But\u00a0omnichannel retail<\/b>\u00a0only works if it\u2019s a unified brand experience across multiple channels, where each seamlessly connects with the other.\u00a0<\/p>\n
Becoming an omnichannel retailer means knowing what type of shopping experience your customers want, building it and supporting buyers on each channel the way they want.\u00a0<\/p>\n
That\u2019s easier said than done, though. In this post, we\u2019ll go over:<\/p>\n
Omnichannel is a buzzword getting thrown around a lot these days, so let\u2019s start things off defining exactly what it is (and isn\u2019t).\u00a0<\/p>\n
Traditional<\/b>\u00a0retail\u00a0<\/b>is the way retailers operated before eCommerce and smartphone apps changed the way people shop forever.\u00a0<\/p>\n
A traditional retailer has a brick-and-mortar location, perhaps an online store and social media accounts, but they fail to unify the experience across each. Consumers do not have inventory transparency, they cannot research products effectively and they cannot engage with the merchant other than in-store, via email, direct message or phone.\u00a0<\/p>\n
In a nutshell: traditional retail isn\u2019t customer-centric and is limited to regular business hours.\u00a0<\/p>\n
Omnichannel retail\u00a0<\/b>means enabling customers to discover, engage, research, buy and get post-purchase support using whatever channels they want, in whatever order they want, at any time they want.\u00a0<\/p>\n
When a customer is going through the purchasing journey, they have many choices as to where to start\u2014they can reach your business on their time. Omnichannel commerce puts the customers in the driver\u2019s seat. The merchant\u2019s job is to find natural ways for the channels their customers use to overlap and support them across every touchpoint.\u00a0<\/p>\n
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\nOmnichannel commerce puts the customers in the driver\u2019s seat. The merchant\u2019s job is to find natural ways for the channels their customers use to overlap and support them across every touchpoint.\u00a0<\/p>\n<\/blockquote>\n
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What is the difference between omnichannel and multichannel retailing?\u00a0<\/b><\/h3>\n
The ability to interact with the customers anywhere, at any time, is what separates omnichannel retailers from traditional ones\u2014and that\u2019s what separates omnichannel retailers from multichannel ones as well.\u00a0<\/p>\n
What is a multiple channel retailer?<\/b><\/h4>\n
A multiple retailer is a merchant that operates on multiple touchpoints (B&M locations, online store, social media, etc).\u00a0<\/p>\n
Now, you might be saying to yourself \u201cbut that\u2019s exactly what omnichannel retailers do, too!\u201d. You\u2019re right, but there\u2019s one big difference between the two:<\/p>\n
Omnichannel retailers unify the experience of each channel they operate on, usually by using\u00a0omnichannel retail software<\/a>, whereas multiple channel retailers don\u2019t.\u00a0<\/p>\n
The multiple channel experience frustrates customers because it\u2019s\u00a0almost<\/i>\u00a0what they want, but still has friction points. They might be able to find a brand on Google, but they can\u2019t see stock levels, buy through Instagram or Facebook, or live chat with a sales rep on your site. They can\u2019t get what they want, when they want it\u2060\u2014whether it\u2019s support, inventory transparency or anything in-between.\u00a0<\/p>\n
In a nutshell: multiple channel retailers are in-between traditional and omnichannel retail. They\u2019re almost there, but fail to unify the customer experience across all channels.\u00a0<\/p>\n
<\/p>\n
\nMultiple channel retailers are in-between traditional and omnichannel retail. They\u2019re almost there, but fail to unify the customer experience across all channels.\u00a0<\/p>\n<\/blockquote>\n
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But today, customers expect more than what either traditional\u00a0ou\u00a0<\/i>multichannel retail can give them. They expect a frictionless omnichannel experience.\u00a0<\/p>\n
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What is an omnichannel retail strategy?<\/b><\/h2>\n
Successful omnichannel retailers usually have one main focus: fusing their brand\u2019s digital and physical experiences into one cohesive experience for the consumer\u2060\u2014regardless of what channels they use and in what order they\u2019re used.\u00a0<\/p>\n
Why is omnichannel retailing important?<\/b><\/h3>\n
A survey of 46,000 shoppers conducted by Harvard Business Review found that customers\u00a0spend more with omnichannel retailers<\/a>\u00a0than they do with traditional retailers.\u00a0<\/p>\n
And it\u2019s easy to understand why. Customers value convenience. Omnichannel retail is inherently convenient. Traditional retail isn\u2019t.\u00a0<\/p>\n
Let\u2019s dive into the key benefits of omnichannel commerce:\u00a0<\/p>\n
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- Better brand awareness and discoverability<\/li>\n
- Connected physical and digital commerce<\/li>\n
