2020 CUSTOMER ENGAGEMENT SURVEY - RETAIL MARKET RESEARCH - Integrated Enterprise ...
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enVista: 2020 Customer Engagement Survey
RETAIL MARKET RESE ARCH
2020 CUSTOMER
ENGAGEMENT SURVEY
TOP CUSTOMER ENGAGEMENT PRIORITIES FOR 2020
EXECUTIVE 50% Improving the quality of customer service
SUMMARY
39% Customer-facing technology in the store
37% Enhancing the cross-channel shopping experience
37% Empowering associates with mobile tools
Retailers today have one objective – to drive 34% Customer identification/personalization of experience
profitability and competitive advantage. To 29% Real-time retail
this end, the most successful retailers can 21% Training associates to enhance customer service
deliver a single, stellar brand experience, 18% Real-time monitoring and execution
regardless of channel or location, to foster 13% Guided selling/clienteling
customer loyalty and brand ambassadors. 9% Self-service options
Fundamentally, retail has always been based
on some version of a one to one relationship Creating today’s shopping experience also years, the POS Survey expanded its focus to
with the consumer. With the advent of digital relies on well-informed and available associates. encompass all customer engagement touch
capabilities, that relationship now involves Today’s information-savvy consumers are not points and evolved into the POS/Customer
many more layers. Customers have the ability to satisfied with just a ‘warm body’ or ‘one size Engagement Survey. Now, as we begin the third
customize their experience, and retail associates fits all’ experience – they expect retailers to put decade of the twenty-first century, the survey
are similarly empowered to offer levels of time and effort into establishing and offering has transformed into the Customer Engagement
personalized service based on each customer’s a personalized experience, and that doesn’t Survey as customer engagement is now the
preferences. Adopting the right technology, always require human contact, as technology focus of the shopping journey.
especially around mobile capabilities to support has given consumers the ability to use their
customer engagement, is imperative for retailers smart phone for self-service personalization. enVista is building on the history of twenty years
to successfully deliver the personalization of research into retailer priorities and initiatives,
customers expect. Twenty years ago, the store and point of sale including an understanding of current and
were very different entities. The shopping future customer behavior, in order to highlight
Ever increasing customer expectations to buy, journey revolved around the convenience of the contrast between retailer capabilities and
receive and return anywhere, any way and any standalone stores, while malls were places consumer expectations. The survey offers a
time, coupled with retail transparency and to congregate and spend the day shopping comprehensive analysis of today’s customer
consumers’ access to information and influence, your favorite brands. Point of sale (POS) was journey, where retailers are currently focused,
have put the customer experience center stage just one step up from a cash register with and where they should prioritize their efforts
for most retailers. There is no longer “online very little processing capabilities. It was in this and investments. This survey is unparalleled in
only” or “in-store only.” The convergence of environment that the POS Survey was created the industry and provides a valuable tool for
the digital and physical shopping environment to gather retail benchmarks on store technology retail leaders improving customer engagement
2 a new customer engagement model.
requires and customer service. Over the past twenty today and the future. Happy reading!
2020 Customer Engagement Survey TABLE OF CONTENTS EXECUTIVE SUMMARY........................................................................................ 2 TABLE OF CONTENTS......................................................................................... 3 KEY FINDINGS.................................................................................................... 4 EVOLVING CUSTOMER ENGAGEMENT.............................................................. 5 PERSONALIZATION............................................................................................. 6 Customer Expectations......................................................................................... 7 Identifying Customers........................................................................................... 8 Customer Loyalty.................................................................................................. 8 Clienteling............................................................................................................. 9 Retailer Opportunities........................................................................................ 11 MOBILIZATION................................................................................................. 12 Customer Expectations...................................................................................... 13 Customer Communication................................................................................. 14 Associate-Facing Mobile Services....................................................................... 14 Customer-Facing Mobile Services...................................................................... 15 Retailer Opportunities........................................................................................ 17 SYNCHRONIZATION......................................................................................... 18 Customer Expectations...................................................................................... 19 A Single Commerce Platform............................................................................. 19 Cloud-Based Solutions....................................................................................... 20 Real-Time Retail................................................................................................. 21 Retailer Opportunities........................................................................................ 21 FUTURIZATION OF THE STORE........................................................................ 22 Customer Expectations...................................................................................... 23 Changing Store Formats.................................................................................... 23 New Selling Options.......................................................................................... 24 Customer Service Capabilities........................................................................... 25 Disruptive Technologies..................................................................................... 26 Retail Opportunities........................................................................................... 26 SURVEY METHODOLOGY................................................................................. 27 3
CUSTOMER ENGAGEMENT
KEY FINDINGS
Customer Expectation 72% Customer Expectation 65%
72% indicate that personalized service from 65% indicate that the ability to buy
PERSONALIZ ATION SYNCHRONIZ ATION
a sales associate is an important factor in anywhere, ship anywhere is an important
determining at which store to shop factor in choosing where to shop
Retailer Capability 34% Retailer Capability 21%
34% indicate that customer identification/ 21% have successfully implemented a
personalization of customer experience is single commerce platform to enable
a top priority for 2020 unified commerce
Customer Expectation 66% Customer Expectation 54%
66% are likely to choose a retailer if it 54% are likely to choose a retailer
MOBILIZATION FUTURIZ ATION
offers mobile coupons/promotions offering a self-checkout kiosk
OF THE STORE
Retailer Capability 51% Retailer Capability 21%
51% successfully offer mobile 21% successfully offer self-checkout
coupons/promotions to their customers kiosks
4
2020 Customer Engagement Survey
EVOLVING CUSTOMER ENGAGEMENT
A nimble and agile customer engagement augmented reality (AR) and virtual reality inventory, order, item and payment across every
model is essential to meet evolving customer (VR) as opportunities to engage customers. customer touch point. One version of customer
expectations across all channels. However, the retail store is no longer the only data across the retail enterprise is imperative
stage where the theater of retail can take place; to truly unify commerce and the customer
The need to provide a seamless customer new technology is empowering customers so experience. Agile solutions are paramount as
experience across channels is real, as consumers they can dictate their own personal stage and retailers look to improve customer experiences
expect a personalized, secure, channel-agnostic experience. today and into the future.
