The way that consumers shop has changed dramatically. You can ensure consistency across all channels by creating an omnichannel strategy.

Omnichannel Retail Strategy: How To Meet Today’s Shoppers

Omnichannel retail is no longer something you want to have. It has become a necessity for successful eCommerce businesses as more people are moving to online shopping after the COVID-19 virus.

According to Statista research, nearly two-thirds of ecommerce decision-makers in Europe and North America believe that omnichannel strategies will be very important in 2021.

Forecasters also expect multichannel — which is often used interchangeably and omnichannel — to account for close to 46% of ecommerce sales by 2023. This is up from 40.4% of ecommerce sales in 2019.

Omnichannel commerce provides seamless shopping experiences for customers, no matter what channel they use. This approach has already proven to be a success for many organizations.

Consumers are now discovering brands in new ways and looking for modern conveniences to help them make shopping decisions.

This article will discuss the integration of offline and online channels, and all your operations, to create a seamless experience across all touchpoints.

What is Omnichannel retail?

Omnichannel retailing is the practice of transacting on multiple channels. This could include marketplaces or social networks, as well as bricks-and-mortars. Omnichannel is a buzzword that has gained popularity, but it does not mean you can sell on multiple channels.

Let’s take a look at the subtle differences between omnichannel, multichannel, and single-channel commerce.

Omnichannel retailing.

An authentic omnichannel approach should deliver consistent brand experiences wherever you sell. It will allow customers to reach their customers at their location and create relationships that transcend channel boundaries. It should also include a focus on optimizing your business model via channel diversification and complete integration of your data and system.

Omnichannel retailing is the only way to satisfy customers’ growing expectations in the retail sector. A UC study today found that almost 90% of consumers desire an omnichannel experience. This shift is even more evident when you consider that the average consumer used only two touchpoints to purchase an item 15 years ago. What is the current number?

Almost six touchpoints.

Omnichannel marketing is not only beneficial in that it opens your business to more channels but also makes it something customers want and demand.

Multichannel retailing.

Multichannel commerce is similar to omnichannel. It allows you to sell across multiple channels. Multichannel experiences can be dissimilar due to marketing efforts occurring in silos and lacking a clear cross-channel message. Multichannel strategies focus on optimizing per touchpoint, not my journey.

An article by McKinsey states that while companies may be tempted to optimize individual touchpoints believing that the total will be greater than its parts, targeted intervention can magnify service variations and inconsistencies in all interactions.

Single channel retailing.

Other retailers prefer to sell through one channel, rather than multi-channel or omnichannel sellers. While some sellers restrict their activities to their ecommerce storefronts, others rely on the Amazon Marketplace.

There are many avenues to Omnichannel

Omnichannel organizations can participate in many channels, including digital marketplaces and social media platforms.

Marketplaces.

Omnichannel can be successful in different online marketplaces.

Businesses can save time and money by taking advantage of successful companies and existing markets.

Amazon

Amazon is perhaps the best-known example of an omnichannel-enabling marketplace that has been successful. Amazon began as an online bookstore and has since grown to be the world’s largest online marketplace.

Businesses can access:

• Nearly three times the number of visitors to our site each month, with 2.45 billion users per month.

• Amazon offers a fast and reliable fulfillment center that is available no matter where you are located.

• Amazon Prime members number more than 200 million

• One of the most important data collection centers in the world.

Walmart

Walmart needs no introduction. Walmart is the world’s largest retailer, so incorporating it into your omnichannel strategy will help you expand your reach.

• Walmart.com boasts 120 million unique visitors each month.

• Quick delivery and returns: Pick up in-store, next-day or 2-day delivery available, easy return policy.

• Seller tools: Massive investment in advertising, data reporting, and analytics.

Walmart.com sellers receive 13 times more traffic per month than Amazon. This makes Walmart less saturated than other marketplaces. Walmart Marketplace sellers get approximately 27,000 monthly visitors, compared to 2,100 from Amazon.

Mercado Libre

Latin America is expected to see ecommerce sales surpass $100 billion by 2022.

Mercado Libre is known as the “Amazon of Latin America”, and can be used to help businesses tap into the omnichannel potential across borders.

• Latin America’s No. No. 1 ecommerce market.

• We are present in 18 countries and reach 65 million customers.

Wish

Wish is one of the most popular global shopping apps, with more than 120 countries active. Wish offers seamless integration and account management support for Kobe Digital merchants.

