2024 Omnichannel Leadership Report: Top 3 Takeaways
As retailers prime their omnichannel strategies for 2024 and beyond, three takeaways from NewStore’s annual Omnichannel Leadership Report should remain top of mind: brands must offer more omnichannel capabilities, invest in native mobile commerce apps, and embed more digital features into their stores.
While an increasing number of retailers have embraced omnichannel strategies over the last few years, they still face opportunities for improvement – especially when it comes to bridging the gap between their physical and digital shopping experiences. NewStore’s 2024 Omnichannel Leadership Report surveyed nearly 700 retail brands’ omnichannel capabilities across three unified shopping channels: mobile apps, online, and stores. The research found that brands must work on enhancing their in-store, online, and mobile offerings by connecting all three of these channels to create a cohesive, customer-centric shopping experience.
Read more about the top takeaways from the report below, and find out how your business can take actionable steps to develop a unified commerce strategy spanning all retail channels.
Takeaway #1: Brands Aren’t Maximizing Omnichannel Capabilities
While some retailers have fully leaned into omnichannel transformations, many are still not leveraging omnichannel strategies to their fullest potential. The report found that brands scored an average of 43 out of 100 when it came to taking advantage of available omnichannel solutions. This indicates that brands are missing opportunities in effectively linking their mobile, online, and physical shopping journeys.
If retailers want to undergo a true omnichannel transformation that results in customer-centric experiences – and builds long-term brand loyalty – they must start by considering several key strategic elements:
- Impact to the customer: The goal of undergoing a transformation is to improve the experience for the end user – in this case, the customer. Therefore, retailers should put themselves in their shoppers’ shoes and think, “What’s in it for me?” and “Which omnichannel features would I benefit from?”
- Changing teams’ mindsets: For a transformation to succeed, all parts of the organization must row in the same direction. Each department will play a critical role in rolling out new omnichannel features, which makes it imperative that everyone aligns on the vision and owns their part of it.
- Focusing on in-store experiences: If a retailer has a brick-and-mortar footprint, the in-store experience may serve as the customer’s first touchpoint with the brand and set a lasting impression. For instance, if the retailer sells consumable goods, it can offer tastings in stores to entice customers and then later follow up with tailored product recommendations over email.
- Making technology invisible: Omnichannel technology should seem invisible to customers when they’re shopping in stores. Whether a sales associate with a mobile device is reviewing available inventory or a shopper is checking out via a self-service kiosk, the experience must appear seamless. And to build a deeply connected commerce ecosystem and develop better customer relationship management, it’s crucial to partner with the right technology vendors.
Creating a robust omnichannel strategy relies on many elements of organizational change. Read about how top retailers have mastered the art of omnichannel transformation and the lessons they’ve learned along their journeys.
Takeaway #2: Retailers Should Invest More in Mobile Commerce
Although today’s consumers are more reliant on their phones than ever, many retailers’ mobile commerce capabilities haven’t evolved as much as shoppers would like. Brands with dedicated mobile shopping apps remain in the minority, and even those mobile-first shopping experiences often don’t boast the latest features to facilitate a smooth customer journey.
The Omnichannel Leadership Report discovered that only one third of brands have a native mobile shopping app, with very few of them having invested in promoting the app. Additionally, most of these mobile apps don’t include interactive features, exclusive content, or built-in rewards programs. Even fewer apps contain capabilities like wishlists, inventory checkers, and live chat – all of which can help drive usage.
According to Statista, mobile commerce sales are expected to account for 62% of all ecommerce transactions by 2027. This makes it essential for brands to up their mobile commerce game – and their starting point should be a native shopping app.
Several outcomes of having a native mobile app include:
- Reaching customers where they are: Data.ai’s State of Mobile 2022 report found that many people spend one third of their time awake looking at their mobile device. Consumers also spent 100 billion hours in shopping apps, which underscores the unparalleled convenience of browsing and buying on mobile devices.
- Direct-to-consumer sales become easier: If a retailer wants to sell directly to consumers and bypass brick-and-mortar stores and wholesalers, a native app is the easiest option. Brands can leverage push notifications and personalized content to connect with their target customer – with minimal advertising needed.
- Increased conversions: Since mobile apps typically deliver less clunky experiences than a mobile site, consumers may spend longer amounts of time browsing, without encountering unnecessary pop-ups and ads. If they make an account for the app, it will also remember all of their information and provide a faster checkout experience. As a result, users may be less likely to abandon their carts.
