How Does an Omnichannel Vision Increase Sales Turnover?
With the digitization of consumption patterns, being present on all channels is no longer enough to capture the attention of consumers. Multichannel strategy needs to be redesigned to benefit from an omnichannel strategy, which is essential today to support consumers throughout their purchasing journey. Which steps do customers take before making their final purchase? How much time goes by before their first visits and final purchases? Did they only purchase online? These questions help improve customer journey knowledge and put an effective and coherent marketing strategy in place.
Digital: The gateway to stores
With the rise of e-commerce, many predicted the end of physical stores. These two retail spaces are largely complementary and are far from being in competition. Studies have shown consumers often prepare their purchases online before realizing it in a store. Today a purchase decision is made well upstream: 8 out of 10 in-store purchases are preceded by at least one online visit. An observation that can, and should, strongly influence the budgets allocated to Digital directors. Looking at the numbers, a brand’s website turnover represents between 3 and 7% of global turnover. When digital is integrated in the shopping journey, it amounts to around 40% of the sales of the brand. To demonstrate this correlation, retailers need to reconcile “first party” data with navigation data, to better understand consumer behavior and purchasing patterns.
Get customers with omnichannel
Analysis of the omnichannel customer journey has two main objectives: increase the proportion of the budget allocated to digital tools, and attract additional in-store customers through an individualized message on all points of contact. In this context, it is important to look at the conversion time between a website site and in-store purchase. Brands that do not develop an omnichannel strategy do not have this knowledge and perform a relaunch at H1, which the customer can perceive as marketing pressure. By adapting the message to the time and purchasing journey of each consumer, the brand can individualize the relationship and customer experience. In addition, each channel has its own specific features and added values for the consumer. Human contact in stores allows the customer to receive personalized advice, facilitating their act of purchase. Conversely, the ability to order products at any time of day and night is highly valuable for other consumers. The capacity to reconcile online and offline data from the same customer to adapt marketing strategy gives a real added value. The more the services offered are consistent with the channels in which they are offered, the more the strategy will pay off. We know, for example, that e-booking or click and collect often generate unanticipated additional item purchases. A customer does not think in terms of channel but goes where it is most convenient for them in the moment. It is therefore essential to know your client, thanks to a detailed analysis of their data, to offer a service that is consistent with their research and needs.
Omnichannel strategy is the real key to creating a seamless experience for the end consumer, without pressure or over-solicitation. A comprehensive view of their journey is necessary to deliver the right message at the right time. It is that focus that will make them want to finalize their purchase in one store rather than another.
Editor’s Note: This article was contributed by David le Douarin, co-founder and CEO of Advalo, a French predictive marketing platform operating in Paris for more than 40 French leading retailers.
Chris Walton is an accomplished Senior Executive with nearly 20 years of success within the retail and retail technology industries. He is well-versed in merchandising, store operations, inventory management, product design, forecasting, e-commerce, pricing and promotions, and tech product development.
Chris was most recently a Vice President with Target, where he led the retailer’s Store of the Future project and also ran the Target’s home furnishing division for e-commerce. He previously worked for GAP, Inc., as a Distribution Analyst and Manager.
Chris holds a BA in Economics and History from Stanford University, and a MBA from Harvard Business School.
He likes to dress as Darth Vader for Halloween, and his wife also frequently asks him to ask Alexa, "to turn off the music."