Just a few short years ago, some retail pundit came up with the phrase “omnichannel retailer,” and it took the industry by storm. Everyone started talking about omnichannel, and the vendor community jumped right on board. It was almost impossible to walk across a trade show floor without seeing the word plastered everywhere, with every company claiming to be “the leader in omnichannel something-or-other.”
Thankfully, the term itself has lost some of its luster over the years. But I still find myself, and my contemporaries, asking, “What exactly is the definition of omnichannel for a retailer?”
If you ask 100 retailers, you’ll get 100 different answers. One of the predominant definitions has become the “buy online, pickup in store” model. Leveraging a next-generation ERP system, integrated with supply chain management and logistics systems, retailers are able to tie two separate channels together, making it omnichannel.
While this is certainly a valid example, I argue that it alone does not define or embody omnichannel. Instead, I suggest that a better starting point for the definition requires us to put the consumer at the center of the discussion, not the technology. What happens when you start to define omnichannel from the perspective of the consumer?
First and foremost, consumers do not view retailers as different channels. Cost Plus is Cost Plus – including its store, ecommerce site and Facebook page. I get emails from Cost Plus, I see display ads when browsing the internet and I even get direct mail. But as a consumer, I don’t view Cost Plus, or any other retailer for that matter, as a collection of individual channels. I view each retailer as a single entity, and I expect them to be coordinated across all those channels.
What consumers not only want, but have come to expect, is a consistent, relevant and personalized experience across every channel in which they engage with a retailer. With that in mind, here are three tips that retailers should keep in mind when they go into their next omnichannel strategy session:
Put yourself in consumers’ shoes
Have you ever received a marketing email or seen a display ad about a product that you’ve already bought? I have a friend who recently researched, and ultimately bought, a ticket to Auckland on Air New Zealand. A few weeks after returning from his vacation, he continued to get retargeted by Air New Zealand, encouraging him to “Book your New Zealand holiday now!”
Unfortunately, all it takes is one failed interaction with a consumer to harm their perception of your brand. To protect customer loyalty and refrain from wasting valuable marketing resources, retailers should utilize the data they have at their disposal to ensure that consumers are only contacted with accurate, up-to-date information. At a minimum, make sure that all of your customer-facing interactions take customer purchase history into account – whether they bought in-store, online, or even through a catalog or call center.
Recognize consumers across channels
A recent MyBuys and e-Tailing Group survey found that 52 percent of shoppers realize they buy more with cross-channel personalization. Consumers don’t see a retailer’s website and brick and mortar store as different entities; instead, they have a holistic viewpoint that ties all channels and touch points together as one unified brand.
Retailers can mirror customer expectations by consistently personalizing marketing efforts across all consumer channels. Consumers can switch from shopping online to in-store – and vice versa – without missing a beat; but if retailers aren’t recognizing and catering to that pattern, they risk losing their customers to more adept competitors.
Identify all the devices a customer uses to shop
Just as they should across different channels, consumers should be recognized across different devices, whether it’s a mobile phone, tablet or home computer. In fact, a staggering 83 percent of consumers expect to be recognized with personalized experiences across all their connected devices.
If a shopper purchases a sweater on her iPad, retailers should recognize that shopper and her purchase when she gets online from her desktop at work. Doing so will enable retailers to suggest complementary items, such as a necklace that pairs well with the sweater, instead of bombarding her with ads for the same sweater.
Retailers can only meet their customers’ demands when they have the insight needed to do so, but many retailers believe that they don’t have sufficient data to deliver true omnichannel personalized experiences. Furthermore, they assume that obtaining the necessary data would require a huge IT investment. The reality is that all retailers have the data; they just don’t have it in a coherent, actionable format.
Any personalization provider of note will be able to pull all of your data sets together as a part of their service, and it should be a very straightforward and simple process. With this as a starting point, and the consumer as the centerpiece, you’re on your way to delivering a (dare I say) true omnichannel retail experience.
Chip Overstreet is SVP, Marketing, Business & Corporate Development at MyBuys.