Year 2021 and beyond: Implementing omnichannel strategy is mandatory and not an option for retailers

On the 1^st of January, 2021, as we turned our calendars to welcome the new year, we saw very little has changed on the ground since the pandemic, but a ray of hope was visible on the horizon.  With almost all industry sectors impacted, Covid 19 actually was a game-changer for the retail segment, presenting both opportunities as well as challenges.  The lock-downs, stay-at-home orders, and phased unlocking brought about a transformation in reshaping the retail industry.

Shopping patterns and consumer behavior are no longer the same as the ‘new normal’ created by falling footfall in physical, traditional stores, and a surge in online shopping.

Retailers should not expect the resurgence of the brick and mortar model that was predominant earlier but learn to embrace and invest in providing the best shopping experience for today's emerging omnichannel customer. The need to touch or try out the products before deciding to buy has disappeared largely.  Phone, mobile apps, brand websites, social media, YouTube videos, and in-store experiences are trusted sources for buyers that drive them to make a purchase.

Today’s digital shopper may visit a physical store to buy a newly released pair of shoes, let’s say, of his favorite brand only after browsing the company website, viewing it on social media, and reading the reviews.  If not finding it in the store, he will leave the shop disappointed with no other purchase made.  A customer is lost in the process, and with similar frequent incidents, the brand image takes a beating.  Retailers, hence are advised to follow the omnichannel approach to see revival and growth.

The consumer, in particular, the millennials and Gen Z, will not be willing to shift from the convenience and safety that comes with omnichannel shopping.  Retailers have to re-imagine themselves and put a robust omnichannel strategy in place for better business outcomes to remain relevant and competitive.

The physical store will mostly offer the convenience of an in-store pick-up facility, which will be appreciated as time spent on aisle-hunting is eliminated.  The contact-less payment option will become mainstream.  These stores may also act as warehouses, and being in proximity with the customer will have the advantage of speedy delivery.  With traditional retailers embracing omnichannel operations and marketing, a new customer is gained, and an old customer is retained!

The omnichannel strategy will lead to convenience and conversions if marketing goals and messaging are aligned across different channels.  The approach will touch the different lives or avatars of customers across social, personal, and professional platforms, thereby enabling stellar customer experience, which is the goal of every retailer.

However, establishing a seamless customer experience is only half the job done.  To achieve real success, omnichannel customer relationship management (CRM) must be implemented by integrating new technologies and being in-tune with new customer trends.  Retailers can benefit from the unified CRM to track, map, and analyze customers’ behaviors across various touchpoints and platforms.

Implementation of the omnichannel strategy has to be done across different departments via various channels, and finally, feedback from customers is to be taken seriously for further and continuous improvement.

Rules of retail are now being rewritten, leading to long-lasting changes. Investing in technology and online options have become an integral part of the retailer’s business strategy as omnichannel platforms are preferred. Digital tools and AI will be further leveraged by brands to uncover better customer experiences.

Retailers are opting for more accurate ML-based demand forecasting that is quicker to implement than traditional approaches.  Personalization tools use data science and ML technologies, besides chatbots, to deliver personalized experiences.  RFID tags, ML, IoT devices that come with digital transformation are reducing direct interactions with customers.  Technology is leveraged even in last-mile delivery for health and safety reasons and is expected to remain so in the future as well.

With customer experience becoming key to retail growth and digital shopping becoming the norm, businesses are leveraging technology to deliver a personalized experience that mimics the in-store experience.  This omnichannel approach seamlessly connects offline and online by leveraging AI, IoT, VR, AR, robotics, and more tech-driven solutions to provide an environment for online customers where they can enjoy immersive shopping experience.

Data insights from social media platforms and search engine tracking tools support in understanding customer behavior and buying patterns, eventually leading to establishing customer loyalty. Some innovative methods that can be employed to serve customers on their journey to enjoy a great shopping experience may include virtual fitting rooms to provide a personalized experience and reduce return rates. Social media platforms can use technology to showcase products impressively to create and build shopping intent.

Retailers will continue to innovate and adapt to changes as they strive to provide a better value proposition for customers, aiming for quicker recovery of the sector.  On the customer front, this ‘digital first’ approach to shopping is here to stay even in the post-pandemic era.