The Elimination has started: ManAgement must react. NOW.
The 2020 benchmark show slim improvements from 2019 – but it is nowhere near good enough. Management are the ones who should take responsibility of adjusting to customers’ ever-growing expectations. Period.
Here’s the good news: the level of omnichannel maturity amongst Danish brands and retailers has increased since the IMPACT Omnichannel Index 2019 from 33 to 45*.
Since the IMPACT Omnichannel Index 2019 only investigated Danish companies, no data is available of the development in Norway and Sweden.
IMPACT Omnichannel Index 2019
IMPACT Omnichannel Index 2020
The bad news is that it is not good enough. Not even close. With Amazon on the horizon, omnichannel is a do-or-die moment.
We are in the beginning of an elimination with huge differences in willingness to invest and speed of transformation. This is an expression of different mindsets among the management and the board.
Lacking insights into data and knowledge about the consequences of a bad omnichannel experience are some of the reasons.
The wrong focus
Kasper Holst, CEO of IMPACT, explains that many organisations act according to a short-term perspective. They urgently consider KPIs and concentrate on optimising and keeping the business running. He continues:
If you want to survive you must have a projection of customers’ expectations and behaviour, the competitive situation and digitalisation.
He points at the importance of knowing how good the business meets customers’ expectation today and how they can meet them in the future. He further explains:
“Management should be responsible of adjusting to customers’ growing expectations.”
These companies have gone from From 0 to 100
Customer reviews, wish lists, and the ability for employees to check the status of a customer’s online order in-store are some of the touch points where Danish retailers are moving at a snail’s pace.
When comparing the touchpoints that are included in both last year’s and this year’s Omnichannel Index, it is obvious that some companies have invested and prioritised omnichannel more than others.
HiFi Klubben has improved these touchpoints by 340% and in both the awareness and loyalty phase they have moved from 0 to 100. Likewise, Salling Group has improved their omnichannel level by 125% which is mostly due to their efforts in the evaluation and loyalty phases.
HiFi Klubben touchpoints improvement
Salling Group omnichannel level improvement
Conversely, companies as Vero Moda, Harald Nyborg and Bahne have all stagnated and improved just one or two touchpoints in the past year. All three of them are part of the bottom half of this year’s Omnichannel Index analysis.
This is a problem. The three companies are being outperformed by marketplaces and competitors who have invested in omnichannel. If they don’t do something right now, it will soon be too late.
These companies have gone from From 100 to 0
In each phase, some companies meet just some of the touchpoints while others meet every single one – in each industry, we see the same gap. In the electronic industry for example, two retailers score 100 points in the loyalty phase while two score 0.
Kasper Holst, CEO of IMPACT, explains:
“This reveal that many companies still don’t have the right digital knowledge at management or board level. You cannot deny the digital changes, so you need people in your organisation who understand the changes and can roadmap the right strategy to secure the business in the future.”
Amazon will start in Sweden in 2020. In the UK, Amazon already dominates the market with a market share of 30% in 2019.
Amazon is known for excellent service, outstanding user experience and fast delivery. Since Nordic omnichannel maturity is still low, Amazon’s geographical shift should rattle every retailer and brand in the Nordics.
To Kasper Holst, one thing is for sure:
If you don’t have a solid omnichannel experience today, Amazon will overtake your place in the market.
*These scores account for all 84 companies included in both Omnichannel Index 2019 and 2020.