Unified Commerce Benchmark for Specialty Retail in the United States

A new age of consumerism is reshaping commerce. This Benchmark for Specialty Retail is the industry’s first Unified Commerce benchmark with real purchases, real returns, and real customer journeys across digital and physical channels.

Learn what leaders do to differentiate.

Conducted by
Incisiv
Sponsored by
ManhattanGoogle CloudZebra

Why Unified Commerce?

Because convenience + customer empowerment drives the modern retail experience.

Unified commerce technology promises a consistent and seamless omnichannel experience across all channels, whether they are shopping online, in-store, or through a mobile device. Its goal is the seamless fusing of all channels to create a singular experience for the customer, like searching and ordering online and picking up or delivering from a store, engaging the contact center directly from a ship confirmation text, or even giving customers complete control of post-purchase options from their mobile device. The problem for many retailers is that a growing variety of selling, engagement, and fulfillment expectations have made delivering those omnichannel commerce experiences increasingly more difficult.

But the Unified Commerce Benchmark research shows that when we get it right, a unified commerce approach ensures every shopping journey becomes a brand loyalty opportunity and striving to achieve a leadership position represents a significant opportunity to grow revenue as well.

Unified Commerce
leaders’ revenue growth outperforms non leaders
3X – 6X
Person scrolling through products in an online catalog.

Digital is Default

Digital devices and apps are the lenses through which modern-day humanity interacts with the physical world.

Shoppers don’t see “channels” the way retailers do. They simply shop. For brands, embracing a digital-first ethos doesn’t mean giving up on physical retail. It means amplifying each by fusing the two together seamlessly.

Man delivering packages to door.

Convenience is a Commodity

We are now in the age of hyper convenience, with 15-minute delivery for essentials through "quick commerce" players such as Gopuff and Gorillas. Specialty retailers must reshape shopper expectations around convenience to be about more than just speed, offering a varied choice of payment and delivery options, for instance.

Importantly, they must differentiate between brand and customer experience to avoid competing on convenience alone.

Virtue is a Brand

As consumers passionately embrace new values — from environmental friendliness to social equity, holistic wellness to inclusive diversity — they expect their favorite brands to stand up and be counted.

Shoppers signal virtue through the choices they make, and demand that brands find a purpose beyond profit. Brands can make commerce more responsible by helping shoppers find products that align with their value system, be transparent about their supply chain & educate shoppers about the environmental impact of various shipping options.

Meticulous Benchmarking Methodology

Unified Commerce Assessment Framework

Incisiv first developed a detailed parameterized list of Unified Commerce customer experience capabilities.

Then, based on shopper insights, retailer executive surveys, retailer digital and store performance data and segment level KPI benchmarks, we organized key capabilities into Table Stakes and Differentiating Experiences.

Store & Digital Experience Audits

lncisiv developed an objective list of 124 retailers across 11 specialty retail segments. We chose a mix of top omnichannel retailers by revenue, and top Digital Native Vertical Brands (DNVBs) by store count.

lncisiv's team of customer experience analysts then conducted comprehensive shopping journeys, including real purchases and returns, across both physical and in-person channels.

Rating Categories for Assessed Retailers

Assessed retailers were then scored based on the adoption of customer experience capabilities, the efficacy of each capability, and the consistency and quality of experience.

Based on their score, brands were organized into one of four performance categories — Leaders, Challengers, Followers, or Laggards — each with a statistically significant difference in capability maturity and impact on performance.

Unified Commerce Assessment Framework

lncisiv's Unified Commerce Assessment Framework spans 286 customer experience capabilities across the following four segments. The number of attributes assessed in each area is provided in parentheses.

Search & Discovery (80)

Effectiveness, relevance and maturity of digital selling experiences

Cart & Checkout (61)

Order personalization, inventory visibility, checkout and payment options, order pickup and returns

Promising & Fulfillment (42)

Availability, speed, cost and convenience of fulfillment

Service & Support (103)

Resolution, returns, customer assistance, loyalty program and account management

Rating Categories for Assessed Retailers

A specialty retailer currently rated a Challenger would stand to gain ~$40M per billion dollars in annual revenue by improving its Unified Commerce maturity to a Leader.

2023 Unified Commerce Benchmark for Specialty Retail — Laggard

Laggards

Laggards offer a severely lacking Unified Commerce experience, missing even some basic table-stakes functionality.

2023 Unified Commerce Benchmark for Specialty Retail — Follower

Followers

Followers offer a basic Unified Commerce experience, addressing most table-stake capabilities. Their experiences lack depth and are light on the adoption of differentiated capabilities.