You will also get a dedicated account manager to help you with onboarding, listing, marketing, and impressive growth.

Social commerce

Multichannel organizations have another option with social media platforms like Facebook, Instagram, and TikTok. Digital advertisements can help companies expand their reach to previously untapped markets via social media platforms and mobile applications.

Facebook has its marketplace system. Facebook Marketplace was once used only by individuals, but it has expanded to include larger businesses.

The recent Meta rebranding by Facebook is significant for Omnichannel-based companies, as Meta will be associated with the channel metaverse. According to the latest data, Meta brands reach an average of 3.6 billion people per month. By 2021, Facebook had reached an average of 2.9 billion users per month.

TikTok is a social media platform that doesn’t allow vendors or merchants to sell directly through the platform. 

TikTok boasts 1 billion active users in September 2021, which could prove to be a boon to interested businesses.

Social commerce offers organizations a great opportunity. Those who don’t participate in the program will miss out on significant revenue streams, especially considering that:

• 73% of shoppers in all markets purchased the item in-store after discovering it on social media.

• 66% of Gen Z Shoppers use Social Media to search for a product before buying it.

Search.

Google has millions of users every day and placing ads or listings on Google can be a great way to promote your products and brand to them.

• 75% of global shoppers have used a Google product to assist with their shopping in the last week.

• 59% of the shoppers surveyed said they use Google to search for a product or service they want to purchase in-store, online, or both.

• 76% of shoppers enjoy unexpected shopping discoveries.

The Omnichannel Retail Experience has changed the way shoppers shop

eMarketer published its US ecommerce projections in June 2021. It estimates that ecommerce sales could reach almost 24% of total retail sales by 2025.

It wasn’t just a behavior shift to online channels. The acceleration caused by COVID-19 “has forced everybody to operate at an even higher level of digital maturity,” Sharon Gee, General Manager of Omnichannel at Kobe Digital, said. To succeed today, retailers must stake a claim and create a common channel strategy that combines digital and physical perspectives.

Consumers preferred different products and services to their usual brands and retailers. They also tried new retailers and brand names and were more willing to shop with new constraints, such as finding curbside pickup and delivery options.

Andrew Kandel, Waze’s North American head of sales, stated that marketers were able to observe different types of customer behavior and, if they did their research, they could understand something about them. There will be a return to normalcy but an evolved customer who sees the world differently.

What is Omnichannel Commerce worth to Retailers?

An omnichannel strategy is more important than ever because of the rapid change in consumer behavior in 2020.

Research by Kobe Digital in 2020 found that 46% of retail executives plan to increase their investment into commerce retailing in the future, as compared to before COVID-19.

Why? Why? The internet has already made significant progress in meeting the first two customer requirements. Now, the focus is shifting to convenience.

An omnichannel strategy can ultimately drive greater sales and profitability. An eMarketer report showed that digitally streamlined experiences, curbside pickup, and touchless checkout led to higher shopping frequency and incremental sales.

These are just a few of the reasons that omnichannel is so great.

Meet your customers wherever they are.

For thousands of years, consumers have engaged in transactional activity. COVID-19 doesn’t stop them from doing so. It just diverted and dispersed a lot of that activity through different channels.

Ecommerce was table stakes. Social channels leveraged a captive audience for new commerce features. Marketplace traffic surged.

Customer journeys are no longer linear. People discover new brands and products in many new ways. Your brand may be discovered by them on their computer desktop, television, or mobile device.

It makes shopping easier for customers if you are available when they need you. In the COVID-19 world, convenience is even more important. But, then again, it has always been. A survey of shoppers conducted by NRF before the pandemic revealed that 83% said convenience was more important than it was five years ago.

“Shoppers want their logistics to be as easy as possible.” Sharon Gee, General Manager Omnichannel, Kobe Digital, stated that a strong omnichannel strategy is sensitive and adaptable to changing consumer behavior. It puts technology and operations in place so customers can meet them where they are.

You will stand out from the crowd.

Standing out online is crucial to your success. Many retailers are competing for your attention. You need a stronger brand, a better shopping experience, and exceptional service.

Online shopping is becoming more mainstream. Businesses that can pivot to an omnichannel approach to online shopping will be able to stand out from the rest, particularly those who are reluctant to give up traditional brick-and-mortar store experiences.

There are so many retailers in the retail sector, why shouldn’t companies seek out an advantage? An immediate differentiation is possible with the move to Omnichannel. This can give your current customer base a boost and open you up to a whole new market.

