Have you ever heard about the concept of “Omnichannel Retail”? For the past few years, omnichannel experiences have been on retailers’ radars and evolved from a “nice to have” to a “must have” strategy (McKinsey, 2022). Another study has also proven retailers with an exceptional omnichannel strategy enjoy an average retention rate of 89%, compared to 33% for those without such a strategy.
Today, omnichannel presence exists in many different industries, especially in the highly attractive fashion retail market, with a market size of $668 billion and projected growth to $1.0 trillion by the end of 2025. To grab a bigger piece of this huge pie, fashion firms should explore suitable UX solutions to optimize the Omnichannel Retail experience for their customers.
So what is Omnichannel Retail? What “channels” are integrated into this approach? What are recommendations for retailers to enhance the Omnichannel experience?
Omnichannel retail refers to a strategic approach that integrates multiple Sales & Marketing Channels to provide a seamless and personalized shopping experience for customers across all touchpoints. Omnichannel retail enables customers to transition effortlessly between channels, accessing information, browsing products, making purchases, and receiving support without any friction or disruption.
In a typical omnichannel retailing scenario, customers seeking to purchase clothes often come across discounted advertisements on social media (Facebook, Instagram, etc). When they click on the ads, they are redirected to the fashion retailer’s e-commerce site, where they can explore the products further. However, if they have concerns about the size of the clothes, they may choose to visit the nearest physical store department to try them on. Many retailers also allow their customers to exchange or refund the products after a specific period of time.
This omnichannel strategy addresses various pain points and delivers a seamless e-commerce experience, enabling customers to quickly find and purchase suitable clothes at lower prices.
Omnichannel retail encompasses a combination of online and offline channels, providing customers with a seamless and integrated shopping experience, in which the offline channels include:
As we transition to the digital era, online channels have become integral to omnichannel retail strategies to optimize the customer experience, which includes:
First of all, keep in mind that while all omnichannel experiences are built on multiple channels, not all multichannel experiences are omnichannel. Having a well-designed ecommerce website and several physical store branches to sell products does not automatically create an omnichannel experience for customers. To achieve true omnichannel integration, these channels need to be seamlessly interconnected.
In a report published on MDPI, omnichannel is defined as an evolution of multichannel, in which customers have the freedom to transition effortlessly between online and physical channels. This can infer that omnichannel is created to address the limitations of the multichannel approach and provide an enhanced customer experience.
In the realm of multichannel retail, customer experiences across different channels often occur in isolation from one another. Although each sales channel supports the overall business, there is minimal or no synchronization of data between them. Let’s imagine how frustrated you would be if you find a product listed as available on a retailer’s mobile app, but realize it’s out of stock. when visiting their physical store. This lack of real-time inventory updates and synchronization between online and offline channels leads to a negative user experience and erodes their trust in the brand.
Given the current dynamics of the fashion market, we have identified several User Experience ideas to enhance Omnichannel Retail. Here are some recommendations from us:
Online fitting room (virtual fitting room or virtual try-on), is a technology-driven solution that aims to simulate the experience of physically trying on clothes in a traditional brick-and-mortar store but in an online setting.
Online-fitting-room ideas typically utilize augmented reality (AR) or virtual reality (VR) technologies to superimpose virtual garments onto the customer’s image or create a virtual avatar that represents the customer.
As a prominent example, Google has recently introduced its Virtual Try-on feature where users can see how clothing items look on models with a range of attributes. The models represent a variety of skin tones, body shapes, ethnicities, and hair types, allowing users to get a better sense of how the clothing might look on them or others like them.
This technology offers various benefits for customers and retailers.
Order options are provided by retailers to offer flexibility and convenience to customers when making purchases. Offering many different order options helps retailers improve customer satisfaction, and increase sales by catering to different shopping preferences. Some popular order options include:
Omnichannel chatbot refers to an AI-enabled chatbot that offers customers a cohesive buying and customer support experience across all channels. Deploying this chatbot can benefit retailers in many ways:
Endless Aisle is a retail strategy that allows in-store customers to order products that are currently out of stock or not sold in the store. This is done by using in-store mobile touchpoints (kiosks, tablets, mobile apps, etc), allowing customers to browse and purchase products from the retailer’s online inventory.
So when compared with e-commerce apps/websites, what are the values of Endless Aisle? First of all, we need to know that even though the number of online shoppers has consistently increased, there is still a portion of the population who prefers to shop in-store. According to Zippia, 65% of consumers prefer in-store shopping to avoid delivery fees, while 61% prefer it because they want to see or try on items before buying.
A challenge for retailers is stockout, which can cause customers to leave without buying and the store to lose revenue. With Endless Aisle, customers can order out-of-stock products in-store for later pickup or home delivery, and try out products before ordering or returning in-store.
The reader is a device with one or more antennas that transmit and receive electromagnetic signals from RFID tags. These tags store a serial number or unique identifier and send their data to nearby readers through radio waves.
RFID is a new technology applied in industries like healthcare, automotive, transportation, etc. In retail settings, RFID superiority brings various advantages, including:
Another impressive statistic that we would like to highlight is that 100% of leading retailers cited omnichannel personalization as their top-five priority (McKinsey, 2022). This clearly underscores the undeniable significance of omnichannel retail in today’s market.
When talking about optimizing omnichannel retail, we mustn’t ignore the role of technology. This is where Lollypop – UI/UX Design Studio Vietnam can help you! With over 10 years of experience, we’ve not only designed but also successfully developed end-to-end solutions for local and global businesses across different industries, like Healthcare, Fashion, Telecom, etc.
Are you a retail business facing challenges in optimizing your omnichannel retail experience? If yes, contact us – Lollypop Design Studio Vietnam, and let’s develop an ultimate solution tailored just for you!