Most customers use multiple channels for their purchasing
With the impact of the COVID-19 pandemic, the majority of customers have adopted new online shopping habits and plan to keep them. However, purchasing in-store remains the preferred method for many consumers. They value the ability to touch, see and hold the product before purchasing it, as well as the instant gratification of immediately owning the product. This emotional experience is often absent when purchasing online. In fact, 73% of consumers use several channels when making a purchase, compared to only 7% who buy exclusively online and 20% in store. Before diving into the details of omnichannel strategy, it is crucial to understand the difference between omnichannel and multichannel.
Multichannel strategy vs. omnichannel strategy
Multichannel strategy
A multi-channel strategy involves selling products across different channels, from retail to commerce, email sales, apps and social media. This approach allows for increased points of sale, thereby improving visibility and sales. Each channel operates independently. While this strategy is simpler to implement because employees focus on one channel at a time, it has limitations. For example, if a customer visits your site from their smartphone and receives advice on a product, they will have to start the process again if they need other details once in store.
Omnichannel strategy
The omnichannel strategy, on the other hand, shares the advantages of the multichannel strategy while filling its shortcomings. It allows you to sell on multiple channels and offers better visibility, but it stands out for the smooth integration of these channels. A customer can start their journey on one channel and continue to receive advice on another, whether online or in-store. This continuity requires a sophisticated customer relationship management (CRM) system or ERP. Employees must understand and recognize customer interactions and relationships across different channels, putting the customer at the center of attention.
Advantages of the omnichannel strategy
Retailers are adopting an omnichannel strategy to differentiate themselves from their competitors and be more competitive. Omnichannel customers, those who use multiple channels for a purchase, appreciate the different touchpoints offered by the merchant. They download coupons onto their smartphones, interact with in-store digital tools (such as interactive catalogs and price comparison sites) and are generally well informed. Their purchasing behavior varies: they can discover a product online and buy it in store, or vice versa. The purchasing experience is therefore fluid and consistent across all channels.
It enhances the overall service quality. Shoppers face no restrictions during their shopping experience and can switch channels seamlessly without distraction or annoyance. If they spoke to a sales representative, their information is saved and reused at the next touchpoint. Thus, the flow remains continuous from both the shopper's and the sales' perspectives. This focus on the customer and the shopping flow removes digital barriers of the phone and physical barriers of the store. Shopping can now be done in any manner, with any device, without differentiation. This is a significant improvement, as the shopping experience and client data are unique and seamlessly distributed across all channels. However, this improvment in the shopping experience requires an considerable knowledge in technology.
Harvard Study: The Impact of Omnichannel Customers
A Harvard study of 46,000 shoppers found that customers who use multiple channels spend more than others. On average, they spend 4% more per purchase in-store and 10% more online. Additionally, those who visit the website before buying in-store spend 13% more on average. These customers, who are well-informed about the products and the online catalog, show a greater appreciation for the brand and service. Their seamless experience between channels gives them satisfaction and freedom, increasing their loyalty to the brand. Over six months, they visit the store 23% more than other customers and are more likely to recommend the brand to others.
Towards an advanced strategy: “Unified Commerce”
“Unified Commerce” represents an advanced version of the omnichannel strategy. It is based on the principles of omnichannel but goes further by grouping all customer information in a single cloud. Thus, the data is no longer segmented by channel but centralized, offering a unified vision of the customer.
Implementing Unified Commerce
- Suitable technology: choose technology that allows customer interfaces and the back-end to be centralized on a single platform.
- Single Payment System: a unified payment system across all channels, enabling customers to be recognized and responded to regardless of touchpoint.
- Up-to-date inventory: Maintain a unified and up-to-date inventory, allowing employees to know product availability in real time, facilitating consistent responses to customers.
Benefits of Unified Commerce
“Unified Commerce” provides a seamless and personalized customer experience across all channels. By centralizing data, interactions become consistent, and the benefits of data are fully exploited to provide optimal service. For example, a customer should not have to re-enter their payment information with each purchase. In addition, this centralization of data allows better knowledge of customers. Through data analysis, it is possible to understand how customers navigate between channels, their speed and any friction encountered, thus allowing the service to be continually improved.
Conclusion
Adopting an omnichannel strategy, and even more so a “Unified Commerce” strategy, not only allows you to offer an enriched and fluid purchasing experience to your customers but also to better understand them and build their loyalty. By centralizing data and unifying channels, businesses can not only improve customer satisfaction and loyalty but also increase sales and differentiate themselves from the competition. In a world where consumer expectations are rapidly changing, implementing these strategies becomes essential for any business wishing to thrive in the modern business landscape.
The transition to an omnichannel strategy, or even “Unified Commerce”, represents a crucial strategic investment. It requires a robust technological infrastructure, rigorous data management and a customer-centric approach. However, the potential benefits in terms of customer satisfaction, increased loyalty and increased sales fully justify this investment. In conclusion, the future of commerce lies in the ability of companies to seamlessly and efficiently integrate their different sales channels, providing a seamless and personalized customer experience.
Omnichannel strategy: an integrated customer experience