Why Businesses Must Adopt Omnichannel Retailing?

Did you know that omnichannel retailing brands can retain on an average 89% of their total customers? While companies with weak omnichannel strategies have a customer retention rate of 33%. (source: v12 data).
Let’s add another note to this. Do you know where you get your customers from? Surely you do. But, do you know where you are losing customers on sales?


Now, this is what omni channel retailing is all about! It is much greater than multichannel marketing. It focuses your attention to where customers come from and what approaches to implement so that you don’t lose them.

When you think about omni retailing, what comes in your mind. Surely these do:

So, first things first..

What Is Omnichannel Retailing ?

Omnichannel Retailing isn’t about being everywhere, but about being exactly everywhere, your customer is. It is an important trend of people-based marketing. What is omni channel retail marketing?

Omni channel retailing is an integrated approach to commerce that provides shoppers with a unified experience across all touchpoints.
It goes beyond brick and mortar stores to online marketplaces, mobile browsing, social media and everywhere your users travel in the online ecosystem through retargeting ads.

With a smart omni retail strategy, customers can spend more on brands. Hence retailers choose omni retailing as their top priority.

Why Omnichannel Retailing ?

Shoppers travel several websites before they land up to yours. If they don’t find their relevant items at your store, they are likely to go ahead for others.
Omnichannel is the wave around. Don’t believe us?
Check these unavoidable statistics!

  • Businesses adopting omnichannel retail strategies achieve 91% greater year-over-year customer retention rates compared to companies that don’t.
  • 77% of strong omni retailing companies store customer data across channels, compared to 48% for weak omnichannel companies.
  • Brands equipped with a strong omni channel retail solutions and single-customer view have a 30% higher lifetime value than those with single channel retail.
  • Companies with strong omni retailing strategy see a 9.5% year-over-year increase in annual revenue, compared to 3.4% for weak omnichannel companies.
  • Ending 2020, the demand for omnichannel customer experience is said to be amplified by the emerging need for nearly perfect execution.

(source: v12 data)

How to Create Your Omnichannel Retailing Strategy?

If you’re ready to begin your omnichannel journey, follow these seven proven steps to avoid common pitfalls and make the most of your efforts.

(i) Creating Buyer Personas

Firstly, you need to create identities for getting insights on what places and displeases your customers. You can create rich personas having full information about customer preferences, habits, preferred mode of communication etc.

For omnichannel retail marketing, you need to focus on the customer journey taking note of what he buys, how he buys, how often he buys and so on. This way the omnichannel retail strategy is put to bring out a great and seamless user experience.

(ii) Segmenting the Audience

Now that you know who is buying what and how, you move forward with segmenting your audience based on the personas created. A wide chunk of the audience gets frustrated because of irrelevant targeting. Hence, create a top class experience by segmenting them for impactful outcomes.

(iii) Aligning Content According to Specific Buyer Journey

Every buyer journey is unique and requires unique attention. Brands trace their customer journey through multi-touch attribution. When you provide personalized content that matches your audience, it helps increase engagement and conversions. The customer feels valued and is more likely to stay with you.

(iv) Prioritizing Channels

Scan down all the channels that your customers prefer, and invest in their experiences. Be everywhere your customers are, and don’t waste time on other channels. The best way to do so is by listening to what your customers are saying across channels. Keep monitoring and marketing accordingly.

(v) Investing in Customer Support

Almost half of the millennials will stop doing their business with you due to poor customer service. Customer service is the most important thing to do. Tune in to your teams and stay attentive of what the audience is saying.

(vi) Tracking and Measuring Your Efforts

Measure success and individual campaigns over time. This helps in tailoring messages and offering better. Use feedback into insights and move ahead effectively.

(vii) Integrating Your Findings

Interconnect the insights derived throughout the campaigns to make it a seamless experience. Check whether your social, email, web and channel strategies support each other. That is to say that your customers should get the same great response from you, wherever they meet you.

What Are the Benefits of Omni channel Retailing Strategy?

Omni channel retail solutions benefit both the customers and retailers. How? Find some of the benefits below:

(i) Equitable Satisfaction to seller and buyer

Omni-channel retailing makes it easy to manage orders and increases the efficiency of the retailers through timely and quick delivery of proper quantities of the products.

(ii) Omnichannel Retail Managers and Reduces the Inventory Costs

Because in omni retail strategy, the data across multiple channels is synchronized, the retailers can handle orders real quick.Implementing  omni channel retailomni channel retail software solutions saves energy and time that could be wasted on staffing and warehousing.

