Trends Shaping Omnichannel Retail

Standard

As per  Nielsen‘s Global Study, more than half of global respondents use mobile for conducting research prior to shopping, to compare prices, make better shopping decisions and look for coupons and deals or as a shopping assistant.  53 percent use their mobile device when shopping to compare prices or look up product information 52 percent. More than four in 10 respondents use their device to look for coupons or deals 44 percent, make better shopping decisions  42 percent or make shopping trips quicker or more efficient 41 percent.

Based on a survey of 7000 respondents,  by scaleable real-time engagement and loyalty firm, SessionM, there are three trends that are shaping the customer experience for Omnichannel. The survey revealed that shoppers are increasingly shifting to mobile and shoppers are savvier than ever trying to find the best deals by shopping in-store, online and on their smartphone.Based on trends shaping the Omnichannel retail, retailers are looking at new ways to answer the challenges by adapting the shopper experience. According to session M the three key trends shaping the retail behavior are:

TrendWatch

Customers seek seamless OmniChannel experience and want IN-Store shopping experience replicated on digital channels.

What are brands doing to cope with OmniChannel Challenge?

Brands are customizing OmniChannel experience by offering services such as Click and Collect. Gearing up for the holiday season, Omnichannel retail, Target has introduced dedicated retail shelf space for Click and Collect customers. Target is also planning to introduce Flex Format stores. In addition to selling regionalized inventory, these stores also operate as collection points for click and collect service.

TrendWatch

Mobile acts as a trusted advisor throughout the shopping process for brands and therefore brands must innovate to get the customer’s attention through the purchase funnel.

How are brands innovating to differentiate?

Brands that retain consumer’s interest throughout the shopping cycle offer differentiated experience by acting as trusted advisor. In an example shared by Session M for a retail brand preparing for Holiday Season “Cole Haan is also innovating on a mobile scale, as updates to their app for the holiday season include an integration with Uber. Customers who are using the store locator or are interested in a particular sale are offered the ability to take a ride to the store to check it out, with a click resulting in a push to the Uber app with trip details to the store input automatically.”

TrendWatch

Consumers seek Personalized messaging during Holiday Season. As users get bombarded with consumer offers, for Brands to have a meaningful engagement, it’s important to personalize messaging and offers.

How are brands personalizing?

According to a report, “Lowe’s are looking to take personalization to the next level. A few test stores have incorporated 3D scanning and printing services to build customized products for unique customer projects. Each customer has a different need and Lowe’s is seeking to meet that challenge with the exact product they are looking for.”

Optimizing Rewards Strategy For Omnichannel

Standard

According to an ecommerce study  among 3000 customers, Omnichannel retail is defining all stages of the buyer journey. The key findings of the study indicate:

Consumers are loyal to a brand that offers them a preferred way of fulfillment. Building your rewards strategy with offers for different shipping and fulfillment options can help brands retain and acquire customers. Walgreens has designed offers such as free in-store pick up within an hour to boost loyalty. One in Ten consumers also expect to pick up their purchases within an hour. Rewarding customers for different shipping and fulfillment options can bring newer customers. If your brand delivers or ships direct to customers, you can offer freebies such as Annual shipping waiver above a certain order size.

LoyaltyOmnichannel

walgreens

Consumers also look forward to flexible payment options, in addition to in-store pick up.Building a rewards strategy that gives customers options to pay on flexible terms as well as in-store pick up will help build a loyal customer base. Customizing your rewards for Order ahead and pay later or Reserve and Pick Up in-store will help retailers capture the interest of consumers who like to shop with the reassurance of easy repayments and in-store pick up.
Omni2
Though as high as 33 percent consumers buy from retailers that offer in-store pick up, they like to buy online and have goods shipped to their address, making it important for retailers to build in shipping costs in the order value. Aeropastle offers coupons for free shipping on an Order Value of more than USD 100.

Omni3
coupon

As most consumers research online, prior to any purchase, promoting rewards for options such as mobile app, can boost online discovery. Create offers that audiences are likely to respond to such as accelerated reward points on sign-up or purchases made for a limited time.

Researchkohlsysestoyou

Existing rewards programs can be customized for promoting a certain shopping behavior for Omnichannel retail. Amazon offers Free 30 Day trial for Amazon Prime members with 2 day Free shipping on over 20 Million Items and access to Prime Video.

amazonprime

Target’s Digital and Omnichannel Retail Strategy Brings New Customers

Standard

Targetdigital

Target announced its fourth quarter and full-year 2015 results on February 24, 2016.

For full-year 2015, Target’s comparable sales grew 2.1 percent, comparable traffic increased 1.3 percent and Adjusted EPS increased 11.3 percent to USD 4.69.

Target increased the retail presence with Omnichannel retail strategy and saw the Mobile retail sales increase by over 2.5X with Digital Channels sales increasing by 34 percent, contributing to an overall 1.3 points increase in retail sales.

Target saw the highest growth from  signature categories (Style, Baby, Kids and Wellness). Comparable Sales in Q4, 2015 were primarily driven by increased traffic, proving that Target has focused on the right strategic priorities.

The options that make for a flexible shipping and fulfillment are at 30 percent of all digital sales. Order Pickup has grown more than 60 percent YOY, making Omnichannel retail as the growth are that big box retailers need to focus on for 2016.

Targetmobile

Coupled with a Digital focus, Target’s Brand Strategy is focused on targeting upscale audiences with products and campaigns that resonate with mobile audiences. Research from Nielsen shows that Target is the preferred retailer among Upscale Millennials.  Target has focused on capturing the upscale Millennial market with a strategy focused on designer partnerships and niche home product lines. Target has continued to build presence in Digital with a focused content strategy that engages audiences across social networks and search advertising.