What is omnichannel retail?
Omnichannel retail in e-commerce focuses on creating a seamless shopping experience for the customer on all the online and offline channels where the brand has a presence.
Defining multichannel can help to understand the omnichannel model. When a brand follows a multichannel approach, the focus is on the product. It secures many different external channels to market an item and sell it. These channels each operate independently but have the product in common.
Meanwhile, omnichannel puts the focus on the customer. It aims to integrate the shopping experience on all channels to create a seamless flow in the purchasing journey. Every channel is connected so that shoppers can switch freely between shopping stores, social media, messaging, and brick-and-mortar stores without interruptions in their journey.
A customer who discovers a product on social media should be offered the same experience when switching over to the online store to continue browsing. They should be able to add an item to their cart on the brand’s online store and finish the checkout process on the brand’s mobile app or at an offline store. The entire purchase journey should be a seamless, smooth-sailing experience.
The value of omnichannel for brands
Shifting a business’ strategy to omnichannel requires a lot of work. Older, legacy technologies don’t always integrate easily with modern apps, application programming interfaces (API), or websites. Standardizing experiences across the board is also quite a difficult task. But, despite all the hurdles, this approach can prove to be advantageous for brands.
For one, it helps with customer retention. Research from Aberdeen Group indicates that brands with robust omnichannel strategies retain 89% of their customers on average. This is comparable to the 33% retention rate of businesses with a weak approach. As such, shoppers that move between channels can be more valuable for brands, with a lifetime value that is 30% higher than those who use only a single channel.
Brands can access vast amounts of data. It becomes easier to identify potential customers and develop effective engagement strategies. Targeting specific audiences and refining personalization can further accelerate business growth and boost brand loyalty.
Omnichannel drives revenue. Google data shows that such strategies have increased total store visits by 80%.
Meanwhile, 73% of customers visited various channels such as direct-to-customer (DTC) stores, online marketplaces, social media, and brick-and-mortar shops before purchasing a product.
Brands can operate as a single entity when interacting with customers. It becomes easier to streamline customer service, merchandising, inventory, sales, and enterprise resource planning.
Cafe24 supports merchants’ omnichannel business
Cafe24 understands the value an omnichannel e-commerce strategy brings to the table. For this reason, the company offers a wide range of innovative tools to link online platforms like the store, marketplaces, and social media. It also provides integrations to mobile.
From its store builder and open API to payment and logistics, Cafe24 equips merchants with the right tools to be competitive and to succeed in creating a seamless shopping experience for customers.