OSF Digital, an award-winning provider of digital transformation services to companies worldwide, announced the release of its 2022 Omnichannel Retail Index (Index) findings. Launched in 2015 by FitForCommerce (now OSF Digital’s strategic consulting division) in partnership with The National Retail Federation (NRF), the Index is widely recognized as the industry’s most comprehensive omnichannel and digital best practice benchmark study.
The 7th annual study found that top-scoring retailers and brands are aggressively increasing adoption rates of omnichannel and digital capabilities, such as optimized content, frictionless checkout, and cross-channel capabilities, to meet rising shopper demands. Despite this, most companies in the Index have implemented less than 61% of best-practice capabilities, sometimes struggling to deliver seamless shopping experiences.
The Omnichannel Retail Index interactive digital report outlines key findings:
- The implementation of Buy Online Pick-Up In-Store (BOPIS) curbside pickup has increased significantly, accelerated by the pandemic. BOPIS has become table stakes, offered by 84%; however, the cross-channel experience leaves much to be desired. The adoption of supporting functionalities that enable frictionless experiences has mainly remained flat in the past years, including the ability to schedule pickup times, filter by store availability, etc.
- 74% of the loyalty programs are based on a typical “earn & burn” approach. Only 49% allow shoppers to redeem points for product discounts, and even fewer allow shoppers to redeem points for “experiences.”
- From fast fashion to home improvement, sustainability is in focus. 67% promote sustainable products or sustainability programs.
- In addition to making sure online payments are secure and quick, retailers and brands are increasingly investing in expanding payment options such as “buy now pay later” (BNPL) and payment installment plans to expand reach and broaden target customers. 74% of retailers and brands now offer extended payments, and some are offering alternative payments such as cryptocurrency and Venmo.
- 70% of retailers and brands in the Omnichannel Retail Index offer a cross-channel loyalty program. Many loyalty programs are still built upon traditional point systems to reward shoppers. Note that out of those with loyalty programs, 26% do not provide their customers a way to check their loyalty points and/or progress online.
- As retailers and brands focus on customer retention, there is a renewed focus on loyalty. Some have introduced a wide range of exciting new loyalty programs that go beyond the traditional point systems. These programs focus more on relevant experiences (17%) such as book signings, events, etc. Or access to early releases or exclusive offers (25%). Some offer complimentary services and introduce new ways for customers to gather points by becoming brand advocates.
The Omnichannel Retail Index takes the pulse of digital commerce and omnichannel retail. The Index examines how 100+ leading U.S. and global retailers and brands perform against 250+ criteria across web, mobile, and in-store capabilities. The Index examines how these companies deliver on the omnichannel promise through detailed and extensive mystery shopping conducted by OSF Digital’s strategy consultants. For the first time, this year’s report also shares consumer research and data by GfK to understand where retailers and brands are delivering or falling short of consumer expectations. Gfk is a consulting service and always-on, AI-powered intelligence platform for the global consumer products industry. Also new this year is the analysis of these companies’ sustainability practices and programs.
To view the full findings, please visit: https://omnichannelretailindex.com/
