The use of omnichannel strategies has become a crucial tool in retail: customers today expect a convenient and seamless shopping experience across all channels. A cross-channel customer experience is therefore a key factor for long-term customer loyalty and the purchasing willingness of your target audience. Discover which aspects play a role in this in the following blog post.
Omnichannel Services in Retail
Although a large proportion of consumers shop online today, physical stores remain relevant - especially in industries like groceries, clothing, or furniture, where trying out, assessing quality, or immediate availability is crucial. Customers still enjoy visiting stores during their customer journey.
A comprehensive customer journey in retail typically includes both digital and physical channels. According to the Harvard Business Review, 73 percent of customers use multiple channels before making a purchase. Often, they gather information online and complete the purchase in-store. The use cases are diverse - B2C retailers must therefore offer various services to meet the different needs of their customers.
Common Omnichannel services include:
Click and Collect: Customers purchase products online and pick them up in-store.
Buy Online, Exchange In-Store: Customers buy products online and exchange them in-store.
Endless Aisle: Customers can purchase out-of-stock products in-store and have them delivered directly to their homes.
Real-Time Inventory Visibility: Customers can check product availability in stores across all channels.
Curbside Pickup: Customers buy products online and pick them up at a designated spot outside the store.
Challenges in Implementing Omnichannel Retail
Omnichannel strategies often face challenges in reality - mainly due to the numerous backend systems in use. These systems often have different functions and store various types of data, which are rarely synchronized. This leads to unreliable data usage because updates are not made in real time.
For example, customers might check the stock of a product online only to find out in-store that the product is unavailable, or customer service may be unable to handle inquiries about an order because the order information is not accessible.
One approach that connects online and offline touchpoints is Unified Commerce. This approach ensures that all data - whether product, inventory, order, or customer data - is continuously updated and synchronized in real time across all channels and systems.
The Differences Between Multichannel, Unified Commerce, and Omnichannel
An Omnichannel strategy aims to create seamless customer experiences. To achieve this, analog and digital channels are not viewed separately as silos. On the contrary, they are interconnected, allowing customers to switch between channels during their shopping journey while being addressed consistently and coherently.
Multichannel
Definition: In a Multichannel approach, a company offers multiple separate channels for customer interactions, such as online shops, physical stores, social media, or telephone customer service.
Customer Experience: The channels often operate independently, with little or no synchronization - meaning customers have different experiences on each channel.
Example: A customer makes an online purchase from a brand but has no option to pick up or return the order at a physical store.
Omnichannel
Definition: Omnichannel seamlessly connects all sales channels, providing customers with a unified and integrated experience regardless of the channel used.
Customer Experience: Customers can switch between channels effortlessly without losing information or experiencing visual breaks. All interactions are consistent and interconnected.
Example: A customer researches a product on their smartphone, purchases it online, and later picks it up in-store. Customer service can access information across all channels seamlessly.
Unified Commerce
Definition: Unified Commerce takes Omnichannel a step further by offering a fully integrated and centralized platform that links all channels, systems, and data in real-time. A single, consolidated platform is used to manage customer data and inventory information.
Customer Experience: Customers experience an even more consistent and personalized interaction, no matter how or where they engage with the company.
Example: Customers can buy an item online, view the same item in real time in-store, and pay using mobile payment methods. Customer service is also seamlessly integrated across all channels.
Omnichannel as a Driver of Customer Loyalty and Long-Term Revenue Growth
An Omnichannel approach offers customers new services that transform both digital and physical shopping into a seamless customer journey.
That investing in customer experience positively impacts business metrics is shown in a study by Adyen:
According to the study, 57 percent of German consumers would be more loyal to retailers if they offered an Endless Aisle service - allowing customers to order out-of-stock items directly to their homes from the store. Additionally, half of the customers would be more loyal if retailers allowed them to return online purchases in-store (Buy-online-return-offline). The demand for these services has steadily increased in recent years, demonstrating that Omnichannel is not a short-term trend but a crucial requirement that brands and retailers must strategically implement to achieve long-term market success.
For a deep dive into innovative customer loyalty programs, check out our free whitepaper.
Conclusion
Retail customers expect a seamless customer experience across all channels. A majority of German retailers have recognized this: 54 percent of companies surveyed in the Ayden study reported investing in Omnichannel and Unified Commerce, while 35 percent are considering making an investment.
The competition is fierce - it’s increasingly important to know your customers well and offer tailored customer journeys and corresponding services. Equally crucial is the operational execution: those who act quickly and test what works and what doesn’t can secure a long-term competitive advantage. We are happy to advise you on your individual opportunities.
