Retail TouchPoints recently published its sixth annual Store Operations Survey, once again declaring it “safe to take brick-and-mortar off the endangered species list.” But even though offline still has a prominent place in today’s omnichannel world, retailers are experiencing unique operating challenges when it comes to elevating the customer experience.

Overall, the top three challenges in 2018 from senior retail ops survey respondents were:

• Offering similar convenience as online shopping
• Seamlessly integrating with other customer touch points
• Providing unique experiences that move shoppers toward transactions

Key theme 1: Employee hiring, retention, and engagement

Hiring and retention was a major challenge in 2018, especially in comparison to the year prior, likely due in large part to a much more competitive job market. Respondents were asked to rank 11 challenges in order of importance from 1-11 and stacked hiring/retention and training/engagement right at the top.

What are your greatest store operations challenges?

• 53% selected employee hiring/retention as their first or second concern (up 10% from 2017 survey)
• 50% ranked employee training/engagement as their first or second concern
• 25% Workforce management to optimize in-store experiences

Key theme 2: Mobile technology

Overall, retail ops leaders are turning more attention toward technology—particularly mobile—and budgets are on the rise to reflect these shifting priorities.

Which areas of your store budget have been increased in 2018 versus 2017?

• 61% New technology
• 52% Connectivity
• 52% Mobile technology
• 49% Employee hiring/retention

When asked about equipping store employees with mobile technology, 70% of respondents stated that they either already are doing so, or plan to “soon.” Improvements in customer satisfaction and employee education were ranked as the top benefits mobile-enabled retailers have seen so far:

What benefits have you seen from arming employees with mobile technology?

• 64% Increased customer satisfaction
• 55% Improved employee education/training
• 41% Increased upsells/cross-sells
• 39% Improved employee morale
• 30% Increased average dollar sale

At Nudge, we believe strongly in the link between employee engagement and the right tools to influence performance. To learn more, download our new ebook, The fourth transformation in retail.

Findings from the Retail TouchPoints sixth annual Store Operations Survey reveal that KPIs in retail are still staggeringly siloed by channel.

Senior retail operations leaders surveyed for the recent report revealed that traditional metrics of YoY store revenue and same-store sales are overwhelmingly relied on for performance evaluation.

What are your most effective ways to measure store performance?

• 70% Increase in YoY store revenue
• 65% Same-store sales
• 17% Foot traffic
• 16% Customer satisfaction surveys
• 13% In-store conversion rates
• 7% Online-to-store conversion rates

Methodology: Respondents were asked to rank twelve major retail KPIs in order of effectiveness, on a scale of 1-12. Listed above are the top six, with the percentage reflecting rankings of 1 or 2.

These results highlight that the effect of e-commerce on in-store conversion is not a widely-adopted performance metric, despite the ubiquity of omnichannel in the overall retail customer experience.

With a new year upon us, is it time for omnichannel retailers to update their performance metrics? Relying on traditional data points can put retailers at a disadvantage, potentially contributing to misallocated resources and unintended competition between online and store channels. Read more in the Retail TouchPoints Store Operations Survey report.

A healthy economy and strong consumer confidence are proving optimistic retail forecasts correct this holiday season. The NRF released holiday sales predictions in the fall, with a projected increase of nearly 5% over 2017.

With 80-95% of US holiday spending still taking place in-store, one of the highest impact areas for brands is in-store conversions. Add the facets of holiday shopper mindset and an influx of seasonal workers to the equation, and retailers are dealing with a unique set of trends to capitalize on this year.

Factor 1: Two types of holiday shoppers

Deloitte recently published its 33rd annual holiday retail survey findings, revealing a fascinating split of two mindsets among shoppers.

Many are entering the holiday season undecided on what to buy or where to buy it, with 50% of all purchases expected to be either completely or partially unplanned. These undecided shoppers are “gatherers,” giving retailers a chance to guide a large part of the shopping budget. On the other hand, there could be just as much opportunity—or missed opportunity—with the other half; the “hunters,” who have already done their research and decided what they’re looking for.

Both types of shoppers offer opportunities for influencing purchases, especially when knowledgeable store associates are factored in. They need to be more informed than the hunters and skilled enough to influence the gatherers. But a high-volume holiday season also means staffing up with seasonal workers who may not be prepared to maximize these valuable interactions for in-store conversion.

Factor 2: Influx of seasonal staff

The NRF forecasted the need for 650,000 temporary workers to meet the demand retailers are facing this year. And with unemployment under 4 percent, there’s heavy competition in the job market, making qualified candidates looking for seasonal work much harder to find.

In this environment, retailers are under tremendous pressure to adequately train and ramp up new hires to ensure positive customer experiences and in-store conversions. With up to 30% of retail sales taking place during the holiday season, much of the year’s revenue depends on it.

Experience gap: A year-round issue

Customer experience continues to be a defining factor this holiday season and retail employees—whether seasonal or experienced—will have a direct impact on consumer brand affinity and in-store conversions. But without the right knowledge and tools, they will remain an underutilized factor in maximizing sales.

Holiday shopper trends are exposing a year-round weakness in store-level execution, resulting from the experience gap between the shopper’s expectations and what the employee is equipped to deliver. Shifting the focus to investments in employee performance allows retailers to more effectively drive the right behaviors in-store and, ultimately, help deliver a better customer experience.

It’s never been more important to invest in employee experience to deliver on customer experience. Employees need to be armed with the right tools and knowledge so there’s not one missed opportunity this season, and beyond.