experience. Retailers that strive to successfully
meet these rapidly evolving customer These evolving customer expectations With this in mind, enVista unveils the 2020
expectations must take a holistic approach to fundamentally redefine how retailers must Customer Engagement Survey, comparing
defining their customer’s journey. operate, requiring physical and digital working current and future customer expectations with
seamlessly across all customer touch points to retailer capabilities, in order to help retailers
While online and mobile capabilities continue to deliver a consistent, stellar brand experience. advance more rapidly down the path to
increase and sometimes it seems that Amazon providing customers a true unified commerce
will rule the world, in truth, brick-and-mortar However, in many cases, retail organizations experience.
stores are still very much integral to retail do not have the right organizational structures,
success; they just need to transform. The future processes, technology and infrastructure in The ideal customer engagement strategy
of retail is the convergence of the digital and place to meet customer expectations. To enable is bolstered by customer-centric processes,
physical shopping environments to engage the new customer experience and support its organizational alignment, optimized and unified
the customer and offer the expected customer rapid evolution requires a different technology physical and digital commerce, and innovative
experience. approach. The key to scalability, rapid time store models and technology. Accordingly, this
to value, profitability and long-term flexibility, report focuses on foundational customer-centric
Stores are prime opportunities for customer is leveraging next generation solutions on an strategies that incorporate personalization,
engagement as a competitive advantage, agile, cloud-based unified commerce platform mobilization and synchronization across the
especially as the distinctions between retailers, and integration framework. retail enterprise.
brands and wholesalers/distributors continue to
blur. Stores are evolving as we see showrooms Cloud-native unified commerce solutions, built
and fulfillment centers as emerging store from the ground up a microservices architecture,
models and pop-ups and kiosks offering on a multi-enterprise integration framework and
temporary storefronts. Today’s retail model also a single data model, are imperative for enabling
leverages theater with technologies such as clienteling and a single view of the customer,
5PERSONALIZATION 6
2020 Customer Engagement Survey
PERSONALIZATION
Customer identification is imperative to and brand loyalty so they continue to shop. they do not receive the same level of
provide relevant and personalized Providing a more personalized experience and personalized service and recommendations
promotions, messages and services. offering value-added services can help retailers that they receive online. This is an area of
succeed in today’s competitive environment. opportunity for retailers as more than 70% of
Personalization has gone beyond simple consumers would be more likely to shop at a
marketing to demographic groups or customer store that offers personalized rewards based on
segments. It has become more than simply CUSTOMER EXPECTATIONS customer loyalty and personalized promotions
greeting a customer by name as they walk in the Loyal customers want to be recognized and and discounts.
store or offering product recommendations on offered relevant product recommendations
your website. Personalization encapsulates all and promotions.
the details that make your customer’s shopping
experience uniquely individualized. It involves They want to shop wherever and whenever
72%
of consumers indicate personalized
understanding the customer’s past purchases they want with the benefits of both digital and service from a sales associate is an
and current interests, but also encompasses the physical retail environments. As consumers important factor in determining where
shopping experience itself and whether that browse and buy across channels, the experience they choose to shop
experience meets the customer’s needs for a they receive determines where they choose to
personalized product or service. shop. According to enVista’s Consumer Study,
51% of the consumers surveyed indicated a Consumers understand that receiving
With the proliferation of mobile technology personalized and consistent experience across personalized and relevant promotions requires
enabling instant access to information and channels is important or extremely important, retailers to obtain identifying information about
products, plus the ability to immediately and in the store, 72% of consumers said them. While this has been the standard online
purchase an item anytime and anywhere, the personalized service from a sales associate is an or via mobile, identifying the customer in the
shopping process has changed. We have important factor in determining which store(s) store is more difficult. Most retailers who identify
become constant consumers. they choose to shop. customers in the store use the customer’s
phone as the identification tool paired with a
Consumers’ perpetual ability to browse, be As consumers “check-in” on retailers’ combination of beacons, WiFi, MAC address,
influenced, be an influencer, shop and easily e-commerce and mobile sites, they typically etc. According to enVista’s Consumer Study,
research options like best price and product receive automatic, personalized offers and 56% of consumers are comfortable with retailers
availability, makes it imperative for retailers recommendations based on their purchase and identifying them via their mobile phone when
to further differentiate themselves to entice browsing history. However, most shoppers are they enter a store, as long as it means they are
customers to shop, and to foster engagement still anonymous prior to checkout in the store so offered a personalized experience.
