Read on to learn:
· Defining omnichannel and explaining overlapping terms
· An overview of omnichannel strategy
· Advantages of an omnichannel approach
· Practical example of omnichannel expansion
It can be challenging to keep up with all the buzzwords in the ever-changing retail and commerce landscape, but one you should know is “omnichannel.” Though the term has been around for years, its meaning has evolved alongside technology. Today, it’s more than a trend—it’s a standard. The biggest names in retail have already embraced it, and if you want to stay competitive, it’s time to follow suit.
Omnichannel retail is a business strategy that provides a seamless customer experience across all brand touchpoints. This includes the physical and digital landscape available to retail suppliers. In layperson’s terms, an omnichannel method means coordinating channels (ways to get your product to your customer) to blend seamlessly so your customer’s brand experience feels the same regardless of how they encounter you.
At first glance, it can be confusing to determine if omnichannel strategy and omnichannel marketing are the same thing. Omnichannel marketing is part of a comprehensive retail strategy. Omnichannel commerce, omnichannel retail, and omnichannel strategy are closely related concepts that all focus on a seamless, personalized, consistent customer experience.
Related Reading: Oracle’s Overview of Omnichannel Retailing
An Overview of Omnichannel Retail Strategy
True omnichannel retail strategy provides a seamless interplay between physical stores and digital channels. Most importantly, customers expect these experiences to look and feel similar despite the different ways they’re encountered.
As a supplier, you can reach your customers in a myriad of ways. These different types of commerce and marketing opportunities are called channels. Customers are channeled into all types of revenue funnels and can encounter your product on social media, as a recommended product on a retailer’s site, or via a rewards app.
A successful omnichannel strategy utilizes all of these channels to create a seamless experience for customers to purchase your goods easily, regardless of location/interaction method. Remember, a robust omnichannel retail strategy can span from a brick-and-mortar store to online retailers or marketplaces, mobile apps, and social media presence.
Discover how to select and expand your omnichannel network here.
Imagine a customer engaging with your product through a social media ad. They can scroll through social media or your website to see how the product looks and feels, ultimately deciding to purchase it. A supplier that excels in omnichannel strategy might ensure that its product is available on Amazon, accessible directly through Instagram, and available for in-store purchase at Walmart and for online pickup and delivery.
Remember, omnichannel marketing and brand representation are key points of a successful omnichannel commerce strategy, which creates cohesion and coordination (as opposed to running independently as a multichannel strategy).
Related Reading: Omnichannel and the Walmart Supplier
What Are the Benefits of Omnichannel Commerce?
There’s certainly a reason why so many businesses utilize an omnichannel strategy. Major players like Nike and Apple have embraced the financial, brand, and customer benefits of omnichannel commerce. Below, you can find a breakdown of the advantages of an omnichannel retail strategy.
1. Profitability: At its core, omnichannel commerce allows more opportunities for shoppers. Suppliers that use omnichannel strategies can directly increase sales, as customers can purchase in various ways. Omnichannel commerce can also help by consolidating inventory, which saves money over time.
2. Brand Reputation and Customer Loyalty: It is well known that omnichannel customers are some of the most loyal. In the ever-changing landscape of customer satisfaction and expectations, ease and availability are more important than ever. When customers encounter many options to purchase and receive an item, they are more likely to complete the sale and become repeat buyers. Loyal customers are the cornerstone of any successful retail business, as they are repeat buyers over time.
3. Customer Insights and Information: Omnichannel marketing and strategy allow you to understand the entire breadth of your customer base. Multiple revenue channels allow for detailed and valuable customer data, which helps you better understand your customers and current trends and generate more leads. This can help you tailor products even further to increase sales.
Omnichannel Strategy: A Practical Example
Let’s look at a supplier who wants to expand its sales strategy to become omnichannel.
Supplier X has a product at Walmart brick-and-mortar stores and a robust digital presence on social media but wants to increase sales through a new channel. Expanding to Amazon as a retailer would allow Supplier X to reach a completely different customer base.
If Supplier X were to keep its consumer marketing, Walmart, and Amazon strategies and teams separate, it may diversify customer reach but in an isolated and ununited way. If Supplier X wants to pursue an omnichannel strategy, it would ensure that each channel has a cohesive look and feel, consistent product messaging, and cohesion among all channels.
This allows someone to encounter Supplier X’s brand on social media and explore various purchasing pathways once a decision to buy is made. Customers can discover their availability to pick up their purchase in-store at Walmart, have it delivered later that day, or combine it with an upcoming Amazon order later in the week.
If a supplier were looking for a place to start, they’d most likely start with item setup and maintenance. This process entails inputting your product’s information, as well as creating the assets and copy that list your item on a retailer’s digital platform. Get a feel for how to leverage an omnichannel strategy with item setup at Walmart.
Recover Lost Revenue
Setting up an omnichannel strategy can increase revenue, but don’t miss out on further supplier education. SupplyPike helps suppliers like you save on retailer fines and deductions and recover lost revenue.