the introduction of loyalty programs.

Eliminating data silos: The key to connected customer and company data... and in real time, of course

Today's customers want flexibility and convenience. When transitioning between mobile applications, online shops and brick-and-mortar stores, information should be passed along instead of getting lost. Otherwise, the perceived level of service suffers. The individual buying experience thrives on preferences and purchase history being taken into account, relevant recommendations being made, and customers not just being noticed, but being placed at the center of attention. The basis for true customer centricity breaks down the storage of data in isolated channels, requires the integration of a central platform and a versioned data management strategy to ensure a comprehensive view of and for the customer.

Customer Relationship Management Systems (CRM): The central link between company and customers

When we talk about customer centricity, the analysis and evaluation of relevant data is just as important as the storage of that data. The informative value of data lies in its context. A powerful CRM is at the heart of every omnichannel strategy. It enables retailers to understand the behavior and preferences of customers, create individualized experiences, and ensure consistent interactions across channels, which are stored in the CRM together with preferences.

Loyalty programs: gaining insights and retaining customers

Another building block in the foundation of omnichannel excellence, which fits well with the ones mentioned above, is the loyalty program. If it is structured sensibly, it can be integrated via the CRM. It can be used for both data collection and data output – whether online, in-store or via an app. Every customer card used at the (virtual) checkout or scanned app offers the potential to gain valuable insights into customer needs. An incentive system is equally needed to encourage customers to share these insights. This is often implemented in the form of offers or discounts that focus on the sense of reward. As the program is used more and more, the incentives seem tailor-made for regular customers, meeting their expectations and increasing sales while strengthening their loyalty to the company.

Set the course for the future now!

Retailers who want to implement and enable omnichannel excellence must first and foremost strengthen their technological base. But what if you've already done that? In our view, additional building blocks include the introduction of real-time inventory systems and artificial intelligence (AI).

Real-time inventory: Transparency and control at your fingertips

Today, customers expect to be able to buy products anytime, anywhere. Real-time inventory systems offer seamless functionality to increase flexibility for customers and provide information about availability. One example of this is a Click & Collect option. Being able to immediately see which items are available where, reserve them and pick them up at short notice reduces frustration, improves the shopping experience and makes purchases more efficient. Real-time data is essential to ensuring that these transitions are as seamless and effective as possible. But transparency is not only an advantage for customers. It also offers retailers the opportunity to provide personalized recommendations and offers based on current stock levels that are tailored to the needs of their customers. This minimizes overstocking, improves planning and promotes a proactive rather than reactive business strategy. The cloud, as an always-on infrastructure, provides the technical basis for this.

Artificial intelligence: The key to faster automation and efficiency

Omnichannel excellence also requires that real-time inventory management across all channels be considered as an additional data source in data management and transferred to a unified data platform.

Sounds like a lot of effort and resource allocation? Collecting and centralizing data is just the first step. Our recommendation for progress: the use of AI and machine learning.

This enables retailers to comprehensively analyze the needs and behavior of customers, make predictions, and carry out personalized and targeted marketing campaigns. An AI-based recommendation system generates product suggestions that are of interest to customers, which leads to an increase in their willingness to buy. The automation of processes mentioned here means that the system and the company learn continuously, but above all, they learn faster than would be possible with manual evaluations. The reduction of errors and the increase in efficiency and speed can lead to a clear competitive advantage.

In theory, this is feasible for everyone. So let's take a look at practical implementations

We come full circle here when we return to our recently published study on the topic of customer centricity. Over 80 percent of retail companies stated that they had recognized the importance of the topic – so much for theory. When asked whether these companies had a firmly established strategy in this regard, only 56 percent answered “Yes” and 44 percent answered “Partially”. This makes it clear that not every retail company has implemented or is in the process of implementing a strategy. We provide support in practical matters!

The path to an integrated data landscape

Most recently, adesso supported a large European fashion company in setting up a central data platform with Microsoft Fabric. However, omnichannel excellence goes beyond collecting and consolidating data. In addition to the technology, the focus was also on the impact on the customer base. That is why we also enabled the usability of the data by designing a data strategy and introducing data-driven processes for an optimal customer experience.

Comprehensive customer knowledge as the key to personalized relationships

As a food retailer, bofrost* supplies customers with frozen products throughout Europe. Considering the scope, it becomes clear that the customer experience is taken to another level and scaled up here as well. Despite the internationalization, the focus is still on the individual needs of the customers and the advice at their doorstep. Therefore, knowing the customers is crucial and this requires information. The Salesforce CRM used supports the collection of relevant information and makes it available for advice in the point-of-sale app for sales representatives, which was developed together with adesso. By analyzing data from active customers, new customers can be targeted and addressed individually. At the same time, existing customers benefit from a perfectly coordinated service that focuses on their needs. This combination leads to increased customer satisfaction – creating a consistent, positive customer experience that impresses everyone.

Loyalty is rewarded

We developed a loyalty app for a medium-sized company in the furniture industry. The aim was to reduce analog communication and advertising materials, to reach a younger target group and to increase the brand's presence in general. In less than half a year, we not only designed the loyalty app, but also implemented it, thus contributing to a comprehensive customer experience. Whether marketing campaigns, product or reference information, or the clearing of loyalty points – the cloud technology used in the background allowed all relevant information for customers to be streamlined, enabling a seamless customer experience across the online store, market and app.

Conclusion

Our study clearly shows that customer centricity and omnichannel excellence are not just nice-to-haves, but crucial success factors in modern retail. Retailers who invest in the necessary technologies and strategies – such as real-time data, the elimination of data silos, the introduction of a CRM system and the development of loyalty programs – will better understand the needs of their customers, respond more flexibly to changes and be able to assert themselves on the market in the long term. A seamless, consistent customer experience across all channels strengthens customer satisfaction and loyalty and ultimately becomes a competitive advantage that sets retailers apart from the competition.