Global Content Lead - Tech & Consulting
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85% of retail executives agree that digital transformation is crucial for survival and growth. Additionally, 63% of retailers recognize that upgrading their technology infrastructure is a key component of this transformation. To thrive in modern marketplaces, retailers must adopt technology solutions that foster a contemporary and intelligent retail environment.
Microsoft Dynamics 365 Commerce is equipped to accelerate and support retailers in their digital transformation journey. According to Forrester Consulting’s 2020 study on the Total Economic Impact of Microsoft Dynamics 365 Commerce, this solution offers a substantial 58% ROI and Net Present Value profits of USD 9.2 million over three years.
In this blog, we will explore Microsoft Dynamics 365 Commerce’s quantifiable benefits and overall value, focusing on its impact, cost savings, and significant advantages for businesses.
What is Microsoft Dynamics 365 Commerce?
Microsoft Dynamics 365 Commerce, part of Dynamics 365 Finance and Operations, is a complete retail solution that integrates back-office, in-store, call center, and digital experiences. Building on its predecessor, Microsoft Dynamics 365 Retail, this platform now offers enhanced capabilities for omnichannel commerce. It supports e-commerce, in-store interactions, call center operations, and back-office functions, allowing retailers to provide personalized and seamless shopping experiences across all channels.
Key features of Microsoft Dynamics 365 Commerce
Microsoft Dynamics 365 Commerce offers a wide range of features designed to enhance retail operations and customer experiences. Here are some of the key features:
- Omnichannel retail engagement: Provides a unified shopping experience across online, in-store, and call center channels, ensuring consistency and convenience for customers.
- Personalized customer experiences: Leverages customer data to deliver tailored shopping experiences, including personalized promotions and product recommendations.
- Integrated digital commerce: Supports the creation and management of engaging digital storefronts with built-in web authoring and development tools
- Advanced inventory management: Offers real-time visibility and management of inventory across all channels, helping to reduce stockouts and overstock situations.
- AI-driven insights: Utilizes AI to provide actionable insights into customer behavior, sales trends, and operational performance, aiding in strategic decision-making.
- Flexible order fulfillment: Enables various fulfillment options such as buy online, pick up in-store (BOPIS), and home delivery, enhancing customer convenience
- Comprehensive merchandising: Facilitates advanced merchandising capabilities, including pricing, promotions, and product assortments, to optimize sales and profitability.
- Customer loyalty programs: Supports creating and managing loyalty programs to increase customer retention and engagement.
- Seamless integration: Integrates with other Microsoft solutions such as Dynamics 365 Customer Insights, Dynamics 365 Sales, and Dynamics 365 Customer Service to provide a holistic view of customer interactions and streamline operations.
The quantifiable benefits of Microsoft Dynamics 365 Commerce
Forrester Consulting conducted a comprehensive TEI study to understand the financial benefits and cost savings associated with Microsoft Dynamics 365 Commerce.
The study focused on a composite organization representative of six specialty retail companies. This composite organization has 2,000 employees and generates $500 million in annual revenue. It sells products through retail stores, wholesale, and ecommerce channels, with revenue distribution as follows: 70% from retail stores, 20% from wholesale, and 10% from ecommerce. The company operates 100 retail stores and five digital storefronts. The average sales price for in-store and online items is $50. Each retail store is equipped with five POS terminals and staffed by 10 full-time retail sales associates and four full-time stockroom clerks.
Here was the tangible impact of Microsoft Dynamics 365 for Commerce on retail businesses, demonstrating significant cost savings and enhanced operational efficiency.
1: Improved inventory management
Microsoft Dynamics 365 Commerce provided enhanced inventory visibility to the interviewed organization, allowing retail store clerks to locate items within the stockroom and specific bins easily. Automated item replenishment was triggered when stock levels were low, ensuring stores never ran out of essential items. This efficient inventory management saved clerks time in receiving and managing stock, contributing to a quantified benefit of $3.7 million.
2: Reduced training time for retail associates
The intuitive Microsoft Dynamics 365 Point of Sale (POS) system simplified the training process for new and seasonal retail sales associates. Because the system was user-friendly, new hires required minimal training and quickly became proficient in serving customers. This reduction in training time resulted in cost savings valued at $1.9 million.
3: Increased retail store sales
With more effective inventory replenishment and streamlined sales processes, the retail stores experienced increased sales. The improved availability of products, fewer transactional errors, and enhanced in-store promotions created a better overall customer experience. This uplift in retail store sales generated an additional $1.5 million in revenue.
5: Boosted ecommerce sales
Dynamics 365 Commerce enabled the interviewed companies to customize their eCommerce websites easily, enhancing the customer experience with a more attractive look and feel. The ability to quickly add new products and promotions and embedded content that boosted SEO resulted in higher traffic and better customer engagement. These improvements led to a 25% increase in eCommerce sales, valued at $1.9 million.
6: Simplified commerce operations through integration
The companies interviewed simplified their commerce operations by integrating Dynamics 365 Commerce with other Dynamics 365 modules and the broader Microsoft tech stack. This integration reduced the workload for tech teams and business users, resulting in a 15% productivity savings and a cost benefit of $0.3 million.
Ready to transform your retail experience with Dynamics 365 Commerce?
Microsoft Dynamics 365 Commerce seamlessly bridges digital and physical store systems, unifying data from multiple touchpoints and enhancing it with AI and machine learning. Connecting this data to your in-store team members can unlock powerful insights and create a truly modern retail experience.
With its comprehensive features, Dynamics 365 Commerce enables retailers to deliver personalized customer interactions, support contactless selling, maximize in-store revenue, streamline operations, and minimize losses due to fraud. It empowers merchants to create a more engaging and efficient shopping experience, setting the stage for the store of the future.
If you’re ready to deliver unified, personalized, and seamless buying experiences for your customers, Microsoft Dynamics 365 Commerce implementation is the way to go. For queries related to Dynamics 365 Commerce pricing or to get started on your digital transformation journey, choose Confiz – your trusted Microsoft Dynamics 365 retail partner. Contact us today at marketing@confiz.com.
