The name of the game in retail this year is omnichannel — providing a seamless customer experience across channels, whether online or in store. Whether this is driven by digital disruption or “the Amazon effect,” the pressure to keep pace is on, particularly with recently disappointing sales and earnings in the market.
Though these omnichannel tactics are still in their relative infancy, data already shows that omnichannel shoppers are incredibly valuable to companies. According to IDC, consumers who shop both online and in store have a 30 percent higher lifetime value than those who shop using only one channel. Pharmaceutical giant Walgreens recently released an app to create a seamless customer experience online and in store, and found their omnichannel customers spend 3 to 5 times more than store-only customers.
But omnichannel makes for incredibly complex logistics, and many retailers are facing challenges even while these models are still in their relative infancy. Retailers looking to remain competitive as the industry evolves will need advanced systems to manage both their inventory and the supply chain overall.