Blending Physical and Digital: Is Omnichannel Still Fit for Purpose in 2023?
The retail industry has certainly been riding a metaphorical merry-go-round these last few years and it can be hard to keep track of the current state of the business from month to month.
The global COVID-19 crisis and the resultant restrictions on human activity in most countries around the world caused a severe shift towards online shopping as people desperately searched for convenient and responsible methods of accessing essential and luxury products. Between 2019 and 2020, online spending leapt up an impressive 50.5% according to Digital Commerce 360’s analysis of US Department of Commerce data.
However, whilst many predicted – as they have been for some time – that the pandemic would be the final nail in the coffin for the high street the opposite has in fact proven true.
Since restrictions have been lifted, we have seen a resurgence in the popularity of in-store shopping. Whilst online sales still account for a fifth of all retail sales, customers have undoubtedly discovered a new appreciation for in-store shopping after spending all those months without it.
Omnichannel
This state of affairs presents fresh opportunity for retailers to blend physical and digital shopping experiences in 2023. Omnichannel retail has been a growing trend for some time now, but with many customers now significantly more comfortable using digital technology in their retail experiences and having a renewed desire for in-store shopping the opportunity has arguably never been greater.
One such example is in the proliferation of BOPIS (buy online/pickup in store) or, to use it’s more familiar moniker, click-and-collect features. During the pandemic, BOPIS became incredibly important for people to access groceries and other household goods where home delivery wasn’t available – a situation which occurred regularly due to delivery slots often being booked solid weeks in advance. The option to purchase your weekly shop online and then quickly park up and collect it – or even have it brought out to you where curbside pickup was available – was invaluable during this period.
There is also evidence that offering BOPIS options to your customers boosts sales. According to Connect POS, research from the 2022 holiday shopping season indicates that stores which offer these options can enjoy up to a 35% boost in sales.
First-Party Data
One challenge which is now looming large in the minds of all marketers is Google’s withdrawal of support for third-party cookies from its incredibly popular proprietary Chrome browser. Currently scheduled for late 2024, this move will see the world’s most popular internet browser remove the ability for brands to gather user data and target advertising in the same way as they do now.
There are many options for retailers looking to create personalized experiences once this change occurs – check out our previous article where we make the case for a return to more traditional methods – but one factor which is going to be important is constructing a database of first-party data. Like a doomsday prepper hoarding cans of beans, your retail brand needs to be getting ready for the cookie-pocalypse by building a stockpile of rich and evergreen data now.
By getting on board with omnichannel retail now in 2023, you can get ahead of the game and make sure that, when Google does finally drop the hammer on cookies, you have a rich vein of first-party data you can mine to create the kinds of personalized marketing campaigns and customer experiences the modern shopper expects from the brands they do business with.
There are many routes to achieving this. If your retail brand has a bespoke ecommerce or CRM smartphone app, you can leverage these to gather data directly from your customers and start building that database. Similarly, if you have a digital loyalty scheme – whether card- or app-based – that can also be a rich source of first-party information. Making these changes to your data capabilities now will not only make life significantly easier when the ban does come in, but also ensure you have a head start on your less prepared competitors.
"Beyond [Google’s] Privacy Sandbox, several experts suggested that advertisers embrace other cookieless solutions, from first-party and behavioral data to ID-less targeting solutions that use artificial intelligence and dynamic creative,” says Marketing Dive. "But others stressed that the cookieless future is more about environments where cookies never were the coin of the realm, like in-app mobile, connected TV and much of the open internet.”
Final Thoughts
Omnichannel is still very much fit for purpose – even if that purpose has somewhat shifted. Meeting customers where they are and using digital technology to offer services such as BOPIS and getting a head start on gathering first-party data in preparation for a cookieless future are just two ways blending physical and digital retail in going to dominate in 2023.
The state of omnichannel in 2023 is sure to be part of the conversation at eTail Boston 2023, being held in August at the Sheraton Boston Hotel.
Download the agenda today for more information and insights.