The 2023 Omnichannel Retail Index Report by OSF Digital reveals where retailers and brands are accelerating growth this year.
OSF Digital, a globally acclaimed provider of digital transformation services, has recently unveiled its highly anticipated 2023 Omnichannel Retail Index (Index) Executive Summary Report. The report highlights key insights into the removal of commerce friction points, loyalty programs, and empowering customers with more control.
Let’s dive into the four key findings from this year’s study:
1. Loyalty Programs Take Center Stage:
The study showcases a widespread adoption of loyalty programs among retailers, with 77% of benchmarked retailers reporting having one – a significant increase from 70% in 2022. Notably, some brands are leveraging loyalty programs further by offering tiered programs (42%) or paid programs (19%) to foster long-term customer relationships. Rewarding specific actions and providing discounts or incentives as part of retention strategies has become a top priority for many companies.
2. Enhanced Search Functionality:
Retailers and brands are prioritizing the enhancement of the customer experience by incorporating features that make it easier for online shoppers to find what they’re looking for quickly. The study reveals a high adoption rate of search functionality among retailers in the Index.
An impressive 95% of retailers now employ auto-suggest search terms, and 88% offer suggestions for empty search results—an increase from 73% in 2022. Additionally, pre-populating autosuggest with top searches or trending items has gained popularity, with 43% of retailers adopting this tactic in 2023.
3. Guided Online Selling Tools Gain Momentum:
The report indicates a significant increase in the utilization of guided online selling tools, growing from 26% in the previous year to 40% this year. These tools assist customers in their purchasing journey by providing step-by-step guidance.
However, the study identifies a missed opportunity in the adoption of a crucial feature—only 30% of brands have implemented the capability to save quiz or guide results in the user’s account section for later access.
4. Decline in Curbside Pickup and BOPIS:
The Index points to a decline in the adoption of curbside pickup, with only 49% of brands currently offering this service, compared to 73% in 2021. This decrease can be attributed to the rapid adoption of curbside pickup during the pandemic, where it became a must-have feature overnight.
Similarly, Buy Online Pickup in Store (BOPIS) has also experienced a slow decline, with 82% of benchmarked companies offering it—down from its peak of 86% in 2021—despite its popularity among customers.
About Omnichannel Retail Index
Retail Index has established itself as the industry’s most comprehensive benchmark study for omnichannel and digital best practices. Through rigorous mystery shopping conducted by OSF’s Digital Strategy consultants, the Index evaluates how 120 leading U.S. retailers and brands perform against 200+ criteria across web, mobile, and in-store capabilities.
Gerard (Gerry) Szatvanyi, CEO of OSF Digital, emphasizes the importance of the Omnichannel Retail Index as a critical tool for retailers and brands.
The Omnichannel Retail Index is a critical tool to provide retailers and brands with insights and data for creating an outstanding and seamless customer experience across the shopping journey. This year’s report guides businesses in understanding commerce best practices, justifying their digital roadmap, and making smarter investment decisions to optimize customer experiences. – Gerard (Gerry) Szatvanyi.
To access the Report, please visit osf.digital
About OSF Digital:
OSF Digital is a global leader in commerce and digital transformation, connecting technology and strategy to drive business goals. With expertise in B2C and B2B commerce and recognized for multi-cloud innovation with Salesforce awards, OSF Digital seamlessly guides enterprises through their digital transformation journey.
With a strong presence throughout North America, Latin America, APAC, and EMEA, OSF Digital provides personalized attention and support to customers across various industries worldwide.