Omnichannel retail strategies are now a must for retail businesses.

After the COVID19 pandemic, customers went from offline to online, like never before in the history of online shopping. Expecting no less than consistent experiences through all channels.

So no wonder why in 2020, the year of the worldwide lockdown, the top priority for 59% of American retailers was to integrate Omnichannel capabilities into their POS Software, according to Finances Online statistics.

Omnichannel customer experience is something customers want brands to provide, and smart retailers know it. In this article we are going to show you not only why omnichannel strategy is important for your retail business, but why it is important to have one that is at least good.

We will help you understand the difference between omnichannel and multichannel, what makes a good omnichannel strategy, we will touch upon five examples of successful omnichannel strategies, and finally, we will give you 5 keys for a successful omnichannel strategy for your retail business.

Some Benefits of an Omnichannel Strategy

There are several benefits of implementing an omnichannel strategy for your retail business.

First, it can help you better understand your customers’ needs and desires. By tracking interactions and behaviors across all channels, you can identify trends and patterns that would otherwise be missed.

Second, an omnichannel approach can improve customer loyalty. When customers are able to interact with your brand on their own terms, they are more likely to develop a strong connection and be more likely to return in the future.

Third, it can help you make more sales, as customers are looking to buy the products they want, when they want them, and form the channel they prefer.

Finally, an omnichannel strategy can help businesses improve customer service. By providing a seamless experience across all sales channels, businesses can ensure that customers are satisfied, not only with their shopping experience but with what happens next.

A well-implemented omnichannel strategy will allow you to provide a great customer experience, gain more happy returning customers and increase your sales.

Omnichannel vs Multichannel

Omnichannel and multichannel are two different terms that are often used interchangeably, but they actually have different meanings.

Omnichannel means that your channels work together for the benefit of your customers, and therefore for your retail business.

Most brands have a multi-channel presence, with various touch points and sales channels. They are available through social media, on their website, and have increased traffic on mobile devices as well, but if their channels receive information that is disconnected from each other, that is, if they do not work together, then they are not omnichannel.

Omnichannel Strategy in Retail

How does a good omnichannel strategy look in retail?

As a response to changes in buying patterns and customer expectations retailers had to implement omnichannel strategies.

For your retail business, omnichannel means being there for your customers through all the different channels they expect to purchase from, from digital channels to physical stores.

This means being present at all times and through any channel, in order to meet customers needs and allow them to buy the products you sell when they want them, and from their preferred channel.

A customer can be entering your website from a mobile device, a desktop computer, or both at the same time, while calling your business on the phone and writing through Whatsapp, Facebook Messenger or other social media channel.

Whether they send you an email, or respond to one that your company sends them, whether they contact you through Facebook, Whatsapp or your e-commerce platform, from any of the online channels, or from a cash register in a physical store , the customer will expect a quick and satisfactory response.

Customers are everywhere, smart retailers are doing something about it!

An important study by Harvard Business Review revealed in 2017 that 73% of consumers use multiple channels during their shopping journey. After the pandemic, we can all agree that number has surely increased.

Omnichannel customers spend more, according to the same study by HBR, which says omnichannel customers “spent an average of 4% more in store and 10% more online than single-channel customers.”

So smart retailers know that “Omnichannel Customer Experience matters more today than ever”, as the the global omnichannel retail commerce platform market is expected to grow from 2.99 billion it had in 2017, to $11.1 billion by 2023, according to Market Research Future.

Omnichannel is the means to provide a great customer experience, which according to Forbes 86% of buyers are willing to pay more for, whereas according to PWC 32% of customers “will walk away from a brand they love, after a single bad experience.”

What makes a good omnichannel strategy?

If an omnichannel strategy refers to a business method that employs multiple sales channels to reach customers in an integrated and seamless way, then a good omnichannel strategy will give your business the possibility to integrate marketing, sales and customer service to provide a great Customer Experience.

A good omnichannel strategy combines elements of sales strategy, digital marketing and customer service, with the aim of giving customers a fully integrated experience, regardless the channel they use.

In this way, a good omnichannel strategy seeks to improve the customer experience, and ultimately achieve more sales by creating a sustainable ecosystem for the brand.

A good omnichannel strategy goes far beyond merely having a robust online presence, a strong digital marketing, great customer service and good online shopping experience, and yet it encompasses all of these areas.

A good omnichannel strategy combines great instore experiences with great user experience at both, the online store and the multiple channels in the customer journey map, providing a brand experience.

5 Omnichannel Strategy Examples

Disney

Disney’s omnichannel experience is one of the most remarkable out there. It starts from the moment you plan your trip, immersing in a wonderful experience. All channels communicate with each other and work seamlessly together.

