Clearly, there is a drastic change in the way consumers shop. Especially after the pandemic, the retail business is moving in the direction of digital like never before.
The pandemic has spawned a new phenomenon called ‘The Great Retail Migration’ – where shoppers move online during the COVID-19 pandemic and consequent shutdown. According to Google statistics, in the Indo-Pacific region alone, nearly 40 million new Internet users took advantage of online retail services as a result of the pandemic in 2020. This is a significant number, accounting for up to a third of the e-commerce has contributed. income last year.
Yet retail has not yet completely changed online. At the moment, it’s still moving from offline to online, so a new retail strategy, which considers both online and offline sales patterns, can help increase your sales. This is the era of retail retail.
Welcome to the New Retail
The new era retail is a seamless combination of the online and offline worlds, aiming to deliver a smooth shopping experience. The main focus of new retail is to learn how to digitize the processes, how to adapt to the changing market and how to integrate online offline consumer behavior to overcome the constraints of the physical world.
This is a serious challenge as it is no longer a secret that more and more offline stores are discontinuing or reducing their operating capacity. During the closure of 2021, in the Indian state of Maharashtra alone, nearly 15,000 mobile retailers had to close their stores. The body of retailers in Maharashtra quoted: ‘Although it contributed to Rs. The sales of 18,000 crores annually forced the majority of the mobile retailers to strike the business because we will not be able to survive with the baggage of expenses like salaries of staff, shop rent, house rent, electricity bills, bank interests, EMIs , etc. ”
While online retail offers many benefits, including low cost and more options, the right retailers offer their own benefits. Many consumers still prefer to shop after interactions between people – which provide the opportunity to trust, consult and convince. Offline retail is therefore not completely dead. It needs to adapt, and that’s what omnichannel retail offers.
Customers like Omnichannel Retail Experience
Last year, a study by eMarketer revealed that retail sales in e-commerce increased from 20% to 30% due to the pandemic. This change in consumer behavior was not just limited to migration from offline to online. Consumers also prefer to explore other products and services than regular products. They also tried new brands and retailers. One of the reasons was the new restrictions that the lock – accessibility and delivery – entails.
Customers opted for available services, pickups or delivery services offered. All of these factors point to the need to understand the changing behavior patterns of customers, which could improve the omnichannel marketing game.
Omnichannel is valuable to retailers
46% of retail executives plan to increase their omnichannel retail budgets even after the pandemic [Source: BigCommerce and Retail Dive, 2020]. A Google study indicated that 80% of new online users used online retail services due to the pandemic, with the intention of continuing to shop online, and only 23% of consumers expressed their intention to to choose the pandemic shopping in the store.
Grofers, an online shopping company in India, said that among all its new customers in 2020, 64% were online shopping for the first time, while 20% e-commerce was completely new. Similarly, Flipkart saw a 50% increase in new customers after the exclusion, with Level III regions recording the highest growth of 65%.
A well-known truth about retail is that consumers are always looking for better prices, choice and convenience. Since the high-speed Internet has already catered to the customer’s first two needs, the focus has now been on convenience.
Strengthen your Omnichannel strategy
A strong omnichannel strategy can undoubtedly increase sales and revenue. An eMarketer report found that streamlined digital experiences, on-the-go pick-up and contactless checkout contributed to an increase in shopping and increasing sales. Here are some factors that make omnichannel so valuable.
1. Be visible to your customers
COVID-19 did not stop people from doing transactions – it just spread a large part of the activity across different channels. According to a survey conducted by NRF prior to the pandemic, 83% of buyers indicated that the convenience of shopping was more important to them than five years earlier.
2. Stand out on a crowded market
As more players fight for online attention, it is necessary to have a more resonant brand, better shopping experience and good service to stand out. To do this, you need to better understand your customers, what can be done through product range, sales channels, advertising channels and messages.
3. Use Data Analytics to optimize your business
The migration from offline to online has yielded new patterns of behavior for consumers, forcing retailers to rethink and optimize their sales and marketing channel mix to adapt to the new reality. Here, the power of data analytics can help face the changes and usher in new possibilities.
Use Facebook and Google Platform to maximize sales
According to a survey by Deloitte, 87% of retailers agree that omnichannel is critical to business success, and only 8% of them believe they have mastered the omnichannel strategy. At the same time, 90% of retail sales take place offline. So to face the new changes, you need to integrate in-store data and Facebook conversations.
By combining Facebook and Google data and in-store data, you can measure the value of your advertising spend and also target the right audience more effectively. Direct integration with Facebook API can also create wonders for your sales. But it requires severe upliftment from a technological point of view, which can be overcome by working with a technological partner.
Given the decline in user attention span, as well as too many distractions, it is necessary to provide different platforms or ways for buyers to make a purchase. So make sure you include options to make immediate purchases on multiple paths. Google and Facebook can be used to motivate people to make purchases by renewing ads, as users mostly spend their time online on these two platforms.
The integration of video content marketing into an omnichannel retail strategy was successful. In fact, 79% of users want to know more about a product via video rather than reading texts on a web page. Therefore, promotional videos promoted on Facebook and Google platforms are more likely to attract users’ attention and increase sales.
Both work best for you!
Given the huge potential of Google and Facebook to engage users, it’s better to split your advertising spending budget for both Google and Facebook ads. Both have their own benefits. Google helps you create brand awareness as well as promotion by appearing on various websites.
Facebook, on the other hand, helps to understand the user’s preferences more deeply and to present your ads to users with high potential. In addition, Facebook also encourages users to sign up and follow your brand page, which increases the space for ongoing engagement. A smart brand will invest in both Google and Facebook ads.