- Customizable features: Retailers that build their apps from the ground up can choose from a slew of customizable features that will foster better connections with customers. These can include creating lookbooks for apparel and accessories, built-in loyalty programs with redeemable points for special perks, and free shipping just for app users.
To discover more ways your brand can boost mobile commerce sales, read all 7 Reasons Why You Need A Shopping App.
Takeaway #3: Stores Need Additional Digital Features
To stay competitive, retailers must embed more digital features into their brick-and-mortar stores. According to the report, buy now, pay later checkout options are only offered in a third of stores. The same statistic applies to stores that equip their sales associates with mobile devices to assist shoppers as they browse. If retailers want to increase foot traffic in their stores and appeal to time-strapped customers, they must find strategies to bridge the gap between their digital and physical experiences.
If done right, the potential rewards – like increased sales, competitive differentiation, smoother customer experiences, and adaptability for shoppers to engage with brands on their preferred channels – are massive.
Several of NewStore’s top ways to create an omnichannel strategy include:
- Auditing current channels: Map out all your existing channels (including website, store, mobile app, email, and social media) and try to identify any gaps in communicating with customers, especially with those who prefer to toggle between online and physical shopping platforms.
Afterward, brainstorm the ideal customer journey and consider adding new omnichannel features to connect online and brick-and-mortar shopping experiences, whether that’s offering ship-to-store pickup options or adding mobile checkout capabilities in stores.
- Combining digital and physical experiences: A strong omnichannel strategy ensures that shoppers can start their journey on one channel and end it on another. To better bridge the gap between physical and digital shopping experiences, retailers should offer features like BOPIS (buy online pick-up in store) and universal shopping carts that let consumers add to their carts from any channel.
Other valuable omnichannel features include inventory visibility, which allows sales associates and customers to view real-time product availability across all retail locations, and clienteling, which gives staff access to valuable customer data that can help increase shoppers’ average basket size.
- Examining your retail ecosystem: To ensure brands are equipping sales associates with the best technology to drive sales and personalize customers’ experiences, they should consider investing in an order management system, mobile point-of-sale (POS) solutions, and customer relationship management platforms.
The best part about creating an omnichannel strategy? It’s completely customizable, which forms the basis for composable commerce: giving companies the opportunity to select from a variety of vendor and commerce options that work best for them.
More Takeaways: BOPIS, BORIS, and BNPL Gain Traction
The modern omnichannel experience now counts BOPIS and BORIS (buy online return in store) as key components. While many shoppers prefer the ease of making purchases online, the convenience of retrieving their items or returning them in a brick-and-mortar store is still important. According to the Omnichannel Leadership Report, 60% of retailers’ websites offer BOPIS options, while 68% offer BORIS capabilities.
Buy now, pay later (BNPL) also experienced adoption growth – 69% of websites now offer this short-term financing option to customers.
Other parts of the commerce ecosystem that continue gaining popularity include loyalty rewards and free shipping. Not only do loyalty programs foster longer-lasting relationships with consumers, but they also provide retailers with more personal data to improve shopping experiences – and drive higher sales. In fact, over 80% of consumers claim they would provide more personal data in exchange for a better customer experience.
One increasingly important factor of the customer experience is free shipping. With Amazon – and its one- and two-day shipping options – capturing a large portion of the ecommerce marketplace, retailers must stay competitive by also offering free shipping. However, even free orders should arrive within three business days to meet consumers’ expectations.
Research in the Omnichannel Leadership Report found that 87% of websites offer free shipping in North America and internationally, with two-thirds of brands requiring a minimum purchase threshold to receive the free shipping perk.
For retailers breaking into new markets and working to retain existing customers, offering loyalty programs in addition to free and fast shipping options will become must-have omnichannel strategies.
The Case for Unified Commerce
Ultimately, omnichannel shopping will continue its rapid growth trajectory, especially as brands attempt to reach untapped markets and compete with today’s ecommerce behemoths. The biggest indicator for omnichannel success is implementing a unified commerce system that reaches shoppers on all platforms and offers a seamless customer journey, regardless of the starting point.
Brick-and-mortar experiences are still a pillar of the retail ecosystem, and brands must work to bridge the gap between their physical and digital channels. The good news? The options are vast – and retailers can cherry-pick the vendors and solutions that best fit their needs to create a robust omnichannel strategy that will cement their stake in the marketplace.
Download NewStore’s 2024 Omnichannel Leadership Report for a deeper dive into these takeaways, and speak with one of our experts about choosing the right omnichannel solutions for your business.
