Omnichannel Retail: Bridging Online and In-Store Experiences.

Introduction

In today’s digital age, the retail landscape has undergone a revolutionary transformation, with consumers seamlessly transitioning between online and offline channels. The rise of the omnichannel consumer has presented both challenges and opportunities for businesses seeking to meet the ever-evolving expectations of their customers. As a retail design agency, we firmly believe that adopting a thought leadership approach is crucial to excel in catering to the omnichannel consumer. In this blog, we will delve into the various facets of the customer journey and explore how retailers can successfully embrace the omnichannel revolution.

Understanding the Omnichannel Consumer

Omnichannel retailing transcends traditional multichannel approaches. While multichannel retailing involves offering products or services through various channels, such as physical stores, websites, and mobile apps, omnichannel takes it a step further. It seamlessly integrates these channels, providing a consistent and interconnected customer experience. Each channel in an omnichannel strategy complements the others, creating a holistic shopping journey. They want to browse products online, check reviews, make purchases in-store, and perhaps even use pick & collect, all without missing a beat. A study by Deloitte reveals that 59% of consumers who engage with multiple channels expect consistent interactions across them. Meeting these expectations is essential to winning customer loyalty.

According to a report by Harvard Business Review, omnichannel customers have a 30% higher lifetime value than those who shop through a single channel. This finding emphasizes the significance of catering to this customer segment effectively.

Mapping the Customer Journey

To create a compelling omnichannel strategy, it’s crucial to comprehend the customer journey thoroughly. Each touchpoint represents a unique opportunity to engage and delight customers.

Research & Awareness Phase:

At this initial stage, customers explore products and services online and offline. A study by Salesforce reveals that 87% of shoppers begin their journey by searching for products on digital channels. Retailers should invest in a robust online presence, intuitive website design, and relevant content to capture these consumers.

Consideration Phase:

Despite the rise of e-commerce, brick-and-mortar stores remain a vital touchpoint. The in-store experience heavily influences purchase decisions. According to a survey by Retail Customer Experience, 70% of consumers say that the ability to see and touch products is a significant factor in their purchasing decisions.

Purchase Phase:

Customers expect a seamless purchasing process, regardless of the channel they use. A joint study by Google and Ipsos found that 85% of consumers start a purchase on one device and finish it on another. Implementing a unified shopping cart and flexible payment options is critical to prevent cart abandonment and ensure a smooth experience.

Post-Purchase Engagement:

After the sale, maintaining engagement is essential for customer retention and loyalty. A study by Forbes found that 57% of customers are more likely to recommend a brand after a positive shopping experience.

Looking Ahead: Challenges and Innovations

Technological innovations:

Technological innovations like augmented reality, artificial intelligence, and blockchain are poised to reshape omnichannel retail. These innovations promise more immersive and secure shopping experiences. The retail industry’s shift towards experiences rather than products will accelerate over the next few years, with customers expecting to see more creative, and health and games oriented in-store activities. However, focus on customer value is far more important than embracing tech-enabled, flashy innovations.

Click-and-Collect Services:

Implementing click-and-collect services can bridge the gap between online and offline retail. According to Business Insider Intelligence, click-and-collect orders are expected to reach $565 billion by 2024, highlighting the growing popularity of this service.

Data-Driven Personalization:

Utilizing customer data to personalize interactions is a key differentiator in the omnichannel space. According to “The State of Personalisation”, less than 1 in 4 businesses have the required technology to deliver consistent, personalized experiences across channels—showing a blind spot when it comes to omnichannel customer experiences.

Social Commerce Growth:

Shopping via social platforms has become big business, especially in China. WeChat, the country’s biggest messaging app, delivered $115 billion in social commerce sales in 2019 alone.

The recent re-branding of Twitter also raises the question if the future of the platform will be a western mirror of WeChat?

The metaverse

The metaverse is still taking shape, but many brands are already taking the plunge into this trend. For example, the first Metaverse Fashion Week in 2023 included Tommy Hilfiger and Dolce & Gabbana.

Gaming is integral to this emerging new channel. When rapper Travis Scott debuted his songs in a virtual concert within Fortnite in 2020, a staggering 27 million+ people viewed it – the largest in-game gathering at the time.

Conclusion

The omnichannel consumer is reshaping the retail landscape, demanding seamless and personalized experiences across all touchpoints. Crafting a robust omnichannel strategy, aligning brand messaging, leveraging data-driven insights, and merging digital and physical spaces are imperative for success. ISI Global’s expertise in creating unified retail spaces positions us at the forefront of this retail revolution. As we navigate the future, the retail industry will continue to evolve, and thought leadership will remain the compass that guides us toward innovation and growth.

If you would like to learn how ISI Global can help you create omnichannel brand experiences in retail, please get in touch: hello@isiglobal.com