Today consumers are demanding and their expectations are increasing. Commodities are expected to be available online as well as satisfactory service in-stores and after-sale services. To meet those expectations and to stay competitive, businesses have to keep on improving and come up with new ideas and strategies to stand out.
Thus, traditional (offline) retailers are certainly feeling the heat. Although, the competition is intense, the popularity of retail stores is depreciating whereas online retail is blooming. One of today’s largest retail players, Kilian Wagner, CEO of a Swiss start-up, gives insights on his retail strategy and on how Omni-channeling might be revolutionary. Kilian Wagner, rethinks retail by bringing in customers and interconnecting with them across the online and offline worlds. Omnichannel can be understood as a multichannel approach that lets the customers have smoother and seamless buying experience, no matter if they shop online or in physical stores. After all, Omnichannel marketing acknowledges the fact that the nowadays, the customer is no longer limited to a single platform.
Omnichannel is considered the future of retailing and it seems that there is no getting away from it. That’s why omnichannel marketing uses multiple channels to reach customers and achieve effectiveness. For example, Amazon is the biggest beneficiary that is accounted for 26% of all online retail sales. As it keeps on continuously expanding in grocery and fashion, it threats the traditional retailers’ existence.
But are omnichannel shoppers having more value to retailers?
Harvard Business Review completed a study where 46000 shoppers took part. The main aim was to study their shopping behavior. Customers were asked to review every aspect of their shopping journey with retailers, making a comment about why they chose the particular channel and evaluate it after. It was summarized that only 7% were online-only shoppers, 20% were store-only shoppers and the other 73% used multiple channels. These people are called omnichannel customers. The findings were that this kind of customer used all sorts of combinations, starting from just a simple use of apps to comparing prices, to the purchases made online or the shipping methods.
The results were compelling, showing that omnichannel customers spent 10% more than single-channel customers. What is more, they didn’t only have bigger shopping baskets but also turned out to be more loyal. Within 6 months after the purchase, they had repeated the shopping trip 23% more, and they tend to recommend the brand to those who used a single channel.
However, customers, as it turns out, are among the biggest challenge for retailers as they have different ways to shop. Therefore, it makes it challenging for companies to navigate each customer thoroughly. Fortunately, this obstacle started disappearing as technologies like data and artificial intelligence became highly available, helping to close the gaps of omnichannel commerce.
First of all, the data is now being collected at every customer touchpoint and by getting insight information, businesses get information about shopping patterns and preferences.
Secondly, each company uses methods depending on their channel, but the strategy remains the same, using insight information about customers in order to create appealing content for them and be able to personalize their experience. A great example is Netflix, one of those companies that has successfully made their content relevant to the viewer. It is uniquely curated to the customer’s ratings and likes no matter the device a user is on.
Now, let's ask ourselves: when occasionally scrolling through social media feed, does anything grabs your attention and make you think it has relevant and interesting information?
Does it make you want to buy something or everything? Undoubtedly, most of us have experienced that. This is how the companies attract their customers. They save information about you and your interests once you click on the page and when you purchasing.
This is omnichannel marketing in action. It focuses on providing a consistent and relevant shopping experience across different marketing venues, which is highly personalized and based on the unique tastes and preferences of each user. Hyper-Personalization is the new trend in eCommerce and by following this trend, companies are more likely to sustain and develop.