(iii) Omnichannel in Retailing Brings in Greater Efficiency

 Customers can view the products and experience the brand consistently across all retail channels. This way, they save time and efficiently make their purchases due to the customer-centricity of this retail system.

(iv) Omnichannel Retail Software Increases Brand Perception

Huge attention is paid to the needs of customers equally through all channels available. This increases brand perception by converting your audience into loyal, returning customers.

(v) Omni channel Retailing Increases Sales

Retailers can review their sales data and identify customer’s favoured channels and reach them across such channels. Customers can be introduced to a wide range of products through their favoured channels while increasing the buying opportunity of such products.

(vi) Omnichannel Retailing Gives You Higher Margins

With omnichannel retail experience, the retailers can sell those products all around the country for the full price without giving any discounts. Hence they can get higher margins.

(v) It Enhances Productivity

Customers can do their research online and then quickly make their purchase activity from the store they prefer or any channel. This increases the productivity of the retail system and improves customer retention.

(vi) Omni Retailing Enables Seamless Buying Experience

Omni-channel retailing targets its audience through multiple channels to fulfil the customers’ needs and delight them. Customers can use various channels and make the whole buying experience seamless.

What Is the Difference Between Multi Channel and Omni Channel Retailing?

The significant differences between omnichannel Retail and types of multi channel Retailing are:

(i) Firstly, omni channel retailing puts customers at the core to enable an entirely consistent, unified experience at every touchpoint, while multichannel marketing aims to get the word out using the maximum possible number of channels and is about maximum customer engagements.

(ii) Secondly, omni retailing includes multiple marketing channels, interconnected and interactive, allowing for maximum engagement with the customer. While the channels in a multichannel marketing approach work independently and disconnected from each other without any communication between them.

Also…

(iii) Thirdly, omni channel retailing focuses on the customer’s experience. Whereas, multichannel marketing ensures a widened customer engagement across all possible marketing channels.

(iv) Fourthly, omnichannel retail platforms tends to understand concepts to eliminate effort from the customer experience. While the multichannel marketing approach explains efforts to consider many multichannel that are available to connect with consumers.

(v) Fifthly, there are very few technology solutions that cover multiple significant areas of omnichannel commerce. There is still a long way to go. While the meaning of multi channel retailing is that it uses numerous marketing channels, which is desirably available to businesses implementing them.

The difference between multichannel and omnichannel retailing is what holds major significance in your marketing strategy.

Omni channel Retailing Examples: Best Omnichannel Brands that are Doing It Right

Omnichannel experience is the undeniable trend of businesses today. Innumerable brands and companies are clearly organizing for omnichannel retailing and walking on those lines.

To name them; walmart omnichannel, nordstrom omnichannel, omnichannel landmark group, adidas omnichannel, burberry omnichannel, ikea, tesco omnichannel, omnichannel mckinsey, uniqlo omnichannel, warby parker omnichannel, rei omnichannel, zara omnichannel strategy, h&m omni channel, disney, mckinsey omnichannel retail etc.

We shall talk about a few best buy omnichannel strategy below. Scroll down!

Disney

They are one of the best omnichannel retailers. Every part of their website is responsive to mobile and optimized to all devices. After a user books his Disney World resort visit, he can plan every little part of his trip through My Disney Experience Tool.

He can use mobile apps to locate places of attraction and find out estimated times to visit too. Now Disneyland and Disney World visitors can check-in and enter rooms/parks, charge their purchases etc. With My Disney Experience account, they can access everything. It goes much beyond multi channel retail examples.

Oasis

The well-known fashion retailer in the UK, Oasis operates online and from around 80 physical stores in Ireland and Britain, and 96 other locations globally. Oasis integrates it all to provide an all-round omnichannel experience. How?

They have a dedicated Instagram business with their app features allowing users to explore latest trends. Also users can add items to their bag and find it later even if logged out from the desktop site. Likewise they have everything integrated for the offline channels too.

Neiman Marcus Omnichannel

The high-end fashion chain Neiman Marcus leads the industry forward by connecting the offline and online customer experience as an omnichannel fashion retailing. It has a quality ecommerce site built up, a wide number of chains across US, a shoppable Instagram and Pinterest with humongous followers/ viewers and a dedicated app. It creates a benchmark beyond omnichannel and multi channel retailing definition.

In addition, the Neiman Marcus app has a feature called Snap. Find. Shop.’ feature which allows the customers to see stuff in real-life, snap a picture of it and also get a list of similar products to buy. This best buy omnichannel strategy of Neiman made it witness a massive growth of revenue and sales making it move bigger and better.

