The Rise of Omnichannel: Why Companies Can’t Afford to Ignore It?
Do you think the shopping landscape today is very different than say how it was 10 years ago or even say 5 years ago? Did the COVID-19 era leave a permanent mark on the way consumers shopped in terms of modes of payment, choices of products and channels of purchase? This insightful article by NLC captures the essence of how COVID-19 dramatically accelerated e-commerce growth thus proving that consumers who were earlier hesitant (or simply not the target audience) of the online shopping model were embracing eCommerce platforms to shop for their essentials with apparel, footwear and FMCG products carrying the biggest chunks of this pie (source). Another silver lining to this was that the “new normal” lifestyle inspired many to try out healthy and natural variants of products. This was certainly a driving force for manufacturers to meet their consumers where they (consumers) are both physically as well as mentally, which translated into giving them options to shop from any location, offering easy payment and return options, and also focusing not only on products but also on the quality of service making the whole experience more innovative and consumer-centric.
Imagine seeing an advertisement for a pair of shoes on Facebook. You click on the ad and are directed to the company’s website to purchase the shoes, but discover that the product is currently out of stock. A pop-up appears, requesting your contact details so that the company can notify you when the shoes become available. Two days later, a store executive calls you to inform you that your chosen product is available in a physical store near your location, and you can pick it up at your convenience. Excited, you head to the store, try on the shoes, and make an immediate purchase. This is an example of a true “omnichannel” customer experience, where customers can seamlessly navigate through multiple modes of communication and purchasing to find what they want. They are not limited to shopping only in a physical store or on an eCommerce website.
So, what exactly is meant by “Omnichannel”? This term refers to the integration of all possible channels of communication and sales, and it is important not to confuse it with the traditional definition of “multichannel”. A business that operates through multiple channels, both online and offline, and allows consumers to choose their preferred option, is said to be multichannel. However, a true Omnichannel experience, as demonstrated in our previous example, is all about providing customers with a unique and seamless experience that bridges the gap between online and offline spaces.
For instance, when a retailer enables customers to redeem their retail shopping points via its mobile shopping app, that retailer is not just offering a general discount, but also fostering customer loyalty by blurring the boundaries between their various shopping channels. Another successful example is the Walgreens mobile app, which allows customers to fill their medical prescriptions through a series of user-friendly steps, including auto-fill options, in-store promotions, and order pickup. This creates a truly seamless experience for customers and boosts their loyalty to the brand. If this isn’t a seamless experience, then what is?
Today’s consumers expect more from manufacturers and retailers than ever before. They want a shopping experience that reflects their personal preferences, based on their past purchases in physical stores, and carries over seamlessly to their online shopping journeys. In fact, historical preferences should be given more weight when it comes to determining product offerings and even pricing.
For instance, imagine someone who is a loyal Biba (a fashion brand in India) customer for the past 5 years, consistently shopping at their retail stores. When this customer begins his or her eCommerce journey through Biba.com, they would naturally expect a warm welcome and personalized recommendations based on their past orders and shopping preferences. If the seller is already aware of the customer’s history, they can suggest relevant products and discounts to provide a unique brand experience that fosters long-term loyalty.
When it comes to purchasing expensive items, consumers tend to check out ratings and reviews across multiple websites, compare prices both in-store and online, and evaluate the best assortment and options available. In today’s cutthroat competitive world, it is crucial for retailers to have a strong online brand presence with positive ratings, reviews, and reliable customer support in order to stay ahead of other market players. Furthermore, sellers should strive to maintain a consistent style, ambience, assortment, and user experience across all their channels to avoid confusing consumers about service and product offerings. For instance, customers should be able to find similar products on a retailer’s website and in their physical stores. While there may not always be price parity, consumers can review feedback from other customers and compare options to make informed purchase decisions. By offering a seamless experience across channels, retailers can build trust and loyalty with their customers.
In conclusion, the Omnichannel industry is rapidly expanding and is predicted to reach USD 17.92 billion by 2030, as stated in this report. Companies are concentrating on developing strategies to enhance their Omnichannel business and utilising various tools for Omnichannel Analytics. In my upcoming blog, I will delve into how businesses can start by creating an internal data warehouse, basic BI solutions, and an insights generation system, which will assist them in identifying gaps and taking corrective actions to succeed in this field.
Ciao!
