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U.S. Retailers Meet Online Demand With Unified Experiences

Companies are transforming their digital capabilities to meet changing customer expectations, ISG Provider Lens™ report says

Retailers in the U.S. are responding to a massive shift toward online shopping by integrating different sales and marketing systems for a seamless customer experience, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Retail Services report for the U.S. finds when the COVID-19 pandemic forced many consumers out of physical stores, new sales channels became essential to retail profit and growth. In addition to e-commerce, shoppers are embracing social commerce, voice commerce and new delivery and in-store pickup methods.

While making larger investments in websites, mobile apps and contact centers, companies are also engaging in broader digital transformations, often with service providers as partners. U.S. retailers are making these changes more quickly than those in other markets, including Europe, ISG says.

“The strengths retailers have built up in stores, like ambience and in-person service, do not differentiate them online,” said Sunder Pillai, director, retail and CPG industry leader at ISG. “The best competitors are setting themselves apart by making it easy for customers to stay with them as they move from one sales channel to another.”

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Both online and offline, consumers are seeking quicker product discovery, faster checkout and delivery, better loyalty programs and more digital payment options, including buy-now-pay-later. Companies need to combine these features in unique ways to offer a distinctive, seamless experience, ISG says

To meet the growing demand for omnichannel experiences, retailers are integrating siloed sales and marketing platforms and consolidating customer data. Also, moving to the cloud is essential for making rapid changes as new technologies emerge and consumer behavior evolves.

“Retailing is changing faster than ever, so companies need to be more agile,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Some cloud-native retailers can now roll out new features for customers in days instead of months.”

The report also covers several other trends in the U.S. retail services market, including the expanding scope of managed services, consolidation of enterprises’ managed services contracts and growing investment in intelligent supply chains.

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The 2022 ISG Provider Lens™ Retail Services report for the U.S. evaluates the capabilities of 24 providers across three quadrants: CX Transformation Services, Platform Migration Services and Managed Services.

The report names Accenture, Capgemini, Cognizant, HCL, Infosys, TCS and Wipro as Leaders in all three quadrants.

In addition, Mindtree is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.

The 2022 ISG Provider Lens™ Retail Services report for the U.S. is available to subscribers or for one-time purchase on this webpage.

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