Connecting with Generation Z

Generation Z includes retailers’ first set of digitally native consumers. Born after 1996, these customers have never known a world without the internet.

As a result, they have high expectations of interconnectedness between online and in-store shopping experiences. Smartphone in hand, they browse merchandise online and pickup in-store while communicating in real-time with friends on social networks, apps and text messages.

They were born to shop omnichannel style.

Different paths to purchase for different generations

Sometimes also referred to as “Centennials,” they, together with the previous generation of Millennials comprise more than half of the world’s population.

But the two groups approach shopping very differently.

Whereas Millennials eschewed purchasing “things” in favor of experiences, Centennials are happy to buy technology as well as health and wellness products.

More than any other generation, Gen Z shoppers tend to rely on mobile channels first, particularly YouTube and Instagram. Snapchat and TikTok figure into the mix as well.

Once the initial product research is completed, the brand itself comes under scrutiny.

Many in this age group have bought products because they have values that align with the retailer or brand. Others have boycotted a business to show disapproval of certain practices.

Gen Z is very attuned to the retail ecosystem and not only wants to be a part of it but also understands how to influence it. Irregardless, a syncing of data and inventory across channels is an important feature for brands that want to remove barriers to purchase for Gen Z consumers.

Retail Pro Prism gives retailers the ability to have a centralized view of their inventory across channels, in turn allowing them to give this to their customers.

Loyalty motivators for Gen Z

With a spending power of more than $140 billion, retailers are learning that though digitally native, Gen Z cares about connections and community.

They prefer to shop where they can chat with their friends online as well as with store associates in person, while feeling confident that their purchase decisions are supporting businesses that treat employees well and are not harmful to the environment.

Stores such as Nordstrom combine a traditional brick-and-mortar setting with the more personal experience of a pop-up store.

Mobile POS easily creates a personal feel as it allows sales associates to meet customers where they’re at, whether for item lookup or free-standing checkout, and lends itself perfectly to pop-up environments.

Retail Pro readily supports mobile POS since it’s a browser-based software, which means you can choose whether to use it on Apple, Windows, or Android devices.

AI-driven software helps retailers gather information and analyze data of Gen Z shoppers, which they can use to help create intimate experiences and personalized moments.

Those retailers who have established and communicated an authentic identity that mirrors Gen Z’s ethos will be rewarded with these shoppers’ loyalty.

Timely Delivery vs. Sustainability values

While all demographics want fast, reliable delivery, research finds that Gen Zers are the most impatient. Many want same-day delivery and yet are also very interested in carbon-neutral or emission-free deliveries.

While that appears to be a somewhat conflicted stance, these shoppers are also willing to pay more for more sustainable delivery and returns services: They understand the consequences (higher cost) for the services they want (faster, ecologically responsible delivery).

Retail Pro Prism gives you a clear view of across your channels, which increases your ability to identify points where you might be able to save time for your associates and customers’ orders.

Top retailers are investing in key technologies that provide the enhanced customer experience these young consumers are demanding.

Digital customers will check websites for in-store inventory even for stores that don’t have BOPIS or curbside pickup, which leads to a disconnect between channels that ultimately can lead to customers going to competitors.

As younger generations are digitally native, they’ll embrace technology, digitization and collaboration, and require the brands they buy to do the same.

For retailers, that will lead to more success and profitability.


Scaling Omnichannel Operations for Connected Experiences with Retail Pro Prism

Woman shopping on her phone in front of the same storefront which has omnichannel operations

Customers love retailers with omnichannel strategies. Shopping is on their terms: They can choose the time, the location and – if they change their minds – the way to make the return.

No longer are the channels online stores and brick and mortars; today, a brand can also sell products through pop up storefronts as well as Instagram and Snap Chat.

It’s all about connecting with customers at their convenience.

When retailers give customers the flexibility to choose the way they shop, they are also able to connect and provide personalized promotions and timely recommendations. OptCulture for Retail Pro opens up the ability to create personalized promotions and loyalty programs by unifying customer data across channels.

With so many points of engagement between customers and brands, scaling operations is challenging.

Today’s shoppers don’t consider brick and mortar and online stores separate shopping destinations. Instead, they expect unified experiences across every touch point. Retail Pro Prism makes it possible to offer this convenient, omnichannel buying experience.

