Omnichannel Retail Strategy: What It Is, Why It Matters, and How to Shop “In-Store”

You have surely heard someone mention the term “omnichannel retailing.” It seems to be a new and revolutionary phrase. But what is it exactly?

In the ever-growing online world, it becomes challenging to distinguish true tactics from marketing buzzwords. Additionally, the term “multichannel” is often thrown into the mix, making it difficult to understand the difference between the two.

What is an Omnichannel Retailing Strategy?

An omnichannel retailing strategy is a sales and marketing approach that provides customers with a fully integrated shopping experience. Omnichannel retailing strategies combine user experiences across multiple touchpoints, including physical stores, online shops, e-commerce marketplaces, and mobile apps.

Single Channel vs. Multichannel vs. Omnichannel Retailing

Single channel: is a business that sells its products or services through just one channel, such as a retail store.

Multichannel: is a business that sells through several channels, such as a retail store, an e-commerce website, and e-commerce marketplaces.

Omnichannel: is a business that offers a seamless shopping experience across all its channels, such as physical stores, online shops, e-commerce marketplaces, mobile apps, and catalogs.

The big idea is that in omnichannel retailing, every customer interaction shapes the overall customer experience with your product and brand.

Example of an Omnichannel Retailing Strategy

Critical questions surround true omnichannel retailing: Can your customers browse a product in-store, scan it using your app, and then add it to their cart to purchase later at home in a different size? Can they browse your online store for new styles, explore those fashions on Pinterest and Instagram and Facebook, and then receive a coupon in-store to redeem? Does your data connect store purchases to notify loyal customers on Messenger when similar styles are released online or elsewhere? Can your customers search for your products on Amazon or another marketplace and then purchase them in person?

They should be able to do all of these things and more.

To illustrate this, let’s take a look at an example from discovery to checkout and beyond.

Discovery

The customer journey often begins with discovery. The customer searches for products and finds detailed information and compares prices across different channels, such as the company’s website, retailer sites, e-commerce marketplaces, and social media.

Example: The customer is looking for a new pair of shoes. They browse for different styles and sizes available online and then visit an e-commerce marketplace to compare prices and discounts.

Purchase

Once customers have identified the product they want to buy, they usually move on to the purchase phase. Here, customers can make a purchase through the retailer’s website, an e-commerce marketplace, or a physical store.

Example: The customer buys the shoes through the retailer’s website. They enter their card details and complete the purchase.

Fulfillment

After making a purchase, the fulfillment phase begins. Here, the customer receives their order and makes the purchase official. In the digital world, this is typically done through email, SMS notifications, or automated tracking systems.

Example: The customer receives an email confirmation of their order and a tracking number so they can track the delivery of their purchases.

Post-Purchase

Finally, the customer experience phase begins. Here, the customer decides whether they are satisfied with the purchase and their experience with the brand. Customers can leave feedback and reviews and reach out to customer service if they need further assistance.

Example: The customer is satisfied with their purchase and leaves a positive review on the retailer’s site. They also follow the brand on social media to stay updated on future deals and offers.

Benefits