Creating an Omnichannel Strategy: A Guide for Retailers
Posted by Amanda McLaughlin on Aug 15, 2023
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Omnichannel customer experiences are becoming the expectation, not the exception. Research shows that 73% of customers use multiple channels during their buyer journey. Yet, while nearly every retailer claims to have an omnichannel strategy, few have truly connected the dots to optimize their online and offline operations.
Implementing an effective omnichannel strategy is crucial for providing a seamless experience and meeting customers where they are. This complete guide will walk you through what an omnichannel strategy is, why it’s important, and how to create one for your business.
An omnichannel strategy provides customers with a unified experience across all touchpoints and channels. The goal is to allow customers to move seamlessly between channels like your website, mobile app, online store, brick-and-mortar store, social media, etc.
From the customer’s perspective, it should feel like one continuous, integrated experience versus fragmented touchpoints with your brand. They should be able to start an interaction on one channel and pick up where they left off on another channel.
On the business side, an omnichannel strategy requires linking systems and data across channels to provide a 360-degree view of the customer. This allows you to provide personalized experiences based on their preferences and history across touchpoints.
Key elements of an omnichannel approach include:
Implementing an omnichannel strategy can be hard. After all, it’s another way of operating as a retailer. Even so, it provides many benefits and an investment in omnichannel can and will transform your business.
Increased sales and revenue: According to Aberdeen Group, companies with strong omnichannel strategies retain an average of 89% of their customers compared to 33% for weak omnichannel businesses. Providing a seamless experience drives higher customer retention and increased sales.
Enhanced customer experience: 65% of consumers say inconsistent experiences across channels are frustrating. An omnichannel strategy creates a smooth, personalized journey resulting in higher satisfaction.
Deeper customer insights: Collecting data across touchpoints provides a more comprehensive view of your customers, their desires, and their pain points. These insights allow you to better anticipate needs and optimize experiences.
Adaptability: Customers crave flexibility in how they engage with brands. An omnichannel strategy provides options for customers to use their channel of choice.
Competitive differentiation: As consumers expect omnichannel experiences, it’s becoming table stakes for customer retention and acquisition. Even more, companies with an omnichannel presence boast a 3.2% compound annual growth rate (CAGR) in market share, compared to a meager 1.5% CAGR for those without an omnichannel strategy. Implementing a strategy now can give you a competitive advantage.
The bottom line? Omnichannel strategies are critical for understanding customers, engaging them on their terms, and providing 5-star experiences. Now let’s look at how to build one for your business.
Follow these six steps to implement an effective omnichannel approach:
Start by auditing your existing channels and touchpoints. These may include:
Document all the ways customers currently engage with your brand across their journeys. Identify any gaps in channels where you lack a presence. Then, outline the end-to-end experience you want customers to have as they interact with your brand across channels. Consider key journeys like buy online pickup in-store (BOPIS), ship-to-store, omnichannel returns, mobile checkout, etc. Look for any inconsistent experiences, gaps in data, or constraints that impact the ways in which customers experience these journeys.
Audit your existing systems and processes to understand what you have and what you may need to invest in. These may include:
A retail tech stack will look different from retailer to retailer, but in general you’ll benefit from having an ecosystem of technology partners that is future-proofed and can drive the digital experiences your brand needs today and tomorrow. Consider embracing MACH principles and building a commerce environment with composable elements: microservices, API-first, cloud-native SaaS, and headless. Taking this kind of approach to your retail ecosystem will allow you to deliver omnichannel strategies efficiently and effectively.
With executive input, determine your key omnichannel goals and success metrics. These may include:
Having a successful omnichannel strategy requires aligning yourself with your transformation goals. You might want to track specific metrics like those listed above, or historical measures like same-store sales, sales per square foot, and customer traffic. Alternatively, you can look at omnichannel business metrics like the cumulative value of customers, sales, and fulfillment. Regardless, you must articulate your goals to the entire organization, from your board to your retail store teams. In making your goals and metrics visible, you’ll ensure everyone works hard for only the best results.
Prioritize omnichannel initiatives and map out a phased rollout plan. Quick wins balanced with long-term vision. Factor in the following:
Omnichannel is a long-term and transformative strategy and choosing the right technology partners is critical to success. When it comes to implementation specifically, there are a lot of considerations that affect the business and your technology infrastructure. Choose a partner or partners that have flexible and open technology, and teams that stay close to you at every stage of the relationship. They also should have a success manager to act as a trusted guide in the journey as omnichannel impacts people and processes as much as it does technology.
Don’t neglect the role of brick-and-mortar stores just because customers are online or in-app. While each retailer’s omnichannel strategy will be unique, most will include elements like:
Believe it or not, forecasts predict that three-quarters of all U.S. retail sales will occur offline this year. But that doesn’t mean ditching digital or focusing on your physical store in isolation. It means integrating physical and digital to create a unified customer experience. An omnichannel approach makes businesses more efficient by enabling sales channels to leverage each other for data, inventory, and services. It drives value for your business and provides a consistent and digitally-rich customer experience.
Use omnichannel data and customer feedback to refine your strategy. Things to track include:
Continuous optimization is key. Make sure your omnichannel strategy includes an advanced analytics system to build a complete view of your business. You should have an easy way to access and explore live metrics and insights, enabling any stakeholder to take immediate action, whether it be responding to inventory trends or following up on sales opportunities. The objective is to use data and insights to test new initiatives, personalize engagements, and double down on what delivers results. Omnichannel evolution is ongoing. Make incremental improvements that are data-driven and customer-centric.
We’ve covered a lot of ground in this guide! The lines between physical and digital retail continue to blur. Implementing a strategic omnichannel approach is no longer optional for retailers – it’s imperative. To recap, here are the key things every retailer needs to know:
With the right strategy, you can plug gaps in the customer journey and meet people wherever they are. Delivering unified shopping experiences is the new imperative for winning over today’s customers.
Looking for a trusted guide on your omnichannel transformation journey? We’d love to help! Feel free to reach out to talk to our team.
