Shoppers are already interacting digitally and using technology within their retail journeys – hence their shopping behaviour is already omnichannel (or as we like to say at Edgar, Dunn & Company (EDC), they are digitally connected consumers). Beyond brick-and-mortar stores and e-commerce websites, there are many more touchpoints for consumers to connect with retailers and consumer brands. Digitally connected consumers are readily exposed to numerous social media channels, such as Facebook, TikTok, Twitter, Instagram, Pinterest, YouTube, etc. and an array of online platforms, websites, forums, blogs, marketplaces, etc. As a result, many retailers are now adopting an omnichannel connected commerce strategy and placing greater importance on digital customer journeys.

A digital customer journey is the path that a connected consumer follows – from the awareness stage to the purchase stage. Essentially, it covers every interaction between the customer, the retailer, and the consumer brand throughout the buying journey.

We already know there is some blurring of the lines between physical and digital, online and offline. This reality is already present. There are also many more ways to purchase a product – through a website, a mobile app, in the physical store – or even a combination of these with the upsurge of click-and-collect (or as our North America colleagues refer to “BOPIS” – buy-online-pick-up-in-store). The more digitally connected consumers are even ordering via voice-assisted devices.

When it comes to making a payment, EDC understands the importance of payment acceptance within the holistic connected commerce ecosystem and the implications for the customer experience. Simplified pricing and checkout flows, ‘one-touch’ payments, preferred currency transactions and credible alternative payment methods all play their part in the overall experience complementing the brand engagement.

Collaborative Platforms

We have seen a noticeable trend in retailers building business-led open technology platforms for collaborating and constructing an agile response to dynamic and hard to predict requirements of consumers. This makes them more differentiated and resilient to intense competition in many retail sectors. Fulfilment, for example, has become a top priority. This trend is driven by the significant growth in e-commerce, the COVID-19 pandemic and the increasing consumer demand for connected commerce experiences. During the pandemic peak, Carrefour, for example, announced a partnership with online grocery marketplace Everli to deliver in their home country France.
There have been some extraordinary changes in consumer behaviour, such as the rapid adoption of contactless and the use of easy touchscreen technology. Face-to-face transactions have also seen technological advances in security and consumer authentication has given rise to the “smart POS”. A smart POS includes an app marketplace, advertising content and targeted offers for consumers at the point of sale. These are just a few examples of tactical yet small incremental enhancements in POS functionality. However, PIN-on-glass and contactless are expected to weaken the reliance on the POS terminal hardware in its current form. This is another reason why retailers are redefining the digital customer journey.

The digitalisation of the store can cover a plethora of technologies; each meaning something different for different retailers. Facial recognition, digital payments, express delivery and big data are all being bundled into new ways of creating new customer journeys. Retailers are closely examining the different customer journeys to create seamless, fast, and as convenient as possible customer experiences. It combines the physicality of offline shopping with the speed and ease of online shopping. In the West, there is nothing that matches the scale of digitalisation of physical stores that we have witnessed in China. There are examples of retailers, particularly in the grocery sector, where Western retailers are pursuing a digitalisation strategy for their stores. From redesigning the store layout to how customers self-serve and pay for goods, merchants have introduced numerous ‘scan as you shop’ technologies to streamline the shopping process. The majority of the major grocery stores are doing this.

Paul Smith, for example, the British fashion retailer, positions its store design as attractive, idiosyncratic, and full of quirky items that reflect this eclectic fashion brand. It is not a clothes store, but it is welcoming, and visually stimulating and turns browsing into a customer experience that is akin to visiting the home of an eccentric explorer. A Paul Smith store suggests that this retailer is about more than just clothes. It is about product design and that incorporates customer experience design. Digital customer journeys include many things that happen before, during, and after the payment of a product. Digital customer journeys can be long, stretching across multiple channels and touchpoints, and often lasting days or weeks. Forming a view and an understanding of this journey is now vital to understanding the customer experience. Mapping these interactions provides a clear view of the digital customer journey and can provide numerous benefits.

Paul Smith, for example, the British fashion retailer, positions its store design as attractive, idiosyncratic, and full of quirky items that reflect this eclectic fashion brand. It is not a clothes store, but it is welcoming, and visually stimulating and turns browsing into a customer experience that is akin to visiting the home of an eccentric explorer. A Paul Smith store suggests that this retailer is about more than just clothes. It is about product design and that incorporates customer experience design. Digital customer journeys include many things that happen before, during, and after the payment of a product. Digital customer journeys can be long, stretching across multiple channels and touchpoints, and often lasting days or weeks. Forming a view and an understanding of this journey is now vital to understanding the customer experience. Mapping these interactions provides a clear view of the digital customer journey and can provide numerous benefits.

New customer payment interactions are being baked into the design of the digital customer journey. This has been enabled by the increased investment by retailers in mobility and mPOS (handheld POS devices).  Furthermore, mPOS growth is also being driven by new connected commerce use cases such as:

• Pay in aisle
• Endless aisle
• Store-to-web
• Reserve online and pay in-store
• Pay at table

Mapping the Digital Customer Journey

Retailers realise the importance of having real-time order and management systems to support and develop a successful connected commerce strategy and a range of customer journeys, including click & collect, endless aisle, BOPIS and BORIS (Buy-online-return-in-store). EDC has found that over 90% of consumers will buy something again if the return process is easy. Therefore, payments in any retailer should not just be about cost but also act as a revenue driver. A centralised payments strategy will achieve economies of scale and payment acceptance decisions should be located closer to teams that manage the digital customer journey.

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A customer journey map is a detailed diagram that depicts a customer’s stages when interacting with a retailer. These can be broken down based on brands, products, or services. Mapping the customer journey can help provide clear information on how customers move from product awareness to purchase; it identifies gaps in the customer experience, where sales can increase and opportunities where customer satisfaction can be improved.

Automated systems and fulfilment software solutions are best practices, and it is acknowledged by many retailers that these are a priority. Using automation in returns processes can allow items to be moved from the returns pile back into inventory faster, ready for other customers to purchase that same item. Defining a digital customer journey strategy that includes payments requires having an overview of all processes, from inventory to payment acceptance to post-sale processes. Within these post-sales processes, returns play an important part. They shape consumer perception of a brand, and a poor returns experience can deter repeat buyers. Refunds use the original form of electronic payment, and for cash transactions, many retailers will not return cash to the customer and prefer to give store credit or start a bank transfer, which is not always possible. See my previous article “Five best practices to improve the returns process that will increase sales“.

In summary, retailers are increasingly using digital technologies to capture customer preferences and enhance their customers’ digital journeys. Automation also plays a significant role in warehouse operations to product pricing, and smart payment orchestration. While the pandemic has encouraged a growth in e-commerce sales at the expense of physical retail, the importance of the brick-and-mortar store remains undisputed, especially as footfall recovers. To create smooth digital customer journeys – which includes optimising payment acceptance and processing – EDC believes the best-in-class retailers invest a lot of time and effort in understanding their customers’ digital journeys.

The content of this article does not reflect the official opinion of Edgar, Dunn & Company. The information and views expressed in this publication belong solely to the author(s).