The magic band experience is unique, as it gives you one-touch access to Disney theme parks, unlocking your hotel room door, connecting to Disney Photo Pass photos, and charging purchased food and merchandise to your hotel bill.

This bracelet takes the customer experience to a very high standard, along with internet of things (IoT), providing information to the different systems, so that the customer lives an unforgettable and truly wonderful experience.

Apple

Apple was among the first brands to take the omnichannel experience to the next level, offering devices that seamlessly communicate with each other through iCloud accounts.

In the same way, customers exchange messages with contacts through different devices from the same account, regardless of the device, whether it is the iPad or the iPhone or a Macbook. All information is available through the omnichannel experience provided by Apple through the iCloud account.

One thing retailers can learn from Apple’s omnichannel strategy is to ensure that their customers don’t have to repeat information. Anyone who uses iOS across any device and has an iCloud account knows what we’re talking about.

Starbucks

The success of Starbucks omnichannel experience is in its Starbucks Rewards app, which is considered by many as one of the most prominent omnichannel strategies in the market.

How does this experience work? Whether by card or app, you can order your coffee and pay, but unlike other loyalty cards you can top up your card with money from your phone while you’re in line, if you haven’t already done so from the website, or you can also do it by the counter at the store, and of course your profile gets updated through all digital channels and point of sale, in real time.

Amazon Prime

Amazon’s vision is to “Become the most customer-centric company in the world”, and therefore there is much to learn from what they do, because they always focus on customers, creating a positive and unique experience.

The Amazon single customer account allows you to browse through all the services that Amazon offers, whether you want to watch a movie, buy a book or an item that is sold on its platform, use AWS services and even apply for a job.

If you want to know more about the reasons why customers prefer Amazon, we recommend this blog on our website: https://www.teamworkcommerce.com/5-ecommerce-trends-shaping-retail-businesses-in-2022/

FAO Schwarz

The dream toy store for little princes and princesses, which has appeared in classic Hollywood films such as Big, with Tom Hanks, has had an amazing rebirth, offering it’s customers a successful omnichannel strategy.

It is known the iconic New York toy store has long lines, but the staff can move throughout the store with an iPad and make sales on the go, search for products or whatever the customer may require.

Worthy to mention that the iconic toy store FAO Schwarz decided to choose Teamwork Commerce as its Point of Sale solution to support the omnichannel experience they provide (You can check the success story here).

It is true that children also enjoy a good omnichannel strategy, as it is true they will be the customers of the future. 

5 Keys for a Successful Omnichannel Strategy

1.- Make sure you have an industry leading Omnichannel Solution

One that provides retailers with Point of Sale (POS Software), Order Maanagement (OMS), Inventory Control, CRM and Analytics, that ensures a consistent experience, regardless the channel. 

It is imperative that your brand always knows how to service customers, no matter what stage of the sales process they are in. 

With an omnichannel POS Software you can ensure that customers have a consistent shopping experience regardless of where they buy from or how they interact with the brand.

2.- Provide a seamless flow of information between channels, including point-of-sale (POS) systems and websites

Ensuring that the information between your channels flows seamlessly and has no silos is essential to guarantee a great customer experience. 

All communication channels, from physical stores to digital channels, together with a seamless integration to your POS Software, digital marketing strategy and customer service, must be perfectly aligned in order to provide a great customer experience. 

3.- Know your Customer’s Journey Map

Knowing your customer’s journey map is essential for a successful omnichannel strategy, since you will know where your customer prefers to buy, how they prefer to do it, and which channels you should take into account to deploy marketing strategies and increase sales.

Identifying your buyer persona is not the only important thing, you also need to know what path your customers follow when they enter the universe of your brand.

4.- Deploy effective Omnichannel Marketing Campaigns

Retail marketers know the importance of omnichannel marketing as a consistent brand presence across multiple channels, instore and online, push notifications, marketing automation, events, call-centers, SMS, e-mail, WhatsApp, Social media platforms and every other marketing channel available to reach target audiences in compelling ways. 

Make sure you promote the brand in all channels, including social media and mobile apps.

5.- Measure your Omnichannel Strategy and adjust accordingly

Measure the performance of your omnichannel strategy constantly and make adjustments as necessary. Measurements might include how often customers contact you, how long it takes them to complete a transaction, and what is the customer satisfaction after completing a transaction.

Without measurement there is no way to improve. So if you have a clear goal and vision for your omnichannel strategy, and know what you want to achieve and how you want your customers interacting with your business across channels, then you can make sure you’re on track. 

Conclusion

Having an omnichannel strategy is important for your retail business because it allows you to provide a better customer experience, increase sales, and optimize operations.

In retail, a good omnichannel strategy means that your customers can buy your products when they want to, how they want to, and even pick them up wherever is more convenient for them, or have them delivered straight at home.

Improving your omnichannel strategy pays, since it is the means for a great customer experience.

