This article originally appeared in English on January 7, 2015. eMarketer, January 7, 2015Boston Retail Partners (BRP), a retail consulting firm specializing in technologies and business challenges related to omnichannel commerce, spoke with eMarketer Yory Wurmser about what the firm sees as the next stage for retail: unified commerce.
eMarketer: What is the difference between unified commerce and omnichannel?
Ken Morris: In omnichannel commerce, you have multiple channels, but you don't need a single software solution, just one version of the truth: you have multiple versions of the truth. In the unified commerce world, everything is connected in real time. I don't just mean the website, but also the mobile site and the online store – all in real time.
Fifty years ago, due to a lack of network technology, retailers decided to decentralize the point of sale. The networks of that time weren't obsolete, but they weren't fast enough and were too expensive. When we talk about unified commerce, it brings all of this together in real time.
The best example is banking. Twenty-five years ago, banks discovered that networks could revolutionize banking as we know it. They then created interconnected ATMs using network technology.
Retailers were stingy and never really invested in this network technology… The cloud is a much better environment to run a retail business. It's more customer-centric and customer-friendly. That's why this unified commerce experience is how people will navigate the future.
eMarketer: What is the biggest technical challenge in linking all this different data?
Morris: The most important component is a middleware layer—software that connects the various points. Retailers aren't going to discard their legacy applications or their investments. But what they do need to do is connect everything in real time.
“The most important component is a middleware layer—software that connects the dots.”
eMarketer: What is preventing retailers from immediately implementing unified commerce?
Morris: They've invested a tremendous amount in their current technology. Let me put it this way: A traditional retail register costs $3,500 to $4,000 per register. If you have 1,000 stores and you have 5 registers per store, I mean, do the math: That's $50 million invested in hardware. Nobody's going to let you throw that away, so people are moving to mobile (as a first step).
eMarketer: When they say mobile, do they mean mobile POS?
Morris: Yes, but many mobile POS solutions are designed to interact with the in-store controller – the machine in the store, the use of which is insane: It's like another register and only perpetuates the madness of the decentralized process. A cloud-based mobile solution is the smarter direction for retailers.
eMarketer: Do you believe that customers want an omnichannel or a unified commerce experience?
Morris: That's the big debate. I always say we have to sell it to my daughter, not my mother, while other people claim we have to sell it to both of them and that we have to be able to interact with the customer, no matter how they want to. Retailers need to communicate with customers wherever and whenever they want and deliver a consistent message. You rarely see a retailer who actually offers this.
eMarketer: Which aspect of unified commerce has the most potential to appeal to buyers?
Morris: Let me give you an example. A liquor store we worked with has 100 locations, but they only have one or two people in the chain who are experts. These people know everything about wine. They know the Wine Spectator number on a particular white or red wine, and they know the right questions to ask. The retailer wanted all their employees to be able to ask the right questions. Is it a special occasion? Is it for dinner? Is it red? Do you have meat or fish? We were able to take the expertise from Sales Associate A (the expert) and transfer it to a new Sales Associate B via mobile devices. It's a win for the retailer and a win for the customer.
eMarketer: Do you see hyperlocal messaging as an important "thing" in the future?
Morris: Absolutely. 20% of people generate 80% of sales. This 20% is constantly changing, and identifying these 20% of top customers in real time—and paying attention to them, providing them with exceptional service—that is truly the key.
