How omnichannel solutions can help encourage smart customer spending habits
If omnichannel retail was a growing trend before the pandemic, the impact of COVID-19 has firmly established it as an essential strategy for merchants.
The upswing in online shopping driven by the pandemic means retailers will not only have to implement or supplement omnichannel strategies, but ensure they’re differentiated. One way to do so is by empowering customers to shop smart and spend wisely.
We’ve offered thoughts on how to integrate omnichannel solutions across each step of the shopping lifecycle below to not only making shopping easier, but to encourage smart spending decisions:
Step #1: Omnichannel product discovery
A multi-channel sales approach is an integral part of any omnichannel strategy. Think you’re doing enough by having a robust eCommerce presence? Think again. As consumers continue to lower their spending in discretionary categories, retailers must reach them where they are – it’s no longer about depending on customers to come to your store or site. Industry experts predict that social commerce, or making purchases directly through social media platforms like Instagram and Snapchat, will grow in 2021 as customers spend more time on social media and less time in-person.
In addition to “buy buttons” and shoppable posts and stories, shoppable video is the next omnichannel trend to watch for in 2021, predicts Forrester. With video the closest digital medium comparable to an in-person experience, it may be a viable option for retailers to invest in as part of their marketing mix.
Step #2: Omnichannel pickup
Whereas pre-pandemic, in-store and delivery were the reigning options, customers now expect a range of flexible and affordable pickup choices. Merchants should be investing in an omnichannel strategy which prioritizes the online, in-store and hybrid shopping experience concurrently. Retailers should ensure their brick-and-mortar locations are set up to offer “BOPIS” (buy online, pick up in store), as sources project up to 90% of retailers will offer this service by the end of the year. BOPIS helps customers save on delivery fees (which they may be hyper-aware of as they’re likely spending more on delivery than ever before), while also helping merchants reduce their delivery costs and carbon footprint.
Curbside pickup and other BOPIS options go part and parcel with the “contactless shopping experience,” as customers can collect their items safely without having to expose themselves to prolonged in-person contact. “Click and collect” strategies have exploded in popularity – sales are now expected to reach a whopping $58.52 billion by the end of the year.
Step #3: Omnichannel customer service
For retailers that prior to the pandemic, depended on brick-and-mortar locations for the majority of sales, customer service agents were likely invaluable parts of the shopping experience. Luckily, advances in technology through artificial intelligence (AI) and machine learning (ML) mean that the quality of your customer service does not have to decrease when being brought online across channels. AI-powered bots can interact with customers throughout their shopping journeys, bringing a level of customer engagement and data insights collection that would not be possible through the in-person experience.
Videoconferencing enables customers to share their challenges visually so that agents can help solve problems, and with ‘co-browsing,’ agents can even share screens to help solve online shopping issues. Offering omnichannel customer service options helps decrease the risk of abandoned carts and helps customers make important shopping decisions.
Step #4: Omnichannel payment options
What could be more critical to empowering your customers to make smart spending decisions than offering flexible payment choices? With more consumers moving away from credit cards and shopping on debit, they’re increasingly choosing BNPL options like Afterpay to make purchases without having to worry about paying the total up-front or being hit with interest and debt afterwards. Offering BNPL can not only increase the AOV, cart size, and shopping frequency of your current customers, it’s also an attractive selling point to acquire new ones. Incorporating BNPL messaging in an omnichannel strategy, including promotions, lets your customers know you want to help them spend smart.
According to Accenture, Gen Z is most likely to spend through BNPL options, an increase of 201% since 2019. Millennials and shoppers in Gen X and above increased their BNPL spending by 86% and 63% since 2019, respectively.
Interested in learning more about how Afterpay can fit into your omnichannel strategy? Reach out to our team for more information by clicking here.
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