By leveraging the power of e-commerce and physical stores together, you can create a seamless shopping experience that your customers will thank you for.

The most successful brands out there are using good omnichannel strategies that are not only giving a lot to talk about, but that are making their customers happy, and that are making the world a better place.

So if you’re not currently implementing an omnichannel strategy, now may be the time to start doing it.

Take your omnichannel strategy to the next level and give your customers a perfect omnichannel experience with Teamwork Commerce.

Are you ready to move forward with omnichannel retail?

Enter Teamwork Commerce. Schedule a demo to discover how you can build an omnichannel seamless experience and exceed customer expectations with Teamwork Commerce’s leading omnichannel approach to online and offline shopping.

Better Attendee Experience to Keep Audiences Coming Back

Getting audiences out of their comfortable homes has been a growing challenge as technology advanced. Bigger TV screens, esports, live streams, social media… All audiences need to do is click a few buttons, sit back and enjoy.

As pro sports teams look into the future, they realize the in-stadium experience needs to provide something extra.

Premium Seats for an Experience You Can’t Get at Home

There’s a lot of talk about sports franchise stadiums actually growing smaller these days, which makes sense considering the above-mentioned at-home tech advancements. But it simultaneously means more opportunities for a premium experience for those who do get in their car or catch a bus, and make it to the stadium.

Primarily, major league audiences are bound to be closer to the field and their favorite athletes. Some of the upcoming advancements focus on building seats practically on the field, where they’re almost within the game itself, almost touching the athletes.

And then there’s this million dollar ticket to the Super Bowl (starts at minute 04:57):

Source: GQ Sports via YouTube

Cashierless Check Ins and Payments to Eliminate Logistical Hassles and Delight Loyal Attendees

There’s nothing like the thrill of a game experienced in real life, but until now, it meant breathing deeply through long, frustrating lines for anything from entering the stadium to buying food.

Now, some stadiums want to offer alternatives. They want audiences to be able to walk in the stadium freely, buy whatever they want seamlessly, and walk out without sacrificing their joy of the game for even a second.

One way they’re doing it is by touchless payments, such as facial recognition. To pay via facial recognition, customers must digitally link their credit cards to their faces using apps. When their faces will be scanned in the stadium, they’ll be let in without showing their tickets, and will be able to buy food or merchandise without pulling out their credit cards. Some technological developments are attempting to pull this off even when people have their masks on.

An alternative for those who potentially feel uncomfortable with this technology could be to turn to a mobile POS. With a mobile POS, staff members can charge audiences from anywhere in the stadium, providing an opportunity for clienteling for loyal or high paying attendees. Staff members could use the data available in a POS, especially as it’s integrated with other systems, to know a VIP attendee wants a special piece of merchandise, and contact that attendee an hour before it goes on sale to the general attending audience. If the attendee is interested, a staff member could bring it to her or his seat, and instantly charge via the mobile POS.

For other attendees, a mobile POS can be used to split out long lines, speed up the transition to the more fun experiences of the stadium, and increase chances of audience safety.

COVID Safety to Allow Games to Continue

In a world where participating in sports exposes you to a severe illness, as does working in a stadium or attending a game, sports teams are investing in keeping their people safe.

COVID Safety for Athletes and Staff

A sports team’s audience might be its biggest asset, but there’s no game without athletes, and there’s no stadium operations and great attendee experiences without staff members. Therefore, many sports teams have introduced a combination of masks and face shields, including anti-fog glasses, to keep their people doing their thing safely.

Some teams have also tried implementing individual, wearable health trackers, that would notify management as early as possible if an athlete is developing symptoms that could be related to COVID, and therefore require testing. The benefit is, of course, early detection, which could prevent the virus from spreading across everyone who plays and works at the stadium. The downside is the risk for privacy, which not all athletes have been open to accepting.

COVID Safety for Everyone in the Stadium

Facial recognition, which was covered above, is being invested in partially for COVID safety. The option allows for truly touchless transactions, which reduce the risk for attendees to catch COVID.

Simultaneously, it keeps staff members from interacting with large amounts of attendees and their potentially germ-filled touches.

Another way to eliminate germs in stadiums? Smart air filtration systems, that can suck germs out of stadiums, and filter back cleaner air.

And speaking of cleaner air…

Alignment with Attendee Values to Earn Their Business

Billions of dollars won’t amount to a smart investment if it doesn’t address one of the key challenges facing our world today – climate change.

Source: World Economic Forum via Facebook

First of all, the damage to the environment that can be created from mass audience experiences is bound to catch up with all of us. Second of all, addressing climate concerns is a smart business move, as an increasing amount of people decide to vote with the dollars they spend. Gen Zers, the new adults, especially, choose who to buy from based on which brand aligns with their values and takes real action toward driving actual change in fields such as sustainability and diversity.