72020 Customer Engagement Survey
IDENTIFYING CUSTOMERS Online, technology makes it a little easier to An interesting call-out is that there does not
identify customers with many more retailers seem to be one technology choice that is
Retailers that identify customers when currently able to identify customers early in leading the group – retailers are embracing a
they enter the store and furnish associates the process, often when they enter the site number of different technologies to cast a wide
with proper mobile tools can effectively (Exhibit 2). net to identify and track as many customers
personalize the shopping experience. as possible. Introducing the right value-added
To identify customers in the store, most digital capabilities via mobile to customers as
Each step along the customer journey offers retailers utilize technology methods in tandem they enter the store, even augmented reality
retailers opportunities to engage with the with the customer’s mobile phone. The most (AR) capabilities, is a probable next step for
customer and strengthen relationships to prevalent and successfully implemented most retailers toward achieving higher customer
drive sales and customer loyalty. This requires technologies that retailers are using to identification rates.
retailers to be able to identify their customers identify customers are the retailer’s mobile
throughout all parts of their shopping journey. website (81%), mobile app (81%) and mobile
wallet (73%), however, many retailers using CUSTOMER LOYALTY
Retailers are making progress in identifying their these technologies indicate that they need Customers want to feel they are receiving
in-store customers before the checkout process improvement (Exhibit 3). Social media listening something valuable in exchange for their
begins (Exhibit 1). Without early identification of as a customer identification tool has increased brand loyalty.
the customer, retailers miss critical engagement in the past couple years to 66%, although
and clienteling opportunities to deliver a much improvement is needed for this to be Surpassing customer expectations whenever
personalized experience and increase sales. a successful option. and wherever possible is crucial for cultivating
customer loyalty. Loyal customers want a
EXHIBIT 1: In-store Customer Identification personalized experience where they feel
recognized and rewarded for their allegiance.
18% 42% 13% Within the 27%
As they approach When they store, before At checkout Of course, the optimal way to achieve this is to
the store enter the store checkout identify the customer as soon as possible and
communicate their information to an associate
so they can facilitate information gathering,
EXHIBIT 2: Online Customer Identification provide personalized recommendations and
create an excellent customer experience.
35% 51% 8%
When they enter After they enter their At checkout
the site account information Most retailers offer incentives to draw customers
into the store and build customer loyalty. Many
retailers (76%) find that offering incentives in
6%
After the form of loyalty points or dollars is the most
checkout effective way to draw in customers.
82020 Customer Engagement Survey
EXHIBIT 3: Customer Identification via Mobile
Implemented and working well Implemented but needs improvement Implement within 12 months Implement in 1-3 years
Mobile Website 55% 26% 5% 3%
Mobile App 49% 32% 8% 3%
Mobile Wallet 47% 26% 11% 8%
Bluetooth 42% 26% 16%
Social Media Listening 29% 37% 13% 5%
Beacons 21% 21% 29% 8%
Consumers agree that loyalty programs are a CLIENTELING exceptional in-store shopping and customer
strong draw with 40% indicating that loyalty care experiences, and timely follow-up
points/dollars are a valuable enough enticement Establishing long-term customer relationships communication with customers. To be effective,
to allow retailers to identify them when they requires store associates to have access to guided selling and other customer engagement
walk in the store and 46% of consumers finding customer information and the right enabling tactics need real-time data, context and
mobile loyalty programs to be a reason to technology to personalize the shopping analytics.
choose one retailer over another. The challenge experience.
for retailers is to engage the customer and Customer context includes customer insights
provide a satisfactory shopping experience to Once customers have been identified, and current environmental conditions to make
continue to build customer loyalty. provide a retailers can use guided selling to enhance the shopping experience relevant. It enables
satisfactory shopping experience to continue to the shopping experience based on customer retailers to personalize the shopping experience
build customer loyalty. context. Clienteling empowers retail associates based on preferences, purchase history, order
to leverage customer data (purchase history, information, their closet, their most recent
personal information, preferences, etc.) online browsing history, time of day, weather,
to deliver guided selling through highly and their physical location – all based
personalized customer engagement, provide on real-time information. 92020 Customer Engagement Survey
However, while retailers realize the need to This suggests that retailers miss opportunities to (Exhibit 5). We are beginning to see significant
equip their associates with better training and increase sales because associates can’t access progress and engagement opportunities for
information, they are still often playing a game customer-specific data until the customer is retailers to meet customer needs. The most
of catch-up with customers that have more at the checkout, which is too late to influence prevalent customer personalization capabilities
product information and inventory visibility than the current purchase. With customer data involve offering suggested selling based on
store associates. available pre-checkout, associates can affect the previous purchases, personalized promotions
transaction with personalized promotions and and personalized rewards based on customer
Overall, retailers still struggle with the ability to relevant customer-related product suggestions. loyalty.
access customer information prior to checkout
(Exhibit 4). The ability to look up customer Delving deeper into how associates can tailor Consumers want personalized services – it is
information is limited, with only 44% of retailers the customer’s shopping experience based often an important factor in choosing a brand
offering the ability to access any customer- on available information uncovers additional and/or store to frequent. According to enVista’s
specific information pre-checkout. capabilities, although many need improvement Consumer Study, 74% of consumers indicated
EXHIBIT 4: Customer Information Availability
Pre-checkout During checkout After checkout
Customer-specific Offers & Discounts 44% 36% 14%
Product Recommendations 43% 35% 8%
Customer Attributes/Preferences 35% 38% 24%
Contact Information 27% 62% 6%
Purchase Summary 22% 43% 32%
Transaction Lookup 22% 38% 35%
Shopping History 19% 38% 32%
10enVista: 2020 Customer Engagement Survey
EXHIBIT 5: Associate Ability to Tailor the Shopping Experience
Implements and working well Implemented but needs improvement Implement within 12 months Implement in 1-3 years
Suggested Selling Based on Previous Purchases 38% 30% 16% 8%
Personalized Promotions 35% 32% 14% 11%
Personalized Rewards Based on Customer Loyalty 32% 41% 16% 6%
Suggested Selling Based on Social Media Activity/Posts 24% 43% 11% 16%
Suggested Selling Based on Online Browsing History 19% 51% 14% 8%
Suggested Selling Based on Customer Closet/Room/Garage 16% 46% 16% 8%
that personalized promotions and discounts As retailers expand personalization to create respond to questions or provide additional
from an associate would make them likely to a fun and engaging experience, technology information.
