Why shouldn't write off brick-and-mortar in the digital age
Although the growth metrics in brick-and-mortar have been fluctuating, offline retail may remain critical for certain parts of customer journey.
Introduction
In the ever-growing world of digital commerce, it's easy to overlook the value of brick-and-mortar stores. However, despite e-commerce has experienced remarkable growth, reaching $8.1 trillion in worldwide sales, and is predicted to account for 24% of global retail sales by 2026, this doesn't signify the end of brick-and-mortar stores. Physical retail spaces remain relevant and offer unique advantages. The key challenge and opportunity is combining both in-person and online experiences into a seamless shopping flow.
In fact, according to Omnisend report, businesses that integrate multiple channels experience a staggering 494% higher order rate compared to those relying on a single channel campaign.
The advantages of brick-and-mortar stores
01 In-store shopping offers irreplaceable tangible experiences
While online shopping offers convenience and accessibility, many shoppers still value the tangible experiences that brick-and-mortar stores provide. A Delighted (by Qualtrics) survey found that 75% of shoppers stated that being able to see and try on items were the primary reasons they shopped in-store. This desire for physical interaction and exploration cannot be replicated in the digital realm.
02 In-person shopping reduces return rates
One of the challenges of online retail is the high return rate. In-person experiences that help customers make informed decisions can significantly reduce this rate. A study by the National Retail Foundation discovered that 20.8% of all products sold online in 2021 were returned. By offering customers the chance to see products in person, businesses can address concerns and provide a more accurate representation, leading to fewer returns.
03 In-person shopping fosters local relationships
Establishing a strong local presence is crucial for businesses to build relationships and increase customer retention. Customers are intentionally supporting local businesses, even when shopping online. An Inuit study revealed that 70% of U.S. shoppers actively choose to support local businesses. You can tap into this interest by having physical storefronts and other in-person shopping opportunities and create a sense of community around your brand.
How to integrate omnichannel experiences into your shopping flow?
Here's how you can reshape the retail landscape by embracing an omnichannel approach:
01 Online Purchase, In-Store Pick-Up (BOPIS)
Customers often abandon their online shopping carts due to unexpected shipping costs, taxes, or fees. To combat this, offer a "buy online, pick up in-store" (BOPIS) option. By providing the convenience of in-store pick-up, you can encourage customers to complete their purchases. According to Baymard Institute, as many as 48% of abandoned carts occur due to these unexpected additional costs.
48% of abandoned carts occur due to unexpected additional costs like shipping costs, taxes, or fees (Baymard Institute, 2022).
02 In-Store Purchase, Home Delivery
Cater to customers who prefer the tactile experience of in-store shopping but find it inconvenient to transport large or bulky items. Offer the option for in-store purchases to be delivered directly to their homes. This benefits customers by providing convenience, and for your business, it reduces inventory overhead. It's a win-win situation.
03 Online Purchase, In-Store Return
Give customers the flexibility to return online purchases at your physical store. This option not only enhances the customer experience but also allows you to engage with customers and potentially convert them into in-store shoppers. According to a study by Optoro (2020), 87% of consumers would prefer to return an item to a physical store instead of mailing it back. Additionally, 71% of consumers reported that they are likely to purchase other items while they are in the store initiating the return.
71% of consumers reported that they are likely to purchase other items while they are in the store initiating the return (Optoro, 2020).
04 The Importance of Personalization
In the digital age, customers crave personalized experiences that make them feel valued. Utilize customer data to offer tailored discounts, recommendations, and promotions based on their recent browsing behavior. According to Accenture, 80% of customers are more likely to make a purchase when they receive personalized experiences. By embracing an omnichannel approach, you can effectively cater to this need and provide personalized interactions across both online and offline channels.
80% of customers are more likely to make a purchase when they receive personalized experiences (Accenture, 2018).
By integrating these strategies into your business, you can enhance the customer experience, drive better conversion rates, and create a cohesive shopping journey that seamlessly blends the online and offline worlds.
Embracing the Future
As your digital commerce business prepares for the future, it's essential to recognize the tremendous opportunities presented by engaging customers through omnichannel experiences. With 60 to 70% of customers now utilizing omnichannel shopping options (McKinsey, 2021), your customer journey should seamlessly blend in-person and online interactions. By embracing the strengths of both brick-and-mortar and online channels, you can create a holistic shopping experience that captivates your audience.