You will need to be able to adapt to changing consumer behaviors and needs and reevaluate your perception of your target customer to truly stand out. You may not know everything about your customers anymore. Use data to see if you need to change any of these things.

• Selection of products
• Sales channels
• Advertisement channels
• Messaging

This will increase your chances of being able to weather any unexpected changes.

Optimize your business using data and analytics

Retailers may have to adapt their marketing and sales channels to accommodate this sudden shift in consumer behavior. Your data can help you determine where and how to direct your energy.

You can monitor your brand’s data stream and see how your marketing efforts are being viewed across various platforms. This includes your website, social media channels, retail stores, customer engagement, and even your website. Your success depends on understanding why your customers make certain decisions.

However, the move to omnichannel comes with its challenges. Optimizing your data can help streamline the process, avoid mistakes, and prevent information from being lost.

An integrated, comprehensive omnichannel strategy allows you to centralize all data from all sources and channels to find the best ways to balance inventory, meet your customers where they are, and offer the best service to them, wherever they shop.

Personalization.

An omnichannel approach has one advantage: businesses can collect data from multiple touchpoints. This could be anywhere from a physical store to an internet store.

You can use the data to gain more insight into your customers and adjust your marketing strategies and messaging accordingly.

With the right system, you can create a personalized shopping experience for each customer. This is particularly important considering that 74% of customers love the idea of curated websites that cater to their interests. They may even leave if they don’t like it.

Customers want to feel valued, just like any other thing. You’re showing your customers that you value them by providing a personal experience.

How to Build an Omnichannel Strategy

Orchestration is the process of creating a customized customer journey through all channels, as part of a multichannel strategy.

Because you choose the channels and sales that are most aligned with your goals, your process for managing your omnichannel strategy is unique to your company. Your operations will be different depending on your needs.

1. Segment your customers.

There are many ways to segment your customer base. You’ll need to decide which one is best for you. Market segmentation is also known as “market segmentation”. It’s a way to identify distinct segments within your target market to help you personalize your offerings.

This is why it’s so valuable.

Segmenting customers will allow you to create a more targeted strategy for different audiences than a general, one-size fits all approach.

Some factors that help merchants segment customers include: 

• Variation in income
• Geographic region
• Generation (e.g., millennial, Gen X).
• Online behavior
• Values.
• Marketing campaigns can be interacted with.

Once you have identified the customer segments you want to target, you can begin to plan how you will position your offer for each of them.

2. Determine the channels that each customer segment uses.

Different merchants may adopt different channels depending on their target market and size.

They start with the largest possible network (Amazon and Google) and, as they grow, become more targeted.

Let’s suppose you are looking for a gold watch. Depending on the type of watch that you are looking for, there are many places to look.

• Are you looking for a rare, vintage, or antique watch? eBay might be a good option.

• You might look to Instagram for inspiration if your style is more fashion-forward and modern.

• Are you looking for something very high-end? To feel the wares of a brick-and-mortar jewelry store, you might want to visit one.

This is true for any product or target market. You need to understand how consumers behave, what they shop for, and why they choose to buy.

Mixing quantitative and qualitative data can help you make informed decisions about your most critical channels. Talking with customers can give you many qualitative insights as well as a greater sense of empathy. Tracking key performance indicators will complete the picture.

Analytics can help you determine which channels are most profitable, efficient, and/or attract the most customers. Next, focus your attention on creating the best shopping experience possible on each channel.

3. Cartography of the customer journey

It is important to know your customers and the channels they shop in, but that is not all. Businesses must understand the why and how of their customers.

The ability to map the customer journey can give insight into customer thought processes and allow organizations to see what is working and what is not.

Let’s look at that gold watch once again and pretend we’re searching for the fashion-forward option. Let’s take you from research to buying.

1. Pinterest: Search for “gold watches”.
2. Check out the Instagram accounts of some eye-catching brands.
3. If you are interested in a variety of jewelry brands, you can start to see retargeting ads.
4. Register for email newsletters on a few brands’ sites.
5. For some top contenders, search “[brand name] reviews”.
6. Final step: narrow down your choices and purchase on the ecommerce website of the brand.

Although there are many ways the journey can be diverted or reordered at any time, the customer still expects seamless service. This is one of the greatest challenges of omnichannel. This McKinsey article explains that customer journeys are not linear and simple. They involve a series of handoffs between digital and traditional channels. These can vary by customer type. Therefore, an effective strategy must have a deep understanding of customers’ needs.

