Omnichannel digitalization is the process of integrating different channels of communication and interaction with customers, such as physical stores, online platforms, mobile apps, social media, and more. Omnichannel digitalization aims to provide a seamless and consistent customer experience across all touchpoints, regardless of where, when, and how they shop.

Omnichannel digitalization is not just a buzzword or a trend, but a necessity and a competitive advantage for brick-and-mortar stores in the digital age. According to a report by McKinsey, omnichannel customers spend 4% more on every shopping occasion in the store and 10% more online than single-channel customers. Moreover, omnichannel customers are more loyal, with a 23% higher probability of repeat purchases than single-channel customers.

We should no longer be talking about ‘digital marketing’ but marketing in a digital world.

Keith Weed, former Chief Marketing Officer of Unilever

In this article, we will explore how brick-and-mortar stores can benefit from omnichannel digitalization, and what are the best practices and strategies to implement it successfully.

Benefits of Omnichannel Digitalization for Brick-and-Mortar Stores

Omnichannel digitalization can bring many benefits for brick-and-mortar stores, such as:

Increased customer satisfaction and loyalty. 

Omnichannel digitalization can enhance the customer journey by offering convenience, personalization, and relevance. Customers can choose their preferred channel of interaction, access information and offers anytime and anywhere, and receive tailored recommendations and services based on their preferences and behavior. This can increase customer satisfaction and loyalty, as well as word-of-mouth and referrals.

Improved operational efficiency and productivity. 

Omnichannel digitalization can also improve the operational efficiency and productivity of brick-and-mortar stores by leveraging data and technology. For example, stores can use digital tools to optimize inventory management, supply chain, and logistics, reducing costs and waste. Stores can also use digital tools to automate and streamline tasks, such as checkout, customer service, and marketing, freeing up staff time and resources for more value-added activities.

Enhanced innovation and differentiation. 

Omnichannel digitalization can also enable brick-and-mortar stores to innovate and differentiate themselves from the competition by offering unique and engaging experiences. For example, stores can use digital tools to create immersive and interactive environments, such as virtual reality, augmented reality, and gamification, that can attract and retain customers. Stores can also use digital tools to create new products and services, such as subscription models, loyalty programs, and online communities, that can add value and generate revenue.

An omnichannel presence helps reinforce brand visibility and acceptability.

Vidushi Kanoria, Co-founder of Soxytoes

Best Practices and Strategies for Omnichannel Digitalization

To achieve the benefits of omnichannel digitalization, brick-and-mortar stores need to follow some best practices and strategies, such as:

Understand the customer journey and pain points. 

The first step of omnichannel digitalization is to understand the customer journey and pain points across different channels and touchpoints. Stores need to conduct customer research and analysis, such as surveys, interviews, focus groups, and analytics, to identify the customer needs, expectations, and behaviors. Stores also need to map out the customer journey and identify the gaps and opportunities for improvement.

Define the omnichannel vision and goals. 

The second step of omnichannel digitalization is to define the omnichannel vision and goals. Stores need to articulate the value proposition and the desired outcomes of omnichannel digitalization, such as increasing sales, retention, and satisfaction. Stores also need to set clear and measurable objectives and key performance indicators (KPIs) to track and evaluate the progress and impact of omnichannel digitalization.

Design the omnichannel strategy and roadmap. 

The third step of omnichannel digitalization is to design the omnichannel strategy and roadmap. Stores need to prioritize the most important and feasible initiatives and actions to implement omnichannel digitalization, such as creating a unified customer database, integrating online and offline channels, and launching new digital features and services. Stores also need to plan the resources, timeline, and budget for each initiative and action, as well as the roles and responsibilities of the stakeholders involved.

Execute the omnichannel strategy and roadmap. 

The fourth step of omnichannel digitalization is to execute the omnichannel strategy and roadmap. Stores need to execute the initiatives and actions according to the plan, and monitor and measure the results and feedback. Stores also need to communicate and collaborate with the internal and external partners, such as employees, customers, suppliers, and technology providers, to ensure the alignment and coordination of omnichannel digitalization.

Optimize and iterate the omnichannel strategy and roadmap. 

The fifth and final step of omnichannel digitalization is to optimize and iterate the omnichannel strategy and roadmap. Stores need to review and evaluate the performance and outcomes of omnichannel digitalization, and identify the strengths and weaknesses, as well as the best practices and lessons learned. Stores also need to update and adjust the omnichannel strategy and roadmap based on the insights and feedback, and continue to test and experiment with new ideas and solutions.

Examples of Omnichannel Digitalization for Brick-and-Mortar Stores

To illustrate how omnichannel digitalization can work for brick-and-mortar stores, here are some examples of successful cases:

• Starbucks
  Starbucks is a global coffee chain that has embraced omnichannel digitalization to offer a seamless and convenient customer experience. Starbucks has integrated its physical stores, mobile app, website, and loyalty program, allowing customers to order, pay, and collect their drinks across different channels. Starbucks also uses data and analytics to personalize its offers and recommendations, and to reward its loyal customers with points and perks.
• Nike
  Nike is a leading sportswear brand that has leveraged omnichannel digitalization to create immersive and interactive experiences. Nike has launched several digital initiatives, such as Nike Live, Nike by You, and Nike App at Retail, that combine physical and digital elements to offer customers exclusive products, services, and content. Nike also uses digital tools to enhance its store design, layout, and merchandising, and to connect with its online community.
• Sephora
  Sephora is a leading beauty retailer that has utilized omnichannel digitalization to offer personalized and relevant services. Sephora has integrated its physical stores, online platforms, and mobile app, allowing customers to access information and offers, and to book appointments and consultations across different channels. Sephora also uses digital tools, such as augmented reality, artificial intelligence, and gamification, to help customers discover, try, and buy products that suit their needs and preferences.

Conclusion

The idea of an omnichannel experience —in which companies aspire to provide a set of seamlessly integrated channels that caters to customers’ preferences and actively steers them toward the most efficient resolution—has been around for years.

McKinsey

Omnichannel digitalization is a strategic and competitive advantage for brick-and-mortar stores in the digital age. It can help stores increase customer satisfaction and loyalty, improve operational efficiency and productivity, and enhance innovation and differentiation. To achieve omnichannel digitalization, stores need to follow a systematic and iterative process, involving understanding the customer journey and pain points, defining the omnichannel vision and goals, designing the omnichannel strategy and roadmap, executing the omnichannel strategy and roadmap, and optimizing and iterating the omnichannel strategy and roadmap. Omnichannel digitalization can also be inspired by the examples of successful cases, such as Starbucks, Nike, and Sephora, that have implemented omnichannel digitalization in different ways and for different purposes.