December of 2014 may be remembered as the first truly omni-channel holiday season: the year retailers really stretched the sales funnel to include mobile, store visits and online buying under one big connected holiday umbrella.
Let's take a break from the holiday dash to see what we can learn from companies that have been creating unified shopping experiences for consumers while ringing in bigger and better profits for themselves. We'll start with a salute to three great examples of omni-channel thinking: Macy's, Sephora and REI.
Macy's
When over 15,000 people streamed into Macy's main New York City store at 6 pm this Thanksgiving Day, CEO Terry Lundgren wasn't too surprised. Omni-channel helped put those shoppers there. “So far, people are gravitating to the doorbusters," Lundgren said the next day. "There’s so much information online, so they’re doing that research and going right for those doorbusters."
1
Macy's has been working for years to focus its marketing and retail teams into a group with a
single vision on omni-channel conversions just like these.
"That incentive, of growing the number of omni-channel customers, is something we have shared over the last couple of years," says Jennifer Kasper, Macy's Group VP for Digital Media and Multi-cultural Marketing.
Sephora
"In retail, you can't think of mobile as a threat. You have to think about it as a magnet to draw that client into your store." That quote from Bridget Dolan, Sephora's VP Interactive Media, says it all about how Sephora has been winning with omni-media.
Sephora's progressive approach is the result of watching, and actually listening to, its customers. Today the Sephora mobile app lets shoppers scan products right off the shelf and see if they're right for their look. They can also look up past purchases, in case they want that same great shade of lipstick or eye shadow again.
New research shows that 46% of shoppers who use mobile devices in-store say they turn to the retailer’s site or app for information while they shop.
2 "I really can't believe how much of our traffic is now coming from mobile devices," says Bridget Dolan, "and how many of our clients are using search as the way that they figure out which products they want to buy while they're standing in-store."
REI
The trusted outdoor retailer’s stores – especially its flagship locations -- are paradise for anyone who plays outside. REI now uses digital as a way to pull customers right into that local store experience. After researching online, REI customers come into the store to try on those hiking boots or skis and then make the purchase.
Google/Ispos/Sterling
research shows 69% of shoppers say they gather information from physical stores at some point in their shopping cycle.
3 "One of the things we know definitively is that all of our digital tools really connect our members to our stores," says Annie Zipfel, SVP of Marketing for REI. "So they're often researching product online… and ultimately they're coming in the store to make that purchase."
What can we take away from these three examples of omni-channel
success?
1) Care less about where. All three of these retailers are focused on using all channels to drive sales — wherever those sales might happen. As Jennifer Kasper of Macy's puts it, "The bottom line is, we're indifferent to whether [a shopper] converts in the store or online. We just want her to shop with Macy's."
2) Make mobile a magnet. The best omni-channel retailers make mobile a part of their in-store experience, inviting shoppers to use their hand-held devices as they browse. As Bridget Dolan of Sephora says, "We really welcome our clients to take out their phones in our store. A client that really knows exactly what she's buying, all the reviews, all her options... is actually a happier client and will come back and shop with you more often."
3) Bring down internal barriers. Annie Zipfel of REI says, "It is a smaller and smaller group that shops only in the store, or only online." If you still keep separate online and offline marketing teams, it may be time to think about bringing them, and their incentives, together so they can speak to customers in the way those customers shop now.
Happy Omnidays, retailers!
Posted by Julie Krueger, Retail Industry Director
Visit the Local Retail Playbook to see our new “Digital Impact On In-Store Shopping” research about how consumers are shopping on and offline, and how retailers are responding this holiday season."CEOs of Target, Macy's, and Others Weigh In on Black Friday Sales." Fortune.com, November 28, 2014. http://goo.gl/lz3s0t
"Digital Impact on In-Store Shopping." Google/Ipsos MediaCT/Sterling Brands, October 2014. http://goo.gl/4TU0sY
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