4. Offer cross-channel customer service

Consumers want to be able to shop wherever and whenever it’s convenient for them. The same applies to customer service. You need to ensure that you can provide customer support if you want to increase your presence across multiple channels.

Take the following example as an example:

A customer found a product via a digital advertisement on Facebook and clicked the link to go to the vendor’s site. The link they clicked is not working.

They are looking for a specific item but don’t know where to look. Where do they look? Facebook, or the vendor?

Customers could feel lost with disparate support staff and might not purchase the product. This can lead to dissatisfaction for everyone.

Organizations can avoid these types of issues by creating a cross-channel customer service system. This will allow them to help every customer, no matter where they are in the customer journey and regardless of which channel they use.

Your customers will be more loyal if you provide consistent, high-quality support.

5. Integrate your technology.

Your inventory is one of the best reasons to integrate your tech stack as closely as possible.

You’ll need a single view of all inventory that you have, even if you sell on different channels. You will also need a single source for truth regarding product information, such as a PIM (or comparable solution) so that you don’t have product information entered on each channel.

A data feed management tool such as Feedonomics helps unify your data across multiple channels. While a multichannel selling tool such as Codisto lets you link and sync accounts across Amazon.com, eBay.com, Google.com, and Walmart.

These are just a few of the many benefits. You can combine your marketing and eCommerce efforts to improve performance and identify potential opportunities. Customer support is greatly aided by seamless hand-offs between channels. Your phone agent can quickly pick up from the end of an email conversation with a customer if they already know about it. A McKinsey article recently identified customer support as an area that has huge potential to improve customer satisfaction.

6. Automate your life.

Khe Hy talks about a productivity concept that is around $10,000/hour of work. It is important to find the work that you have the most leverage for.

What is the real driving force? What are the benefits that compound over time?

Focusing on high-leverage activities will help you drive your business forward.

Automating repetitive processes that don’t require critical judgment isn’t work that pays $10,000 an hour.

Automation doesn’t stop there. These are just a few examples of how automation can help you gain more control over your company.

• Chatbots can be used to answer customer queries and concerns so that support agents can pay more attention to more complicated issues.

• Be sure to choose a tech stack that allows seamless integrations. This will ensure you have a constant view of your business and can make informed decisions based on aggregated data.

• To ensure that prospective buyers receive the best messages at the right time, set up behavioral triggers.

• Marketers can use abandoned cart programs to encourage people to return and complete their purchases regardless of how they were initiated. 

• Customers can receive automated follow-up messages to thank them for their purchases and offer future purchases such as a discount.

7. Test your habit.

Testing is not a one-and-done activity that should be left until the launch. If you are undertaking an omnichannel journey, testing should be a continuous process within your business.

What does this all mean?

Testing is essential for omnichannel retail. It should be continuous and thorough. This includes desktop browser testing to see how customers interact with the store and make purchases. Software testing will show you how your site handles customer orders.

Always test and repeat. Try out different topics, formats, offers, and subject lines. To improve your targeting, test your segments and see if you can segment further.

Testing should eventually become an automated process. This will allow you to see in real-time how your business is performing and where there are opportunities for improvement. It is crucial to gather data from every touchpoint to make the right decisions and grow your business. You will need a platform with solutions partners who make it easy to combine all data sources and gain insights.

What Omnichannel Marketing has Changed

As with many other online institutions, the post-COVID boom gave a boost to omnichannel marketing as well as retailing.

Retail organizations faced a difficult decision as consumers were unable to leave their homes and could not go to the stores. Would they modernize, or dissolve?

Many businesses realized the signs were there and made a huge shift to online shopping. The number of omnichannel services offered in the United States by retailers grew through a variety of methods.

COVID-19 has changed consumer expectations and is expected to continue to evolve.

The Last Word

Customers expect seamless, omnichannel shopping experiences. Retailers today have to adapt to changing consumer behaviors and understand their target consumers.

A comprehensive omnichannel strategy should be holistic. It is built on strong foundations, including marketing, advertising, sales, shipping, fulfillment, and operations.

According to McKinsey analysts, “An Omnichannel Transformation is the only way for companies to address increasing complexity, provide an exceptional customer experience and manage operations costs.” You can easily manage all of your activities across all channels with the right Omnichannel Marketing Software. Your vision as an entrepreneur and marketer will only limit your potential.