Member Article

Mind the gap – Omnichannel Retail

It’s safe to say that ‘omnichannel’ is now more than just a buzzword in the retail industry, as digital technology drives changes, it’s becoming a necessity. In fact, research recently found major retailers have reported sales growth of between 10% and 20% over the last year after switching to an omni-channel model.

So, what is omnichannel retailing? Omnichannel is a step further than multichannel retailing. It too is selling across multiple sales channels but the difference is that with omnichannel retailing it is selling across those channels seamlessly, as they combine and operate as a unified sales channel, rather than autonomously. As with any major changes in a business, there are challenges in moving to an omnichannel model. Retailers must research any potential gaps in their retail experience from a customers’ point of view and create a strategy that best suits them.

A few of these gaps are highlighted below:

Returns – a big gap in many retailers approach is returns. For instance, if a customer has purchased an item online and it doesn’t fit, some will only allow the customers to return their order through the same method. But what if it is more convenient for them to pop into their local store to return it? By allowing this, retailers can cater to busy consumers’ needs. Research by Collect Plus has also found three-quarters of customers would be more likely to use a retailer if they offered free returns by post. Some retailers have gone one step further and joined forces with Collect Plus, which allows customers to return parcels to a local convenience store rather than going to the post office.

Click and Collect – as we’ve previously mentioned Click and Collect is a convenient service to add to delivery options on your website. This enables your customers to pick up their order from a local store rather than being confined to arranging their life around a delivery slot. It cuts down on missed deliveries and also means the retailer has the opportunity to upsell when the item is picked up in store.

Digital terminals in store – these allow customers to purchase items in-store from your website. Customers could use these if an item is not in stock in store but is available to buy online, there could be a wider selection of items online or they may want to see an item in store before making a purchase online for it to be delivered to their home. John Lewis reported that its online revenue has been boosted by a 40% rise in sales made via its in-store digital terminals so this is certainly a useful service to avoid losing custom and bridge the gap between in store and online.

This was posted in Bdaily's Members' News section by Adrian Mills .