Omnichannel retailing is a recent innovation which refers to the application of retailing channels which are not store specific. It has seen increased popularity in recent years as it provides advantages that store specific channels simply cannot. An Omnichannel system allows you to offer your existing retail channels plus a number of new, unique channels. This article will detail exactly what an Omnichannel system is, why it is gaining in popularity and how it can help your business.
The main benefit to implementing an omnichannel strategy for many retailers is the ability to improve customer loyalty. This is particularly beneficial for high street retailers as well as those that have relatively slow moving products. Tracking and measuring customer loyalty is very difficult and even after taking into account the significant investment required to launch such an application, many retailers still do not reap the benefits of their customers' loyalty. For this reason, there are very few retailers who employ an omni-channel retail strategy. The reason behind this is that it requires substantial investment in terms of time and money in order to see the benefits of customer loyalty, however the benefits are significant.
One of the most popular benefits of omnichannel retailing is that it allows for improved customer service. For example, rather than having to staff a number of customer service departments the retailer can now have one person in charge of contacting all of the different brands of products available from their warehouse. The contactless shopping environment allows for a quick and efficient interaction between customers and these brands, as the sensors used to track customer behaviour can detect subtle differences in posture, speed or style which allow the individual to be categorised as a potential customer, which means that the contactless data can be divided up into different groups. The DTC brands that have the highest level of interaction with customers are likely to be the most successful.
The ability to track customers across multiple channels provides retailers with a valuable insight into how consumers shop. By being able to observe the way people behave when they are shopping in more than one store they can improve the effectiveness of their marketing campaigns. In addition, because Omnichannel retailing allows the user to be classified based on their behaviour across a number of channels it makes the entire shopping experience more streamlined and easier for staff in retail environments. Staff can then devote their time effectively to improving the overall experience for their customers.
Another advantage of omnichannel retailing is the opportunity it presents for brands to get creative with their advertising. In previous decades companies have focused on their advertising exclusively on their own stores, which limits their potential reach. However, by using multi-channel retailing they can now advertise to hundreds of prospective customers through their individual channels, each with its own associated branding and imagery.
Another advantage of multichannel retailing is that it provides a much clearer picture of how customers are actually behaving in real-world scenarios, compared with traditional market research. Marketers can observe how a specific product performs in real life, as well as getting an idea of how customers might behave when confronted with the same product. This is not only helpful in developing a more effective shopping strategy, but it can also provide valuable insights into how a product might behave when used in different scenarios. For example, by watching a customer purchase a particular product in a shop they can see if they are more likely to make the purchase if they are presented with other options. Understanding the behavior of the buying public can help marketers to design products and campaigns that deliver the best buy strategy possible.
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