shop at that store over one that doesn’t offer continues to play a big role. Ensuring that
the same kind of personalized service. associates have easy access to customer and Implementing advanced technologies such as
product information is important. Mobile touch screens, virtual mirrors or augmented
devices for associates to access customer reality offers retailers increased options for
RETAILER OPPORTUNITIES account information, product information and customer engagement, creating a more
Offering customer-specific messaging and inventory visibility in real-time allows associates immersive environment and enabling customers
promotions based on customer context is a to “keep up” with customers, not only physically to personalize their own shopping experience.
key differentiator for retailers. throughout the store, but also to readily
11MOBILIZATION 12
MOBILIZATION
Offering customers the ability to manage retail industry. Mobile shopping (browsing)
their own shopping experience through or buying) is expected to continue to grow
mobile devices/services. as the ease and convenience of shopping
online increases, and as social media surges in
Mobile devices have become ubiquitous in the influence over buyer behaviors. In fact, 56% of
lives of consumers, dramatically changing how consumers today begin their shopping journey
they shop. Having a constant, virtually unlimited on their mobile device.
amount of information at their fingertips has
altered consumer behavior and elevated their
expectations for customer service. Consumers
now use mobile devices to research products, 56%
compare prices and complete purchases online, of consumers begin their shopping
even while in the store. journey on their mobile device
This proliferation creates opportunities for
retailers to leverage mobile devices to enhance However, shopping via a phone is just one way
customer service and provide more self-service that consumers use mobile devices to enhance
options. Putting mobile devices in the hands their experience and interact with retail brands.
of store associates allows additional service While they are in a store, 22% of customers
offerings, inventory look-up and transaction utilize their phones to look up product
processing easily and anywhere in the store. information and compare prices and 24% look
for offers/coupons.
CUSTOMER EXPECTATIONS
Consumers use their phones to research
products, compare prices, complete
purchases online and pay for in-store
purchases.
There is no denying the role of mobile
technology as a disruptor and influence in the
13EXHIBIT 6: Preferred Form of Customer Communications
Prior to shopping visit 35% 19% 19% 16% 11%
While in-store 30% 38% 21% 3% 8%
After purchase 49% 24% 16% 6% 5%
Email Text Message Online Chat Phone Social Media
CUSTOMER preferred method of communication with
more than half of the consumers in the study
COMMUNICATION citing email as the number one choice. Order
Communication with customers offers confirmations and shipping status updates sent
retailers ways to enhance the customer through email offer an important opportunity to
relationship and shopping experience. build trust with the consumer.
While mobile devices are used for research,
ASSOCIATE-FACING
they are also serving as a means to open
new opportunities for communication and
MOBILE DEVICES
connection with customers. From the retailer Tablets and mobile phones offer
point of view, email is the preferred method opportunities for retailers to enhance
to confirm orders, remind the consumer of an customer service.
unfinished online shopping opportunity, entice
the customer to visit the store or thank them As the focus within the store shifts to
for shopping and offer incentives to visit again incorporate digital technologies, mobile
(Exhibit 6). While customers are in the store, devices play a larger role in personalization.
retailers realize texting the consumer offers an Mobile point of sale (POS) enables associates
immediate and somewhat unobtrusive way to to complete a customer’s purchase on the sales
offer real-time promotions and discounts. floor at the moment the buying decision is
made. Mobile POS also frees the associate to
Consumers agree that email is generally their move from the checkout area to allow for more
142020 Customer Engagement Survey
EXHIBIT 7: Associate-facing mobile tools devices (Exhibit 8). There are still missed
opportunities to tailor the shopping experience
by offering personalized recommendations
Mobile POS 29% 45% 16% 8% on customers’ mobile devices.
Mobile Solutions 34% 39% 16% 5%
for Associates Improving mobile processes is an open
opportunity as noted by the large number of
Implemented and working well Implement within 12 months
retailer responses within the ‘implemented
but needs improvement’ category.” This likely
Implemented but needs improvement Implement in 1-3 years
indicates that the processes currently in place
have been rushed to production before they
were fully tested and perfected, and/or there
personal interactions on the sales floor and effectively, especially when associates are are additional benefits to be realized. The
improves customer convenience by eliminating dealing with sensitive customer information. disparity between retailers’ ability to meet
the need to wait in line during checkout. customer expectations in mobile services and
This reduces the probability of a customer CUSTOMER-FACING the likelihood of consumers to use a service
changing their mind as the purchase can be also indicates a big opportunity for retailers to
made as soon as the customer makes the
MOBILE SERVICES improve.
decision, instead of having time to reconsider Utilizing customer-facing technology is a
the purchase as they move to the checkout. natural outcome from the proliferation of Consumers are looking for mobile features
mobile devices and is a big part of the overall accessible in stores. 66% of consumers are likely
Most retailers offer store associates tools to customer experience. to choose a retailer offering mobile coupons,
deliver further customer service and enhance discounts and promotions and 64% are likely to
the in-store experience although many times As customers become more proficient with choose a retailer offering product information
these tools need to be fine-tuned to ensure they utilizing mobile technology as part of the via mobile devices over a retailer who doesn’t
are adding value (Exhibit 7). Over the next few retail brand experience, retailers will continue offer these services.
years, the use of mobile devices and tablets as a to expand mobile services to enhance the
tool in the store will continue to increase. shopping experience.
