Omnichannel customer experience emerged in the early 2010s, with retailers investing to develop cohesive online, mobile, and in-store experiences. The goal should have been a seamless experience for the customer across channels, but the main outcome has largely left the physical experience as an afterthought, either as a location for merchandise pick-up and return or to check in-store inventory that is oftentimes inaccurate. Failure to integrate the physical channel hurts brand image and further tips the scales toward online retailers.
Moreover, because of mega-retailers such as Amazon and Walmart, customers have become conditioned to expect the world’s inventory at their fingertips. These mega-retailers allow customers to “shop” from a seemingly infinite catalog made available through the power of 3rd-party sellers. Omnichannel has now morphed to become omnipresent.
Playing catch-up is a flawed strategy. Convenience, personalized service, immersive experiences, product touch and feel, and integration with digital channels have long been touted as the means for physical retailers to thrive. Undoubtedly, each has helped keep the lights on in the physical stores, but that’s not enough. Retailers must play leapfrog to remain relevant, let alone win, and physical retailers must redefine the omni-experience.
The forgotten last mile of the omnichannel promise
Retailers have announced their omnichannel strategy through job titles and investor presentations—an integrated approach to marketing, sales, and customer service that provides a seamless and unified customer experience across all channels and touchpoints. The common goal is to ensure that customers have a consistent and cohesive interaction with a brand, regardless of how they choose to engage with it, whether online, offline, or through mobile devices.
Achieving consistent and cohesive interactions across digital channels is well understood because it is relatively easy to make digital assets communicate and integrate with one another. However, physical stores remain an order pick-up/return point, along with sometimes accurate in-store inventory views. This is what we call the last-mile problem of the elusive “seamless customer experience.” Retailers fail to deliver the insights and personalized experience where it is most impactful, in-person and in real-time.
The missed opportunity here is significant. The in-store experience offers a unique, in-person, and immediate interaction that cannot be replicated online. It’s not just about real-time service; it’s about addressing the most urgent customer needs—those that can’t wait for a two-day delivery window. By failing to capitalize on the in-store experience, retailers miss the chance to provide immediate satisfaction and personalized assistance, ultimately driving customer loyalty and repeat business.
The digital disconnect when bringing online insights offline
Retailers have invested heavily in digital platforms to capture and analyze customer behavior. Online, they can track browsing habits and purchase history and even predict future purchases with impressive accuracy. However, this wealth of knowledge often does not make its way into the in-store environment. When a customer steps into a physical store, the retailer’s advantage of personalized service is at its highest, but when the personalized profile of the customer does not arrive with the customer, they leave with a generic and impersonal shopping experience.
Retailers must ensure that the rich data insights collected online inform and enhance the in-store experience. Combining customer data insights and empowered and incentivized in-store associates is the key to bringing those online insights offline, where they are most impactful.
A framework for bridging the last mile
A chasm exists between a retailer’s digital and physical presence, and it’s not enough to cross it—retailers must eliminate it by creating a seamless customer experience across all channels. Start by reimagining the physical store. What is its main function? We contend that it is to reinforce the customer connection—build loyalty—which only becomes possible when the retailer understands customer intent (and sentiment). But how?
Retailers must adopt a framework that fully integrates customer insights & intent into every facet of the in-store experience. This framework includes:
- Unified customer profiles: Aggregating data from all touchpoints to create a comprehensive view of each customer.
- Real-time data access: Empowering store associates with tools to access and utilize customer data in real-time.
- AI and predictive analytics: Leveraging AI to predict customer needs and personalize recommendations.
- Employee training & process design: Empowering store associates with tools, knowledge, training, and incentives to use data insights to provide concierge-like service effectively.
- Omnichannel synchronization: Seamlessly connecting online and offline data and systems to provide a unified experience.
A prime example of this is the Apple Genius Bar. Before visiting a store, customers can express their intent online, whether it’s a technical issue or a purchase inquiry. When they arrive, the in-store concierge has instant access to their customer history, ensuring a personalized and efficient service. This model demonstrates how integrating customer insights can transform the in-store experience, providing a level of personalization that e-commerce alone cannot match. By adopting a similar approach, retailers can bridge the gap between their online and physical channels, ensuring that the in-store experience is remembered and cherished. This personalized touch helps compete with better-stocked online options, enhances customer loyalty, and drives repeat business.
Through understanding intent, the retailer can make informed decisions about how best to engage the customer and provide an omni-experience that increases customer advocacy for returning to the store. Competing on a purely digital shopping experience is a losing battle as giant e-commerce will continue to scale their offerings and distribution network. The most effective way to fight back is to leverage their lack of physical channels.
Bringing the experience full circle
Maya Angelou once said, “I’ve learned that people will forget what you said, they will forget what you did, but they will always remember how you made them feel.” The main thing the retailer controls is how it makes the customer feel, no matter where they shop. Ready to bring this vision to life? Let’s talk.