Therefore, it’s not surprising that sports teams are looking to move toward carbon-neutral stadiums, that are powered by green energy.

Omnichannel Options to Deepen Engagement

Stadiums might be competing with virtual experiences, but smart sports teams know they can’t ignore them. We’ll be seeing lots of investments in live streams, in the metaverse, in NFTs and, of course, continued investment in social media, as audience expectations for omnichannel brand experiences increase.

Sports teams can use these channels to promote what happens in their physical stadiums. For example, they can live stream in the metaverse from the premium seats that are right on the field. They could engage in-stadium audiences in immersive experiences, perhaps involving athletes – experiences that can be documented for social media or the metaverse, but cannot be replicated online.

Making Data-Driven Decisions to Increase Revenue

A key benefit of integrating technology so deeply across stadium operations, athlete performance and attendee experience is that sports teams get more data than ever before. Specifically, sports teams are expected to significantly increase their investments in analytics and statistics technology in the 2021-2028 period for a better understanding of what’s happening on the field, and for the ability to make more data based decisions… which extend beyond what’s happening on the field.

With smart data, sports teams can know how to improve on-field performance, how to optimize stadium spaces, and how to target, engage and sell more efficiently to attendees. They can gain a more holistic understanding of their attendees’ needs and create experiences that surpass their expectations, keep them around as fans, and encourage advocacy for long term tem growth.

Back in 2006, Jack Dorsey, who founded Twitter, tweeted his first tweet. How much would you pay for a certificate that verifies you own that tweet?

If it helps you decide, the tweet said,

If your answer was three million dollars, you would have probably won the week long auction, that culminated with a $2.9 million purchase.

The certificate that the happy new owner bought in the auction was an NFT.

What is an NFT?

An NFT (non-fungible token) is basically a code that certifies ownership of this digital asset. An NFT doesn’t necessarily block other people’s free access to the asset, or allow the new owner the ability to change the asset. However, people buy NFTs to become the sole owner, or one of a small number of owners, of a unique digital asset – be it a tweet, a painting or a song – that cannot be exchanged for something identical. Twitter’s founder only tweeted his first tweet once (to the best of our knowledge, anyway).

As the NFT field gains popularity, fashion and luxury brands venture into this new territory, too.

What’s in it for Fashion and Beauty Brands

While more and more fashion and beauty brands are discovering the NFT world, it’s still pretty new, and projects still make headlines. Therefore, some brands use NFTs as part of their marketing strategy for retail innovation – say, when they launch new products.

NFTs for retailers also help brands attract new audiences. For example, a brand might use influencer marketing to spread the news of its new NFTs. To do that, it might engage tech savvy influencers, or foster collaborations of these influencers with fashion and beauty influencers.

Alternatively, a brand might create fashion and beauty products for game figures or metaverse avatars that are replicas of real world products customers can buy for themselves, too.

This, in turn, can result as an additional income stream. The brand could charge money for virtual products, just as it does for physical products – and yes, people do pay to dress their avatars well. In addition, a brand could create complimentary virtual collectibles, like art, to its real world products. This will serve both to expand its product offerings and to deepen relationships with its customers.

If a customer buys a digital shirt or lipstick, and then resells it for a higher price, some brands earn a commission from that sale. How do they know the product was resold? It’s digital, and can be tracked via blockchain code.

Fashion and Beauty Brands to Watch in 2022, and Their Interesting NFT Projects

To get a clearer idea of what’s possible for fashion and beauty brands engaging in the NFT world, let’s explore some of the most innovative brands operating today, as well as the interesting NFT projects they’ve already produced.

L’Oreal Paris Simultaneously Promotes its Lipstick and Gender Equality

NFTs for retailers might be built on new technologies, and offer a new way to engage with retail customers, but its foundations are rooted in the same challenges and bias the rest of our industry faces. A study that looked at NFT art sales across almost two years discovered that 77% of sales were made by men, who also earned more per art piece than women. Women accounted for 5% of sales, 16% were sold by artists whose gender is unknown, and 2% by collectives.

So when L’Oreal Paris launched a new red lipstick, it commissioned women artists to create art pieces that were inspired by the product. The art pieces sold as NFTs, with prices beginning at $1,500. Every dollar the NFTs made in their primary sales went directly to the artists who created them.

If the art pieces then get resold during the first year, half of the earnings the artists makes will go to L’Oreal’s nonprofit, which supports women who drive change in their communities.

NARS Cosmetics Sells Physical Products with its NFTs

When NARS cosmetics decided to promote its blush product that’s called Orgasm, it also commissioned female-identifying artists to create related NFTs.
One artist created contemporary art, which was available for free.
An additional artist created multimedia art, which went on sale for $50.
And another artist created electronic music, which went on sale for $500.
Getting one of the paid NFTs provided customers with physical products by NARS Cosmetics as well. The more they paid, the more physical products were included.

