Top Four Omni-Channel Areas Where Both Customer and Retailer Benefit:Measure the value of omni-channel to your retail business in dollars. A report by IDC Retail Insights found that omni-channel retailers see a 15-35% increase in the size of their average transaction and a 5-10% increase in profits earned from loyal customers – meaning omni-channel shoppers are more valuable to your business. Here are the top five reasons why:
1. PriceQuestion: What is one of the primary drivers of online shopping? Answer: The ability to compare prices across retailers. In the past, online channels might have provided ‘better’ pricing options to consumers, which encouraged the adoption of the channel, but that has changed. Today, omni-channel supports pricing consistency across channels. By providing the same great deal in-store as online, retailers reduce price competition between their own channels. Special promotions and coupons still drive sales; however, retailers often make these deals available for both online and in-store shoppers. Harvard Business Review demonstrates the benefits of omni-channel for both retailers and customers with a recent study. “Our findings showed that omnichannel customers loved using the retailer’s touchpoints, in all sorts of combinations and places. Not only did they use smartphone apps to compare prices or download a coupon, but they were also avid users of in-store digital tools such as an interactive catalog, a price-checker, or a tablet.”
Inventory visibility for consumers is one of the most empowering aspects of omni-channel. The ability to see the items' availability and locations, allow customers to choose the most convenient method of delivery or pick up.Is the item located in a distribution centre? Can it be sent to a nearby store or pick-up location? Is it easier to have it delivered right to the customer’s home? Or is the item available in a store nearby, meaning it can easily be purchased online, and be ready for pick-up at a convenient time? Omni-channel helps anticipate these questions and provides the answers. It allows the customer to personalize their purchase fulfillment. Omni-channel also gives retailers the ability to gather data on where, when and how their stock moves through each channel in use. Without real-time inventory visibility, it can be challenging to manage stock effectively; however, with it, retailers have a complete view of where the stock is, and where it needs to be, and therefore the information needed to move stock efficiently. According to Digital Commerce 360 a study by the Aberdeen Group discovered that omni-channel retailers with engagement strategies saw: an average 9.5% YOY increase in annual revenue, a 7.5% YOY decrease in cost per customer contact, and a healthy 89% customer retention rate. versus companies with poor omni-channel engagement.