Consumer shopping habits have been on quite the journey over the last few years.
When the COVID-19 pandemic sent us all indoors, we all faced the choice of either waiting in a long, socially distant-friendly queue for an hour to do our weekly shop, or head online and fill out an order there. While 89% have made an online purchase in the last year, 36% of consumers still do the majority of the purchases while in store.
As technology becomes more integrated into our lives, there’s now an expectation that each touchpoint provides a consistent and seamless experience. From desktops and mobiles to traditional brick-and-mortar stores, customers now expect an omnichannel experience through whichever means they prefer. The retail journey is one that now must be as convenient as possible to customers, no matter how they choose to shop.
But what exactly is omnichannel retail, and what other factors are influencing this shift towards a next-generation customer experience? How can brands craft an omnichannel experience in 2024 and realise the value behind its establishment? When supported by a reliable network, the retail sector can fully unlock the benefits an omnichannel experience can bring, as well as putting retailers on the road to re-imagining business communications.
The customer of 2024
The nature of customer experience (CX) in retail may have been one that’s changed constantly over the years, but its importance has never wavered. Customers that enjoy a positive experience are likely to spend 140% more than those who had a negative experience. This comes at a time when 46% of consumers are reconsidering where they spend their money. Consumers have a greater amount of choice available to them, and each retailer needs to have that competitive edge to entice these customers in.
Customer loyalty, however, can be a hard thing to maintain, especially with the cost of living crisis driving consumers to reconsider their spending habits. 86% of customers have expressed their own worries about the ongoing economic situation, culminating in 89% of consumers reconsidering how they spend. If they are going to spend their money with a particular retailer, they want to know that they’ll have a unique experience when doing so.
Personalisation is key to providing an experience customers will remember, especially with 76% of consumers now expecting that their experiences with High Street businesses to provider increased personalisation. Across all touchpoints, customers yearn for their preferences to be acknowledged, with featured products and recommendations tailored to their exact interests and buying intent. By offering a more personalised experience, customer lifetime value (CLV) can be increased, as they spend more with a brand they trust and respect for providing a unique shopping experience.
For retailers to make seamless engagement a reality, they must look towards omnichannel retail and better understand what such an investment can bring.
Omnichannel retail – the key to consistency and success
Omnichannel retail means engaging with customers through a variety of touchpoints, both digital and physical. This ‘phygital’ approach aims to create brand consistency across all touchpoints, as each channel is integrated with one another. Centralised data management means customers start their shopping journey through one channel and purchase through another.
Utilising a wider scope of touchpoints provides a better chance to acquire, and subsequently retain customers, yet it runs the risks of an inconsistent message and the dreaded prospect of working in silos. The lack of data sharing can create a bad customer experience, and with 32% of customers willing to wall away after one bad experience, it’s a risk nobody wants to take.
79% of customers now expect their interactions to be consistent across all departments. A deeper understanding of customer needs, fuelled by data-driven insights collected from multiple touchpoints, provides the personalisation customers desire, and strengthen the overall focus of the brand.
Whether it’s how best to market products or an evaluation of inventory, a holistic view makes a huge difference.
That consistency and greater attention to detail generates greater revenue thanks to better customer engagement. Compared to single-channel customers, omnichannel customers spend 4% more in store and 10% more online. Retaining customers and boosting CLV goes a long way in helping businesses remain competitive and establish a more trustworthy brand.
When it’s clear that great effort has been exceeded to satisfy customers and provide a more seamless experience, it leaves a good impression. That’s never a bad thing – 92% of consumers find recommendations from friends and family more trustworthy than other forms of advertising.
Omnichannel gives brands the means to stand out from the competition, especially when trying to align themselves with the ever-changing landscape of consumer behaviour. With that edge over competitors, these innovators can truly enjoy the full benefits omnichannel retail can bring.
The path to omnichannel retail
There’s no doubt that creating a seamless retail experience can be beneficial to both High Street businesses and the customers they serve. However, it’s a strategy that requires careful implementation, and brands risk missing out on the full value omnichannel retail can bring if they rush into it. Walk before you can run, as the old saying goes.
