The Future of Retail: Embracing Unified Commerce and Frictionless Experiences

By Tom Chittenden, President - Productivity Solutions and Services Business, Honeywell

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Tom Chittenden, President – Productivity Solutions and Services Business, Honeywell

Consumer demands are constantly evolving and driving changes in how they prefer to interact with retailers. To meet the shopper where they want, merchants are using the latest in innovative technologies to help provide a seamless, consistent experience to keep the shopper coming back for more.

I’ve traveled across the world in the past three months to see how technology and solution providers are trying to answer the question on how to meet the needs of the ever-changing shopper, across every shopping channel. These shifts are shaping unified commerce, which in turn has resulted in changes on how store associates and retailers help solve and operationalize pain points through digital transformation.

Here are two of the most notable takeaways I’ve seen so far this year:

The Unanimous Need for Unified Commerce

The lines between in-store, mobile, online, marketing and social shopping have become blurred, forcing retailers to perfect every avenue and give shoppers the impression they are all one unified channel. Retailers who can successfully execute a unified commerce strategy will be able to provide customers with a consistent and cohesive shopping experience, regardless of how or when they engage with a retailer.

Unified commerce is simply meeting the customer where they want to be met. One way that retailers can help pave the way towards success in unified commerce is to ensure that staff are properly equipped with the right technologies, systems and knowledge. 

For example, store operators and associates can leverage mobile computers and software to manage inventory, in real-time, across all sales channels. If a shopper is looking for a product online and plans to pick it up in store, this ensures they can see accurate inventory information ahead of time and reduces the likelihood of out-of-stock situations. If a product is out of stock in a physical store, the retailer is also able to ship direct to the consumer from a warehouse location.

A study from Forrester and Khoros revealed that consumers are increasingly gravitating towards brands that provide good customer service, noting that 83% feel more loyal to ones that respond to and resolve their complaints. In addition, the same survey found that 79% of consumers want to receive a fast response. Shoppers want consistency, and equipping store associates with innovative technology can go a long way in establishing a customer experience that encourages shoppers to return. This not only enhances customer satisfaction, but also helps businesses stay competitive in a rapidly evolving market.

The demand for unified commerce has never been higher. Significant portions of brand interactions are done through digital devices, and retailers must find a way to create an immersive in-store experience while utilizing digital tools. Customers are becoming more channel-agnostic, and a report from BigCommerce shows 66% of respondents have made a purchase through their phone at least once in the past month. These findings demonstrate the growing need for retailers to embrace a unified commerce approach and ensure cohesive shopping experiences in-store and online.

Frictionless Future

Frictionless retail has experienced a gradual evolution, driven primarily through automation technologies like mobile checkout, self-service kiosks, and digital assistants. These tools are intended to eliminate resistance points, such as long lines at checkout, manually scanning items, and the need to input payment information. With the use of technology, retailers aim to provide a consistent shopping experience that is fast, convenient, and personalized.

While retailers are working to make their operations more seamless, challenges persist. Throughout the customer journey, friction points will arise such as misplaced products for curbside pickups and returns required in store. To achieve a frictionless shopping experience, retailers must be in tune with shopper expectations and the technologies that can help meet those demands, including:

  • Embracing Contactless Checkout: With 83% of consumers already using contactless payments and 65% planning to use them more in the next three years, contactless checkout solutions are becoming increasingly important for retailers.[1] The need for transactional speed is underscored by the customer demand for instant satisfaction and results.
  • Further Digitizing Employees: Store associates play a critical role in creating positive shopper journeys, but they often need more information than consumers have. One of the ways retailers are working towards frictionless shopping is adopting handheld devices and smart scanners for store associates. PSFK reported 40% of US shoppers prefer engaging with store associates, while 16% prefer dealing only with technology. This tells us that providing associates with more digital tools will help customers make in-store decisions that will enhance the overall experience.
  • Ongoing Optimization of Inventory: Through instantaneous and real-time inventory management technology, retailers can proactively respond to demand trends, improve visibility into inventory availability, and avoid customer confusion. Having easily accessible, ready-to-sell product helps associates give answers to customers quickly, and source their product needs at the onset of interaction, reducing friction.

Positive shopper interactions harness the power to transform the retail industry. A unified commerce strategy and eliminating friction throughout the shopper journey will help retailers meet shopper needs and can empower retailers to exceed expectations at every point of engagement.


Tom Chittenden is the president of Honeywell’s Productivity Solutions and Services business, which provides industry-leading mobility solutions for distribution, transportation and logistics, delivery, healthcare and retail. He brings more than 20 years of platform hardware and software experience to his role, previously serving in various senior leadership positions at Ivonics, NCR and GE. He holds an MBA from the University of South Florida and a bachelor’s degree in marketing from the University of Florida.

 

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