Order Management and flexible fulfilment

a woman picks up an order from an omnichannel store with omnichannel operations

Order Management is critical for a holistic commerce strategy. It connects omnichannel demand to omnichannel supply.

Buyers have insight into inventory across all sales channels, accurately and in real time.

Retail store associates, dropshippers, warehouses, distribution centers and third-party fulfillment providers use commerce technology to fill and deliver orders efficiently.

A system that has communication between each channel and allows seamless management of inventory and stock replenishment to take place is important for providing omnichannel and minimizing strain on your supply chain and operations.

Determining the best fulfillment options means finding solutions that shorten the distance to the customer, increase delivery speed, and reduce costs.

The omnichannel model emphasizes shipping from decentralized inventory sources, such as ship-from-store, buy online pick-up in-store, ship from a partner, or drop-ship from a manufacturer.

Making the right decision improves customer service, because delivery is quick, accurate and cost-effective. Ensuring the ‘last mile’ is optimized by collecting the data in a centralized visual analytics tool saves you money, time, and frustrated customers.

In a warehouse fulfillment model, orders are picked using a variety of methods, including discrete, zone, or wave picking or any combination.

Filling orders from a store limits the type of picking that can be done and retailers often use discrete picking and fill one order at a time. The benefit to in-store picking, however, is the proximity to the customer, who may opt for curbside pickup, eliminating shipping charges.

Curbside pickup has its advantages for shoppers in a rush but for retailers, enticing customers inside to make additional purchases has bottom-line benefits.

However, Pick-up-in-store customer personas are different from an online-only or in-store-only customer personas: They want immediate gratification — they can’t or won’t wait for shipping. 

This is a demanding group that generally has little tolerance for friction during pickup. Therefore, clear, precise messaging about when the order will be ready and instructions for pickup are imperative. The pickup process can be made even more streamlined and convenient with Retail Pro Prism mobile POS.

And the pickup purchase process should be quick and easy for customers and employees. Customers’ perceived value of in-store pickup will evaporate if they can find the item on the floor faster.

Inventory management strategies and shipping

asian woman shop owner - young asian woman or shop assistant with shoe boxes at store

Shipping from the store can get customers their orders delivered more quickly. But other times, the warehouse is closer to the customer.

Having the option to ship from one location or the other is critical for flexibility and to keep customers satisfied.

In-store cycle counting can help by keeping inventory counts up to date and confirmed, so at fulfillment time products are where they are expected to be.

When they aren’t, sometimes items have simply been misplaced: an RFID system can help locate them very quickly. With RIOT RFID for Retail Pro, retailers can locate items out of the line of sight and complete inventory counts in a matter of minutes at an affordable price.

Customers have high expectations of how their shopping experiences should unfold, and retailers have a full plate managing and fulfilling orders while recognizing the unique characteristics of every consumer.

What delights one customer may not work for another. Retailers must be flexible and willing to implement customer feedback to create an efficient, intuitive customer experience that, ultimately, is profitable.

Retail Pro Prism POS gives you the flexibility and customization needed to connect your physical and digital store experience: offer customers fulfillment options, empower associates to order specific products from another store, discover shopper insights, and more.


Challenges of using store inventory for online order fulfillment

female asian shopkeeper looking at inventory challenge on POS tablet

Omnichannel retailers aim to satisfy customers no matter how they choose to engage: Online, in-store or a combination of the two.

It’s never an easy feat, as success depends upon a tightly integrated front and back end in order to provide customers a seamless, successful shopping experience.

But since reopening after COVID-19 lockdowns, many retailers have had to carefully assess how they were navigating the use of store inventory for their omnichannel order fulfillment strategies.

Inventory visibility across channels

black woman standing at a desktop displaying an inventory spreadsheet and chart

Management of inventory is a particularly thorny issue for any retailer with an omnichannel philosophy.

The retailer must first accommodate multiple sales channels simultaneously: An online shopper must be able to “see” what products are in stock just as easily as one who is physically in the store.

Then, the retailer turns that multi-channel strategy into an omnichannel one when, for example, it allows a customer to: shop for items on a mobile device; log onto a retailer’s site hours later on a computer and access the same shopping cart; check availability online and place an order for curbside pickup.

Discrepancies in physical inventory counts

female asian shopkeeper looking up & out, wearing face mask and carrying two shoe boxes
Sale photo created by rawpixel.com – www.freepik.com

Many retailers were able to launch – and maintain – a buy online, pickup in store (BOPIS) strategy.