Customer-first, not tech-first
Omnichannel retail is a customer-centric process – having that mindset is crucial in creating a flawless experience. The allure of investing in innovative pieces of tech can overshadow the main purpose of having an omnichannel experience in the first place. Researching what customers want and which touchpoints are the most relevant to them creates a firm foundation for building an omnichannel retail experience.
Mapping the customer journey, from the awareness stage right on through to the purchase phase and beyond, means that all avenues of how a customer can interact with a brand can be captured. Each stage of this journey is unique and will entail various touchpoints and means of interaction that differ in preference from customer to customer.
That unique journey, of course, extends into the store itself. Thanks to sensors and surveillance cameras, businesses have the means to create a ‘heat map’ of where customers spend most of their time while shopping, collecting insights on which areas are of the most interest to each customer. Complimentary Wi-Fi can also enhance a customer’s in-store mobile experience, with previously collected data influencing the kind of offers being sent to mobile apps.
Taking the time to generate a better understanding of customers helps to personalise each of their experiences and retain their loyalty. If retailers can collect accurate feedback from each touchpoint, whether in-store or at home, then that understanding can become more comprehensive and take personalisation to a whole new level.
Remember – data is your friend, so don’t let it go to waste!
Bring online and offline together
When taking into consideration the ways that customers want to interact with a retailer, it’s important to remember the offline element rather than just the online portion. They’ll need to complement, rather than be in contention, with one another. Click and collect remains a popular choice among consumers, contributing 9.1% to retail’s total eCommerce sales, and accounting for 40% of all total sales for anyone in the retail sector who offers the service.
In addition to click and collect, apps can be used by customers to browse a digital inventory and locate their preferred items while in the store itself. Customers can also try on clothes while in the store itself, then make the decision to purchase their desired items at home rather than wait in line to buy them on the day. That seamless experience between the online and offline realms also contributes to providing a more personalised journey and ensure the opportunity to generate revenue doesn’t pass you by.
The cohesiveness between online and offline touchpoints is instrumental, as it will allow data to be shared with ease between each channel. Bridging the gap between the two also extends towards the supply chain as well, since an accurate portfolio of customer needs impacts how a supply chain functions. Real-time access to data ensures retailers can build a clearer picture of their current inventory and ensure that customers can access the products they desire the most.
Above all, that cohesiveness can deliver a more consistent brand voice.
Preparing the business for omnichannel
Creating an omnichannel retail experience means multiple departments need to understand that this strategy can only work through collaboration. Goals need to be aligned, and measurable key performance indicators (KPIs) will need to be shared to eliminate the possibility of working in siloes to satisfy their own goals. With in-depth customer data at hand, it’s easier to establish objectives and determine how best to utilise each channel and touchpoint.
When incorporating new tools and pieces of technology to enhance the retail experience, staff need to have the right training on how to use each platform effectively. Without an understanding of how to operate on an omnichannel level, staff won’t be able to fully implement this kind of transition. Taking the time to train staff on how best to interact with customers across each touchpoint means an omnichannel retail experience can thrive.
Employees that have an in-depth product knowledge will help give customers the information they need to make a more informed purchasing decision – whether in-store or later at home. It all helps to make a customer’s buying journey more personalised, as they can choose to interact with their preferred touchpoint and enjoy an experience that’s far more convenient to their specific needs.
Again, it’s all about being customer-centric and being prepared on all fronts to provide a seamless retail experience.
The network brings it together
9 out of 10 customers want an omnichannel experience and will look favourably on any business that implements such a strategy. With customer preferences changing, it’s down to these brands to accommodate their needs and wants, regardless of which touchpoint they utilise. If it’s in the traditional brick-and-mortar store itself, for example, then self-service kiosks, digital displays and other pieces of technology will need to be fully operational to provide that enhanced experience.
It all comes down to one thing – a reliable network infrastructure that provides greater bandwidth, faster real-time data sharing, and an added layer of security that covers edge devices right across the network. Moving towards next-gen services such as SD-WAN, means retailers are one step closer to providing the seamless omnichannel experience customers are craving.
By turning towards a managed service provider (MSP) like Gamma, the High Street is well on its way in making that a reality.