Consumers Seek Convergence of Retail Channels

With its rapid growth, it may seem easy for merchants to invest their time and money into websites and e-commerce platforms. However, consumers are not switching to buying products solely online. Rather, many customers look for ways to combine multiple shopping channels into one seamless experience. Practical eCommerce reported that there is an ongoing convergence of channels as people seek additional convenience.

“Consumers no longer see a distinction between online and offline shopping,” Google’s Senior Vice President Sridhar Ramaswamy wrote in a recent white paper, according to the source. “Whether it’s searching on a laptop, browsing main street shops or hanging out at the mall — it’s all shopping.”

A survey by ExoLevel found that 89 percent of respondents felt having a choice of channels is an important factor in which brands they bought. E-commerce is the fastest growing segment of the retail sector, but people continue to remain attracted to the in-store experience. Nearly all (94 percent) of those surveyed by ExoLevel said they found buying items from brick-and-mortar stores easy.

The ability to make purchases at any time is altering consumer expectations, and businesses are scrambling to keep up. Shoppers commonly combine mobile and in-store shopping in a process called showrooming. Using physical storefronts to view, touch and try certain products, customers also use their smartphones to compare deals online. As a result, companies are trying to utilize location and search-based promotions across multiple channels. Business Insider noted that the ability to offer a coupon or discount based on recent mobile activity could help companies create a satisfying omnichannel experience.

Gain control of logistics by creating an omnichannel supply chain
Convergence means that companies will need to develop omnichannel supply strategies capable of delivering the experience patrons are looking for. Unfortunately, this is proving difficult for many organizations.

Inventory management systems have traditionally been siloed to simplify managing both physical storefronts and websites. This strategy worked until consumers began demanding convergence from retailers. A separate comScore survey found that 62 percent of customers want the ability to buy online but return items to stores. Similarly, offering features such as in-store pickup can boost customer satisfaction. These services create a high level of exchange between channels, so failing to create an omnichannel supply chain could lead to inventory problems for organizations.

Centralized warehouse management systems give businesses the ability to track product movements regardless of channels. The data analytics tools help firms gain insights into customer behavior that could help improve services and drive brand loyalty. Increasing visibility will be essential in the adjustment to consumer behavior and market trends, according to CIO Magazine. The source noted that e-commerce is giving patrons more options when it comes to making orders. Having the ability to track purchases and monitor activity could identify channel preferences and give firms control of their inventories.

Customer service remains essential to retail success
In addition to overseeing order fulfillment and marketing efforts, firms will rely on data management to improve their services. Customer service is likely to be a key differentiator of omnichannel supply chains. As more companies move to offering mobile, online and in-store purchasing options, consumers will seek value created by service features. This phenomenon is already becoming a reality, as online shoppers are demanding a range of delivery options. Businesses have responded by offering next-day delivery, but this may not be enough, as 78 percent of online shoppers select the most affordable shipping option, according to comScore.

Modern businesses need to have tight control of their logistics expenses, but this is not the only way that customers are demanding service from online retailers. The survey found that 97 percent of respondents want to track their purchases moving through supply chains – another reason why visibility within warehouses is becoming essential to organizations. Even after companies are able to determine the location of specific packages, they still need a reliable way to convey this data to patrons.

Business 2 Community noted that social media is helping firms improve customer experiences. By engaging consumers in social networking, businesses are able to answer questions, monitor conversations and even improve marketing strategies. Following brands online is becoming increasingly popular among online shoppers, and merchants are using social channels to offer discounts and promote sales in order to drive revenue growth. Linking social conversations to mobile purchasing or in-store services could help retailers create an impressive omnichannel shopping experience for consumers.