Nike Buys an NFT Company and Files Trademark Applications for Digital Products

Nike decided to go big in the NFT space. In December 2021, it acquired RTFKT, which is all about creating collectibles that connect gaming and culture. Among others, RTFKT successfully sold virtual sneakers for $70,000 a pair.

In February 2022, RTFKT used Twitter to tease an upcoming crate that’s “etched with Nike & RTFKT markings. It seems sentient… What does it do?”

As we shared in our article about retail innovation and the metaverse, Nike has been filing trademark applications, as it intends to sell more digital products. We’ll have to stay tuned to see what’s next.

DressX Accelerates the Virtual Fashion Industry

DressX might not be your traditional fashion retailer, but it’s operating in a space that’s growing in popularity – digital fashion for avatars, game figures and… real people.

In 2021, DressX launched a virtual store for virtual clothes. Some of the clothes were digital versions of luxury brand clothes. These were produced in partnership with Farfetch, a luxury retail platform, that sells luxury clothes in the real world (it started online, then opened brick and mortar stores, too). Other clothes were originally designed by the DressX team, including some that were inspired by SpaceX, an aerospace manufacturer.

Either way, some of these virtual clothes get sold as nonfungible tokens, and only their owners can wear them, creating true style exclusivity, at least in the virtual world.

It’s Just the Beginning for NFTs in Fashion and Beauty

As the hype grows and the technology advances, more audiences will embrace new virtual experiences, looking for ways to emphasize their own individuality and uniqueness. Expect more retailers to enter this space as time goes on.

To be one of the leaders, start experimenting now with small NFT projects that stand for something bigger, be it individuality or gender equality. Use this as an opportunity to show your customers you get what matters to them at their core, and to deepen your relationship with them, as you walk together into whatever future the virtual world will make possible.

Meanwhile, they are taking on a central role in retail, and shaping the industry’s foreseeable future.

Gen Zs are Less loyal, Require More to Keep Buying from the Same Retailers

Raised to be critical thinkers and action takers, many Gen Zers aren’t loyal to a single brand. “Only 16% shop at a single store for clothing,” for example, reports Accenture. To stick around, they need great experiences, great pricing, product availability, fast shipping, and for the brand to align with their values. But more on values in a bit.

Meanwhile, brands must understand that checking all the boxes now might get them an initial purchase, yet no longer guarantees long time loyalty. Gen Zers are coming of age in the most affluent time, with so many alternatives and new trends showing up on their feeds 24/7, a click of a button away.

They’re also coming of age during “cancel culture,” where making mistakes is public and, sometimes, exposes brands to the unforgiving nature of going viral.

Do Your Values Match Theirs?

One of the biggest consistencies in Gen Z studies over the past several year has been their passion for making the world a better place. They want their jobs to make a difference, they volunteer and drive change in their own families, and they understand the financial impact of who they spend their money with.

Brands can’t just talk the talk to earn that money. In the age of social media transparency and easy access to information, brands must make authentic, consistent steps toward reducing their footprints and increasing diversity, equity and inclusion in both their corporations and the representations they create in their marketing efforts.

Gen Zers Want Higher Quality Goods, But Also Shop Second Hand

Gen Zers know that, in today’s abundant retail world, there’s a brand out there that offers a high quality version of the product they want – and over one in five is willing to pay extra for it, according to Vogue Business. However, interestingly, Vogue Business also points out that over one in four is actually likelier to shop second hand.

Some Gen Zers are financially savvy and looking to save, and others are just entering adulthood and can’t yet afford their preferred high quality goods and shopping habits. That said, it looks like many of their decisions to shop second hand are driven by a greater awareness of the global climate crisis than previous generations, as well as a greater belief that they can do something about it. Brands can, of course, tap into this strong need for sustainability in many aspects of product creation, packaging and shipping.

Gen Zers Like Shopping In-Store, But Only if it Means Getting an Omnichannel, Digital Experience

This might be the biggest surprise about Gen Z. The digital natives, who were born into a mobile, omnichannel environment, where information and satisfaction is merely a few instant clicks away… like to go into brick and mortar stores to do at least some of their shopping.

Yet unlike other generations, going into a brick and mortar store just to pick out an outfit doesn’t make them happy. They’re willing to do it only to be immersed in interactive experiences that are tailored to their specific needs.

They expect digital, technologically advanced experiences, even in stores. They want sales associates who recognize them, who offer the products that matter to them, including those that would emphasize their uniqueness most, and the ability to continue building the bond with the brand even when they leave the store.

