Look, we all know the drill: shoppers aren't chained to one channel anymore.
They're bouncing between their phones, laptops, and store aisles, often in the same shopping trip. If you're still treating "online" and "in-store" as separate worlds, you're leaving money on the table. And honestly? You're probably frustrating your customers. We're talking about building a real, seamless experience, not just slapping a "buy online, pick up in-store" (BOPIS) button on your website.
For consumer goods and CPG companies (and their retailer partners), the challenge isn’t just being present across multiple channels—it’s creating a truly integrated experience that feels effortless to the consumer. When done right, omnichannel retail can drive higher sales, deepen customer loyalty, and future-proof brands against evolving shopping trends and market changes.
In this article, we’ll explore why omnichannel success is a must-have in today’s retail landscape and how businesses can overcome common obstacles to create a frictionless customer journey.
Let's face it: consumers no longer follow a linear shopping journey. People may research a product online, visit a store to see it in person, and then make the final purchase via mobile. They may even research on their phones while standing in the store. According to a 2023 study by McKinsey, over 60% of shoppers are doing this multi-channel dance, highlighting the need for an integrated approach.
And get this: those who do the dance? They spend more. A Harvard Business Review study found that omnichannel customers spend 10% more online and 4% more in-store than single-channel shoppers. This demonstrates the significant revenue opportunities for consumer brands and retailers that come with an effective omnichannel strategy.
Okay, so why aren't we all swimming in omnichannel profits? Because it's a pain in the neck.
Despite its benefits, many consumer goods companies struggle with implementing a seamless omnichannel experience. The most common challenges include:
Addressing these issues requires a solid, data-driven approach and the right technological investments, such as Retail Velocity’s retail data platform, VELOCITY®, that ensure companies are obtaining and leveraging timely and accurate retail data for optimal decision-making across their organization.
Imagine knowing exactly what a customer browsed online before they walked into your store. That's the power of unified data and actionable insights. Integrating online and offline data sources allows businesses to gain a 360-degree view of their customers. By leveraging advanced analytics, companies can:
No More Guesswork: Cloud systems and RFID are your friends. And BOPIS? It's not just a buzzword; it's what shoppers expect. A true omnichannel experience requires real-time inventory synchronization across e-commerce sites, physical stores, and warehouses. Companies can achieve this through:
According to Forrester, businesses that implement real-time inventory tracking see a 25% reduction in stockouts and an increase in overall sales.
Artificial Intelligence (AI) isn't just for robots. It’s to know your customers better than they know themselves. Consumers expect tailored shopping experiences across all channels. Using AI and machine learning, brands can:
Think micro-fulfillment, ship-from-store, and AI-powered delivery routes. A study by Deloitte found that 80% of shoppers expect same-day shipping options, and businesses that provide them experience a 30% increase in customer satisfaction. That's the bar.
To meet rising consumer expectations for fast and flexible delivery, companies should optimize their fulfillment strategies by:
Think smart mirrors, app-driven store navigation, and QR codes that give you the inside scoop on a product. Brick-and-mortar stores are evolving into experience hubs where digital meets physical. Consumer brands and retailers can enhance in-store engagement through:
Don't get lost in vanity metrics. To evaluate the effectiveness of an omnichannel strategy, executives should focus on key performance indicators (KPIs) such as:
Companies should leverage advanced analytics dashboards showing daily activity to continuously monitor and optimize these metrics across all products, product categories, and retailers.
This isn't a trend. It's the new reality—and it’s no longer optional. If you're not blending your online and in-store experiences, you're going to get left behind.
By investing in automated data integration, real-time inventory tracking, AI-driven personalization, efficient fulfillment, and in-store digital innovations, consumer brands and their retailer partners can create seamless, engaging shopping experiences that drive profitable growth.
Executives who take a proactive approach to omnichannel transformation will not only enhance customer loyalty but also position their brands for long-term success in an increasingly digital world.
Ready to ditch the data silos and build a real, optimized omnichannel strategy based on clean, harmonized daily retail data at the SKU and store level? We can help you navigate this. Drop us a line, and let's have a real conversation about how our VELOCITY® retail data platform can help boost your sales and keep your consumers loyal to your brand.