Today’s customers don’t simply go into a store and buy products. They browse online, inform themselves, and explore a business’s channels in order to capture different types of insights. Website are great to learn about products, Amazon is perfect to read customer reviews and purchase online, and social media is the perfect inspiration spot. Throughout these channels, customers expect to find a unified experience, but also have the ability to buy whatever they want, however they want.

In this article, we discover what is an omnichannel retail strategy and why it’s important. We also cover the steps a small business can follow in order to set their own. 

1. What Is Omnichannel?

Adopting an omnichannel retail strategy means that a business will try to provide a seamless customer experience across multiple channels or platforms. You can think of omnichannel as the ability to synchronize several channels simultaneously, such as synchronizing online and in-store inventories, selling online and in-store, offering delivery and pick up options, and more.

In fact, according to the State of Commerce Experience, almost 50% of consumers say they often research a product online before going to a physical store. Once they get to a physical store, they might want to ask further questions on the product and go back home with a brochure, think about it, and then go back online and purchase it through their phone. In fact, according to Harvard Business Review, 73% of all customers use multiple channels during their purchase journey. In other words, customers will look for as much information as possible in as many channels as possible before making a purchase. Adopting an omnichannel strategy means providing a consistent experience across channels. 

2. Single Channel, Multichannel, Omnichannel: What’s The Difference?

Although both “omnichannel” and “multichannel” mean being present on numerous channels, they do differ in their meaning.

Single Channel means that a business sells products on a single channel. This channel can be a physical store, for example.

Multichannel means that a business sells products on numerous channels, ranging from their physical shop to an online store, and from social media to marketplaces. Essentially, this means that as a business, you’re present wherever your customers are, thus maximizing your chances of generating a sale.

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Omnichannel is intimately linked to adopting a multichannel strategy, as being present on several channels means that each of these channels is updated and maintained with the right products, descriptions, and customer experience. Omnichannel essentially connects all the channels in order for a customer to enjoy a seamless, consistent experience across each platform.

3. What Are The Benefits Of An Omnichannel Strategy?

1. A Better Customer Experience

With customers now used to the convenience of shopping wherever they please, whether it’s in a mall, on an online store, or on their favorite marketplace, making it easy to find your business wherever your customers are ensures an increased customer experience. In fact, 80% of shoppers in a physical store browse online channels before a purchase decision. 

For example, someone may enjoy browsing through the online catalog of their favorite concept store. However, that customer hasn’t yet created an online account with that store, and would prefer to go to Amazon, where they could purchase an item in clicks, instead of setting their profile and adding their card and address details again. If the business opted for a multichannel approach, and if the product the customer is looking for is on Amazon, the customer will have had a great experience moving from one platform to another.

But an omnichannel strategy doesn’t stop at simply being present on a channel and offering a consistent, seamless experience. It also requires the reach out methods that each platform offers. For example, you may use a newsletter for customers who enjoy shopping online. You may use push notifications for shoppers who’ve downloaded your app. Others will prefer to speak face to face with a member of your sales team, in the shop. 

All in all, having an omnichannel platform means that you adapt to the ways your customers want to shop, and maximizes the chances of your business generating a sale. 

2. Increase in Traffic & Sales

Going for an omnichannel strategy is no easy feat. It requires running several channels separately, while making sure they’re connected. However, this strategy will pay off. According to the Harvard Business Review, omnichannel customers spend more than single-channel customers, with omnichannel customers spending on average 4% more money in-store, and 10% more money online. In fact, there is a direct correlation between the number of channels used and the average spending. Customers who used four or more channels spent an average of 9% more in the store. 

3. Increased Customer Loyalty

Being present on numerous channels means that your customers will see your business more often, and if each channel is well-maintained, then your chances of generating a sale are maximized. Not only that, customers are more likely to stay informed of your latest products, and therefore more likely to visit your store. In fact, studies show that within 6 months after a sale, customers of businesses that opted for an omnichannel strategy had 23% more repeat shopping trips than customers of businesses without an omnichannel strategy. 

With increased buying and increased satisfaction, customers are more likely to then talk about the brand to their friends and family, thus generating more business for your business.

4. Better Sales Performance

By operating in different channels, businesses can not only reach a larger customer base, but also improve sales, given that omnichannel customers spend 20% more than single channel clients. Furthermore, businesses present on several fronts can collect data and understand which channel actually generates the most sales. This then enables businesses to decide where to invest capital, thus deploying more means to maximize their returns.

4. How To Build An Omnichannel Strategy

Multiplying the sales channels in which your business is present is no easy feat. Moving from a single-channel to selling on multiple fronts while ensuring that each platform you’re on is kept updated takes time and energy. But, it is doable, and will yield considerable returns. 

Here are the steps to follow to help you get started:

1. Know Your Customers

Deploying several channels at once is time- and energy- consuming. In order to invest your resources well, it’s key to first gain a deep understanding of your customers and the ways they like to shop. Research their interests, behaviors, and needs. Speak with them, invite customer feedback, and engage with them on social platforms. This will give you enough insights to decide where to invest. If you know that none of your customers shop on Noon, there’s no point in investing in that channel, for example.

One of the techniques you can use if you already have a website, is to look at Google Analytics, within the Acquisition reports. These reports show you the sources of traffic that are driving people to your website. 

2. Make Every Touchpoint Shoppable

Maximizing your reach comes from ensuring that every touch point offers the opportunity to make a sale. Whether a customer is browsing your mobile app, website, or social media page, each of those channels should enable them to purchase products.

Furthermore, if a customer adds items to their cart while being on your Instagram page, they should be able to find those items again in their cart while browsing through your website on their laptop. 

In fact, according to The Sprout Social Index, 57% of marketers plan to track conversions and sales directly from social media efforts. 

3. Treat Each Channel Differently

In this day and age, it is key to understand and master the use of each channel. For example, your online store may be dedicated to presenting your product and customers will expect to see in-depth descriptions, numerous pictures, and perhaps customer testimonials. Your social media platforms however may be dedicated to promoting images that showcase how your product can be used. It could also include customer testimonials, in order to increase credibility. 

4. Synchronize Your Channels

This will be the most difficult part, and involves using the right omnichannel technology to track your customers throughout their journey or touchpoint with your business. This goes from reading customer reviews to being retargeted with social media ads, to tracking if they revisit your website to finally purchasing your products. 

5. Maintain Your Channels

Adopting an omnichannel strategy requires having channels that are up to date. For example, your online store should contain items that you recently received in store. Your online inventory should be updated too. Maintenance doesn’t stop at simply keeping your channels alive, it also includes

Conclusion

Adopting an omnichannel retail strategy is crucial for small businesses to stay competitive. This approach ensures a smooth shopping experience across different platforms, meeting customer expectations and boosting satisfaction.

Unlike multichannel strategies, omnichannel strategies connect all channels, allowing customers to move easily between them. This convenience increases the chances of making a sale, and the benefits are clear: enhanced customer experience, increased traffic and sales, and improved customer loyalty. 

To build an effective omnichannel strategy, understand your customers, make every touchpoint shoppable, treat each channel uniquely, synchronize all channels, and keep everything up to date. While challenging, this approach is worthwhile for small businesses aiming to grow and succeed

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