- Unified sales, customer and inventory data<\/li>\n
- Increased customer lifetime value (CLTV)\u00a0<\/li>\n<\/ul>\n
Better brand awareness and discoverability<\/b><\/h4>\n
eCommerce surged in 2020, with\u00a030% growth in consumer spending<\/a>\u00a0in the first six months\u2060\u2014over twice the growth from 2019. While its growth is certainly in part because of the pandemic, the value of eCommerce was clear well before COVID-19.\u00a0<\/p>\n
Having an online presence, through an eCommerce store, search engine optimization (SEO) and social media, helps your business\u00a0get found by more shoppers<\/a>, both local and abroad.\u00a0<\/p>\n
With omnichannel retail, you\u2019re discoverable at every touchpoint, increasing discovery and brand awareness on your customers\u2019 time. \u201cThrough integrations with Google My Business, Facebook Pixel and Instagram, Lightspeed merchants have a suite of tools to help them translate engagement into sales,\u201d explains Kyle Baggs, Product Marketing Manager at Lightspeed.\u00a0<\/p>\n
Omnichannel retailers can create meaningful interactions, increase brand awareness with relevant buyers and translate that engagement and awareness into more sales either through their online or physical store.\u00a0\u00a0<\/p>\n
Connected physical and digital commerce\u00a0<\/b><\/h4>\n
Having an online store allows you to expand your customer base to include those too far to visit your store, and that\u2019s already enough of a reason to start thinking about eCommerce. But selling online also has an omnichannel impact; local shoppers will be able to check out your store hours, stock levels and reviews.\u00a0<\/p>\n
57% of consumers surveyed<\/a>\u00a0pre-COVID had picked up an online purchase in-store. With safety-conscious consumers carefully planning their in-store trips post-COVID, buy online, pick-up in-store (BOPIS) is set to see even more of a surge in popularity\u2060\u2014BOPIS orders already surged\u00a0208% year-over-year in April.<\/a>\u00a0<\/p>\n
More customer connections from social selling<\/b><\/h4>\n
Did you know that\u00a074% of customers<\/a>\u00a0say that social media has played a role in their shopping journey? Customers put a lot of value on reviews and referrals from their fellow shoppers\u2014social commerce done right leverages social proof and, with tools like\u00a0Instagram Shopping<\/a>, helps them buy without leaving the platform.\u00a0<\/p>\n
Whether you\u2019re creating shoppable posts, giving a sneak peek at your upcoming collection or something in between, finding natural ways for your social media accounts to overlap with your physical and digital storefronts makes for a more cohesive shopping experience and provides another opportunity for customers to discover, engage, buy and be an advocate for your brand.\u00a0\u00a0\u00a0<\/p>\n
Unified sales, customer and inventory data<\/b><\/h4>\n
Having a connected point of sale system and\u00a0eCommerce platform<\/a>\u2014or better yet, using a single omnichannel retail platform\u2014means all your customer, inventory and sales data is updated in real-time across your channels. Customers get complete inventory transparency when they\u2019re shopping online, and merchants can be confident that the numbers they see are accurate.<\/p>\n
For customers, this can mean that purchases they make online are synced to their purchase history across channels, allowing sales associates to cater their approach based on past purchases. Customers get the same quality of service at every touchpoint.<\/p>\n
For merchants, unified sales, customer and inventory data across all channels means they\u2019re able to use real-time, accurate data as well as their instincts to make decisions.\u00a0<\/p>\n
Increased customer lifetime value\u00a0<\/b><\/h4>\n
Businesses that prioritize building a fluid omnichannel experience benefit from better brand awareness and deeper, more profitable relationships with customers. The same Harvard Business Review survey found that omnichannel retailers saw a 23% increase in repeat shoppers over a six month period. Customers value convenience and reward merchants who make their lives easier with their hard-earned dollars.\u00a0<\/p>\n
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\nOmnichannel retailers saw a 23% increase in repeat shoppers over a six month period. Customers value convenience and reward merchants who make their lives easier with their hard-earned dollars.\u00a0<\/p>\n<\/blockquote>\n
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Omnichannel merchants give customers more ways to shop, which results in more loyal customers and higher customer lifetime value.<\/p>\n
How to implement omnichannel in retail: 4 factors to consider<\/b><\/h3>\n
If you\u2019re ready to take your business omnichannel, here\u2019s what you need to think about before getting started:\u00a0<\/p>\n
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- Which channels do your customers use?\u00a0<\/li>\n
- What is your business model?\u00a0<\/li>\n
- What type of POS system do you use?\u00a0<\/li>\n
- What type of eCommerce software do you use?\u00a0<\/li>\n<\/ul>\n
