The gap between in-store and online shoppers is smaller than ever.
Younger, digitally savvy consumers are doing more of their shopping in person, while older shoppers who were raised going to department stores are more comfortable making purchases online. That means that most brands today need to be omnichannel, a selling model where retailers allow shoppers to seamlessly buy goods across their stores and e-commerce sites — think buying online and picking up in store, or reserving items to try on in store through a brand’s website.
As consumers remain fickle in an uncertain economy, omnichannel promises to help brands build customer loyalty. Shoppers who buy online and in-store spend 30 percent more per order and are twice as likely to make repeat purchases than those who only shop in one channel, according to data from retail insights firm Leap. When brands make it easy for customers to shop online and offline, they also get access to more data to make better marketing and inventory decisions. It’s an especially critical way for digitally native brands to attract customers as the costs to advertise online increase.
But a truly synchronous omnichannel selling model is hard to perfect. Some companies struggle to integrate their online and offline systems to keep track of consumer transactions and behaviour across both channels, causing more chaos than connection. But software firms like Shopify have made it more affordable for digitally native brands to invest in point-of-sale systems that record transactions on a brand’s site and in their stores.
Technology, however, is only one part of the equation. Making omnichannel worth the investment requires brands give consumers an easy way to shop while communicating their value and story, from the way they merchandise their sites and stores to the kinds of services they make available in both channels. There isn’t a single formula that works for all.
“[Brands] need to be thinking about how it connects across channels, what those journeys are, where the points of friction could be with the customer and then how they can meet the shopper on their terms,” said Jon Levy, senior vice president of brand management at Leap, which also helps brands open stores. “If you’re not thinking about it from a mindset perspective, you’re going to miss the opportunity.”
Finding the Right Approach
The concept of omnichannel has been around since the early days of e-commerce. But it’s evolved from brands simply having both an online and offline presence to ensuring that each channel offers customers an immersive experience without one cannibalising the other.
The most common strategy for a brand that starts online is to open a physical store — but they should ensure it is more than a sea of products on shelves. Digitally native jewellery maker Mejuri, for instance, sells the majority of the products it carries online in its 40 stores, but also offers piercing and styling services, such as teaching how to stack its rings and necklaces. Its rewards programme gives members early access to sales both online and off as well as exclusive in-store events. Around 42 percent of Mejuri’s customers that buy in store go on to buy again on the brand’s website, said Majed Masad, Mejuri’s president and chief operating officer.
“We’re really big on community-driven initiatives,” Masad said. “We activate our stores as much as we can and that brings people into the brand and creates that loyalty.”
The types of products or services a brand offers will dictate how it chooses to engage its online shoppers in an offline setting. In some cases, a traditional store may not be the right fit to deliver on that promise.
Dermalogica, which offers facial skincare analysis and treatment recommendations, operates 32 stores globally where it sells its exfoliants and moisturisers. But since Dermalogica’s analysis is designed to help professionals figure out how to treat a patient’s skin, the brand’s primary omnichannel strategy is through partnerships with medical spas, rather than in its own storefronts. Its customers can get skin consultations on its website and then book appointments with licensed dermatologists at treatment centres like Hand and Stone, said Aurelian Lis, Dermalogica’s chief executive.
“Omnichannel is multi-channeled, and you’ve got to get it right and embrace each and every one of them,” said Michael Prendergast, managing director in the consumer retail group at management consulting firm Alvarez & Marsal. “They each have their own requirements for success, as well as pitfalls for failure.”
Making the Connection
As shoppers grow accustomed to the convenience of booking in-store services through a website, brands have to make sure they have the right systems in place to make their online and offline businesses feel in step with one another.
When the Australian womenswear brand Leo Lin opened its showroom in Sydney in January 2024, it installed the same Shopify POS system that it uses online. The brand keeps track of customers’ previous transactions and browsing history to make tailored product recommendations in its showroom, where consumers can book one-on-one appointments. Since opening the space, Leo Lin’s average conversion rate across its site and store has increased by 30 percent, said Laura Good, the company’s head of brand.
“Having the point of sale system with a single view of the customer allows you to … have a more personalized experience,” said Patrick Joyce, vice president of engineering at Shopify. In that way, a brand is “taking what can be a single transaction and turning it into a relationship.”
Brands can also use omnichannel to improve inventory management. What’s selling online in specific areas may be a good indicator of what should be available in shops in that region, creating a better customer experience that will likely lead to higher sales. In 2020, womenswear label Veronica Beard built a data warehouse that identifies the best-selling items on its site by region and then dictates which silhouettes make sense to merchandise in its nearly 40 stores. Making in-store inventory decisions based on its e-commerce business is critical; nearly half of Veronica Beard’s revenue is driven by customers that shop in both channels, said Stephanie Unwin, the brand’s president.
“We have really leaned into developing this omni customer,” Unwin said. “We follow the bread crumbs and we’ve tested and learned along the way.”
But connecting online and offline channels is about more than using sophisticated technology. Companies also need to create a seamless environment based on a deep understanding of how their customers like to shop.
Brooklyn-based menswear retailer Million Goods also uses Shopify’s POS systems in store and online. But the retailer, which carries emerging labels like Sunflower and Nicholas Daley, can spot customers that have researched its offering on its site before coming to the store based on those who go straight to an item and simply ask for their size. The company attributes that behaviour to how closely it curated the merchandising and imagery on its site to match the laid back and approachable feel of its brick-and-mortar shop.
“We want the vibes of the store to permeate the online store as well,” said Drew Kaufmann, co-founder of Million Goods. “It’s a little more of a gut feeling.”
Regardless of how brands choose to devise their omnichannel strategies, they should be executed in ways that make consumers want to stay connected to their brand for years to come.
“This comes down to why people love brands and why they are more loyal and why they repeat more,” Levy of Leap said. “When you have an omnichannel experience, you’re more likely to do that.”