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by Geofferey Pagel
As a retail business owner, you're constantly seeking ways to enhance your operations and drive growth. One of the most significant advancements in the retail sector is the adoption of unified commerce technology. Unified commerce seamlessly integrates various sales channels, such as brick-and-mortar stores, online platforms, and mobile apps, to provide a consistent and streamlined shopping experience for customers. In this blog post, we'll explore the remarkable benefits of unified commerce based on actual sales Data gathered by Planet.
Over the past year, retailers embracing unified commerce have witnessed impressive progress. Their turnover, including tax, has increased by an average of 11%. This significant growth can be attributed to the enhanced customer experience and operational efficiencies that unified commerce offers. Additionally, the average basket value has risen by 3%, indicating that customers are spending more per transaction, which positively impacts on your bottom line.
Omnichannel retailing continues to be a driving force in the industry, as consumers appreciate the convenience and flexibility it provides. Let's delve into the share of turnover generated through various channels. Notably, 38% of sales and reservations originate from in-store traffic. This finding highlights the importance of maintaining a physical presence and creating enticing shopping experiences within your stores.
When it comes to specific channels, Click & Collect has become increasingly popular, accounting for 32% of sales and reservations. Customers value the convenience of purchasing online and picking up their orders at a physical location. E-reservation, another component of unified commerce, contributes 6% to the turnover, showcasing its significance in catering to customer preferences. Lastly, delivery remains a prominent channel, generating 62% of sales and reservations.
The volume of orders has experienced a steady 5% increase, indicating growing customer engagement and satisfaction with unified commerce offerings. Moreover, the average basket value has risen by 10%, signalling that customers are not only buying more but also spending more per transaction. As a result, the overall turnover has grown by 6% due to in-store withdrawals, demonstrating the positive impact unified commerce can have on your business's financial performance.
When examining the share of Click & Collect by network size, we find interesting trends. On average, Click & Collect represents 32% of digital turnover. However, the share of Click & Collect differs based on the number of stores a retailer possesses. For retailers with less than 100 stores, the share of Click & Collect was 6%, which indicates a notable 13% increase compared to the previous year. Retailers with 100-200 stores experienced a share of 29%, showing a 29% increase. Surprisingly, retailers with more than 200 stores saw a decrease in the share of Click & Collect, which was 46%, down 11% from the previous year.
Efficient management of Click & Collect is crucial for customer satisfaction. Fortunately, retailers have made significant strides in mastering this aspect. Out of every 100 Click & Collect orders placed, 93 are successfully handled, showcasing the high level of competence in this area. Only 0.62 orders face cancellations that are not supported by stores.
Analyzing the reasons behind cancellations, stock availability emerges as the main challenge, accounting for 4.62 cancellations out of 100 orders. This emphasises the importance of maintaining accurate and up-to-date inventory to fulfil customer orders effectively. In contrast, cancellations due to customer choices online or failure to show up, account for a smaller percentage, indicating that retailers are effectively meeting customer expectations.
Let's dive into the key performance indicators (KPIs) for retail software customers in Q4 2022, comparing them to Q4 2021. The results are impressive: the average basket value increased by 15%, the number of orders rose by 19%, and the turnover soared by an impressive 24%. These remarkable growth rates demonstrate the positive impact of unified commerce technology on overall business performance.