IBM report reveals gaps in omnichannel retail acro Europe

LONDON, U.K. - 15 Sep 2014: IBM (NYSE: IBM) today announced the results of its first European Omnichannel Capabilities Index report (OmCI). The report found none of the 169 European retailers surveyed are able to deliver a complete omnichannel experience and that retailers still need to work hard on their in-store service, mobile offerings and delivery options.

Retailers were assessed against 75 criteria to measure how well they perform in providing the basics of good customer experience. In a truly omnichannel world, the customer receives personalised and consistent service from any brand touchpoint including mobile, online, high-street and social. A majority of shoppers now use technology in the shopping process, and services such as click-and-collect or buy online and return to store, for example, are expected as standard. But the internal organisation of many companies has not caught up to deliver this seamless experience.

A growing number of consumers expect retailers to offer a true omnichannel shopping experience," said Martin Butler, head of retail for IBM UK and Ireland. The shopping journey is now very different for certain product categories, such as electrical and fashion. We performed the benchmark to allow retailers to assess themselves against their competition - in order that they prioritise their investment in line with consumer demands.

The survey reveals:

Inconsistency across services

The most consistently delivered criterion is a universal price strategy' across all channels, with a rating of 76 percent.

The least consistently delivered is e-commerce service: in store' (for example, check-in with a smartphone or self-scanning payment terminal), at only 9 percent.

On average, the capabilities which need the most work, beyond in-store service, are mobile apps' 27 percent, click-and-collect' buying online and picking up in store at 33.5 percent and home delivery' at 34 percent.

Disparity between retailers

General merchandise retailers performed highly with an OmCI score of 63 percent, closely followed by electronics businesses - who want to lead the way with digital technologies - at 57 percent.

Furniture sellers achieved the lowest score with 36 percent.

National variations

Countries with a high proportion of online sales achieved a higher average score.

UK led the way with the top 5 retailers scoring an average of 73 across all criteria.

Belgium was the lowest at 30 percent.

The full IBM report Authenticity and advantage in an omnichannel world', which included 33 UK retailers, is available to download here: http://public.dhe.ibm.com/common/ssi/ecm/en/uvw12385gben/UVW12385GBEN.PDF

Notes to editors

The IBM Omnichannel Capability Index Survey, developed in late 2013, is a survey of 169 major European retailers from 12 countries, across a range of retail sectors. The survey was by a pan-European team from IBM Global Business Services with a cross-section of skills and experience in the retail industry. Taking the point of view of the consumer unannounced and anonymous the survey provides insight into each retailer's everyday capability to provide an authentic omnichannel experience. The results of these observations provide unique insight into the customer-centric nature of each retailer's omnichannel capability and highlight best practice.

The survey assessed each retailer against 75 performance criteria in 13 categories. Performance criteria focused on the critical functions and services that IBM's experience suggests a retailer should provide in order to deliver omnichannel success. The survey team personally tested each retailer's channels and assessed their experience against the criteria. Retailers were assessed against yes or no criteria to ensure overall performance results were entirely objective. The survey amassed 12,675 data points, upon which IBM's insight and analysis is based.

LINK:	http://www-03.ibm.com/press/uk/en/pressrelease/44842.wss...
	See more stories from ibm

Most recent headlines