Wish channels do your customers use?\u00a0<\/b><\/h4>\n
Omnichannel is a customer-centric business model. Take a moment to think about who your target consumers are and, more specifically, what channels they use.\u00a0<\/p>\n
Research how your customers typically buy something. While part of this comes down to your instincts and knowing what channels you get the most engagement on, you can (and should!) back up your instincts with data from the source.\u00a0<\/p>\n
In other words: ask your customers what channels they use to shop (literally).\u00a0<\/p>\n
Use a tool like\u00a0Typeform<\/a>\u00a0to build a survey to send to your mailing list. Ask them discovery questions like:<\/p>\n
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- How did you discover our brand?<\/b>\u00a01) Instagram, 2) Facebook, 3) Google Search, 4) Through a friend, 5) In a blog or publication, etc.\u00a0This question helps you understand how your customers were first introduced to your brand. It\u2019s also where they may prefer discovering new products you launch.<\/li>\n
- Which option best describes how you shop?<\/b>\u00a01) Browse online, buy in-store, 2) browse in-store, buy online, 3) buy online, pikup in-store, 4) buy online, ship to home, 5) Buy in-store, ship to home.\u00a0<\/li>\n<\/ul>\n
This will help you understand what types of shopping journeys your customers prefer, which will help you build an omnichannel experience that\u2019s right for\u00a0them<\/i>.\u00a0<\/p>\n
Remember: omnichannel retail isn\u2019t about being everywhere, it\u2019s about being everywhere your customers are.\u00a0<\/p>\n
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\nOmnichannel retail isn\u2019t about being everywhere, it\u2019s about being everywhere your customers are.\u00a0<\/p>\n<\/blockquote>\n
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What is your business model?<\/b><\/h4>\n
Ensure that your omnichannel strategy supports your physical and digital store operations. This means if personalized shopping is a big part of the customers\u2019 experience in-store, it needs to be a big part of their online experience as well, be it through virtual stylists and\u00a0appointment shopping<\/a>\u00a0or even just a way to make try-on appointments online.<\/p>\n
What type of POS system do you use?<\/b><\/h4>\n
If you want to set yourself up for success, your POS system should do more than just ring up sales\u2014it should manage every aspect of your business, from inventory organization to customer management and beyond.\u00a0<\/p>\n
Going omnichannel will mean your store is always open for your customers, and you don\u2019t want that to mean you\u2019re glued to a physical location to manage all channels. If you want to be truly omnichannel, you\u2019ll need to go cloud-based. That way, you\u2019ll be able to check on reports, order new stock and manage your online channels anywhere you are.<\/p>\n
Which eCommerce platform do you use?<\/b><\/h4>\n
For a truly unified omnichannel experience, your eCommerce platform should be fully integrated with the POS system you use for your physical store locations.\u00a0<\/p>\n
A consistent customer experience across all channels hinges on accurate inventory transparency at every touchpoint. Whether they\u2019re checking inventory levels on your website or through Google\u00a0Local Inventory Ads<\/a>, your Google My Business profile or somewhere in-between, customers should see the same inventory levels you see in your POS system\u2019s back end.\u00a0<\/p>\n
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Omnichannel retailers doing it right<\/b><\/h2>\n
Ready to start crafting your omnichannel strategy? Get inspired by how some of the best in the business are creating completely unified shopping experiences using multiple touchpoints.\u00a0<\/p>\n
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- Nike<\/li>\n
- Warby Parker<\/li>\n
- Glossier<\/li>\n
- Editorial Boutique<\/li>\n
- Rebicycle<\/li>\n
- Lululemon<\/li>\n<\/ul>\n
Nike<\/b><\/h3>\n
Nike\u2019s omnichannel strategy now drives its business model, and their investments have paid off with a\u00a035% year-over-year growth in revenue<\/a>.\u00a0<\/p>\n
They\u2019ve leaned into the power of mobile apps to connect with customers and take advantage of the fact that with an app, they can serve their customers a digital experience, even within a physical store.\u00a0<\/p>\n
Using the app, customers are recognized when they enter a store, can checkout and pay for their purchase without waiting in line and can find and reserve products while in-store on their phones.\u00a0<\/p>\n
The result is astounding\u00a0customer loyalty at scale<\/a>.\u00a0<\/p>\n
Warby Parker<\/b><\/h3>\n
Warby Parker didn\u2019t start as an omnichannel business, but nor did they start as a traditional retailer. In the beginning, they were a digital-first brand, manufacturing high-quality glasses and selling them to customers directly through their online store.\u00a0<\/p>\n
