That’s how good the Swedish retailers are at omni-channel
The retail industry is actively working to meet their customers in multiple channels simultaneously - mobile, online and physical stores. It means giving customers an integrated experience across all channels – omni-channel. An omni-channel investment means make or break on an increasingly competitive market. Despite this, most retailers still has a long way to go in their omni-channel efforts. It is shown in a new study commissioned by Avensia. It is the first of its kind in Sweden.
Avensia has examined 37 of the largest retailers in Sweden, which trade both online and offline. The company that made it the farthest of the investigated is IKEA. Home furnishings and furniture are also, according to the survey, the most advanced industry. But overall, companies have not come far at all with their efforts to meet customers seamlessly through the channels. The threshold was set at index 80, which none of the companies reached.
"It's a bit frightening to see how immature answers we got from this first omni-channel survey, says Jörgen Bertilsson, Vice President at Avensia. Today, the customer must be in the center and omni-channel strategies where everything is integrated in real time should be an obvious target for all retail businesses. It is only to note that we have a huge job of educating the market in how to lift sales across all channels."
The top five companies in the survey (the index in brackets):
1. IKEA (70)
2. Kicks (57)
3. Hemtex (57)
4. Pharmacy (57)
5. BR toys (52)
Omni -channel indexes by industry and best companies in each industry (index in brackets):
1. Furniture and home furnishings (41) - IKEA (70)
2. Electronics (32) - Siba (43), Elgiganten (43)
3. Sport and leisure (32) - Stadium (39), Intersport (39)
4. Clothing & Accessories (30) - Naturkompaniet (48)
"In order to succeed with their omni-channel commerce it requires a thorough knowledge of the customers and its market, says Jörgen Bertilsson. But if you do the analysis, you can reach out to the customers in a more consistent manner and therefore be able to build loyalty over time, which means higher revenue."
About the survey
37 retailers who trade both online and offline was investigated. Each company was tested with 23 criteria for omni-channel, for example:
• Is it possible to see store stock online?
• Can I order online and return a broken item in the store?
• Does staff in the physical store have access to inventory for the e-commerce store?
• Are loyalty points calculated on both the online purchases as well as offline?
• Is it possible to measure the influence of online media to offline purchases?
The proportion of positive responses of the 23 criteria were defined. An index of 100 means that all criteria are met for a full-blown omni-channel commerce. To be considered omni-channel ready, the company needed to reach index 80.
The report "Omni-channel Retail 2014" is available by Jörgen Bertilsson (contact details below).
Avensia started in 1998 and is today the leading expert company in e-commerce. Our customers include some of the most challenging e-tailers in the Nordic’s such as Intersport, Mekonomen, ICA, Posten, Kjell & Company and Byggmax. Several of them are award winning actors where Avensia assisted with everything from strategy and business development to design and implementation. Avensia are experts at converting visitors into buyers by using a design that takes the users from start to finish. Avensia AB is a part of the publicly listed company InXL Innovation AB ( publ) which is traded on First North at the Stockholm Stock Exchange since 2001. Avensia has 70 employees in four offices in Helsingborg, Lund, Stockholm and Copenhagen.
Avensia AB has two sister companies Mashie (internet-based business systems for the food industry) and Grade (system for e-learning and assessment). Read more at: www.avensia.se
Jörgen Bertilsson | Executive Vice President at Avensia | 070-968 1000 | jorgen.bertilsson @ avensia.se