Retailers need to continue to improve mobile Retailers are increasingly implementing
capabilities through refined processes, customer-facing mobile services such as mobile
better technology and enhanced training for coupons, specials and promotions, product
associates. Mobile devices and tools are only information, shopping list capabilities, and
helpful if associates are trained to use them personalized recommendations via mobile
15EXHIBIT 8: Customer-Facing Mobile Services — Customer Expectations vs. Retailer Capabilities
Likelihood of consumer to choose a retailer based on service
Retailer successfully offering service
66%
Mobile Loyalty
50%
66%
Mobile Coupons/Promotions
51%
64%
Product Information
42%
44%
Prior Purchase Visibility
29%
Wayfinding 43%
21%
Shopping/Wish List 42%
42%
41%
Personalized Recommendations
34%
39%
Mobile Wallet
54%
162020 Customer Engagement Survey
RETAILER OPPORTUNITIES Mobile is driving retailers to upgrade and available and redundant in-store networks as
Mobile technology in the hands of consumers replace technology to stay ahead of their well as a holistic approach to real-time retail
and retail associates is transforming the competitors’ customer experience offerings data. Having a mobile device and engaging
customer engagement model. and to keep up with their very informed and with the customer anywhere at any time
technology-savvy customers. While the shift during their shopping journey will deliver an
The abundance of mobile devices is only to mobile tools can dramatically enhance the experience that is only as good as the data
the beginning. Wearables are now available shopping experience and reduce retailers’ shared with the customer.
to the masses, with an estimated 1.1 billion total technology costs, it brings its share of
expected to be connected worldwide in 2022. challenges. As with any new technology, This area is clearly transforming retailers’
As wearables become more pervasive, the innovative mobile approaches require a customer engagement models, operational
shopping and checkout experience will continue fundamental change in processes and budgets, in-store procedures and layouts.
to evolve as shoppers more easily browse online corresponding training to educate both sales Mobile capabilities and expectations continue
while shopping within the store, and then simply associates and customers to convince them to to evolve rapidly and need to be a significant
wave their watch to purchase items. The future try and use the new processes. part of a retailer’s customer engagement
will continue to see new ways for customers strategy.
to use ‘wearables,’ which will shape their To make the best use of these mobile
expectations and experience. technologies, retailers need to have highly
17SYNCHRONIZATION 18
2020 Customer Engagement Survey
SYNCHRONIZATION
Providing customers the ability to securely they were likely to shop at a retailer that allowed A single commerce platform, with solutions
and holistically shop across channels and offer them to have a shared cart across channels. built on a common data model, centralizes data
a consistent brand experience is vital. Consumers also want the ability to buy and simplifies real-time access to information
anywhere, ship anywhere with 65% indicating across the ecosystem (stores, distribution
The ability to deliver a unified and personalized this is a critical factor in choosing where to shop. centers, suppliers, etc.). Leveraging retail
experience to the customer whenever, wherever solutions on a common data model (OMS, POS,
and however they choose to shop is now table PIM, EDI) enables retailers to obtain a single
stakes for retailers. Retailers need to be able to
identify the customer and gather, analyze and 72% enterprise view of customer, inventory, order,
item and payment information that is required
disseminate customer, product, pricing and of consumers are likely to choose for delivering a consistent, customer-centric
inventory data instantly and across all channels. a brand that offers the ability to brand experience for buy, ship, return anywhere
purchase/return across channels commerce.
While delivering a seamless customer
experience is the driver, technology allows Platforms built with a microservices architecture
Three-quarters of consumers also indicate a
customers and retailers to uniquely tailor the on a multi-enterprise integration framework will
strong preference for shopping at retailers that
shopping experience. A unified commerce deliver significant benefit in the forms of rapid
offer consistent pricing/promotions and product
platform is key to enabling the cross-channel integration, time to value and lower cost of
assortment across all channels. Therefore, a
experience consumers expect. ownership.
single data source and version of the truth
for all retail and customer data is required, so Retailers’ current and planned implementations
CUSTOMER EXPECTATIONS customers have a consistent brand experience of a single commerce platform continues to
wherever and however they choose to shop.
Customers expect a personalized and increase, with 95% of retailers indicating they
seamless experience across channels and will have implemented or plan to implement a
choose retailers that offer it. A SINGLE COMMERCE single unified commerce platform within three
years. Many retailers continue to work on their
Customers want access to a single cart to shop
PLATFORM implementations since a number of retailers
across channels and access their cart via phone, Retailers are focused on implementing a (42%) indicate there is need for improvement
computer, or even in the store – they want to common unified platform to deliver the (Exhibit 9).
“start anywhere and finish anywhere.” In fact, in required consistent, relevant shopping
enVista’s Consumer Study, 51% indicated that experiences across all channels.
