Improving Omnichannel Solutions Testing and Deployment to Provide Customers Differentiated Experiences

It has become increasingly important for retailers to develop and upgrade their omnichannel solutions to meet customer demands. To remain competitive and improve the overall customer purchase experience, retailers need to keep their businesses easily accessible through multiple channels. Despite their efforts to react quickly to customer demands, retailers often find the testing phase delays their omnichannel innovation timelines. This RIS Targeted Research benchmarks the omnichannel solution testing conducted across the industry, and pinpoints where retailers can improve both their innovation and execution efforts to ensure solutions are deployed quickly, while remaining error-free. Although retailers appreciate the need to continuously upgrade omnichannel solutions, many are doing so only a handful of times per year. Almost four in ten (39%) are releasing new store systems and e-commerce codes on only a quarterly basis, with almost a quarter (24%) doing so monthly (Figure 1). Infrequent upgrades are likely, at least in part, due to long testing schedules for omnichannel software updates. One in five retailers (21%) would ideally like to see testing/approval times of three days or less, but only 9% are currently able to make that happen (Figure 2). However, not all retailers think the shortest timeframe is the most ideal, perhaps because they understand the need to be thorough before rolling out improvements. Fifteen percent believe testing/approval of omnichannel software updates should take a month or longer. Retailers also acknowledge the various challenges involved with software testing which may lead to slow omnichannel software update releases. Identifying and fixing bugs are the top challenges, with 58% and 61% of retailers, respectively, mentioning these tasks (Figure 3). A shortage of labor also hampers progress for some retailers (33%) who say that testing teams are overwhelmed with demand. Over a quarter (27%) also mention long testing cycles slowing down update releases. The business impact of these delayed omnichannel software updates do not go unnoticed. Almost two-thirds (64%) of retail respondents agree that slow update releases negatively affect time-to-market (Figure 4). Many retailers also recognize it can adversely impact the bottom line through increased expense and loss of revenue (49% and 42%, respectively). Although related to revenue, only one in five (21%) describe the business impact as a loss of customers. Manual testing methods add to the lags in omnichannel software testing. Currently, none of the retailer respondents employ a fully automated process (Figure 5). Most retailers (84%) have automated the testing process to some degree, although close to half (45%) are still predominantly or fully using manual methods. Looking a few years into the future (2025), retailers may enjoy more testing efficiencies as they predict their procedures will include more automation by then. Over a quarter of retailers (28%) predict their omnichannel software testing will be fully automated. However, for most retailers, manual methods won’t fully go away by then. Although 41% expect to be predominantly automated within a few years, almost one in five retailers (19%) think they will be relying more on manual than automated methods. As part of their omnichannel software testing process, retailers use various analytics methods. Almost half (46%) use analytics with some of it being predictive, while a third (33%) use data aggregation but admit to having weak analytics or reporting (Figure 6). On the other hand, 15% of retail respondents claim that data aggregation is not currently part of their testing process. Within three years, retailers hope to use more advanced analytics as part of their testing phase and to improve analytics and reporting overall. Predictive analytics and AI for complex test suite integrations appear to be the two most popular methods for the future with 64% and 55% of retailers selecting these methods, respectively. Almost half of respondents (46%) mention descriptive analytics with a cloud dashboard to be a method employed within the next few years. Thinking ahead to the future, retailers believe improving the omnichannel software testing process can lead to areas of improvement in their business overall. When presented with a list of possible benefits, the top two benefits retailers hope their businesses can enjoy are increased productivity and faster release cycles (or faster time-to-market) – with 66% and 59% of retailers mentioning these, respectively (Figure 7). Almost half of retailers (47%) selected product quality improvements, while 44% highlighted their company’s abilities to remain viable (“keep the lights on”) while still innovating. Other benefits selected are related specifically to the testing process itself with 41% of retail respondents hoping to identify more bugs prelaunch and one in four (25%) hoping to streamline this phase by reducing the number of testing tools required. Omnichannel services can differ across retailers, but most (97%) offer online or e-commerce options to their customers (Figure 8). In-store shopping is popular as well with 91% offering this as part of their omnichannel services. Although less popular, more than half (61%) of retailer respondents also offer curbside pickup. Two related services, self-checkout and scan-and-go, are offered by significantly fewer retailers: 27% and 12%, respectively. Through innovative omnichannel systems, retailers can establish several touch points along a customer’s shopping journey. Almost half of retailer respondents (49%) describe the maturity level of their omnichannel systems integration as “basic end-to-end journeys” (Figure 9). A third (33%) characterize their integration as even less advanced – only reflecting “partial journeys.” Even fewer retailer respondents (15%) have had the opportunity to invest in more sophisticated system integrations – described as “advanced end-to-end journeys.” Most retailer respondents have fewer systems integrations with 72% having ten or fewer in their omnichannel experience (Figure 10). Almost one in ten (9%) have a more advanced system having more than 20 integrations. Methodology This study was conducted in July / August 2022 and targeted retail executives from both large and small-scale retail chains. Almost a quarter of respondents (23%) work at retail companies with over $5 billion in annual revenues, and almost half (45%) have less than $100 million (Figure 11). Respondents were recruited across Grocery / Convenience / Drug (30%), Apparel (24%), Specialty (24%), and Mass Market / General Merchandise / Discount (15%) retail segments, with 6% categorizing themselves as “Other” (Figure 12). A third of respondents (33%) work in IT / Technology, over a quarter (27%) in Store Operations, and 15% in Marketing (Figure 13). More than a third (36%) are in C-Suite positions, over a quarter (27%) are in Director roles, and 21% are Vice Presidents (Figure 14). Conclusion Customers are demanding robust and innovative omnichannel experiences which means retailers need to continuously evolve in this area. They recognize their testing processes need increased efficiencies but not at the expense of precision. With identifying and fixing bugs being the top reasons for slow systems or update releases, retailers may need to consider investing more resources during the development stage. Retailers hope to integrate more automation and analytics methods in the testing phase within the next few years to help them to swiftly develop and deliver a competitive omnichannel experience that meets the ever-changing demands of its customers. Key Findings Over a third of retailers (39%) are releasing new store systems and e-commerce code only four times per year. Some retailers are looking for increased efficiencies in their omnichannel software testing with over half (54%) hoping for timelines of two weeks or less and only 37% currently achieving that. Most retailers (64%) understand that delayed software releases result in slow time-to-market. Fully automated testing of omnichannel software solutions by 2025 is unlikely for most retailers. However, over a quarter (28%) are looking to achieve it by then. Almost half of retailer respondents (48%) have weak analytics / reporting or use no data aggregation during the testing process, but most retailers are looking to employ more analytics methods in the future. Currently, only 15% of retailers provide an omnichannel experience that is described as an advanced end-to-end journey, and a third (34%) of retailers have five or fewer systems integrations included in their omnichannel system.

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