Starbucks

Starbucks excellently provides a seamless user experience. Each time a user pays with a Starbucks card/physical card/mobile, the user gets reward points. The app also helps him to find nearby stores, order drinks, view newly added stuff to the menu.

Not only this, Starbucks’ recent integration with Spotify, a user can view the songs played in that store and then add them to his playlists. The brilliant effortlessness of Starbucks makes it loved amongst its customers.

IKEA

The homecare giant implemented an omnichannel strategy to acquire a major market share in the flourishing Indian furniture market. IKEA has announced its plans to open large stores in Bengaluru, Mumbai,Pune, Ahmedabad, Gurugram and other cities by 2025.

Ikea omnichannel strategy also focuses majorly on digital channels and allows for smooth interaction with customers thus expecting a vast online growth in Indian market. This way the furniture giant keeps up with its omnichannel retailing strategy to reign in the furniture and homecare industry.

Adidas Omnichannel Strategy

Recently the brand launched Adidas Neo, which targets the youth segment. Through this online initiative, Adidas aims to grow its product range by introducing niche products such as cycling equipment in the market.

Adidas has millions of stores all over the world. It targets all its customer range with specific targeting under ages, genders, specificity of products and many more. Adidas omnichannel plans to pump up its omnichannel game by keeping up with both offline and online channels in an extremely interconnected manner so that the Adidas tribe of customers get the best experience.

Sephora Omnichannel Strategy

The beauty giant Sephora being one of the top omnichannel retailers recognizes that its shoppers have a variety to choose from when they walk into its stores.

Omnichannel Sephora integrated its beauty bag feature with the in-store communication channel. As a result, Sephora could help customers narrow their options and track products that they intend to purchase.

Pepperfry Omnichannel Retailing

It is a home furnishings company that’s based in India and one of the most successful omnichannel retailers. Pepperfry pairs its online store with in-person experience to accomplish omnichannel goals.

Customers can buy a product online, look for their choiceable furniture, and then go to a “Studio Pepperfry” to know how the products are in real.

Nike Omni Channel Strategy

Nike omnichannel has a wide fan base all over the world. Its stores worldwide fetch it major share of sales and revenue. Since a major part of customers has turned online now, Nike garnered its ecommerce with various clothing, footwear and accessories channels.

It makes Nike’s revenue per customer increase. Besides, 26% of consumers are actively seeking personalized offers, Nike gets more loyal customers who would return to buy more over time.

Macy’s Omnichannel Strategy

Macy’s is another retail omnichannel example that is exploring omnichannel retailing . It is a multi-faceted retailer with a smart combination of stores, technology, online presence, and business capabilities.

It leverages the entire inventory of the company to satisfy demand and is committed to helping its customers in shopping anywhere, anytime, and anyhow they choose be it offline or the online mediums altogether. By Macy’s synchronized omnichannel retailing efforts between both forms of channels across all inventories, the productivity significantly increased.

Final Thoughts: Omnichannel Retailing for the Win-Win

You can move with cross channel retailing, store channel retailing, multichannel retailing, but omnichannel experience is a total different necessity. You’re able to understand consumers on a broader level when you focus on a customer-centric omnichannel approach.

The difference between omnichannel and multichannel retailing gives deep insights into the retailing game. Of course you are where your customers are without having to lose them too. Also, with omnichannel pos you stay ahead of technological expectations and become the brand the competition studies.

That is to say that omni retail has gone way beyond the omnichannel and multi channel retailing meaning. They are streamlining and optimizing their shopping behaviour. Omni-channel isn’t a choice for retailers anymore.

However, moving ahead with technology, even the older generations are utilizing the power of digital channels, omni channel pos software and o2o omnichannels. Certainly, omnichannel user experiences have a long way to go

Audienceprime, a Leading Platform for Seamless Omnichannel Retailing

Audienceprime helps you to reach your audiences and makes omnichannel retailing experience extraordinarily seamless.

With Audienceprime solutions, make your marketing audience-centric and highly result-oriented. The platform empowers marketers to know & reach consumers like never before.

In addition, it provides you with a haven for data onboarding and activating data accordingly.

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About Sonali Gupta

Sonali is a technical content writer who loves to blend her creativity with rational ideas of business and technology. She intends to keep it up with the digital trends and accommodate within herself the upcoming trades. She writes expert resource materials related to the Martech and adtech world. Previously worked as a banker, she has been a student of Economics and Human Resources. An ardent believer of Universe and optimism, she writes poetry and quotes to satiate her soul. Always keen about nature, travelling, music and photography.

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