Why Omnichannel Marketing Is Worth the Investment

Omnichannel marketing is more than using multiple marketing channels to create a seamless experience for your customers. It is about marrying online and offline channels, understanding customer patterns, and using that data to increase cross-sell and upsell opportunities.

Granted, this is no easy task. Marrying the virtual and brick-and-mortar universes involves everything from your order management to your marketing and fulfillment systems. While there is an increasing amount of software to help, it still takes a lot of work.

Is the payoff worth it? Absolutely. Consider these five statistics:

  1. Companies with strong omnichannel customer engagement strategies retain 89% of their customers, on average.
  2. Companies with weak omnichannel engagement strategies retain only 33% of their customers.
  3. After a poor omnichannel experience, 56% of your customers will not return.
  4. The “opportunity cost” of not having an omnichannel strategy is 10% in lost revenue.
  5. Shoppers who buy on multiple channels have a 30% higher lifetime value than those who shop using only one channel. [1]

Omnichannel is about more than marketing. It’s about shopping experience, and that transcends every aspect of a brand’s relationship with its customers. That’s why omnichannel is so critical, especially in a retail environment. A well-executed omnichannel strategy equals good shopping experience, happy customers, and return visits. A poorly executed strategy equals poor experience, irritated customers, and low customer return rates.

An example of a national brand that has rolled out its omnichannel efforts extremely well is Macy’s. Its success and growth continues to defy the trend toward the death of the traditional department store.  While it would be impossible to boil down all of the elements of an omnichannel campaign into a paragraph, here are some key underpinnings of Macy’s winning strategy.

  1. Detailed understanding of its customers, allowing it to target its efforts with precision.
  2. Adaptation of its inventory, marketing, and internal team structure to targeting this customer base. (Particular focus is being placed on climate zone and ethnic segments.)
  3. Implementation of heavy integration and innovation of digital channels like social, email, and mobile. This includes the Macy’s app, mobile payments, mobile image search, and in-store beacons.
  4. Use of integrated data streams to develop a comprehensive, 360-degree view of the customer rather than a siloed, non-integrated view.
  5. Use of data-driven insights to improve cross-sell or upsell opportunities, including personalized recommendations both in-store and online.

As a result of these efforts, Macy’s is forecast to have 8.5% earnings growth over the next five years. [2]

Increasingly, lines are being blurred between brick and mortar and online stores. Omnichannel marketing forces brands to think about bringing them together in a seamless experience. This isn’t just good marketing, it’s critical to continued growth of your business.

Looking to develop your own omnichannel strategy? Let one of our business development experts help.

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