Unified Commerce: Can Today's Retailers Adapt to Frictionless Shopping?

The retail landscape is undergoing a seismic shift. New technologies, the internet, social media, and empowered consumers have created a new reality: a multi-channel shopping experience available 24/7, from anywhere in the world. This change demands a new approach for retailers to thrive—an approach centered around frictionless shopping. 

What is Frictionless Shopping?

Frictionless shopping streamlines every aspect of the customer journey, making it simpler and more intuitive to begin and complete a purchase. This isn't just about online shopping; it's about eliminating bottlenecks in physical stores as well. Customers expect instantaneous answers, easy access to information, and swift transactions – whether they're shopping online or in-store. Examples of frictionless shopping experiences include Amazon Go's checkout-free technology and Walmart Pay's mobile payment system.



The Drivers of Frictionless Shopping

Several factors are pushing the demand for frictionless shopping:

  • Time-constrained Consumers: Today's consumers are incredibly busy, prioritizing speed and convenience above all else. 

  • High Competition: Retailers face intense competition, making a seamless and efficient shopping experience essential to attract and retain customers.

  • Evolving Expectations: Consumers expect a unified shopping experience, regardless of the channel they use. They don't distinguish between online and offline; they simply expect a smooth, consistent experience. 



Impact on Retailers

The shift towards frictionless shopping significantly impacts retailers. They must: 

  • Embrace Technology: Retailers need to leverage technology (IoT, AI, etc.) to understand consumer behavior, optimize inventory management, improve distribution efficiency, and create personalized experiences. 

  • Provide Seamless Omnichannel Experiences: Customers expect a unified experience across all channels, requiring retailers to integrate their online and offline operations.

  • Prioritize Customer Experience: Success hinges on creating a positive customer experience that values consumers' time and offers added value. 

Can Friction Be Good?

Surprisingly, some friction can be beneficial. "Positive friction" refers to unexpected pleasant surprises that enhance the customer experience, such as: 

  • Special offers 

  • In-store promotions 

  • Personalized recommendations 

 

Frictionless Shopping vs. Frictionless Retailing

While frictionless shopping focuses on the customer experience, frictionless *retailing* encompasses the entire supply chain, from product design and innovation to distribution and inventory management. The goal is to remove friction at every stage, creating a truly seamless operation. Technologies like IoT, AI, and computer vision play a crucial role in achieving this.


Challenges for Retailers:

Transitioning to frictionless commerce presents several challenges for retailers: 

  • Underinvestment in technology 

  • Rapid technological advancements 

  • Organizational silos 

  • Labor market pressures 

  • Uncertainty around future innovations 


Strategies for Creating a Frictionless Environment

To create a frictionless environment, retailers should focus on: 

  • Meeting Customers Where They Are: Utilize multiple channels and cater to diverse consumer preferences. 

  • Prioritizing Shopper-centricity: Place the customer at the heart of the operation, leveraging data and technology to understand and meet their needs. 

  • Creating a Unified Brand Experience: Ensure a consistent experience across all channels.

  • Leveraging Data and AI: Use data to personalize the experience and optimize operations.

  • Modernizing Routes to Market: Simplify distribution networks and reduce costs. 


Conclusion

The shift towards frictionless shopping represents a fundamental transformation in the retail industry. By embracing technology, prioritizing customer experience, and constantly innovating, retailers can successfully navigate this change and thrive in the new, frictionless world of commerce. 

Written by

Richard Gaetano
CEO, Island Pacific Systems

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