Why you need more multi-channel shoppers and how to make it happen
eCommerce is the future of retail. There’s no arguing that. But what about good old brick and mortar?
We’ve already put talks about the death of retail — and brick and mortar specifically — to bed. But I’d still argue we’re under-valuing just how important brick and mortar remains to retail success.
After all, brick and mortar accounted for 90% of retail sales in the fourth quarter of 2017. Furthermore, there’s a reason why online giants like Warby Parker, Bonobos, Glossier, Madison Reed and, of course, Amazon are suddenly opening stores, even as everyone else seems to be closing them.
What do they know that the others don’t? Just how important brick and mortar continues to be, even (and perhaps especially) as eCommerce explodes.
Multi-Channel Shoppers Will Spend Nearly 500% More
Among the many reasons (and there are many) that brick and mortar continues to remain a critical part of retail, the most important comes down to revenue.
Sure, you can thrive as an online-only retailer, but time and again the data reveals that combining brick and mortar with eCommerce is like adding fuel to the fire. In fact it can even be the difference between “success” and “powerhouse.”
Consider Warby Parker, who within a year of opening its first brick and mortar stores averaged $3,000 per square foot annually, more than practically every retailer other than Apple, according to The Atlantic.
And Warby Parker isn’t an outlier. We see the same thing time and again among small and large retailers alike.
More specifically, based on a few comparison analyses Bluecore has conducted for retailers, we’ve found that customers who purchase both online and offline are significantly more valuable than those who buy on only one channel. And that value comes in the form of engagement, loyalty and revenue.
The data says it all: Multi-channel shoppers are likely to spend nearly 500% more over their lifetime and engage with brands over email more than single channel shoppers. And let’s not forget that multi-channel shoppers are twice as likely to be repeat buyers compared to offline-only shoppers and three times as likely to be repeat buyers compared to online-only shoppers. It’s hard to argue with that.
What To Do About It: 5 Ways To Increase Your Share Of Multi-Channel Shoppers
If multi-channel shoppers will engage with your brand more, buy more often and spend up to 500% more over their lifetime, then converting more of your customers into multi-channel shoppers should be a no brainer for any retailer that has a large enough brick and mortar footprint.
So how do you do it? First, you need to incorporate your offline purchase data into your eCommerce marketing efforts. From there, try starting with these five tactics:
1) Use replenishment and post-purchase triggers to drive online-only buyers to a store
If you already have a personalized replenishment trigger that reminds customers to re-stock based on their own unique buying cadence, you have a powerful opportunity to take that reminder one step further by offering a small incentive to get customers to make their next purchase at their nearest store. And the same goes for post-purchase triggers.
For example, you might offer a small discount for buying online and picking up in-store or award more loyalty points for an in-store purchase. Such offers incentivize your customers to go to a store (even if they do buy online), which can lead to awareness at the very least. In the best case scenario, it leads to them making additional purchases while there.
2) Consistently personalize your digital messages
While aligning all of your cross-channel messages can be tricky in today’s environment, that consistency is paramount to success. And it becomes even more important when you’re tailoring messages to individual customers (or even smaller groups of customers).
To keep your messages consistent, try building targeted audience segments for online-only, offline-only and multi-channel shoppers that you can push to any number of marketing channels, including email, social, display and even your site. Once you have those audiences built, you can then dynamically serve tailored messages to each group, for example by showing a buy online/pick up in store offer to online-only shoppers and a free or discounted shipping offer to offline-only shoppers.
3) Identify which products customers usually purchase offline and promote them to interested shoppers differently
Evaluate your offline purchase data to determine if there are any specific products and/or categories that customers are more likely to purchase offline than online. Then use that knowledge to create different communication treatments for customers that engage with those products.
For products that tend to get purchased in store most often, tailor your email triggers so that they include information on where the recipient’s closest store is located and feature specific messaging about coming in to touch and feel the product selection and talk to expert store associates before making a decision.
4) Advertise in store services and events
You can also use store-location purchase data to begin personalizing your emails with messages about special in-store services and upcoming events at a given customer’s store.
To take this one step further, try using predictive models to gauge customers’ potential interest in specific products and/or categories, that way you can tailor the services and events you promote based on both location and products of interest.
5) Take advantage of lookalike modeling
Can you determine which of your single channel shoppers are most likely to become multi-channel shoppers? With advanced lookalike modeling you can.
Specifically, this modeling should allow you to identify the segments of your customer base that exhibit behaviors similar to those who are already multi-channel shoppers. Once you identify these customers, you can then create personalized streams that target them with incentives to shop in-store (for online-only shoppers) or online (for offline-only shoppers).
The Difference Between Retail Success and Retail Powerhouse? Multi-Channel Shoppers
Increasing engagement, loyalty and customer lifetime value sit among the top goals for every retailer, and it turns out one of the best ways to achieve these goals is to convert more customers into multi-channel shoppers.
And opportunities abound for growth in this area given that multi-channel shoppers comprise well below a quarter of most retailers’ customer base. Whether you need to bring online shoppers offline or vice versa, the time to take action is now because we’re entering an entirely new era of retail.
What else is poised to shake up retail in 2018? And how can you respond? Check out our take on the new path for retail: Co-existing with the force of Amazon.