Omnichannel: know what it’s and easy methods to undertake technique in your franchise

Praxis Business research reveals omnichannel best practices in franchises

Praxis Business, a consultancy specializing in business models and human development for the franchisingretail and sales channels, conducted a survey on omnichannel best practices. The study was carried out with nine franchisors in June this year.

The omnichannel journey is one in which the customer moves fluidly through all points and channels of the brand. For this to happen, the different channels — physical store, e-commerce, social networks — must act in synergy.

“Brazilian franchisors, in general, are still multichannel, in the initial process of omnichannel”, explains Adir Ribeiro, CEO and Founder of Praxis Business.

Which is omnichannel?

Omnichannel is a retail trend that is based on convergence of all channels used by a company. Omnichannel integrates physical, virtual stores and shoppers. The consumer sees no difference between the online and physical world.

Check the most important research points

1. Products

A first point of attention that it was possible to notice, says the specialist, and that brings complexity to the omnichannel operation, is the question of the existence of grids for networks that work with products.

Grids are variations around the same product, combining different colors and sizes, which makes inventory management more complex, thus adding complexity to omnichannel.

2. Alignment

A second important barrier to the expansion of omnichannel is the lack of alignment and engagement of the franchise network.

3. Exchange on different channels

One of the biggest friction points, according to the study, is the exchanging products on different channels.

“It is an issue that is definitely not well resolved. This is because many franchisees still see e-commerce as a competitor, and even though the network’s policy is to allow the exchange in a physical store, they guide customers to open a ticket through the website to request the exchange”, explains the specialist.

4. Space to move forward

Another finding of the research is that there is much space to advance in digital channels.

Among the interviewees, with the exception of one network, in which online accounts for 35% of sales and one case in which sales via digital channels reach 20%, in all the others, the sales representativeness of the digital channels compared to the total revenue volume of the network is below 10%.

5. Modalities

The modalities most commonly adopted by the analyzed networks, when talking about omnichannel, are:

• Pick up in store, when the consumer buys on the brand’s e-commerce and can pick up the item in the physical store)
• ship from store, when the shipment, for an e-commerce purchase, leaves a store close to the delivery zip code)

6. Infinite shelf

THE infinite shelfthe possibility in which the final customer buys products in a channel even though these products do not exist in stock, is not yet a widespread practice.

Only one chain claimed to practice the infinite shelf, but even so, without involving the stores’ inventories. In this case, the sale is computed for the franchisor, which is responsible for the delivery logistics. For these cases, where the store ‘generated sales for the franchisor’, the store receives a commission of 18%.

7. Social networks

Another point of attention are social networks, SMS and WhatsApp, which should be considered sales channelsbut they are still seen only as marketing tools.

8. Prices

In general, networks follow the same pricing policy on different channels. Exception for the food sector, which tends to charge more when using third-party platforms, such as iFood, for example, due to the fees charged by them to the shopkeeper.

9. Investment

For all this to occur, however, the franchisor must be attentive to the needs of some level of Investment. All respondents mention that they had to make investments in technology (especially in systems/software)

“It is important to emphasize that the physical store is a central part of the omnichannel strategy of the networks, as it is a place for relationships, loyalty, interaction, a point of contact with the product”, explains Ribeiro. “In the words of one of the executives interviewed, ‘the physical unit is our temple’.”

Source: Exam