07 Jan 4 Strategies for Omnichannel Success
A study by Deloitte found that omnichannel customers spend three to four times more on purchases than other shoppers. But what exactly does that mean? Omnichannel reflects the choice customers have and how they engage with brands from mobile to social to brick and mortar locations. But the real secret behind omnichannel success seems to lie in how to connect the various channels. Simply offering a mobile app isn’t enough. Here’s some ways retailers can pose their channels for optimum consumer success.
Ignoring the mobile shopping revolution could cost retailers billions. More customers are skipping the lines at the stores and opting to make their purchases on their smartphones and tablets. In 2013, sales on mobile devices and tablets increased 70 percent. That percentage accounts for $42.13 billion in sales, according to eMarketer.
But embracing mobile in an omnichannel world isn’t just about making purchases and checking for sales. Retailers like Best Buy offer mobile apps where shoppers can scan products while shopping in store. Macy’s is also rolling out self-checkout options in their handbag departments with touchscreen shopping options.
Social media has also evolved past offering tweets about sales and connecting shoppers to customer service representatives. Amazon allows users to connect to Twitter and add products to their wish list they find through tweets by using a special hashtag. It not only provides a way to keep up with their own wish list, but spread the word about those products to their followers.
Social media combined with other marketing channels like online and mobile show a spike in customer spending. Take a study of fast food restaurants. The research shows they were up to seven times more likely to see increased sales when social media content was included in their omnichannel efforts, according to an Oglivy-ChatThreads survey.
A report by MIT Technology Review, 80 percent of shoppers check prices and other information online before buying in the store. But retailers take the shopping experience a step further and offer immediate online sales with the ability to pick-up at a local store the same day. Retailers also give shoppers simple but enticing incentives to keep them purchasing online. Half of online purchases offer free deliveries and many provide free returns.
Other retailers have embraced old-school incentives with new technology. Instead of a standing order at a physical store, online retailers can use a tool like Chargify to set up recurring plan charges, trial periods that roll over into paid subscriptions and even one-time charges. And Kmart gave early holiday shoppers the chance for no-money-down layaway plans. But instead of only allowing it in the stores, they extended the offer online. Customers could pay for big-ticket items over time without any interest.
Brick & Mortar
According to ATKearney’s report, “On Solid Ground: Brick-and-Mortar is the Foundation of Omnichannel Retailing”, 95 percent of all retailer sales are captured by shops with a brick-and-mortar presence. But their report also notes how physical stores help drive online sales. The idea is a retailer with a physical presence is the foundation for ominichannel marketing and ties together both the physical and digital worlds.
Up and coming brick and mortar stores intimidated by big online retailers needn’t worry. Studies have found that online juggernauts like Amazon don’t necessarily own the market on retail. Amazon may corner the market on books and media, but physical stores still compete with products like office supplies and cosmetics.