Can Omnichannel Strategies Save Brick-and-Mortar Stores?

By 2027, 23% of retail purchases are expected to take place online making it even more crucial for retailers to build an omnichannel business model and leverage the perks that an omnichannel approach has to offer. With an omnichannel business model, your brick-and-mortar stores have:

↑ CX, ↑ Sales, ↑ Revenue, ↑ Customer Loyalty 

With ecommerce on the surge, consumer behaviour is changing. Nearly half of all consumers are in favour of making an online purchase with the option to pick up their items in-store, a trend widely known as BOPIS (buy online, pick-in-store). Such a figure highlights how consumers are inclining more and more towards convenience and flexibility when it comes to shopping.

To keep up, retailers need to seamlessly integrate various touchpoints using an omnichannel strategy. And by doing so, they can significantly boost customer retention rates and encourage repeat purchases.

Improved Inventory Management

One of the biggest challenges brick-and-mortar stores face is having siloed systems and processes. Separate systems for in-store and online inventory make it nearly impossible to provide accurate stock information to customers, leading to missed sales opportunities. Additionally, fulfilling online orders from store inventory can be cumbersome, causing delays, errors, and higher operational costs. Striking the right balance between stockouts and overstocks is another unresolved issue for brick-and-mortar retailers. 

However, with an omnichannel investment, brick-and-mortar stores can enable seamless real-time inventory tracking across all channels, reducing stockouts and overstocks. A study by Zebra revealed reducing stock-outs and overstocks can lower inventory costs by 10%. An omnichannel approach also leverages various fulfilment options like ship-from-store, BOPIS, and direct-to-consumer shipping. This strategy optimizes inventory management and reduces overall shipping costs.

Data-Driven Insights

Brick-and-mortar stores often miss out on a 360-degree view of consumer behaviour, preferences, and purchasing patterns because their systems are siloed and lack comprehensive data visibility. This makes it tough for them to refine marketing strategies, and custom product offerings, and enhance customer service effectively. 

But here’s where an omnichannel approach can really make a difference. By consolidating data from various touchpoints, it provides a unified view of the consumer journey. This means better insights into what customers want, which helps in improving product offerings. It also gives a clearer picture of which channels are more effective, allowing for smarter resource allocation and more informed business decisions. 

Competitive Advantage

Customers who engage across both online and offline channels in omnichannel retailing tend to have a 30% higher lifetime value for brands. But, brick-and-mortar stores rely heavily on traditional shopping experiences making it harder for them to stand out and adapt to the evolving commerce trends. Typically, they either offer their services in-store or online, but not both in a seamless way. This limitation leads modern shoppers, who demand convenience and flexibility, to seek alternatives.

A well-thought-out omnichannel retail strategy can be a game-changer for these stores by providing a unique, integrated shopping experience. Features like click-and-collect or viewing real-time inventory across all channels make it easier to attract and retain customers who prefer the convenience of online shopping.

Enhanced Marketing Opportunities

Brick-and-mortar stores’ marketing strategies are usually limited to in-store promotions and local advertising, which can limit their effectiveness. They miss out on the powerful synergies that integrated online and offline campaigns can create. Without an omnichannel approach, these stores struggle to connect their physical presence with the digital world, resulting in missed opportunities to drive traffic and engagement across both platforms.

Adopting an omnichannel retail strategy significantly enhances their marketing and engagement opportunities; with cross-channel promotion functionality, stores can run integrated marketing campaigns leveraging both online and offline channels. 

For example, online ads can drive traffic to physical stores through special in-store promotions, while in-store customers can be encouraged to visit the store’s website for exclusive online deals. This dual approach not only maximizes reach but also ensures a consistent brand experience.

Hope these pointers help you find an answer to why diving into omnichannel retail could be a smart investment for you. 

Prepare Yourself: Hurdles in Adopting Omnichannel Strategies

Sure, while it's tempting to see omnichannel strategies as the saviour for struggling brick-and-mortar shops, the truth is, making that shift isn't a walk in the park! There are plenty of challenges and hurdles that these stores must overcome to embrace the omnichannel model:

1. Absolutely, one biggie is keeping everything consistent across all channels. Think branding, messaging, and prices — they've to be on point everywhere to give customers that smooth sailing experience.
2. Then there's the real-time inventory juggling act. With fingers in multiple pies, it's a real challenge keeping tabs on what's in stock and what's not. Avoiding the dreaded "out of stock" message is key.
3. And let's not forget about customer support. No matter where customers reach out from, they expect top-notch service. That means having systems ready to tackle their questions or problems pronto, no matter the channel.

So, if you want to tackle these hurdles hands-on, you need to be strategic, put the right resources in the right places, keep your eyes on the customer prize, and most importantly stay updated on the upcoming omnichannel trends and opportunities.

How does the Future Of Omnichannel Retail Look?

Looking ahead, the world of brick-and-mortar stores is buzzing with exciting trends and opportunities thanks to the rise of omnichannel strategies. 

• Imagine your targeted customer stepping into a store and being transported into a virtual world where they can try on clothes or visualize products in their own space. That's the magic of augmented reality and virtual reality tech, making shopping an immersive adventure.
• And who would've thought talking to a shopping list would be a thing? With voice assistants like Alexa or Google Assistant, consumers can now breeze through shopping tasks with just a few words. Plus, smart mirrors and interactive displays add a dash of personalisation to your consumer's in-store experience, making shopping feel like a VIP treatment.
• But it's not just about the cool gadgets. Behind the scenes, data analytics and AI are doing their job, helping stores understand consumer preferences better than ever. From personalised promos to smoother inventory management, it's all about making the shopping experience top-notch for your customer.
   

Conclusion

Omnichannel strategies have become the lifeline for brick-and-mortar stores in today's dynamic retail landscape. They're not just about making shopping smoother; they're about diving deep into data and giving customers exactly what they want.

But hey, let's be real – it's not all rainbows and unicorns. There are hurdles to jump, like figuring out the logistics and getting all that fancy tech to play nice together. To come out on top, retailers need to be nimble, ready to shake things up, and most importantly, open to change.

So, before diving headfirst into the omnichannel pool, businesses need to take a good hard look in the mirror and ask themselves: "Are we ready for this?" Because let's face it, the future of brick-and-mortar retail belongs to those who are ready and willing to embrace the omnichannel revolution with gusto!