192020 Customer Engagement Survey
EXHIBIT 9: Single Commerce CLOUD-BASED SOLUTIONS EXHIBIT 10: Cloud-based Systems
Platform Implementation Status
A cloud approach enables retailers
to significantly reduce infrastructure, Currently operate as a
5% cloud application/service
improve security and increase operational
Moving to cloud application/
effectiveness by centralizing management of
service within 3 years
14% 21% data and processes.
Point of Sale
Leveraging cloud computing and IT outsourcing
makes sense for many retailers. IT is not a core 55% 37%
competency or differentiator for most retailers
18% 42% Loss Prevention
— it is a necessity. Retailers are embracing
this move as they realize cloud-based unified 50% 39%
commerce is key to accelerating their path to a
Returns Processing
single version of the truth.
47% 48%
Implemented and working well Cloud computing, either public or private, offers
Business Intelligence/Enterprise Reporting
Implemented but needs improvement the quickest and surest path to implement
Implement within 12 months and integrate systems including e-commerce, 42% 47%
Implement in 1-3 years mobile commerce, customer care, point of CRM
No plans to implement sale, enterprise order management, inventory
39% 53%
management, marketing, supply chain and
financials. Task Management
As retailers and solution providers continue
39% 47%
down the path to unified commerce, more Many retailers have made the shift to the
and more capabilities are being centralized or cloud over the past few years as a means of Workforce Management
offered as cloud-based services. Retailers are centralizing their store systems, although we
32% 26%
embracing this move to the cloud, as it is key to are still seeing some retailers hesitate, which
enabling real-time capabilities and technology may prove to be their downfall as the shift to Order Management
environments that are scalable and agile the cloud enables an agility necessary in today’s 26% 32%
enough to support evolving business needs. environment (Exhibit 10).
Pricing
11% 13%
202020 Customer Engagement Survey
REAL-TIME RETAIL It is still very challenging for retailers to RETAILER OPPORTUNITIES
effectively execute real-time retail. Many
Real-time data provides associates retailers indicate that they can access analytics, As consumer expectations have increased, the
necessary information to tailor the shopping inventory and order status/tracking in real- need for real-time access to product /customer
experience. time, but most of the processes still need information has grown exponentially.
improvement (Exhibit 11). In our experience,
Real-time retail enables retailers to identify the many retailers can check inventory, but the Retailers realize that the process of offering
customer and gather, analyze and disseminate inventory data they are able to access is from customers the ability to shop anywhere, fulfill
customer, product, pricing, and inventory data yesterday, versus the real-time data required anywhere is complex as technology and
across all channels – instantaneously. Real- for an improved customer experience. Retailers consumer behaviors continue to evolve. A
time retail is imperative to improving customer that leverage a unified commerce platform can new model is necessary to succeed, and the
engagement, as without real-time data, access all inventory available to promise (ATP) new model requires an unprecedented level of
information provided internally and externally across the retail enterprise in real-time (stores, agility. The key to profitability and competitive
is out-of-date and, therefore, risks being distribution centers, suppliers and third-party advantage is to map out a comprehensive
inaccurate and out of context. logistics partners). customer-centric strategy and to vigorously
execute against the plan.
Over the last few years, many retailers advanced
EXHIBIT 11: Enterprise-wide Real-time Features processes and technology in piecemeal fashion
with little integration, in an effort to keep
up. However, this approach has only taken
Analytics/Reporting 53% 34% 11%
retailers so far and has resulted in high-cost
Inventory 50% 45% 3% gaps in service levels, inefficient and ineffective
processes, and lost sales.
Order Status/Tracking 49% 38% 11%
Retailers can no longer afford to operate within
Loss Prevention 47% 34% 16%
channel silos; they must completely transform
Pricing/Promotions 47% 39% 11% their organization, business processes and
technology to align with the new shopping
Returns Management 45% 39% 11% behaviors and expectations of today’s
customers. A unified commerce platform is
Implemented Implemented but Implement within imperative to provide the necessary customer,
and working well needs improvement 3 years
inventory and order information across the
organization and process in real-time.
21FUTURIZATION OF
THE STORE
222020 Customer Engagement Survey
FUTURIZATION OF THE STORE
Transforming the store requires offering common in the digital world. They want to pick CHANGING STORE
personalized services, taking advantage up and return products they ordered online in
of mobile capabilities and synchronizing the store and ship the products they purchase
FORMATS
information across all channels to encompass in-store to their home. While e-commerce and mobile continue to
the physical and digital environments. grow and garner attention, the store remains
Consumers have shown they love the theater a key component of the customer’s brand
Retailers must infuse digital features into of shopping, which is why we are seeing many experience.
the store environment to exceed customer pure-play online retailers opening brick and
expectations, compete more effectively with mortar stores, and store concepts continue The physical store is still the central point of
online retailers and offer a more personal, to change to incorporate more entertainment the shopping journey. However, the role of the
relevant and engaging shopping experience. and unique experiences. Customers want a store continues to change. The advent of digital
multi-dimensional shopping experience that commerce and mobile devices offer consumers
Even with the proliferation of mobile digital leverages all of their senses. new ways and ‘places’ to research and shop.
devices, the physical store remains the These digital possibilities, along with mobility,
foundation of retail; however, the traditional Customers are willing to try new technologies if have modified consumer expectations and
store model must transform to succeed. it improves their in-store shopping experience. behaviors. Retailers must adapt their stores and
According to enVista’s Consumer Study, technology to new customer expectations to
23% of consumers are likely to shop at a succeed.
