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Customers are demanding omni-channel retailing.
We've written numerous articles on how to create successful omnichannel strategies. This guide serves as a jumping off point, going deep with studies, statistics, case studies, screenshots, and more.
What is Omnichannel Retailing: Definition and Primer
Definition: Omnichannel retailing is a cross-channel strategy that focuses on creating a excellent customer experiences.
The strategy acknowledges that consumer buying behavior is changing. New behaviors include researching online and purchasing offline, in-stre mobile searches and product research, social network shopping, consumer generated content, and cross-device shopping.
The purpose of omnichannel retailing is to create a positive customer experience, and aid consumers in the way they want to shop.
Omnichannel Retailing Example: How Buberry Leverages Omnichannel Strategy to Deepen Relationships
Buberry is a luxury fashion brand. This year Burberry pioneered numerous omni-channel retail strategies.
They partnered with Instagram to launch Instagram Checkout to the world. They became the first brand to make their entire catalogue shoppable on WeChat.
But most interesting was the creation of their first social native product line titled "B Series".
This post is a case study on how brands can use omni-channel retailing strategies to deepen relationships with customers and ultimately drive sales.
Creating a Digital First Product Campaign: Knowing Your Customer
To create a successful omnichannel retailing campaign, you need to know your customer.
It’s clear that Burberry not only has a deep understanding of the luxury market as a whole, but also a keen self-awareness of where they are and where they want to go.
According to a study by Mckinsey & Company, "We expect luxury sales to more than triple by 2025, to about 74 billion. This means that nearly one-fifth of personal luxury sales will take place online."
Young consumers drive the luxury market Burberry competes in. And they know it.
“In 2018, 100% of growth in the luxury market was driven by Generation Z and millennial consumers, compared to 85% in 2007.” - Burberry Annual Report 2018/2019
Burberry has made young shoppers a top priority, influencing not only the products they choose to develop but also the channels they focus on.
Know Your Customers
Barilliance helps e-Commerce stores identify site visitors as individuals, and creates a full 360 profile including merging past offline and online purchases, pages visited, emails interacted with, product interests, and demographic data in one place.
Request a demo to see Barilliance Retention in action here.
Selecting the Right Channel for an Omnichannel Retailing Campaign
Customers are using more channels than ever before.
This is true in Burberry's specific niche as well. The same study Mckinsey & Company found that the number of touch points in the decision journey continues to increase.
By 2014, the average number of touch points world wide was 9. That number was pushed to 11 just two years later.
The question is - which channels are the most important ones?
The reality is the luxury customer is a digital first customer. Today, 70% of luxury shoppers are "digitally influenced".
"The typical luxury shopper now follows a mixed online/offline journey, seeking the advice of peers on social media or looking for suggestions from trusted bloggers before entering a store, then often posting about their purchases afterwards. The luxury shopper who begins and end the customer journey offline is a vanishing breed — representing just 22 percent of all luxury shoppers" - Mckinsey & Company.
Burberry identified social as the most important channel for their target Generation Z customers.
Social channels gain and lose importance based on geography. Because they are a global brand, Burberry identified the most pertinent social channels in each target country - the most common being Instagram and WeChat, to focus their efforts.
Instagram is the obvious choice in the United States. Business Insider reports that 65% of Generation Z checks Instagram daily, the highest of any media platform.
With their channel selected, Burberry was able to marry product and channel fit to create an true omnichannel retailing strategy.
Creating An Omnichannel Retailing Campaign: Burberry's Series B
Burberry created a new product line, titled “Series B”.
The products in the series are only available to purchase in a single 24 hour window on the 17th of each month. Products can only be bought on Instagram and other social channels.
The limited edition items created hype and traction among their target demographic. Exclusive 24 hour "drops" are popular among street wear brands, but less used in the luxury world.
Adding to the limited timeframe, channel exclusivity drove engagement on the brand, while the serial nature of the campaign creates continued relationships and anticipation.
In Burberry’s own words:
“The success of B Series has now paved the way for other activities across multiple channels that allow for even deeper interaction with our community.”
More Omni-Channel Case Studies, Breakdowns, & Examples
We've identified some of the most successful omnichannel strategies in the world. Below is a quick selection.
What Amazon Teaches Us About Omnichannel Strategy in 2019
This case study on Amazon's omnichannel strategy breaks down:
How Nordstram Extends Customer Service with Social
One of our first case studies on Omnichannel Retailing features Nordstrom. We share how they combine data across their brands, unify data, and leverage technology to create their vaulted customer experiences.
However, one of the more interesting tactics we showcase is how they use social channels to extend customer service.
Learn How Starbucks Uses Omichannel to Increase Retention & Create Loyalty
Starbucks integrates technology faster than most food or beverage companies. They've integrated their loyalty program across channels, and recently extended their reach by asking patrons to sign up to access internet.
However, it's what they do with those emails that drives repeat purchase. Check out the full story on omnichannel retailing strategy here.
Merging Online & Offline Experiences in Store: Developing Omnichannel In Developed Markets
In addition to case studies, we've also addressed specific ominchannel challenges retailers face in developed markets.
ROPO Effect Statistics and 9 Ways to Increase Sales
Your customers want to make informed decisions. Today, more than ever, customers are researching online before making a purchase.
This effect, commonly known as ROPO, is a fundamental change in your customer's behavior. Successful omnichannel retailing strategies include tactics geared towards helping customers as they search.
Tactics include nurturing consumer generated content like reviews and testimonials, proliferating this content across both marketing and sales channels, and actively responding to negative reviews.
See all the ways to increase sales through ROPO here.
Click and Collect Statistics, Challenges, and Strategies
Today, there is compelling evidence that click & collect is a necessary fulfillment model for retail and grocery companies. Everyone from Target to Walmart to your local grocery store is implementing Click and Collect to make their stores more convenient for shoppers.
We've collected the many forms of this model, along with bonus click and collect strategies here.
Creating an omnichannel experience for your customers requires connecting data across channels, and effectively using that data to create personalized shopping experiences.
Barilliance is helping hundreds of eCommerce retailers execute their omnichannel retailing strategies. You can request a demo to see if we can help you here.