Expertise
Strategies to bridge the omnichannel retail experience
Consumer habits have fully reverted to the “old normal” and shoppers have returned to brick-and-mortar stores in droves—once again shopping on weekends, after work and at moments in-between. The stakes are now raised for retailers who poured resources into perfecting their e-commerce platforms during the pandemic: customers now demand that the in-person shopping experience aligns with their digital expectations.
And while consumers do conduct the majority of shopping research online, according to Forrester Research, they are just as likely to purchase products from a retailer in their physical store as they are on their website (see below).
This reality poses a pivotal question for retailers: What strategies will ensure their relevance in this dynamic landscape?
Incongruous experiences: A cautionary tale
The line between digital and in-store shopping has disappeared completely. Consumers no longer view these channels as distinct entities but rather as one interconnected shopping journey. Consistency across the omnichannel experience is paramount for brands to remain competitive.
Consider this scenario: A customer discovers a product online via a retailer’s website and it checks all the boxes—it’s exactly what they need. Ready to make that purchase, they visit the store only to find that the inventory was incorrect or that the in-store experience fails to meet their expectations. The customer leaves disappointed and empty-handed, likely turning to a competitor. This lack of consistency becomes a loss in revenue.
Marketers used to hold true to the belief that brand loyalty was built over time—through a series of positive experiences. But in today’s era of e-commerce immediacy, brand loyalty is established both instantly and incrementally—and all it takes is one bad experience to put that loyalty in jeopardy.
As brands navigate the complexities of delivering a consistent omnichannel experience, there are three strategies to bridge the digital-to-physical gap
Invest in the physical store
Years removed from the pandemic, retail is on the rebound. We’ve seen the resurgence of traditional retail players—with the likes of JC Penny, IKEA and even Netflix breaking ground on new stores. These businesses are not alone—one recent survey indicates that retailers are expecting more of a return to pre-pandemic normalcy this year, as more than 30% of retail survey respondents anticipated opening additional locations in 2024.
With shoppers indicating a preference to shop in-store, the time is right for retail investment. Despite the proliferation of expedited and same-day delivery services, consumers still crave the immediacy and tactile experience that only brick-and-mortar stores can provide. If online is about convenience, then in-store is about experience.
It’s imperative for brands to seize this moment by creating dynamic in-store experiences that cater to the customer’s needs and streamline the shopping journey. Implementing retail decor packages that value the customer’s time—helping them to find the right product and shop the best deals—are small wins that offer big payoffs. And the rise of retail media networks grants brands more access to consumers, in-store as well as online, capturing an audience that is already predisposed and primed to purchase.
Brands that invest in their physical footprint today will benefit as consumers continue to seek a balance of in-store and online retail experiences.
Sync loyalty and personalization efforts, online and in-store
Customer satisfaction and loyalty requires interchangeable online and in-store experiences, but the data captured from these two experiences is often kept separate. Connecting physical and digital data effectively allows brands to create unique experiences that customers want to receive, driving engagement, loyalty and repeat purchase.
Machine learning and predictive AI technologies are also streamlining the shopping journey, helping customers get to the products they need, faster.
Consider the weekly grocery shop. The vast majority of shoppers still conduct their weekly shop in person. And while their list might change from one trip to the next, many of the items purchased—the household staples—remain the same. When an ecommerce shopper logs into their grocery account, they are prompted: “Fill your cart with your last order?” This simple algorithm provides incredible convenience to the shopper—streamlining this weekly task, and granting more time back to the customer to potentially increase their cart size further.
And for brands that capture rich first-party customer data, loyalty and personalization becomes much more dynamic. Shoppers receive offers that are created just for them, rather than a broad user demographic. These strategies give customers compelling reasons to visit the store.
The best loyalty and personalization programs consider a customer’s experience with their brand holistically, at all touchpoints, and use that information to continually optimize their omnichannel strategy.
Differentiate fulfillment with branded experiences
Among the number of retail trends catalyzed by the pandemic, one standout phenomenon is here to stay: convenience-driven fulfillment. Buy online, pick up in-store (BOPIS) and other delivery services are now permanent fixtures in the omnichannel experience.
While sufficient data, technology and labor investments are key inputs to a successful fulfillment operation, exciting opportunities exist for retailers to bring their brand to life across this channel.
Delivery trucks, for instance, operate as moving billboards, advertising omnichannel convenience. These vehicles afford retailers the opportunity to go big with a brand impression and offer a playful wink or nod of personality.
Omnichannel fulfillment can also deliver unexpected moments of surprise and delight. For example, Target, whose BOPIS system is lauded as one of the best in the industry, recently launched “Drive Up With Starbucks” at more than 1,700 retail stores.
This savvy move by the retailer allows Target customers to pair a Starbucks purchase with their drive-up order. Target advertised the offering as “yet another way we are energizing—and easing—the shopping experience.” The service delivers an upscale experience that competitors like Walmart and Amazon can’t match, further differentiating their pickup option.
The opportunity? While omnichannel fulfillment is, at its core, an operational business function, the retailers doing it best realize how to put their brand identity front and center—creating authentic experiences that recognize and respond to the needs of their customers.
Building a consistent omnichannel retail strategy
It’s never been more difficult for retailers to manage their omnichannel priorities. Consumer expectations are high, and economic and market pressures are constant. As shoppers increasingly engage in both online and in-store experiences, retailers are forced to make tough decisions when implementing their omnichannel strategy.
The solution to this challenge, while not simple, is clear: be customer-obsessed. A customer-first organizational mindset ensures that all operational decisions—from retail investment and e-commerce to loyalty programs and fulfillment—are executed with the brand’s most important stakeholder in mind: the consumer.
