3 tips for acing the omnichannel game

News outlets are filled with articles about fashion store closures and struggling shopping malls, leading many to believe that it is only a matter of time for physical retail to disappear. But the truth is brick and mortar stores continue to be an essential part of many fashion brands’ retail strategy. Why? Not only because consumers who predominantly shop offline still exist, but mainly because the best customers are those using a combination of online and offline channels to purchase apparel.

A new survey of more than 3,000 American shoppers published earlier this month by McKinsey & Company revealed the average omnichannel shopper purchases 70 percent more often and spends 34 percent more on apparel items than an offline-only shopper.

What’s more, more than 60 percent of shopping journeys in the US now have a digital component for either research or transaction. Apparel retailers looking to future-proof their businesses must, therefore, consider their online and offline channels as complementary to each other, creating seamless cross-channel experiences for their customers. Here are some takeaways from the study:

Personalization is a must-have

Retailers not using data analysis and artificial intelligence to offer customers a personalized experience should start doing so right away. According to McKinsey & Company, this is no longer an option but a must-have, as personalized recommendations work wonders for both monobrand and multibrand retailers across online and offline channels, and market leaders have been leveraging customer data for a long time already. Despite privacy concerns, many customers actually enjoy it when fashion stores suggest products based on their browsing behavior. It just works.

Accept that Amazon is a crucial part of the customer journey

According to the survey, one in four apparel shoppers visits Amazon early in the shopping journey. However, two-thirds of those people end up buying their desired item elsewhere. This means Amazon is critical in the research and discovery phases, but there’s still room for competition in the evaluation and transaction phases. The more a fashion brand or retailer can differentiate itself, the more likely it will be to win the actual sale.

Assortment is the most important driver

Want to encourage your customers to navigate across channels? Then make sure to offer them a broad selection of products, as assortment is the most important driver for purchase among omnichannel shoppers, according to the study. That’s even more important for multibrand retailers, which should strive to include all the brands their target customers may be interested in.

But assortment is not everything. A seamless shopping experience is equally important. In fact, 33 percent of the customers surveyed said they would switch retailers after just one negative experience. An excellent service, on the other hand, encourages them to spend more and return more often.

The key to improving customer satisfaction is coming up with ways to make their lives easier, save them time. Most respondents said they are more likely to buy apparel from stores offering practical elements such as customer reviews, being able to reserve items online to try them on in-store, purchasing online and returning in-store, and so on. Customization services, such as in-store stations for engraving and tailoring, are also highly appreciated.

If you’re thinking this would be too high an investment to make, bear in mind that customers are happy to pay more for a good shopping experience. It’s a mistake to think that most consumers are looking for low prices when shopping for fashion. According to McKinsey & Company, they actually expect things to be “priced right” -- so, the better the service, the more they are willing to pay for it.

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