We recently talked about the trend of “fast-laning,” which is when brick-and-mortar stores offer mobile ordering apps and online shopping with in-store pickup to help customers skip waiting in line. While this is indeed a big move in modern retail, truly innovative companies are taking it one step further: “omni-channel” retail. Instead of thinking of online shopping and in-store shopping as two separate purchase channels, forward-thinking retailers are considering them two parts of one integrated shopping experience.
Think with Google explains why this new way of looking at retail is catching on:
“As digital continues to touch every step of the customer journey, multi-channel retailers who operate both e-commerce and in-store channels are having to take note. … The most sophisticated retailers are ensuring their marketing strategies are geared toward enabling customers to convert on any channel. Why? Because they realize that a shopper who buys from them in-store and online is their most valuable kind of customer. According to a 2015 study by IDC, these shoppers have a 30% higher lifetime value than those who shop using only one channel.”
The gold standard in omni-channel shopping is the Apple Store, which has integrated in-store and online shopping for years. Not only can Apple Store employees check out customers from anywhere in the store using iPhones as registers, but customers can pay right from their iPhones with the scan of a fingerprint using Apple Pay. Customers interested in the new Apple Watch can compare models on their desktop or mobile device, set up an appointment to try on various models with an Apple Store Concierge, and then buy it in-store or order a custom model online from inside the store.
Other retailers with thriving online and in-store marketplaces are now working to seamlessly connect the two. Until 2013, Designer Shoe Warehouse (DSW) operated its stores and its online marketplace separately. Now the company is implementing a $10 million omni-channel strategy that includes using stores as fulfillment centers, beefing up the DSW Rewards program, giving store employees handheld devices to check out customers from anywhere in the store, and adding touchscreens that customers can use to explore extended sizes and styles online.
DSW Inc. president and CEO Mike MacDonald stated, “Our omni-channel capability has doubled sales demanded in one place but fulfilled elsewhere to almost $100 million, volume equivalent to opening twenty DSW stores. Our goal is to expand the customer access from 2,500 choices within a local store to 15,000+ choices throughout the DSW network.”
Omni-channel retail can be used effectively to develop detailed shopper profiles and microtarget individual shoppers. The grocery giant Safeway, for example, has expanded its old Safeway Club Card program by introducing a personalized coupon app called Just for U. Customers can view and select relevant coupons on their mobile devices, and a special section shows when products they buy go on sale. Tags on shelves show when items have special Just for U discounts, and customers can scan a tag with their phone camera to add the discount to their account. The app is also integrated with Safeway’s website, so online shoppers get the same deals.
By implementing omni-channel strategies, these companies are building loyalty, driving sales, and simplifying their business structure. While the up-front costs can be prohibitive, the rewards can be significant if the strategy is well developed.
“It’s easy to jump on the innovation bandwagon, but before taking the leap it’s important to make sure you understand whether that innovation will ease the path to purchase or whether it’s just another point of frustration for shoppers,” Shoppercentric managing director Danielle Pinnington told Computer Weekly.
If you’re thinking about creating an omni-channel experience for your customers, set up a consultation with Eye Faster. We can find hard data on your customers’ behavior and shopping experience and make educated recommendations for how to set up an omni-channel shopping system that your customers will use and love.
Tags: Consumer BehaviorEye TrackingGlobal RetailingGroceryMass MerchantsRetailShopper ResearchTrends