Mobile masterpiece: Creating omnichannel retail and stand-out CX
Mobile retail is a huge revenue and growth opportunity for brands that do it right. Here's how one retailer boosted profits with mobile-first CX.
The retail landscape is undergoing a massive transformation, driven by advanced technologies and rapidly changing consumer behaviors. As the industry becomes more and more digital, the role of the chief merchandising officer has grown to include a much broader set of responsibilities and skills than in the old brick-and-mortar days.
With e-commerce expected to continue its upward trajectory, CMOs have their work cut out for them.
According to Forrester, online retail sales will grow at a 10% compound annual growth rate over the next five years, reaching $1.6 trillion by 2027. That’s nearly 30% of all US retail sales.
To thrive in this digital omnichannel environment, chief merchandising officers must leverage data and analytics to gain insights into customer preferences, optimize product offerings, and align pricing and promotions across channels.
The evolving role of the chief merchandising officer
Traditionally, the chief merchandising officer was responsible for making crucial decisions related to buying, negotiating with vendors, seasonal inventory, pricing and promotions. These decisions revolved around the physical store: managing in-store planograms, displays. and inventories.
However, with the rise of e-commerce and emerging channels, their focus has expanded to include digital and omnichannel merchandising, product design and development, and product portfolio strategy.
Today’s chief merchandising officer, also referred to as the chief merchant officer, needs to understand consumer behavior across multiple touchpoints, both online and offline.
Recent hires in prominent retail companies highlight the broad scope of the CMO role:- Kohl’s named Nick Jones as its chief merchandising and digital officer, responsible for all merchandising functions, including buying, digital and omnichannel merchandising, product design and development. and product portfolio strategy.
- Belk, a Charlotte-based department store, hired MaryAnne Morin as president and chief merchandising officer to lead customer experiences across the company’s stores, website, and mobile app.
- Qurate Retail Group added Stacy Bowe as QVC US chief merchandising officer, tasked with reenergizing the brand’s assortments, differentiating it on current and next-generation platforms, and driving growth.
Digital retail presents new challenges for merchandisers
The job of the chief merchandising officer has never been easy, but online selling presents added challenges. Responsibilities now include:
- Translate in-store planograms to the online experience
- Understand the differences in product velocity between online and offline channels
- Manage larger product assortments due to the high number of items sold online
Additionally, effective inventory management is essential to fulfilling customer orders efficiently across various channels and locations. This is complicated by the growing trend of fulfilling online orders through in-store stock or dropshipping.
All this means that the CMO can no longer just rely on being skilled at spotting hot trends. They need data-fueled insights in order to make informed decisions about stock levels, assortment planning, and fulfillment strategies.
The future of order fulfillment: 4 trends to watch
The retail landscape has completely transformed in the past couple years, putting order fulfillment to the test. Here's what you need to know about fulfillment, post-pandemic.
Where data meets design
Modern chief merchandising officers need to fuse the art and science of merchandising by integrating data insights with creative design processes.
Merchandisers used to rely on historical purchasing data and their instincts, but the growth of online channels offers a wealth of data about customer buying habits and preferences. This gives CMOs the opportunity to make decisions in real time, but also requires them to shift their focus from products to customers.
Liza Amlani, Principal and Founder of Retail Strategy Group, said chief merchandisers need to challenge fundamental assumptions in order to succeed.
“Namely, they need to shatter the thinking that more supply of products equals more customer demand. Instead, they need to integrate customer insights into their processes.”
This will help them get closer to the customer and deliver the right product to them at the right time and in the right place, she added.
Data-driven decision-making: 3 ways to drive retail resilience
Retailers can improve CX and strengthen the bottom line by taking a fresh approach to data.
New tech boosts retail experiences
Advanced technologies, such as artificial intelligence (AI), automation, and analytics, play a crucial role in helping CMOs to make data-driven decisions and optimize merchandising efforts for better outcomes.
These technologies empower retailers with:
- Unified customer and sales insights
- Intelligent demand planning
- Trend detection
- Pricing optimization
- Improved inventory management
- Real-time KPI tracking
By leveraging the right tools, CMOs can focus on consumer-first merchandising and create differentiated and personalized shopping experiences that set their brand apart and drive customer loyalty.
The best examples of artificial intelligence in e-commerce
The machines are here. AI is boosting e-commerce in countless ways – discover some of the best examples.
The future of merchandising: Adapt & thrive
As the retail industry continues to evolve, the role of the chief merchandising officer has become only more vital to a brand’s success. AI and automation are helping CMOs adapt to change and focus on what matters: The customer.
By embracing a data-driven and consumer-centric approach, CMOs can successfully navigate the challenges of the digital landscape and position their brands for success.
Happy customers.
Connected experiences.
See real-life retail outcomes HERE.
