Omnichannel service has become a buzzword across various industries, and this also includes the retail sector. And like other industries, retail is also constantly changing.
Not to mention, retailers also face various challenges that impact their survival and overall success in the entire market. These challenges mainly include consumers’ ever-changing behavior, customer demands, and keeping track of the latest trends and technologies.
Through omnichannel service, retailers can address these challenges and provide the ultimate customer experience to their patrons.
How does an omnichannel service in retail work?
Consumers today have various ways to explore, acquire information, shop, and return their purchases.
During the height of the COVID-19 pandemic, businesses realized the importance of going digital and being where their customers are. Shoppers today value convenience more than ever, even as nations start to ease out of their stringent restrictions.
But convenience does not only mean that organizations need to close their brick-and-mortar stores and shift to e-commerce.
As a matter of fact, it is about being accessible on as many channels as possible, bringing a complete shopping experience to customers. And this is what an omnichannel service in retail is.
Omnichannel service avenues and examples
As we have mentioned, omnichannel retail can be executed online and offline:
- Brick and mortar – the actual physical store.
- Online marketplaces – existing online market platforms like Amazon, eBay, Walmart, or Wish.
- Social commerce – social media platforms such as Instagram, Facebook, and TikTok.
Omnichannel service in retail can be done in various ways. However, it is always a combination of online form (smartphone, tablet, computer) and offline form (in-person store).
Here are some scenarios of omnichannel service in retail:
- A customer purchases a product online via smartphone and returns it in the physical store.
- A shopper researches a particular product online, buys it online, and picks it up in the physical store.
- Customers check products in actual stores, buy them online, and return them in-store.
Omnichannel service aims to provide a seamless customer experience throughout their entire customer journey — whether they are shopping online through their laptops or smartphones or purchasing at the actual store.
Multichannel vs single-channel vs omnichannel service
As per Harvard Business Review, 73% of customers make use of multiple channels during their entire purchase journey.
For retailers, before utilizing various sales approaches, it is vital to understand the difference between the following:
Multichannel service
Multichannel service is similar to omnichannel service as it also involves selling on different channels, both online and offline.
However, multichannel service is focused on optimizing customer experience at each touchpoint. This means each customer journey starts in one particular channel and ends in the same channel.
Omnichannel service
Omnichannel service will not be possible without multichannel service. What makes it different from multichannel is that it connects all channels to create a unified customer experience.
It caters to individuals’ entire customer journey, from start to finish, instead of each experience in different channels.
Single-channel service
As the term suggests, a single-channel approach means selling on one channel only. This can either be an actual physical store, e-commerce, or an online marketplace.
While this option can also work perfectly on its own, it is always best to offer consumers other channels where they can purchase goods.
Why is omnichannel service in the retail industry important?
Having an omnichannel service does not only benefit the customers. As a matter of fact, it gives businesses the following advantages:
Enhanced visibility
Providing omnichannel service lets retailers be accessible to customers at different touchpoints. It also makes it easier for customers to find and reach out to brands that they opt to transact with.
Improved customer experience and satisfaction
According to a study conducted by CX Today, 9 out of 10 customers prefer an omnichannel service. This only goes to show that omnichannel retail service is more popular with consumers compared to a single channel.
On top of that, omnichannel provides a flexible experience to consumers.
Boost in customer traffic and sales
If businesses are visible everywhere, they will be able to enhance their sales and traffic both offline and online. They will not only be willing to spend more and be loyal to your brand, but they will also most likely recommend your products and services to other people.
Optimized customer insights
Keeping track of consumer behavior on different sales channels gives businesses more valuable insights into their target market. This also gives them information about the current and future trends that will help them make better decisions for their business growth.
Personalized customer experience
In connection with customer insights, the more retailers know about their target customers, the more they can offer personalized experiences.
Personalization helps businesses capture customers’ interests. This is also a perfect opportunity for organizations to cross-sell or upsell their other offered products.
Offering a personalized customer experience has become a top requirement for our present-day modern shoppers.
