Like most major retailers, hagebau recognized that it needed to provide customers with a better digital experience to complement its brick-and-mortar operations. That led the company, in 2018, to create a standalone digital commerce unit known as hagebau connect, which is based in Hamburg. Spearheaded by the new unit, hagebau made rapid progress in developing its digital capabilities, which are part of its ultimate vision of providing its customers with a seamless omnichannel experience. But there were growing pains.
For home improvement retailers, the range of omnichannel use cases is about as diverse as the products they carry; think, for example, a one kilogram hammer versus a 1500 kg garden shed. In some cases, a customer may order online for in-store pickup; in others, a customer may order a non-inventoried product in store for drop-ship delivery. And that’s just to name a few. For such transactions to be “seamless”—a quality most omnichannel retailers aspire to—customers get the same high-quality experience regardless of the channel path. By early 2020, a little more than a year into hagebau’s digital journey, it was clear to hagebau that this was not the case.
As the Head of platform of hagebau connect, Jörn Hartig and the leadership team had observed that the steady growth of digital activity seemed to exacerbate what had been a simmering issue with customer satisfaction. Much of the problem, he explains, could be traced to the inability to know where an order is in the process. “We could see that some customers were getting frustrated because we couldn’t give them prompt answers about their orders, whether they were purchases or returns,” Hartig explains. “The fact that we were running several different order management systems had the effect of creating blind spots, especially for ‘hybrid’ transactions when multiple channels were involved.”
While hagebau recognized the problem, it was seen, in the scheme of things, as a relatively manageable one that didn’t imminently threaten the company’s growth and digital ambitions. But that view drastically changed when the pandemic took hold in the early months of 2020, and home improvement buying surged—much of it, for obvious reasons, online. Faced with the restrictions of the pandemic, people weren’t just spending more time at home. To an unprecedented degree, they were also opening up their wallets to make their homebound experience more palatable. As hagebau’s sales grew rapidly, its order management issues intensified.