Omnichannel metrics is a high stakes game. According to PwC, “By 2020, the demand for an omnichannel customer experience will be amplified by the need for nearly perfect execution.” As we all know, near perfect execution doesn’t exist without metrics. Indeed, the ability to measure the ROI and related metrics of multi-channel engagement is what sets the leaders apart from the laggards.
Yet, when it comes to implementing omnichannel measurement strategies, even the most savvy metric-focused marketers are overwhelmed by the vast amounts of data points needed to be analyzed from across all retail channels. And the number of retail channels will only continue to grow as consumers clearly enjoy—and expect to use—a variety of interconnected channels across their customer journeys, whether online or in-store.
If you don’t have a clear plan for measuring the right metrics, it’s easy to follow the wrong data down a rabbit hole, resulting in a time-consuming distraction from focusing on the metrics that offer actionable insights for greater success. So what is preventing organizations from implementing a truly data-driven omnichannel customer strategy?
A lot of retailers are drowning in data. In its August 2018 report entitled “Omnichannel Commerce Metrics That Matter”, Forrester urges retailers to move away from simply being data rich to being insights driven in order to improve bottom-line performance and ARPU. In the report, Forrester identifies:
The right metrics digital experience and omnichannel marketing pros need to identify opportunities for improvement, justify future investments, and better understand the impact across all digital touchpoints.
Critical data points needed to understand where customer pain points exist.
Specific metrics that measure customer and business objectives, including:
what to measure to increase awareness and adoption (omnichannel orders as a percentage of digital traffic, omnichannel orders by new/existing customers, etc)
engagement (new/existing AOV per omnichannel method, AAO percentage, etc)
experience (omnichannel customer NPS, time to notification, etc)
the impact omnichannel has on your revenue and profitability (customer lifetime value, orders per hour cadence, etc)
Many retailers still struggle with accessing and collecting data from multiple sources. In order to deliver more individualized experiences across a variety of channels, your digital experience platform or content management system needs the ability to unify data from disparate internal and external data silos—CRM, marketing automation system, e-commerce platform, ERP, mobile app, social media, loyalty program, and so on—for a holistic view of the customer so you can better harness that data to drive insights and a competitive edge.
The traditional tools used to manage and measure omnichannel experiences have evolved significantly over the last year. The most innovative tools—digital experience, analytics, content management, personalization, predictive targeting, etc—have already made the move from being systems of management to “Systems of Insight” (SoI).
Systems of Insight refers to technology which aims to support and improve the customer experience through the consumption, collection, and analysis of data from the combined sources of traditional “systems of record” and “systems of engagement.” Put another way, systems of insight leverage behavior-driven insights to apply advanced analytics at the point of customer action and in real time to improve business outcomes.
Do your customers get the right information, in context, at the exact moment they need it and on their channel of choice? Did you use that engagement to make the right offer and up sell other products they might like? If not, you’re using outdated tools.
Systems of Insight, for example, can analyze business data and social feeds, such as social networks, customer service interactions, web click stream data to predict potential customer behavior and preferences and determine the next best action that could include up-selling, cross-selling, or highly targeted promotions, in real time.
Omnichannel metrics have never been more important than they are today. To ensure you are using the right metrics, map outcomes to business strategy and focus on using the right metrics rather than measuring for measurement sake. Make sure you understand the impact of individual metrics. And look for platforms and tools that embrace innovation and offer automated insights using AI and machine learning, and can handle complex analysis at scale. These are the tools that will power the digital experiences of the future.