Although the term has been around for years, unified commerce (UC) is still a new concept for many retailers. A recent survey conducted by global consulting firm Bain & Company on behalf of retail platform Aptos revealed that the fashion industry is still largely unprepared.
Still, retailers are excited about unified commerce: 75 percent of respondents said unified commerce is a very or extremely important element of customer relationship management (CRM). The majority also agreed that other areas such as profitability, employee experience and inventory management would benefit. But while 75 percent of retailers believe their company has ambitious UC goals, only 55 percent believe their strategy is also clear and well-defined.
What is Unified Commerce?
So what exactly is unified commerce? Is it an extension of the term omnichannel that has been on everyone’s lips for the last few years? FashionUnited spoke to Nikki Baird, Vice President of Strategy at Aptos.
“It’s maybe an evolution in the sense that omnichannel is trying to break down the barriers between channels and make integration easier,” says Baird, but adds that unified commerce goes beyond that to avoid duplicate processes.
Unified commerce combines the customer-centric nature of omnichannel with all of the myriad backend systems associated with running a retail business.
“Advertising campaigns are a good example,” says Baird. “You have your merchandising system that can set promotional campaigns, you have point-of-sale systems, and you have your e-commerce order management system that sets campaigns for the online store, and all three have to work together.”
Often that isn’t the case, and that’s a problem. Customers should receive the same offers regardless of the channel. Unified commerce therefore enables retailers to have an advertising approach that serves all channels.
“From a technical perspective, unified commerce means much more than just omnichannel because it simplifies and reduces the complexity and level of integration required upfront, rather than connecting initiatives after the fact,” says Baird.
Studies have shown that successful execution results in companies seeing higher organic revenue growth than their competition. It’s not just about the more compelling front-end and user experience channels – the website, app, social commerce and in-store points of sale – but also the underlying technology to support loyalty programs, inventory data, search and and price machines. There is hardly an area in retail that unified commerce does not touch.
Experts agree that investing in this technology is critical to creating a holistic, seamless customer experience, something all retailers need to prioritize more than ever. Customers today expect the online shopping experience to be the same as in-store, while a visit to the store should provide them with the same level of personal attention as they receive online. Unified Commerce ensures maximum efficiency by removing all barriers between online and offline commerce.
Fashion industry excited but hesitant about unified commerce
If it’s so exciting for retailers, why is implementing unified commerce proving so difficult? The retail environment changes almost daily. New consumption patterns, the expectation of ultimate convenience and a personalized customer experience keep brands on their toes. Add to that concerns about inflation, recession, global unrest, and the rapid growth of generative artificial intelligence, and the prospect of adopting a new technology right now could seem overwhelming.
However, the delays are mostly due to more pragmatic issues: organizational adjustment, lack of expertise, budget constraints and unclear returns on investment. Brands must first unify within the organization in order to sufficiently engage in unified commerce. A fifth of all companies found that priorities between the IT department and other departments diverge wildly, but unified commerce cannot be the sole responsibility of the IT department. Everyone has to pull together. Ease of implementation and integration are important to a successful implementation, and brands need to coordinate with retail workers to ensure the technology is easy for them to use and makes their job easier.
According to the Bain survey, 70 percent of retailers chose point of sale and inventory management as the areas of their business they believe would be most positively impacted by unified commerce. 65 percent chose customer retention, followed by marketing and order processing.
Different retail categories invest in technology to varying degrees. According to a November 2022 Bain Retail Customer Technology Survey, the apparel industry spends 33 percent of its funds on technology, compared to 31 percent in general merchandise stores and 29 percent in grocery, drug and convenience stores. The coming months will show whether the fashion industry can extend its lead over other industries and whether it can combine its enthusiasm for unified commerce with the investments for a successful introduction.
This article originally appeared on FashionUnited.uk. Translated and edited by Simone Preuss.