Strategies for Effective Omni-Channel Growth

Is your business operating online & offline? We show you how to get the best out of both channels with the right strategy.

Grow efficiently as an omni-channel retailer with the right sales strategy

The e-commerce industry is booming! For several years now, and not least due to shops like Amazon, the purchasing volume on online platforms has been steadily increasing. However, the flip side of the coin shows that primarily brick-and-mortar retailers are struggling to survive due to the growing online trade. On the other hand, some countries like France and Austria have already begun to levy digital taxes on online sales and advertising revenues for the sake of fairness and the environment. With the high volume of packages, the logistical CO2 emissions have also massively increased.

Omni-channel retailers therefore have various sales strategies to best compete during times of growing competition while still continuing to grow. In our article, we want to highlight some possibilities.

Fig. 1: Online Revenue Trend 2018 - Multi-Channel Retailers

How to successfully connect online and offline

Basically, the networking of different sales channels is not new. While merchants used to choose between catalog and telephone sales, products today can be purchased online and via smartphone. But how is the best connection between the different channels achieved? What is actually the difference between multi-, cross-, and omni-channel?

All three terms are now common in trade when different sales channels and strategies are discussed. The differences are not always clear, but they are very significant.

Multi-Channel

Those following a multi-channel sales strategy sell their products and services through multiple channels. Although these are operated in parallel, they function independently of each other. For example, there is an online shop and a physical store.

Cross-Channel

In the cross-channel sales strategy, different channels are also used - but in this case, they are closely intertwined. For instance, a customer can order the products online and then pick them up in your physical store.

Omni-Channel

This sales strategy is the newest form to connect online and offline channels, especially. The omni-channel retailer efficiently links the different channels so that they virtually merge. Especially for the customer, this creates a holistic shopping and brand experience. For example, the customer sees the product in your store window, orders it via smartphone while passing by, and then picks it up in your store at a later point.

In conclusion regarding sales strategies and the general connection of online and offline channels: The more channels you intend to use, the more complex the organization and management of cross-media marketing becomes. Setting up and maintaining the individual channels should be well thought out. The omni-channel strategy is not suitable for every retailer. However, in today's world, a physical store cannot efficiently grow without a channel strategy and the online channel.

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Using online sales channels to promote brick-and-mortar trade

Market research institutes have found in surveys that customers like to order products online and then pick them up in the traditional store. Customers also prefer the physical store in case of complaints. As a result, the use of various services mainly takes place offline. The search for products, however, is increasingly shifting to the internet.

In marketing circles, this is known as "ROPO" (Research Online Purchase Offline). On the internet, customers have various options for getting detailed information on a product as well as for comparing prices, features, and materials. Online customer reviews also contribute to the final purchase decision. Customers make their purchase decision during the research and do so online, even if the product is later purchased in a physical store.

Online sales channels increasingly serve the visibility of the physical store. Merchants who shut themselves off from online channels run the risk of not being discovered offline either. To make your physical store visible on the internet, you do not always need an e-commerce platform or an elaborate website.

As a cross- and multi-channel retailer, you have the option to use online sales strategies such as Local SEO or Local Inventory Ads to increase visibility. Both strategies aim to make customers aware on the internet that there is a suitable offline offer in their immediate vicinity matching their search query. With Local SEO and Local Inventory Ads, you direct the online user straight to your physical store. If possible, the entire range should be depicted online - not primarily for sale, but as an important source of information and preparation for the in-store purchase.

Optimally utilizing customer lifetime value and customer segments

The already described scenarios and sales strategies show that especially for omni-channel retailers, the connection of online and offline is essential. The holistic customer experience strengthens the brand and your business strategy. The benefits of cross-media marketing are obvious: Your products and services can be ordered online to be viewed or tried on in the physical store.

The connection of online and offline is not a one-way street, however. Your customers can just as thoroughly be advised on-site in the physical store, use services, and test and examine products extensively. Later on, the products can be purchased online on a regional basis. Therefore, it is particularly important for the omni-channel sales strategy to not only best connect the channels for the customer but also to align company metrics accordingly.

For sustainable growth, familiar metrics such as revenue need to be questioned and realigned across the many new touchpoints in the shopping process based on the customer journey. Numerous metrics are available for e-commerce, such as conversion rate, average shopping cart, purchase frequencies, cost per order, customer lifetime value, new customer acquisition costs, and much more.

Above all, omni-channel retailers should use some of these metrics for a holistic view and evaluation, because merely considering revenue falls short. Instead, the e-commerce platform should be integrated into the overall company view. Omni-channel retailers do not have to fear cannibalization effects here, as the sales potential generated online and redeemed in the physical store outweighs the feared migration from the store to the online platform.

What can we do for you?

Do you need support in choosing the right sales strategy for your omni-channel retail? Do you have questions about Local SEO or Local Inventory Ads? We are happy to support you with your concerns.

We look forward to your inquiry.