TheMarketingSite.com

Knowledge Library

The Omnichannel Future of Retail

Retail Marketing and Sales


Pete Case, founder of Gloo
 
Imagine for a moment what an electronics and appliance retailer might look like in the not-too-distant future… A customer walks into a bricks and mortar branch to check out a Nespresso machine she’s had on her wishlist on an e-commerce website, after the retailer has emailed her about a special it is running on the product.

 
As she walks in, her location-aware mobile app (that she’s previously downloaded free from the brand and opted into) picks up that she’s in store. The sales rep automatically sees her purchasing history and walks over to recommend various accessories for the iPhone she bought a month earlier.
 
The sales rep then shows her several interactive demos of the coveted coffee machine on a tablet computer to pique her interest in the product. At the same time, the views and product reviews of her friends and peers are dynamically shown on a screen next to the coffee machine.
 
The customer decides to pick up a new protective cover for her smartphone, but leaves without buying the coffee machine. She likes the machine, but she’s unsure if she can afford the product yet and thinks she may be able to find a better price if she shops around. The retailer tracks her online movement from their site and sees her browsing a competitor’s site. As a result, she receives a discount coupon 24 hours later on the same smartphone app she uses to manage her rewards. She links directly from the voucher to the retailer’s mobile online shop. A sale is closed and her spending habits with the retailer are widened. At the same time, the woman feels rewarded by the brand and is retained as a customer.
 
The data relating to this spending habit, which would include the time of day the customer responded to the voucher, the series of events that led to the sale, and the details of the other online retailers she spent time with on her purchasing journey, is now logged into the retailer’s segmented database for further retargeting and cross selling.
 
This is one of many examples from the world of omnichannel marketing. The technology to bring this scenario to life already exists, and it’s essential for retailers who want to stay ahead of the competition to explore and adopt these opportunities. Customers, after all, have technologies such as tablets and phones already interwoven into their everyday lives. With smartphones now dropping under the R500 price point, the audience for these specific types of interactions is getting wider and wider – and there are plenty of other ominichannel examples that don’t rely on smartphone ownership.
 
Today’s audiences certainly expect that the companies they engage with are able to interact with them when, where, and however it suits them. Whether they’re engaging with retailers at physical stores or via websites, mobile apps, call centres, kiosks, or digital signage, they’re demanding a suitable and interlinked experience with the brand.
 
This is an expectation that few local retailers and brands are able – as yet – to meet. One reason for this lies in the back office, where departments often operate as individual silos. This restricts a brand being able to have a single view of the customer and their movements both off and online. The customer experience is, as a result, patchy, disconnected and frustrating, with brands being unable to unlock this great cross channel potential.
 
By way of example, does any of this sound familiar?

  • You receive a call from a call centre offering a special on a product that you already own.
  • The product you see promoted on a retailer’s website is unavailable when you arrive in store.
  • The store manager interprets a warranty differently to the advice you received from the retailer’s call centre.
  • Your email request for help goes unanswered.
  • The SMS marketing messages you receive are impersonal and irrelevant, even though you’re a member of the brand’s loyalty programme.
  • You are required to spend time in store when you could easily self-service the issue digitally.
Tomorrow’s leading retailers will be those that can blur the lines between channels and departments to give their customers a consistently great experience at every touchpoint. Omnichannel retail isn’t just about supporting multiple channels (like multichannel retail), but about driving a consistent and integrated strategy across every sales and service channel, where each channel is maximised in terms of its ability and in line with the way customers wish to interact with it. This gives customers the convenience of their preferred channel at every stage of the purchasing process and a wider selection of buying opportunities.  

It demands work to get the back-end systems and processes right, but the results are worthwhile. By blurring channels, a brand can gather and use data at every touchpoint, which in turn provides information that can be used to personalise offerings and build deep relationships with customers, as well as improve sales and customer retention.
 
Integrating technologies such as in-store kiosks or tablet computers, within an omnichannel approach, can create a more interactive and immersive retail environment for the customer, while at the same time improving productivity on the shop floor. It’s a great way for retailers to set themselves apart from the pack in a world where customer experiences with retail are all too often fragmented, impersonal and inconvenient.
 
The world where technology meets retail is an exciting opportunity for everyone, from customer to retailer, so it’s time to embrace it!
 
 
About Gloo
Gloo is proud to be South Africa's most awarded digital agency for both effective and creative work. It has been recognised as the nation's Digital Agency of the Year in 2007, 2008, 2009, 2010, 2011, 2012 and 2013. Gloo was also named overall Ad Agency of the Year at the 2012 AdReview Awards – the first time in the history of the awards that a specialist digital agency has been awarded this title.
 
For more information, please visit www.gloo.co.za. Twitter: @glooniverse
 
Pete Case, Founder and CEO of Gloo
Pete Case founded Gloo in 2005 after moving to South Africa in 2000 from the UK. Since then, the company has grown into one of the country’s most awarded digital agencies, winning the coveted Digital Agency of the Year award seven times running between 2007 and 2013. 
 
Pete helps steer the creative vision of the Glooniverse, while spearheading its role in Africa's digital revolution. His career in design and advertising spans 25 years – after completing an honours degree in graphic design from Middlesex University in London, he went on to start his career in TV and film, later crossing over into the world of digital and interactive marketing.
 
Pete has earned awards and recognition globally at the Emmys, Cannes, and Clios. Highlights include: 10 awards at the Webbys, Africa's first Gold at the ECHOs, Africa’s first digital craft award at D&AD, two Loerie Grand Prix awards, 69 Loerie statues, and a Bookmarks Agency of the Year title.
 
He is the first digital representative to be appointed to the Creative Circle committee, and was recently voted the most respected Creative Director in the MarkLives 2013 survey of Johannesburg’s top advertising agencies.

Idea Engineers
Renee Conradie | PR Account Director

t/ +2711 803 0030  
f/ +2711 803 1372

e/ renee@ideaengineers.co.za
w/ www.ideaengineers.co.za

Share The Knowledge
The key to retail success is ensuring a positive shopper experience

Retail Marketing and Sales

The countdown to the Black Friday and Cyber Monday sales has officially begun. With experts predicting shoppers will spend double the amount they did in 2015 – this year’s retail shopping bonanza is expected to be bigger than ever.

Share The Knowledge
Shopper marketing: The path to purchase has changed

Retail Marketing and Sales

If like most marketers, you believe that retail is the centre of the marketing universe then it may come of some surprise to you, to learn that it’s the consumer who is now that ’centre’.

Share The Knowledge
Retail leading the pack in digital transformation

Retail Marketing and Sales

As the physical and digital worlds continue to merge, it is becoming clear that as a retailer it is all about that providing the consumer with that consistent brand experience to strengthen that relationship and help them in their path to purchase.

Share The Knowledge
Five easy ways to be a safe and savvy online shopper

Retail Marketing and Sales

When that must-have item comes on sale while you’re browsing your favourite online shopping site, and before you know it, you’ve purchased it – to spoil yourself because you deserve it.

Share The Knowledge
Retailing: Embrace showrooming to ensure customer loyalty

Retail Marketing and Sales

As trends like online shopping, smartphones and social media have matured, so has the way in which customers research and purchase products and services.

Share The Knowledge