Retail is in a state of constant flux due as ecommerce and mcommerce boom. The e-commerce world is always evolving to match pace with changing market trends, consumers now require a higher degree of personalization and convenience throughout their shopping experience.
Today’s shoppers are looking to invest in experiences, and better experiences result in better sales. Because of this, smart retailers are adopting an omnichannel payments approach designed to bolster the consumer shopping experience.
This means that retailers are providing their customers with multiple ways of buying their products, including in a brick-and-mortar location, via a website or through a mobile app. Implementing an omnichannel payments and business strategy is an initiative that requires time, money and a seasoned team that can streamline an omnichannel payments operation, but it’s usually a worthwhile investment.
A More Profitable Business Model
A study conducted by Internet Retailer that examined the data of 24 retail chains found that omnichannel customers spend 2.7 times as much at Ulta Beauty compared to its store-only shoppers.
The data was consistent with activewear retailer Fabletics.com, where consumers who shop in its stores and online spend nearly three times as much as those who only shop online. The study also found that the number of surveyed consumers who buy products online and pick up orders in physical stores increased by four percentage points to 62% from March 2017 to March 2018.
This data suggests that marketing your business through multiple channels will increase the amount that each customer will spend when shopping with your store. This is due, in part, to the fact that seeing an item in multiple places will increase the chances of a consumer buying the item.
Additionally, a study conducted by Google, Ipsos MediaCT and Sterling Brands discovered that 75% of consumers are more likely to visit one of your physical stores if they learn local retail information online on a website or through an app. This means that offering your products through multiple channels also increases foot traffic in your physical locations, boosting your online, mobile and brick-and-mortar revenues greatly.
More Personalized and Convenient Experience for Customers
In addition to improving your revenue streams, an omnichannel approach can bolster your brand’s reputation by creating a deeper connection with your customers based on their needs and trust. A recent study showed that 48% of customers no longer want to shop on e-commerce sites with slow delivery rates.
An omnichannel fulfillment approach can improve customer satisfaction rates by offering multiple delivery options, such as the opportunity to order a product online and pick it up at a physical store. It’s an effective way for merchants to regain customers’ trust and improve the convenience factor.
The omnichannel route also reduces some of the inefficiencies that riddle retail businesses. Rather than requiring a customer to drive 45 minutes to the nearest brick-and-mortar store only to find the desired item is out-of-stock, an omni-channel approach enables customers to request specific products online, which can then be stocked and reserved for the customer at the local store. This approach also improves the relationship between a retailer and a customer as the retailer can learn more about the customer’s likes and dislikes across various channels. This data can then be used to offer the customer more personalized recommendations at a time where more and more consumers want to feel as if their individual needs are being met.
This idea can be taken a step further with a loyalty or rewards program that customers can access through every channel, making them more likely to spend more with your business if they’re being rewarded for buying your products across various channels. The goal is to ultimately improve the shopping experience for the consumer, thus bolstering your brand’s name, which leads to higher profit margins.
If you’d like to implement an omnichannel payments operation, you’ll need to hire a payments processing team with the experience, expertise and capacity to help you reach your goals. PayArc offers merchants the ability to accept customer payments across channels and to streamline the payments operation.
Contact us today to get started if you’re hoping to expand your retail business goals, improve customer retention rates and boost sales.
