Stephan Schambach is the founder and CEO of New storea turnkey omnichannel shopping solution.
getty
Amazon and Walmart are crossing each other’s territory as they compete for market share in a crowded trading landscape. In this case, Amazon just opened its first physical clothing storeand Walmart recently announced that its stores would act as shopable fulfillment centers. Two of the world’s largest retailers are: shake things up on opposite sides of the spectrum, showing us that digital and physical experiences are increasingly intertwined.
As consumer expectations evolve, convenience is the second most important factor for brand loyalty, as reported in Fresh Relevance’s 2022 data pulse. One way retailers can meet the demand for more convenient experiences is by increasing their omnichannel fulfillment capabilities. And in today’s competitive retail space, that means identifying opportunities to merge digital and physical experiences, including fulfillment opportunities.
Consumers crave convenience.
Brand loyalty is becoming increasingly elusive as expanded product options and consumer expectations increase. In today’s retail market, Fresh Relevance found that 35% of consumers have no problem switching to a new brand from a brand they’ve shopped with before.
Much of this willingness to switch brands relates to convenience: consumers want to buy the products they want, how and when they want them. In fact, a third of US consumers will switch stores if items are out of stock, and nearly 40% will switch brands or products. Only 13% of consumers are waiting for the item they were looking for back in stock at the original retailer.
Consumers almost always buy from the store that offers the most convenient shopping experience or the fastest shipping and delivery service. People no longer buy from a brand simply because they have bought from it in the past.
Retailers therefore need to go beyond the basics to grab the attention of consumers. It’s time to think about convenience elements that will actually drive customer loyalty. This is where omnichannel fulfillment comes into play.
Create rich experiences with omnichannel fulfillment capabilities.
Omnichannel fulfillment gives customers access to a retailer’s entire inventory with multiple pick-up and delivery options. For example, when a shopper orders a product online, they can pick it up at a nearby store or have the product shipped home from that store. A strong omnichannel fulfillment strategy provides flexibility, convenience for customers and increased sales for the retailer.
Rather than seeing each store location as a separate entity, it’s time to embrace the idea that a retailer’s stores and online presence are completely interconnected. Amazon and Walmart are laying the foundation for successful omnichannel fulfillment, and brands need to realize that they don’t need the resources of these organizations to do the same. With the right strategy, supported by the right technology, retailers of all sizes can benefit from omnichannel fulfillment. Here’s how to get started.
1. View edits through a new lens. Expanding the fulfillment options means that you have to take extra logistics layers into account. With a storeable fulfillment center, you need to schedule store associates to assist customers and pick, pack, and ship orders. Are you going to have separate teams for each position or are you going to train your employees to become omnichannel employees? In addition, implement fulfillment rules that describe how orders are routed to a store for consistent customer experiences.
2. Invest in technology that enables omnichannel experiences. Get rid of outdated point-of-sale (POS) technology and use solutions that increase efficiency and connectivity. Equip sales reps with tools, especially mobile ones, that provide real-time visibility into inventory and orders. While inventory accuracy has always been critical, real time inventory becomes paramount when performing omnichannel fulfillment.
3. Identify new ways to engage with customers. As your omnichannel fulfillment strategy evolves, you need to find new ways to reach your customers to keep them engaged. For example, my company helps with branded mobile apps. I suggest that leaders interested in these solutions ensure that the app empowers shoppers to make purchases and power in-store functions such as mobile checkout, online purchase and in-store pick-up (BOPIS) services.
It’s also important to nurture and proactively communicate with your most loyal customers. To do this, retailers can establish an effective social media presence that enables two-way communication. Not only is social a useful tool for brand recognition and marketing, but social apps are always adding new tools for integrating product information into messages or even add order status information to DMs. By equipping your social team with information about product inventory levels in store locations, they can help customers buy, track and receive their orders faster and more efficiently
Your first step toward omnichannel fulfillment doesn’t have to be a huge investment. Start small and celebrate every win. Take the time to understand what your customers want, devise a strategy, implement the right technology and most importantly, iterate and improve your processes. And remember, you don’t have to be a retail giant like Amazon or Walmart to succeed in this arena. Omnichannel is for everyone.
businesskinda.com Business Council is the leading growth and networking organization for entrepreneurs and leaders. Am I eligible?
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.