Gen Zers Prefer Influencer Marketing for Product Recommendations

Generations Zs spend a lot of time on social media. They’re there for several hours every day, discovering brands and trends, and following everyday folks turning into influencers. They’re critical thinkers, and some don’t trust influencers at all, but if an influencer does win their trust, they don’t necessarily scroll away when she or he shares a sponsored post. When the trust is there, the sponsored post can feel customized and authentic, not a generic, polished ad like other generations had to settle for. More importantly, they assume that the influencer has done her or his research, and will tell them the truth. Thus becoming their trusted source for product recommendations.

That’s because influencers, while sometimes showcasing perfectly-looking highlight reels of their lives on social media, often share their raw emotions, challenges and failures as well. It feels like there’s a personal relationship between the influencer and the audience member, like the viewer knows the influencer on a deeper level than they might know people in their real lives.

Therefore, they are likely to purchase products from sponsored posts and videos, even though they know they’re basically watching an ad.

Consistently Win Gen Zers’ Hearts to Create Retail Magic

As Gen Zers’ buying power keeps growing, retailers must grow with it. This isn’t the generation to wow once and enjoy the ROI forever. This is a generation that’s looking for constant innovation and customization, be it in your stores or in your marketing.

It’s a generation that’s looking to make smart purchase decisions. They want to save money, but are simultaneously willing to pay extra for high quality products… especially when their purchase makes a bigger difference – as in, when it puts money in the hands of brands that act on Gen Zers’ values, and use that money to drive positive change in the world.

They won’t keep buying from you just because they bought from you before, but when you consistently show up to serve their needs and delight them, they’ll consciously choose your brand over and over again.

As a retail professional, when someone asks you about the state of the industry the first thing that might pop into your mind is how the pandemic accelerated ecommerce growth. We’ve all seen the headlines, read the studies, and experienced it firsthand in our companies.

But underneath the surface, brick and mortar stores have grown more relevant than ever. 90% of retail sales were expected to be generated through local stores in 2021. Then, as retailers planned their 2022, they set out “to open more stores than they close for the first time since 2017,” reports the Wall Street Journal. Ecommerce-only online shops are joining the party, and opening brick and mortar stores, so they don’t stay behind.

Let’s explore the reasons behind this turn of events.

Customers Want Deeper Experiences 

Don’t get us wrong – the love of convenience, access and possibility that shopping online provides is pretty great. More customers experimented with it during lockdowns and learned the benefits are worth the habit change. But many crave to combine this convenience with more immersive experiences at a physical storefront.

The Desire for Human Connection is Greater than Ever

For some, the pandemic locked them in their homes with a lot of people, and alone time is all they crave now. But for many others, whether they live alone or not, it locked them away from family members, friends, colleagues, and other day to day interactions out in the world, which they used to take for granted.

Over one in three survey respondents said they felt lonely almost all the time, or at least frequently, reports the Harvard Gazette, adding that 61% of Gen Zers “reported high levels” of loneliness.

Customers have longed to return to brick and mortar locations, to feel the physical presence of what life used to be like, to communicate with sales associates and fellow customers, and add lightheartedness back into their life.

Yet as they do that, they’re not really seeking to go back to what used to be. Their need is stronger than ever for immersive experiences at a physical store that sweep them off their feet.

Customers Want Customized Omnichannel Experiences

Customers’ desire for an omnichannel experience isn’t new, but it’s growing more essential as the years go by. Like we said, they want the convenience of ecommerce sales, but they also want the shopping experience of touching the products themselves, trying them on, seeing colors in person, and taking the products home instantly.

As they enter the brick and mortar store to do that today, being an anonymized entity that no one on the team recognizes feels outdated. Customers want the contemporary brick and mortar experience, partially because smart retailers have implemented technology that recognizes them, their preferences and their history with the brand the moment they enter the store. They get the convenience of ecommerce with the human connection and immersive experiences, as sales associates know exactly which products to recommend to them, smart mirrors add their “maybe” products to their online wish lists, and mobile POS systems enable them to check out seamlessly, without waiting in lines.

The Cost Effectiveness of Ecommerce isn’t So Obvious Anymore

One of the biggest arguments for an ecommerce-only business is its cost effectiveness – no need to pay rent and store maintenance fees, no need to train sales associates over and over again as industry turnover rates remain high… you name it.

But when retailers look at the numbers more thoroughly, they realize it’s not necessarily the most cost effective choice anymore.

The Costs of Ecommerce Customer Acquisition Have Skyrocketed

Often, the argument is that you need a brick and mortar store at a prime location – say, a high traffic mall – to simplify your reach. Even customers who never intended to enter your store, or never even heard of your brand, might do so when they see something in your window as they head to get ice cream at the mall. But prime locations cost a lot of money. It’s much cheaper to set up a website, run some ads, operate some digital marketing and social media profiles and… magic.