They\u2019ve expanded into physical locations with an emphasis on\u00a0experiential retail<\/a>, a move that they\u2019ve found\u00a0bolstered sales on both channels<\/a>. Customers often started by searching for glasses online, then head in-store to try on the pairs they found online.\u00a0\u00a0<\/p>\n
Warby Parker\u2019s omnichannel experience is a webroomer\u2019s dream.\u00a0<\/p>\n
Glossier<\/b><\/h3>\n
Like Warby Parker, Glossier began as a digital-first company. They took what they learned from their online operations\u2014that\u00a0customer experience is a value driver<\/a>\u2014and encourage their employees to center personalized experiences at every channel and every touchpoint. Whether you\u2019re buying from them online or in-store, Glossier wants you to feel like you\u2019re having a conversation with the company.<\/p>\n
\u201cThe retail stores are a calculated, true representation of the Glossier brand and what the experience should be,\u201d says Ali Weiss, Glossier\u2019s SVP of Mareting. \u201cWe definitely take risks, but we analyze how it will impact the consumer experience before we do anything.\u201d\u00a0<\/p>\n
Editorial Boutique<\/b><\/h3>\n
Thinking omnichannel is relatively new for\u00a0Editorial Boutique<\/a>, a hip Montreal retailer that specializes in personalized stylist appointments and merging the affordable with the avant-garde.<\/p>\n
Customer-centricity was already an essential part of their business, and it continues to be for its digital operations. Customers who don\u2019t want to (or can\u2019t) come in store can make virtual stylist appointments with one of Editorial\u2019s sales associates. Every time that customer comes back, be it online or in-store, they get the same personalized service.\u00a0<\/p>\n
Rebicycle<\/b><\/h3>\n
Rebicycle<\/a>\u00a0is a bike retailer whose specialty is building custom bikes, personalized to the customer\u2019s needs, height and aesthetic preferences, and their customer journey is omnichannel to the core.\u00a0<\/p>\n
It all starts with booking a virtual consultation online. In that appointment, a Rebicycle employee asks a series of questions to figure out exactly what the customer wants. Once finished, Rebicycle sends the customer a work order with the bike specs, cost and when it\u2019ll be ready for them to pick up in-store.\u00a0<\/p>\n
Rebicycle uses their online and physical store, along with appointment booking tools like booxi, to give their customers a personalized experience. In just 1 hour of getting to know their customer, Rebicycle builds a one-of-a-kind bike that matches exactly what the customer wants.\u00a0<\/p>\n
Lululemon<\/b><\/h3>\n
For Lululemon, seeing their physical stores as a continuation of their eCommerce fulfillment strategy helps get customers their orders quicker\u2014they\u2019re able to\u00a0ship directly from one of their many locations<\/a>. Customers can choose to buy online and pick up in-store, which means when they\u2019re on location, they can jet themselves get immersed in the\u00a0new experiential retail model<\/a>\u00a0Lululemon has rolled out.\u00a0<\/p>\n
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What is omnichannel marketing?<\/b><\/h2>\n
Once you\u2019ve got your omnichannel model set up, you\u2019ll need to market the value-added for customers on each channel. Your goal is increasing adoption of the various omnichannel touchpoints you\u2019ve set up.\u00a0<\/p>\n
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Why is omnichannel marketing important?<\/b><\/h2>\n
Imagine you were browsing Instagram and you came across something that caught your eye\u2014a dog harness that promises to be harder to slip out of, let\u2019s say.\u00a0<\/p>\n
After reading through reviews in comments on the post, you click through to the account\u2019s profile and watch a few story posts. Having been able to gather all your research in one place, you\u2019re ready to buy\u2014and you can, because the retailer has enabled\u00a0Instagram Shopping<\/a>. You don\u2019t even have to leave the app.<\/p>\n
Social selling is a good example of how omnichannel retailing and omnichannel marketing cross over\u2014and you can see the benefits.\u00a0<\/p>\n
Omnichannel marketing puts customers in control and gives them more options. It\u2019s easier for merchants to close a sale because, rather than being intrusive with your advertising, you\u2019re turning product discovery into the start of a connected buying journey.<\/p>\n
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\nOmnichannel marketing puts customers in control and gives them more options. It\u2019s easier for merchants to close a sale because, rather than being intrusive with your advertising, you\u2019re turning product discovery into the start of a connected buying journey.<\/p>\n<\/blockquote>\n
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How to build an omnichannel marketing strategy<\/b><\/h2>\n
Omnichannel retail marketing strategies are more effective because the customer receives a consistent message wherever they are.\u00a0<\/p>\n
To build your omnichannel marketing strategy, think about where your customers usually connect with you and how you can make those channels and touchpoints overlap.\u00a0<\/p>\n