CUSTOMER EXPECTATIONS store offering an augmented reality or virtual
Stores must provide and reflect a unified reality experience as part of their shopping The concept of the store is also evolving with
and customer-centric digital and physical environment and 31% are likely to choose a new formats, such as pop-ups and store-within-
commerce experience for consumers. store offering virtual mirrors to allow them to a-store, or even stores as mini distribution
virtually try on items like make-up and apparel. centers. 45% of retailers are testing or
The physical and digital aspects of commerce increasing the number of store-within-a-store
will become even more intertwined as we They are also very interested in utilizing self- concepts and 48% are planning to pilot or
look to the future. Customers want the service technology instead of human interaction increase the number of showrooms and pop-up
sensory experience generally available in the if it means the process be quicker and easier. shops (Exhibit 12).
physical world, such as touching and feeling For example, 54% are more likely to shop at a
merchandise and personally interacting with store with self-checkout versus a store without
a knowledgeable associate, married with the and 47% will choose a store offering automated
unique and personalized shopping experience returns to avoid unnecessary human interaction.
232020 Customer Engagement Survey
EXHIBIT 12: Future Expansion Plans
NEW SELLING OPTIONS
Retailers are exploring other locations/
Plan to Pilot/Test Increase Decrease
options to ensure they get products in front
of the customer.
Mall Kiosks 24% 26% 11%
Online Marketplaces 21% 53% 2% Selling options are also increasing in different
forms via online marketplaces (21% plan to
Dropship 18% 32% 11%
pilot/test and 53% plan to increase the use of
Pop-up Shops 16% 32% 5% online marketplaces) and vendor dropship (18%
plan to pilot/test and 32% plan to increase their
Store-Within-a-Store 16% 29% 5%
vendor dropship plans) where retailers can take
Dark Stores 16% 16% 10% advantage of suppliers’ inventory to expand and
test item assortments (Exhibit 12).
Showrooms 10% 32% 13%
Many retailers are quickly adopting drop
shipping relationships with their trading partners
EXHIBIT 13: Potential Customer Services (manufacturers and distributors) as an effective
way to compete against Amazon and other
Implemented and Implemented but Implement within retailers with extensive product offerings.
working well needs improvement 3 years
Leveraging a dropship model, retailers can
Electronic Receipt with quickly expand their product offerings with
Personalized Suggestions 37% 39% 16%
minimal inventory carrying costs to increase
Transaction Suspension 26% 32% 19% sales and customer satisfaction while reducing
Personalized Promotions shipping times and costs.
Based on Real-Time Variables 24% 47% 11%
Scan and Deliver 24% 37% 21%
Touchscreen in
the Dressing Room 21% 24% 31%
Virtual Inventory 16% 34% 37%
Robotics Used for
Customer Service 13% 24% 37%
242020 Customer Engagement Survey
CUSTOMER SERVICE Offering customers personalized promotions Although, as long as they get the information
based on customer context (real-time location, and service they expect, they do not care if it is
CAPABILITIES weather or other analytics) is the future of delivered by a human or via technology.
New technology brings creative and the store experience and is gaining traction,
innovative ways to provide customers the although again much improvement is needed to While automation can be a way to cut overall
necessary services to enhance the experience. ensure that customer context is available in real- costs and improve customer service options,
time (Exhibit 13). it probably will not make sense to adopt
Within three years, 91% of retailers plan to automation to replace humans for some highly
offer electronic receipts with personalized Younger customer segments, such as personal product decisions and luxury brands.
suggestions for their customers (Exhibit 13). Millennials, have grown up in the digital age The process of customer engagement, context
Offering customers an electronic receipt after a where they expect access to everything via their (incorporating the time of day, weather, how the
purchase in a physical store gives consumers the smartphone, and they have high expectations customer is dressed, what department they are
peace of mind that they will have a copy on file. for service. They assume they will receive the shopping, etc.) as well as cross-selling and up-
In addition, retailers are using electronic receipts same level of personalized recommendations selling require a finesse that robotics will likely
as a means for suggested selling by offering they receive on Amazon when they visit a store. not completely replace.
recommendations for potential purchases based With higher expectations for personalized
on previous purchases, elevating the customer’s experiences, younger shoppers believe sales
current and future shopping experience. associates should cater to their needs.
EXHIBIT 14: Disruptive Technologies
Implemented and working well Implemented but needs improvement Implement within 12 months Implement in 1-3 years
Internet of Things (IoT) 18% 21% 14% 21%
Artificial Intelligence (AI) 7% 25% 29% 11%
Virtual Mirrors 7% 14% 32% 7%
Augmented Reality (AR) 11% 43% 18%
Virtual Reality (VR) 18% 25% 25%
252020 Customer Engagement Survey
DISRUPTIVE future and further shape the customer’s RETAILER
experience and their associated expectations.