2023 Unified Commerce Benchmark for Specialty Retail — Challenger

Challengers

Challengers offer a seamless Unified Commerce experience
built on a solid foundation of capabilities. They offer some differentiated experiences but lack the depth and coverage of leaders.

2023 Unified Commerce Index — Leaders

Leaders

Leaders offer the richest Unified Commerce experience within and across retail segments. They lead in the adoption of differentiated experiences and are functionally mature across assessment areas.

Playbooks for Specialty Retail Verticals

Industry playbooks provide retailers withcrucial guidance, containing tailored insights and practical advice for addressing specific maturity gaps within their verticals.

Overview

Search & Discovery refers to the set of retailer capabilities and experiences that help shoppers find the most meaningful products and services for their needs. To do so, a retailer must be able to curate a personalized experience based on shopper intent. Are they looking for a specific item that they need urgently? Are they exploring the brand for the first time, and need to understand how it can fit their lifestyle? Are they shopping for an occasion, and are willing to be led and inspired?

Why it matters

33
%

higher conversion rate for shoppers who initiate engagement with a retailer with a product search.

37
%

of shoppers will shop at another retailer if their desired product is out-of-stock.

20
%

of shoppers are satisfied with their preferred retailer's sustainability practices.

Leader Insights

Guided
Inspiration

Leaders help shoppers discover meaningful products - whether they are looking to fulfill an immediate need, or simply in need for inspiration. They strive to go beyond being a place to find products, to becoming a lifestyle hack for their shoppers. They do so through advanced digital personalization, best-in-class in-store assisted selling, and excellent online and in-store merchandising.

Personalized recommendation on homepage
50
%
Leaders
20
%
Non Leaders
Real-time inventory visibility on Product Details Page (PDP)
62
%
Leaders
25
%
Non Leaders

Leader Insights

Rich
Findability

Leaders understand the broader context of a shopper's purchase intent, and assist them through deeply contextual search and filtering capabilities online, and similarly guided assistance in-store. e.g. How soon can it be delivered? Does it have a specific product characteristic or feature they are looking for? Can they back-order their preferred size and color if it is out-of-stock?

Option to opt for back-in stock notifications on Product Details Page (PDP)
47
%
Leaders
40
%
Non Leaders
Inventory status callouts for low stock/ out-of-stock products
43
%
Leaders
33
%
Non Leaders

Leader Insights

Immersive
Storytelling

Leaders make shoppers feel good about their purchase decisions: what they're buying, and who they're buying from. They go beyond product features, and immerse the shopper in the brand's ethos. They storytell their greater purpose, and have shoppers buy into their vision for why their way is good for the shopper, good for business, and good for the world.

Ratings and reviews for specific product dimensions (size, fit) on Product Details Page (PDP)
87
%
Leaders
62
%
Non Leaders
Promote sustainable products on Product Listing Page (PLP) and Product Details Page (PDP)
60
%
Leaders
37
%
Non Leaders

Overview

Cart & Checkout refers to the set of retailer capabilities and experiences that help shoppers make a positive decision at the most critical point of conversion (or abandonment, if they don't get it right). Modern shopping journeys have a decidedly start-and-stop nature. Retailers must provide shoppers seamless continuity as shoppers switch between the physical and the digital, especially of their cart and wishlist so the burden is not on shoppers to do all the work again

Why it matters

40
%

of shoppers say that checkout is the #1 area retailers should focus on in order to improve in-store experience.

26
%

of shoppers abandon their shopping cart because they perceive the checkout process to be too long.

37
%

of shoppers will not retry if they have to re-enter their payment or delivery details.

Leader Insights

Unified Basket

The biggest point of friction in today's retail customer experience is due to the loss of context when transiting between the physical and the digital. A unified cart or basket is a foundational capability to provide that critical connective tissue across channels. Even though a truly unified basket remains elusive, Leaders have made the most progress.

Ability to see available promo codes in cart view
64
%
Leaders
55
%
Non Leaders
Personalized promotions and offers displayed on
Product Details Page (PDP) and cart
33
%
Leaders
29
%
Non Leaders

Leader Insights

Payment
Flexibility

Leaders offer shoppers the widest choice of payment types, both online and in-store, providing that extra bit of flexibility that makes their purchase decision easier. They make it simple and convenient for shoppers to pay however they prefer, including through gift cards, loyalty points, store credit, mobile wallets, pay-later apps, store credit cards, and any combination therein.

“Buy now, pay later”
availability
93
%
Leaders
82
%
Non Leaders
Ability to use mixed payment methods for same order
50
%
Leaders
26
%
Non Leaders

Leader Insights

Frictionless
Checkout

Addressing in-store and online cart abandonment is a huge revenue opportunity for retailers. A majority of cart abandonment occurs due to less than ideal shopper experience at checkout - long wait times in-store, or multi-step checkout on line, for instance. Leaders provide seamless checkout experiences that reduce unnecessary friction at the point of conversion.

