What is unified commerce?

Retailers around the world are increasingly focused on enriching consumer experiences, both online and in-person. New technologies and services enable more personalised customer journeys, expedited and seamless payments and a better ability for businesses to truly know and serve their customers. While online shopping continues to rise in popularity, brick and mortar isn’t going anywhere anytime soon. 

Online spending represents 55% of all shopping in South Africa, a decrease from last year’s 58%, though it’s expected to grow again over the next few years. Importantly, 64% of consumers say they would prefer to shop from a brand that has both a physical and an online store, and 61% say they want seamless communication across sales channels, with their journey and data following them. These numbers are all up from previous years, indicating a growing interest in and demand for personalised and seamless omnichannel and unified commerce journeys.

To thrive in this evolving landscape, multi-channel sales integration is necessary to meet shoppers where they are. A unified commerce platform enables retailers to deliver consistent, flexible experiences across both online and in-store environments, ensuring they stay ahead in a dynamic market, while reconciling all transactions across methods and channels in one place.

What is unified commerce?

Omnichannel vs unified commerce

Unified commerce is a retail strategy that creates a centralised data system across all available channels where customers can purchase goods. It provides a single and real-time view of  inventory, customer preferences, loyalty programmes, promotions and transactions. The approach facilitates better decision-making and consistent customer experiences that improve retention and conversion rates.

Omnichannel commerce is a strategy used by businesses that want to offer the same shopping experience across all available channels, so customers can shop wherever it's convenient. Channels may include online, in-store, mobile and social media platforms. However, if these businesses have not implemented a proper unified commerce system, each channel can operate independently, which would lead to data silos and inconsistent customer experiences.

When channels operate in silos, it can lead to fragmented customer interactions. If a shopper purchases a product online and then visits a store, for example, it’s unlikely that an in-store assistant would have access to their online order history or payment details. This breakdown can create frustration and friction and may even deter customers from returning, ultimately impacting customer lifetime value (CLV). A true and optimised omnichannel offering ensures consistency, data sharing and the same checkout options no matter the channel.

How does unified commerce work?

To allow customers to order, pay and receive goods in the way they choose, all channels and related data need to be integrated into a single platform. By connecting channels, businesses can create a more engaging, flexible customer journey and better understand their customers.

For example, an online order should not restrict customers to online payments and delivery options, nor should an in-store purchase limit them to in-person payment methods. If a customer would like to pay in store using the same methods available online, an optimised unified commerce offering would enable that to happen seamlessly. 

What are the main benefits?

Unified commerce can improve the customer experience across multiple channels. It also improves business operations by reducing manual processes, errors and possible stock waste, through a holistic view of the supply chain and customer transactions.

• Personalised customer experiences‍

Cross-channel experiences improve conversion rates by streamlining the checkout process and providing a consistent payment experience across all channels. It's a powerful tool when used with insights from your customer data. Here is one example of how it works in practice:

A customer with an existing online profile may decide to go in-store for their next purchase. If what they are looking for is out of stock, a sales associate can place an order on their behalf at the till point. In addition, the unified platform gives the customer freedom to pay how they want and can access the stored delivery address and payment methods from their online profile to have the item delivered to their home. 

In addition to streamlining the checkout process for the customer, the sales associate can personalise the experience by cross-selling products based on the preferences stored on the unified system. The associate can also access loyalty rewards the customer has earned across all touchpoints to enhance their in-person retail experience.

• Flexible payment options

A broad choice of payment methods gives consumers the control to pay how they want, where they want. Payment methods can include Card, Pay by bank, Digital Wallets, Crypto, manual EFT, and even payment links. Flexible payment methods should be available across all channels to ensure a consistent customer experience. 

Beyond cash, card is currently the most popular method for in-person payments. Businesses need to enable secure card payments for a market-fit retail experience. 

• Streamlined inventory management

Centralised and real-time data provide better visibility and control over inventory. 

Real-time data shows the business accurate stock levels across all locations, such as stores, warehouses and distribution centres. The visibility creates omnichannel opportunities to offer flexible fulfilment options such as Buy Online, Pick Up in Store (BOPIS), ship-from-store and ship-to-store. 

Data-driven insights enable more accurate forecasting based on consumer behaviours and trends, reducing excessive or insufficient inventory. 

Real-time tracking improves transparency and can identify weaknesses in the supply chain that contribute to inventory waste and costs. For example, returned items can be redistributed to locations where they are most likely to sell, and orders can be allocated to the nearest location with the inventory, reducing shipping costs and delivery times. 

• Operational efficiency

Training is made easier with one, integrated platform rather than learning how to use multiple systems with nuanced data and functionalities. With a single, end-to-end view of the supply chain and transaction data, impactful business decisions are made quicker, manual processes can be removed and business decisions made more easily.

• Simplified reconciliation and reporting 

A unified commerce platform brings data across sales channels all in one place, providing a single view of transactions which can be verified on the unified system, irrespective of which channel it originated from. 

Clear and transparent audit trails enable accurate financial reporting which can be generated instantaneously for all channels. 

How can businesses implement unified commerce successfully?

Getting started with unified commerce strategies requires planning and the right technology partner to increase speed to market.

Here are some key factors to consider:

• Centralise data: As mentioned, one key difference between an omnichannel strategy and a unified commerce strategy is centralisation. A channel that is siloed risks inconsistency in customer experience and obscures business insights.

• Offer flexible payment options: Consumers want to control how they pay. Supporting multiple payment methods across channels gives them that freedom. 

• Prioritise personalisation: Businesses can leverage data analytics to understand their customer’s profile and strengthen customer loyalty and brand advocacy. Insights on their spending habits and preferences can enable employees to identify cross-sell opportunities and incentives that are most appealing to them. 

• Invest in training: Employees determine the effectiveness of a unified commerce strategy. Employees who are skilled and comfortable in using the unified platform clear confusion, resolve problems and provide a personalised service to customers. 

• Security and compliance. Businesses need to ensure they are protecting themselves and their consumers from fraud, and reducing chargebacks, by ensuring that their payments platform has robust data security protocols and is compliant with industry standards such as PCI-DSS and POPIA. 

Stitch supports business with robust payments infrastructure, for a seamless and efficient payments experience across methods. Get in touch to learn more about how Stitch can support forward-thinking retail enterprises.