Omnichannel Retail – Definition, Significance,
Benefits, and Use Cases
In this competitive era, it is a top-of-mind priority to provide customers what they want, where they want, and when they want it. Being a retailer, it becomes extremely challenging to constantly fulfil the promises made to your customer. Omnichannel retail comes to your rescue to relieve you from the intense pressure and make you deliver consistently.
What is Omnichannel Retail?
Omnichannel retail, also known as omnichannel commerce, is an integrated approach to business that concentrates on providing seamless customer experience across all touchpoints whether the consumer is shopping online from a mobile device, a tablet, a laptop, or from a brick-and-mortar store.
Why Omnichannel Retail?
A recent study by Digital Commerce 360 states that omnichannel retail results in:
Furthermore, new media channels are emerging and stealing attention from incumbent channels. Therefore, omnichannel approach is the only way out to stay relevant and in business. No wonder brands with robust omnichannel strategies usually depend on headless commerce to flexibly serve customers irrespective of where they are.
In addition, omnichannel commerce helps in better brand positioning, thereby, strengthening customer relations. It increases customer retention and inspires customers to make repeat purchases faster, growing customer loyalty, and escalating the lifetime value of your customers.
What’s more, the rapid change in consumer behavior in 2020 has made omnichannel retail more important than ever. According to a research carried out by BigCommerce and Retail Dive in 2020, approximately 46% of retail executives stated that going forward they plan to increase their investment in omnichannel retailing.
Difference between single channel, multi-channel, and omnichannel retailing
Significance of Omnichannel Commerce to Retailers
⦁ Show up where your customers are – Meeting your customers where they are makes the shopping journey more convenient for them. The COVID-19 pandemic has made that convenience more important than ever. A powerful omnichannel strategy takes good care of changing consumer behaviour. It organizes businesses operations and technology to enable you to meet customers where they are and where they expect you to be.
⦁ Stand out from the crowd – It’s a retail battlefield out there smiting cut-throat competition. Everyone needs attention and everyone is trying their level best to achieve it. To come out victorious, you need to adapt to changing consumer behaviors and needs, and relearn your target audience. You can do this by analysing important data and rethinking and redefining your messaging, product arrangement, and marketing and sales channels. An integrated omnichannel strategy empowers retailers to centralize data from all the channels and come up with the best practices to organize inventory and meet customers where they are and provide them with the best service.
Key benefits of Omnichannel Retail
Omnichannel Retail – Popular Use Cases
Nike is an excellent example of omnichannel retail. The company has multiple new store formats such as Nike Live. To cater to the local market, Nike is including local team brands and decor that resonate with the community. For maximizing in-store engagement, many of the Nike stores’ services are planning to take up a digital format that pairs with the Nike app. For case in point, a digital vending machine named ‘Unlock Box’ will enable members to redeem free gifts and products. What’s more, customers will be able to select ship-to-store and message store employees regarding product availability and other offers. From an omnichannel standpoint, Nike’s hybrid model of bringing digitally led experiences to physical retail is exceptional.
Target, the big player in the retail space, is another great example of omnichannel commerce. The company’s remodeled stores are designed for much better customer experiences than it offered earlier. Target’s ‘store-within-a store’ model, through brand partnerships with Apple, Disney, and Ulta, is strongly expected to make shoppers happy, increase customer loyalty, and secure brand equity for one and all. Once a popular differentiator and further fueled by the COVID-19 pandemic, Target’s emphasis on a convenient pickup experience with marked curb side and drive up areas is a sensational way of offering omnichannel experience to the customers.
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