OSF Digital’s 2022 Omnichannel Retail Index shares insights for retailers and brands to accelerate growth.
Setting the Scene
OSF Digital, an award-winning provider of digital transformation services to companies worldwide, has released its 2022 Omnichannel Retail Index (Index) findings and there’s work to be done as far as retailers and brands investing in omnichannel. Launched in 2015 in partnership with The National Retail Federation (NRF), the Index is widely recognized as the industry’s most comprehensive omnichannel and digital best practice benchmark study.
The 7th annual study found that top-scoring retailers and brands are aggressively increasing adoption rates of omnichannel and digital capabilities, such as optimized content, frictionless checkout, and cross-channel capabilities, to meet rising shopper demands. Despite this, most companies in the Index have implemented less than 61% of best-practice capabilities, sometimes struggling to deliver seamless shopping experiences.
The highest-ranking company in the Index, Bed Bath & Beyond had implemented 85% of the Index’s designated best practices, which is a significant jump from 2021, when Bloomingdale’s had highest score was 72%. This increase is a sign that digital investments are paying off. Another sign that retailers and brands are prioritizing omnichannel and digital investments is that this year, 12 companies have outperformed last year’s leader with scores ranging from 73%- to 85%.
The Omnichannel Retail Index interactive digital report outlines key findings on the state of omnichannel and digital best practices, offering insights on investment trends and customer demands. Some of the key findings include:
- The implementation of Buy Online Pick-Up In-Store (BOPIS) curbside pickup has increased significantly, accelerated by the pandemic. BOPIS has become table stakes, offered by 84%; however, the cross-channel experience leaves much to be desired. The adoption of supporting functionalities that enable frictionless experiences has mainly remained flat in the past years, including the ability to schedule pickup times, filter by store availability, etc.
- 74% of the loyalty programs are based on a typical “earn & burn” approach. Only 49% allow shoppers to redeem points for product discounts, and even fewer allow shoppers to redeem points for “experiences.”
- From fast fashion to home improvement, sustainability is in focus. 67% promote sustainable products or sustainability programs.
The Omnichannel Retail Index takes the pulse of digital commerce and omnichannel retail. The Index examines how 100+ leading U.S. and global retailers and brands perform against 250+ criteria across web, mobile, and in-store capabilities. The Index examines how these companies deliver on the omnichannel promise through detailed and extensive mystery shopping conducted by OSF Digital’s strategy consultants. For the first time, this year’s report also shares consumer research and data by GfK to understand where retailers and brands are delivering or falling short of consumer expectations. Gfk is a consulting service and always-on, AI-powered intelligence platform for the global consumer products industry. Also new this year is the analysis of these companies’ sustainability practices and programs.
To view the full findings, please visit: https://omnichannelretailindex.com/