And maybe it used to be like this, but as more and more brands have gone online, ecommerce-first companies started seeing ad rates spike up big time. Social media management costs have gone up, too, as it became an actual profession – not to mention the costs of influencer marketing. Some ecommerce-first companies realized it might just be cheaper, and generate a higher ROI, to add an offline channel.

The Costs of Processing Returned Products are So High, Retailers Prefer to Refund Customers Without Getting Products Back

The convenience of ecommerce shopping has also made it easy to return products, especially as retailers compete on high standards of free and fast shipping, alongside free and easy returns.

When customers buy products online, they can’t know for sure what these products will end up being like. Maybe the color ends up being off, maybe the product doesn’t do what they hoped it would do. Sometimes, customers like to plan ahead for mishaps. They order the same product in multiple sizes, then send back what doesn’t fit, for example.

Whatever the reason might be, retailers lose $1 trillion a year from returned products – $90 billion of which are likely to reach landfills instead of getting back on websites or shelves. Processing returned items is so expensive, that some retailers provide refunds without requiring products get sent back. And yes, the majority of the problem is created online. “Shoppers return, on average, 15-30% of online purchases. That’s compared with a return rate of about 13% for shoppers at bricks and mortar stores,” reports CNBC.

Source: Oporto via CBRE

The New Golden Age of Brick and Mortar Stores

Turns out the pandemic has accelerated the need for digital experiences, but as integrated parts of the human to human “in real life” experiences. Retailers who are savvy enough to offer holistic, omnichannel shopping that immerses customers in technology-advanced, personalized journeys will be the ones to enjoy this new golden age of brick and mortar stores.

Check out this article on immersive in-store experiences to get inspired, and start strategizing what’s possible for your brand.

You survived 2020. You did your best to keep spirits and sales up in 2021. Then 2022 arrived, and the pandemic is still going strong. It can be discouraging, no doubt, but there’s also an abundance of opportunities to differentiate your company and show customers which brand cares about them most during this time.

What Differentiates Retail Superstars During the Pandemic

“The retail sector outperformed many industries, but the gap between sector leaders and laggards has grown,” reports McKinsey. In the US, five retailers “generated more than 80% of all the [retail] value,” while in China “four players drove a staggering 98% of gains,” it adds.

According to McKinsey, these companies belong to four categories:

=> Home economy, because many people used their quarantine time to upgrade their homes.

=> Value retailers, because consumers were more mindful of their finances as nothing felt certain.

=> Online specialists, because even people who were used to shopping in-store started shopping online during lockdowns and afterwards, trying to stay safe. In May 2020, two months after the World Health Organization declared COVID to be a pandemic, “US ecommerce spending grew by 93% year over year… More money was spent online in the US between April and May than the last 12 Cyber Mondays combined,” reported a MasterCard study.

=> Platform players, because a diverse business model that went beyond retail, to cover supply chains and advanced technology, or at least had a strong integrated ecosystem, drew investors.

How Retailers Can Succeed Online in the Era of COVID

As mentioned above, eCommerce usage accelerated during the pandemic. But you’re in retail, so you probably already knew that. The question then becomes how to create digital experiences that matter to customers.

Personalized Ecommerce Experiences for Everyone

Here are a few ideas to differentiate your eCommerce experience beyond great visuals and product descriptions:

=> Accessibility: 1 in 4 US adults manages “a disability that impacts major life activities,” according to the Centers for Disease Control and Prevention (CDC). Only 1-3 of every 10 websites comply with accessibility regulations, according to accessiBe, who studied 10 million pages. These are the “percentage[s] of all pages scanned that failed to comply with the requirements for menus, images, pop-ups and so on,” it explains about the following graph. By serving these needs, your company can easily stand out.

Source: accessiBe

=> Personalized omnichannel experiences: Customers are everywhere, and wherever they go, they want to feel like they’re continuing the journey they started with you. First, enable customers to buy and get customer service wherever they want – your website, chat, email and social media channels (alongside your store and contact center, of course). Second, ensure these don’t feel like fragmented experiences. Customers need to feel like they’re talking to the same person, with the same brand characteristics, who already knows their entire history with your company every single time they connect with you.

=> Easy checkout: Give customers a variety of options to take control of their own checkout experiences. Allow them to buy directly on the product page, directly on social media, with one click when they go to their cart, etc. Don’t require sign ups or log ins that draw out the process unnecessarily. Instead, consider rewarding them for signing up or logging in. The reward can be activated in the current purchase, or be saved for next time.

When Customers Order Online and Pick Up Offline

Whether they opt for a curbside pickup or an in-store pickup, the experience customers have as they head to get their products is essential to their feelings about your brand.

=> Real-time inventory updates: Verify you have the technology you need to keep up with inventory management across locations. Update it in real-time, so what customers see online is what’s actually available to pick up in their nearest location. This is important in eCommerce too, but even more so when customers make the effort to pick up products themselves.

