Did you know that retailers boasting an exceptional omnichannel and unified commerce strategy typically enjoy an 89% retention rate? Contrast that with the mere 33% retention rate among brands lacking a robust omnichannel approach, and the rationale behind the substantial investments made by numerous brands in crafting unified commerce experiences becomes evident.
What exactly constitutes unified commerce? How does an omnichannel strategy influence brand experience? And what is the optimal way for brands to harness their technology stack in order to cultivate these remarkable customer experiences?
In this article, we will delve into the intricacies of how (and why) brands are developing a seamless unified commerce strategy.
What defines unified commerce experiences? Unified commerce, also referred to as omnichannel, orchestrates seamless shopping encounters across various channels, whether online or physical. Shaped by the Amazon effect, consumers now anticipate other direct-to-consumer brands to emulate this approach.
Neiman Marcus, synonymous with luxury, is renowned for its opulent in-store experiences. Over recent years, they've been dedicated to translating this exclusivity into their online realm. Their innovative approach includes utilizing data to tailor shopping experiences based on individual size and preferences. Geo-location technology allows customers to access local store inventory and stay informed about store events. Adding to their omnichannel strategy, Neiman Marcus introduced "Memory Mirrors," enabling customers to capture 360-degree views of themselves in-store outfits, which can be saved for future purchases via the Neiman Marcus app.
Understanding the importance of choice, Yankee Candle offers a plethora of options to its customers. Through geolocation, candle enthusiasts can select and save their preferred store. The brand incentivizes in-store pickups and provides multiple payment options, including PayPal, Afterpay, and credit cards. Additionally, customers can customize candles by uploading personalized label photos and messages.
In the realm of jewelry, transparency is paramount. Helzberg Diamonds prioritizes providing accurate delivery and fulfillment information, recognizing that jewelry purchases often coincide with significant events. The storefront prominently displays estimated delivery dates and local store availability, including options for same-day delivery and local pickup. To enhance the shopping experience, Helzberg Diamonds offers an image search feature on their website, facilitating the discovery of similar jewelry designs.
Unified commerce extends beyond the purchase process to encompass returns. Native Shoes, with a broad customer base beyond its physical store reach, addresses the challenge of high return rates in the shoe industry. While offering free mail-in returns, they understand the appeal of hassle-free in-person returns. Partnering with Happy Returns, Native Shoes provides US-based customers with convenient return options at over 9,000 locations nationwide, streamlining the return process at no cost to the customer.
To fuel their unified commerce endeavors, brands require precise technology within their tech stack. While some opt for an "all-in-one" technology solution, often termed a "unified commerce platform," they soon discover its limitations in handling their distinct business requirements.
Unified commerce experiences demand sophisticated solutions—something that a "unified commerce platform" or an "all-in-one" solution falls short of providing.
Hence, many contemporary direct-to-consumer brands turn to a composable commerce architecture to drive their unified commerce strategy.
Composable commerce solutions empower brands to construct a technology stack tailored to support the specific unified experiences they seek to create. Not every experience suits every brand, but those chosen must be flawlessly executed to cultivate loyal customers.
Below is a quick comparison of unified commerce platforms versus composable commerce platforms:
Unified Commerce Platforms offer a standardized solution from a single vendor.
Pros:
- Single point of contact, billing, and accountability.
- Ideally, all products integrate seamlessly.
- Bundled pricing often results in cost savings.
- Suitable for merchants seeking quick deployment and simple, standardized customer experiences.
Cons:
- Limited capabilities and functionalities.
- Each product lacks depth, aiming to cover a broad range of needs.
- Challenges arise as merchants expand and seek to align new business expectations with the platform's standard features.
- Composable Commerce Solutions empower brands to select and integrate the best technology platforms tailored to their unique business needs.
Pros:
- Modern technology, such as open APIs, facilitates easy technology swaps or upgrades as businesses scale.
- Merchants only invest in essential components.
- Each technology component excels in its respective domain.
- Enables rapid pivoting and creation of unique experiences without significant IT overhead.
Cons:
- Management of multiple vendors and contracts.
- May entail higher costs.
For numerous brands, the key ingredient in crafting a unified customer experience lies in harnessing an order management system (OMS). Positioned at the core of their composable commerce solution, it acts as the bridge between front-end and back-end systems.
An OMS serves as the backbone for omnichannel operations, efficiently overseeing the complete lifecycle of orders—from sales channels to delivery and returns. It equips brands with fulfillment capabilities and visibility that would otherwise be inaccessible.
To delve deeper into how an order management system drives brands' unified commerce strategies, contact our team today.
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