Expedited checkout
71
%
Leaders
46
%
Non Leaders
Ability to checkout using Apple Pay or Google Pay
39
%
Leaders
35
%
Non Leaders

Overview

Promising & Fulfillment refers to the set of retailer capabilities and experiences related to offering shoppers the choice, confidence, and clarity of how and when they can receive the products they want to order. If retailers can assist shoppers with important ordering and delivery related information across the shopping journey, they increase their probability of conversion. What is the earliest I could get this item, and how? Can I order an item for in-store pick-up and another for delivery as part of the same order? Can a store associate help me back-order an item currently out-of-stock in my preferred color or size?

Why it matters

60
%

of shoppers value expedited delivery (same business day), but are only willing to pay a maximum of $5 as extra fee.

77
%

of shoppers prefer to use a subscription based model to get their essentials delivered.

62
%

of shoppers want a self-service option to be able to edit orders after placing them.

Leader Insights

Ordering
Flywheel

Leaders offer shoppers a comprehensive set of delivery and pick-up options, focusing not just on speed but on flexibility to fit busy lifestyles. They accommodate ordering complexity without compromising checkout convenience, allowing shoppers to select different delivery options for products within the same order for instance.

Mixed delivery option
(home delivery/ in-store) for same order
57
%
Leaders
25
%
Non Leaders
Order cancellations or modifications post purchase
57
%
Leaders
25
%
Non Leaders

Leader Insights

Dynamic
Promising

Leaders understand that simply exposing available inventory to shoppers is no longer good enough. They provide early, narrow, consistent, and accurate delivery estimates throughout the shopper journey. And, they clearly communicate with shoppers in case a delivery estimate changes during the order process, helping build a higher degree of shopper confidence and trust.

Order ready for pickup within the expected/ mentioned timelines
64
%
Leaders
36
%
Non Leaders
Compare estimated delivery dates of items in cart
21
%
Leaders
7
%
Non Leaders

Leader Insights

Flawless
Fulfillment

Leaders make sure shoppers' product pick-up or delivery experience is as good as their shopping journey. Not only do leaders meet or beat their delivery promises consistently, they do so while being more environmentally friendly. They also offer shoppers greater post­order flexibility, such as complete or partial cancellations, item modifications, and change of delivery or pick-up method.

Receiving delivery as per the expected timelines
92
%
Leaders
61
%
Non Leaders
Sustainable product packaging
86
%
Leaders
58
%
Non Leaders

Overview

Service & Support refers to the set of retailer capabilities and experiences related to offering shoppers personalized assistance across their relationship lifecycle. Shoppers are pushing retailers to two extremes of service: "give me service options that don't interrupt the natural flow of my day", and "make me feel special through high-touch, personal service". Retailers can balance the two by using digital tools to improve service efficiency, and the human empathy of their store and call center associates to deliver authenticity.

Why it matters

15
%

of shoppers say that retailers offer them a personalized service experience.

41
%

of shoppers find the refund and return process to be very time consuming.

51
%

of shoppers prefer 24*7 availability of customer support.

Leader Insights

Total
Transparency

Leaders are more transparent with shoppers across a variety of relationship vectors - from orders to service requests, from data use and to supply chain practices. They also ensure the drop-off in transparency between digital and physical channels isn't `as steep by providing the necessary tools and training for store and call center associates.

Support on order modifications, returns and exchanges via chat/call
100
%
Leaders
87
%
Non Leaders
Return tracking capability
64
%
Leaders
32
%
Non Leaders

Leader Insights

360-Degree
Service

Leaders offer shoppers a wide variety of service options — from in-store assistance to call centers, social media support to live agents on their website and mobile app. Importantly though, they offer seamless continuity, consistent quality, and always-on availability across their service portfolio. They empower shoppers to self-serve most of their service needs, offer "silent" support options such as via text, and ensure they don't have to wait long to talk to a human if they choose to.

Support via text/social media channels
32
%
Leaders
18
%
Non Leaders
Availability of 24x7 live chat support
30
%
Leaders
12
%
Non Leaders

Leader Insights

Consultative
Expertise

Leaders don't just limit services to mean providing support. They offer value-added services such as customizations, style and fit guidance, and in-store hospitality to turn service interactions into a secret sauce of brand stickiness. Leaders empower store and call center associates with the tools and training needed to convert a moment of potential churn into one that builds feverish brand loyalty.

Store associates' ability to check online purchase
91
%
Leaders
67
%
Non Leaders
In-store appointment scheduling via brands' digital channel
72
%
Leaders
40
%
Non Leaders

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