StartArticlesRevolution in retail: from multichannel to unified commerce

Revolution in retail: from multichannel to unified commerce

Historically, retail has evolved significantly over the past hundred years. Since the emergence of the first brick-and-mortar stores, that operated independently and without the need for integration between units, up to the current scenario dominated by digitalization and real-time integration, the sector faces technological and behavioral transformations that have radically changed the consumer experience

In the early days of retail, the physical stores operated independently. Each unit had its own inventory control, customer service and management. The main focus was the local consumer experience. Such simplicity, meanwhile, it became unsustainable with the growth of retail networks, of societies and the increasingly complex relationships between brands and consumers

The arrival of integrated management systems in the early 1990s, how ERPs (Enterprise Resource Planning), it was the first step towards the centralization of operations, allowing a new era of scalability for businesses

Furthermore, with the advent of new channels, like a phone, email and digital platforms, retail began to operate in a more complex environment. Multichanneling emerged as a response to this diversification of contact points, allowing the consumer to interact with the brand in different ways and through multiple points of service and contact

In practice, multichannel allowed consumers to buy online and pick up in store, or even seek after-sales solutions through channels like WhatsApp and social media. Recent data shows that 50% of consumers prefer to resolve post-sale issues via WhatsApp, highlighting the importance of offering agile options, convenient and that communicate directly with the consumer

However, despite being efficient, multichannel often fails to deliver an integrated experience. The operations of different channels often do not communicate with each other, resulting in frustrations for the consumer and operational challenges for the companies

Unified Commerce: total integration

In light of this scenario, Unified Commerce emerges as the natural evolution of multichanneling, offering an integrated and centralized approach, what a data union, stocks, logistics and customer service in a single orchestration system. The goal is to deliver a smooth and real-time experience for the consumer, regardless of the channel used

Unified Commerce is not just about connecting sales channels. It is necessary to integrate the entire chain of operations, from stock to delivery logistics, using advanced technologies such as Artificial Intelligence and Big Data to anticipate needs and personalize interactions. The concept meets consumers' expectations for frictionless experiences, where there are no barriers between the physical and the digital. It is an evolution, enabled by technology, of the concept ofomnichannel, so talked about but always implemented with great difficulty by companies

Who is leading this revolution

Several retailers have already adopted Unified Commerce as their central strategy. Examples include

Walmartthe retail giant invested heavily in technology to integrate its online and physical operations, allowing customers to buy from anywhere and receive products quickly and efficiently

Amazonalthough it is traditionally a digital platform, the company is expanding its physical presence with initiatives like Amazon Go, where data integration and technology eliminate queues and simplify the shopping experience

Magazine Luizain Brazil, Magalu is an example of how full integration can benefit the customer. The company uses systems that connect inventory, logistics and customer service, allowing the consumer to choose where and how to receive the products

Challenges and opportunities

The implementation of Unified Commerce, however, it's not simple. Involves technical challenges, how the integration of legacy systems, and strategic, how team training to operate in a highly connected environment. Furthermore, requires significant investments in technology and infrastructure, changes in incentive and reward mechanisms for sales teams, put the customer "indeed" at the center of management, and much more

On the other hand, the benefits are clear. Companies that adopt Unified Commerce are better able to meet the demands of modern consumers, increasing customer loyalty and boosting operational efficiency. In an increasingly competitive market, this can be a decisive differentiator

Therefore, the transition from multichannel to Unified Commerce represents a revolution in retail. More than technological change, it is the cultural transformation that puts the consumer at the center of all operations. Companies that embrace this change will be better prepared to compete in a landscape where customer experience is the most valuable currency. Total integration is not a differentiator, another necessity for those who want to stay relevant in the current market

Fernando Moulin
Fernando Moulin
Fernando Moulin is a partner at Sponsorb, boutique business performance company, professor and business specialist, digital transformation and customer experience and co-author of the best-sellers "Restless by Nature" and "You Shine When You Live Your Truth" (both from Editora Gente, 2023)
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