Today’s customers are tech savvy and multi-channel customers. Even though the majority of sales take place in brick & mortar, online channels and social media have a dramatic impact on consumer behavior. These customers demand an integrated, seamless experience across all channels. This means that this new class of customers must be able to transition from their smartphone to personal computer to your physical store.
In order to ensure retail success, a retailer should have a well-planned omnichannel strategy that will seamlessly integrate social media and commerce. It goes beyond just the physical store or pure online business. For example, Amazon, an online behemoth, is planning to open its second physical store in November in San Diego. According to Amanda Nicholson, professor of retail practice at Syracuse University’s Whitman School of Management, online retail sales are about 9% of all retail sales and it could reach 20% by 2020.
“There is still reason for people to go out and look at things and touch things,” she said. “Online strategy has not single-handedly destroyed people’s need (to do so).”
At a recent conference Macy’s noted that when they close a location, their online business from that area drops as well. This can be attributed to in part to customer’s shopping behavior and the fact that they demand easy transitions between physical and online stores. Customers might buy the product online and return it in the physical location or vice-versa. Make sure your online store personalizes the customer experience by utilizing live chat platforms that allow customers to connect with product experts or sales executives directly from the website.
Check Social Media Reviews
One of the strongest influences in retail in both online and physical is social media, especially social media review platforms. Retailers are all too familiar with Yelp where a bad or poor review can lead to long lasting negative effects. Customers who seek multiple channels to shop value product reviews and feedback, especially from their peers.
Investigate Consumer Behavior
Retailers should map their customer purchase behavior. Where are the purchases made? In the store, at home, in the car, etc. When the purchases are made; morning, noon or night. What kind of products are purchased or are more popular? What is the frequency of the purchases? Finally, how are purchases made, smartphone, tablet, personal computer or in the store. This helps define the customer’s journey. Understanding the customer decision making process is key in your omnichannel development.
Understanding your customer’s purchasing behavior will help you set up relevant triggers across channels. The goal of these triggers is to maximize customer engagement and drive sales. Triggers include boosting customer engagement by initiating conversations in active dialogue on social media platforms. This strategy also helps to boost brand value. Send reminders about offers or discounts and integrate with social media to enhance the in-store experience. Have screens or wall that relay live social media feed. Include images, videos and tweets to further drive the customer engagement.
Reward Customer Loyalty
Notifications regarding loyalty points or rewards can act as a trigger for making purchases. Be sure you have a unified loyalty program that integrates the customer journeys across online and physical platforms. Rewarding customers for their online involvement can be very effective in growing your online customer base. Barney’s New York uses data from their customer’s online journeys to send personalized notifications and product recommendations when their customer is in the store. These notifications are based on products in the customers’ online shopping bags, wish list and the customer’s browsing patterns.
Customers are highly informed and expect exceptional experiences on every platform. Every day, more and more retailers realize they can no longer operate in a silo. The retail norm will include digital and physical commerce. Retailers will have to leverage new technologies and realign processes in order to create impactful and valuable retail experiences.
If you would like more guidance and strategies for your business, please reach out to the Edge Retail Academy and we are happy to assist you. If you are interested in a complimentary business opportunity analysis, please let us know that as well. 877-569-8657, ext. 1 or Becka@EdgeRetailAcademy.com
About the Author
Sherry has 20 years of experience as principal partner in two retail jewelry stores. Her leadership qualities encompass the myriad disciplines of operating an independent retail business in a growing economy and also in the more challenging economic environment of recent years.
Sherry is particularly adept at merchandising and inventory management. Sherry’s marriage of great intuition and strong analytical skills, coupled with a pragmatic approach to merchandising aesthetics, ensures a superb understanding of product storytelling and inventory performance.