However, since stores reopened, inventory counts are becoming muddled as retailers had been using store inventory to fulfill online orders.

Being able to reconcile what has just been purchased online with in-store inventory – and meeting the expectations of both types of customers — is a gargantuan task.

Customers should never see an item in stock online and discover it is sold out once they reach the store.

Some of the reasons for such discrepancies include:

Shrinkage: Shoplifting and employee theft account for substantial loss of inventory. Fraud and administrative errors are also to blame.

Data inconsistency: Online ecommerce, in-store POS systems aren’t tightly integrated or are being manually updated, so floor count may be inaccurate.

Resource strain: Sales associates are performing fulfillment tasks, so they have less time to help shoppers on the sales floor locate items.

Retail Pro platform for omnichannel retail management, inventory management, POS

Payment timing for BOPIS orders

different combos of inventory separated into bags for BOPIS

In addition, payment timing can cause inventory challenges. Items that are part of orders that are paid for online but picked up at a store are likely removed from inventory earlier than those that are paid at the time of pick up.

Paying before pickup not only expedites that process for ecommerce shoppers, but for those in-store as well. In-store shoppers experience longer wait times when online customers must join the line to pay and pick up their orders.

Poor fulfillment has a significant negative impact on customer retention. It is difficult to have the entire picture of what inventory is where throughout all channels.

Having accurate inventory visibility – which provides stock, order monitoring and tracking information — is crucial for a successful retail operation.

That requires a combination of technologies such as POS software tied to barcode scanners, RFID, warehouse execution software, etc.

The result is a retailer that meets, and sometimes exceeds, customers’ needs.


RFID and Your Omnichannel Inventory Management Strategy

shopkeeper checks inventory on mobile device while thumbing through a stack of shirts

A successful omnichannel strategy depends upon having accurate inventory and timely order fulfillment.

Because retailers are fielding orders from different sources – including online purchases with home delivery, online purchase with an in-store pickup (“click and collect”) and in-store purchases —  keeping track of those sales and inventory is mission critical.

Omnichannel inventory management helps the customer make purchases confidently

Girl sitting on couch with laptop on her lap holding up her credit card as she looks at the screen happily
Photo by Andrea Piacquadio from Pexels

Robust inventory management provides the means to get the correct products to customers quickly and efficiently.

Omnichannel inventory management is integrated across all sales channels, offering clear data visibility to retailers, as well as stock information to customers. It’s often coupled with smart warehousing, which automates back-end decisions and tasks, improving employee efficiency.

Omnichannel inventory management ensures that customers who want to use different devices and buy through various platforms are able to do so successfully. Omnichannel is a unified process in which each platform communicates with another, creating a seamless whole.

While multichannel retailers sell using many platforms, most of them are unintegrated. Store and online inventory management must be integrated with your other systems, including order and CRM software.

By integrating the inventory management systems, retailers have improved data visibility. All data on sales, suppliers, returns are in one centralized location.

When orders are placed – in any channel – stock is updated in real-time. Therefore, all employees, from the inventory picker to the store manager to the customer checking online supply, can be confident in the data they access, even if the orders were placed in a different country or channel.

RFID innovates, making taking inventory fast

Despite the heavy-hitting technology omnichannel retailers rely on today to conduct their daily business, physical inventory counts continue to be invaluable.

Such counts verify inventory and ensure there are no variances caused by overages or shrinkage, for instance.

However, this activity doesn’t have to be manual. RFID technology can help speed up inventory counts while providing workflow automation.

An RFID tag is placed on stock and read with a handheld device. RFID can scan or “read” many items at once and doesn’t require line of sight.

Products or pallets can be quickly read without positioning the tag directly in front of the reader, a big advantage in warehouses or other dense environments.

How RFID further empowers omnichannel operations

shopkeeper lady looks at tablet while in an aisle of hangers in store

Keeping inventory counts accurate requires the integration of in-store POS that reflects the actual count on the floor, which is reflected in online data.

Although back-end technology is important to maintain accuracy, inventory is a customer-driven aspect of business.

Improving practices and systems assists retailers to meet more customers’ expectations, increase satisfaction and retain more customers.

Tailoring an omnichannel inventory management system to focus on customers helps retailers reap the benefits of having a loyal, satisfied customer base.