=> Pickup convenience: Allow customers to choose their most convenient pick up time, and provide alternatives ahead of time if products they want are missing after all. For example, offer other products they can get instead, or let them know which branch does have what they want. In addition, if you offer a pickup window (say, from 5 to 8 PM), make it easy for them to check in a bit before arriving, so you can verify you get their order prepared before they arrive.

Immersive, Personalized In-Store Experiences Matter More than Ever

Ecommerce might be what everyone is talking about, but retailers that want to keep thriving can’t forget that many customers still want to come into stores, try products out, and experience some human connection. Here are some key aspects of an immersive in-store experience.

=> Location data: Understanding customer preferences across your different branches can help you tailor experiences to each customer segment’s needs. Therefore, analyze foot traffic, demographics, psychographics and buying behaviors in each location before proceeding with strategy planning.

=> Localized experiences: As more companies expand internationally, keep in mind that each country and region has its own culture and shopping behaviors. Partner with consultants or technology vendors that can help you get to know your different target audiences, so that the shopping experiences you provide feel seamless to their everyday lives. Alternatively, if you decide to stand out by emphasizing aspects of your own culture, do so intentionally and sensitively, taking your audience’s culture into consideration.

=> Personalized clienteling: Some app products let you recognize who’s entering your store, so you can know what they need before they tell you – or at least understand their history with your company, so you can customize recommendations. It will also make it easier for you to continue nurturing the relationship once customers leave the store. Sales associates will be able to keep track of customers’ desired products and alert them when these products, or others that they might like, are in stock.

=> Blend two worlds: In our article about immersive in-store examples, we covered a brand that blended luxury fashion with arcades to surprise and delight its customers. In another example, we covered a smart dressing room mirror. Among others, the mirror allows customers to request that sales associates bring different sizes to their dressing room, imitate different room atmospheres to verify the outfit fits the occasion, and with the help of additional technology, add in-store items to their online wish lists.

Step Up Your Technology to Give Customers What They Actually Need

Customer experiences that stand out are all about humanizing the brand-customer relationships with the help of smart technology that scales them to the next level. Following are some great technology advancements that can help you do that.

=> Mobile POS: A mobile POS lets you exchange long lines with efficient, personalized experiences, because you can finalize customers’ purchases anywhere in the store. Plus, often, mobile POS systems give you access to customer data, so you can recognize loyal customers, make personalized product recommendations, and figure out how they can get products that aren’t currently in stock in the specific branch they’re visiting.

=> RFID: Usage of RFID readers and tags is one of the key retail trends this year. Using this technology, you can automatically scan customers’ in-store carts during checkout, then verify they paid for everything when they walk out the store. Back in the warehouse, you can scan your inventory, to easily keep track of which products are shipping, what you have in stock, and what requires ordering.

=> Connect everything with data: According to an Oracle and Forrester study, 75% of marketers and advertisers believe that customer engagement data is important for improving customer experiences. In addition, companies that use customer data platforms (CDPs) “effectively are 2.5 times more likely to increase customer lifetime value.” However, the study also revealed that “only 11% of brands can effectively use customer data.” Make this year the year you finally prioritize data collection, analysis and usage, and you’ll find it easier to give your customers what they actually need.

Only 11% of firms can effectively use a wide variety of data types in a unified customer profile.

Source: Oracle & Forrester

What Happens After the Purchase is Just as Critical as Generating Sales

We’re all about celebrating every part of the process, yet once you’re done celebrating the next sale, verify the sales cycle is actually completed in a way that encourages repeat purchases and advocacy.

=> Last mile experience: All the hard work you’re putting into nurturing great relationships with your customers can disappear in a heartbeat when packages aren’t delivered, when service by delivery employees is far from outstanding, or when there are unexpected surprises at delivery (like extra charges that weren’t explained during the purchase). The solution is to invest in your last mile technology and employees. Remember that last mile employees are often paid and appreciated very little. Show them you care about their wellbeing, so that they’ll carry that care toward your customers.

=> Returns experience: As much as we wish every customer will love every purchase, product returns are part of doing business. Almost every single customer will buy from you again if you provide a great return experience. Therefore, it’s critical to look at the entire lifetime value of the customer and not just the current purchase.

As Always, it’s About Putting Customers’ Needs First

The pandemic brought in a wide variety of challenges – lockdowns, quarantine, increased health risks, vastly changing customer behavior and preferences, and… it’s still not over. As you train your team and choose new technologies to implement, remember that one thing will likely never change:

Retail brands that stand out are retail brands that stay open to adapting with changing times, as they wholeheartedly put customers’ needs first. When you authentically put customers’ needs first, they feel it, they come back and they tell their friends.