TECHNOLOGIES OPPORTUNITIES
Disruptive technologies such as artificial Virtual reality (VR) and augmented reality As customer behavior and expectations
intelligence, virtual reality and the Internet (AR) remain hot topics with more options in continue to advance, stores will need to
of Things (IoT), offer further possibilities to the marketplace putting the technology in evolve with new customer engagement
leverage emerging technology and digital everyone’s hands. While only 11% of retailers models.
capabilities in the store. claim to be using AR technology, all of these
companies indicate the technology needs While retail continues to go through
Artificial Intelligence (AI) offers the ability to pair improvement. With 72% of retailers planning to challenging times, the transformation is
the vast amounts of data gathered on customers use AR within three years, we expect to see a exciting for consumers and retailers alike
and their preferences and synthesize this lot of traction in improved AR technology and with new technologies and opportunities
information to help predict customer behavior processes. A few unified commerce platform arising to enhance the changing customer
and personalize the customer experience. Some providers are incorporating AI into their order journey. For retailers to survive (and
retailers are experimenting with AI to offer management offering to be able to optimize thrive), the key is a personalized, mobile,
product recommendations based on answers to inventory and shipping decisions for order synchronized customer journey powered
a series of questions. fulfillment. by an agile unified commerce platform with
solutions built on a common data model
The disruptive technology that is of most Virtual mirrors allow shoppers to easily and integration framework.
interest to retailers is the IoT, with 39% of envision themselves in different garments,
retailers currently having this capability, glasses or cosmetics. Currently, 21% of the The future is now as today’s retail
although much improvement is needed to gain retailers surveyed offer virtual mirrors to their transformation is driving fundamental
the full benefits available. IoT describes an customers and another 32% plan to add changes in the customer engagement
environment where the Internet is connected to it within three years. These technologies, model. This is the time to increase and
physical objects embedded with sensors that coupled with a personal digital assistant, can enhance customer engagement across
can then communicate (Exhibit 14). The IoT is make recommendations based on customer the retail enterprise and to innovate and
not just about gathering data, but also about information, purchase history and current reinvent the customer experience by
the analysis and usage of that data. It has the promotions within the store. reimagining your retail operations for this
potential to change the way the customer shops
new customer journey.
and will also change the checkout experience
and transform the point of sale. We see IoT
Let’s Have a Conversation.
and similar technology as examples of how
commerce will continue to evolve into the
262020 Customer Engagement Survey
SURVEY METHODOLOGY This report summarizes the results and findings than $1B in sales (Exhibit 16).
of the survey, offers insights based on our
enVista conducted the 2020 Customer consultants’ engagements with hundreds enVista also recognizes the challenges that
Engagement Survey through an online of retailers and their overall experience, retailers face as they shift from single, multiple
survey program in November and December and identifies current and future trends in or omni-channel environments to a unified
of 2019. The objective of the survey was the industry. These insights are intended to commerce environment. While most of the
to gain an understanding of U.S. retailers’ aid retailers compare their customer-facing retailers fall within a multi-channel/omni-channel
planned initiatives, priorities and future trends operations/technology and identify areas to environment, 11% of the respondents indicate
concerning customer engagement in the store enhance their customers’ experience. they have a true unified commerce environment
and online. and offer a seamless experience to their
The primary retail segments of the survey customers (Exhibit 17).
This research also included a separate consumer respondents were general merchandise with
survey conducted in December 2019, which 34% of respondents and specialty – hard goods The retailers included in the survey consider
reflects the general population of U.S. shoppers, with 26% of respondents (Exhibit 15). The others themselves on the leading edge of technology
to understand what customers want when they fell into other categories such as specialty – soft within the industry with 29% indicating they are
are shopping online and in the store, including goods, grocery, food and beverage. innovators and 36% considering themselves
the related technology and overall shopping early adopters (Exhibit 18).
experience. The combination of the retailer Of the retailers surveyed, the breakdown in
and consumer surveys offers a valuable tool to size based on gross annual revenue included a The specific respondents for each company
compare customer expectations with retailer broad selection of Tier 1, 2 and 3 retailers, were comprised of vice presidents and directors
capabilities. with 66% of the retailers having more of store systems or IT, and C-level executives.
3%
8% 13%
34% 21% 21% 29%
31%
6% 36%
13% 13% 11%
42%
26% 11%
16% 11% 37%
18%
EXHIBIT 15: Company Category EXHIBIT 16: Annual Revenue EXHIBIT 17: Current Channel Integration EXHIBIT 18: IT Implementation
General Merchandise $100M to $499M Single Channel Innovator
Drug Store/Health & Beauty $500M to $999M Multi-channel Early Adopter
Convenience & Fuel $1B to $4.99B Omni-channel Mainstream Adopter
Grocery, Food & Beverage $5B to $9.99B Unified Commerce Late Adopter
Specialty-Soft Goods $10B or more Laggard
Specialty-Hard Goods 27About enVista
enVista, a leading global consulting and software firm, is the only solutions provider in the market that optimizes and unifies both supply chains and
omni-channel commerce end-to-end, from order capture to fulfillment, and from supplier to end consumer. We have twenty years’ experience helping
thousands of the world’s leading brands drive digital and omni-channel transformation; optimize enterprise efficiencies and savings; turn data into
actionable, predictive customer insights; and deliver nimble, unified, optimized, customer-centric digital and physical commerce.
Our consultants bring exceptionally deep domain expertise and a “strategy first” approach to consult, implement and operate across omni-channel
commerce, supply chain, material handling automation and robotics, global transportation, information technology (IT), business intelligence (BI),
Microsoft enterprise solutions, and emerging technologies including, artificial intelligence (AI), Internet of Things (IoT) and machine learning (ML).
enVista’s agile, cloud-native Enspire Commerce Platform uniquely and strategically built from the ground up as microservices architecture, provides a
single enterprise view of customer, inventory, orders, items and payments.
Agile, profitable, customer-centric commerce starts here.
Let’s have a conversation.™
TM
envistacorp.com 877-684-7700 info@envistacorp.com
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