Omnichannel Isn't Just for the Big Guys: Why SMBs Should Jump on This Retail Trend (and How to Do It)
Oct 15 2014
If we were giving out an award for "Retail's Buzzword of the Year," I'd be willing to bet that the term omnichannel would make it to the shortlist. A very common topic in industry discussions, omnichannel (in the retail context) is about providing customers with a seamless shopping experience as they move across different touchpoints or devices.
Plenty of big-name retailers have already jumped on the trend. Macy's, for example, has invested heavily in omnichannel strategies. All of its stores can now ship directly to customers, and the retailer recently started marketing its click-and-collect and mobile services more aggressively. Target is also in the same omnichannel boat. In addition to allowing customers to buy online and pickup in-store, it is currently testing a curbside service that lets shoppers pick up items without having to get out of their cars.
What's interesting about this trend, however, is that while the concept is well known among the big names in the retail industry, it isn't such a common topic in SMB circles. Which is a shame, because small and medium retailers are actually in a great position to implement omnichannel.
In the next few paragraphs, we’ll talk about the reasons why more SMBs should look into this trend, and how they can get started with implementing omnichannel in their stores.
It's not as complicated or expensive as you might think
A merchant with just a handful of stores can be nimble enough to adopt omnichannel solutions and implement strategies fairly quickly. You won’t get bogged down by bureaucracy or get overwhelmed with having too many stores, products, or people.
Consider Rare Device, a modern design store and gallery with two locations in San Francisco. Rare Device may be a local business, but it serves its customers in a world-class way. Not only does it allow customers to purchase products offline and on its e-commerce site, Rare Device also offers in-store pickup and same-day delivery services, allowing shoppers to get their hands on their purchases whenever and however they want.
Rare Device accomplishes this by integrating its point-of-sale, e-commerce, and order-fulfillment systems. Its POS (Vend) links to its online shopping cart (Shopify) and same-day delivery service (ShoppinPal). The result? A great system that lets the store take and fulfill orders across multiple channels and devices.
Implementing the strategy is also relatively cheap for small and medium retailers. Unlike your larger retail counterparts, you won’t have to invest millions to set up an omnichannel system. SMBs have the option of partnering up with solution-providers that can handle the technical work at a reasonable cost.
For instance, Mobi2Go, a company that provides online and mobile ordering services for restaurants, has plans that start at $50 per month, per store.
Tips for getting started with omnichannel retail
If you’re looking to start serving your customers across multiple channels, the following pointers may help:
1. Do business in the cloud - Omnichannel depends on being able to seamlessly link store data between several platforms or touchpoints (i.e. web, brick-and-mortar, mobile). You simply cannot do this using on-premises software.
That’s why if you haven’t done so yet, start moving your systems to the cloud. If you’re still using an old cash register, for instance, you may want to upgrade to a cloud or mobile point-of-sale solution. Still keeping your customers’ contact info in a spreadsheet in your computer? Move that data to a web-based CRM software.
Doing this not only makes it easier for you to roll out omnichannel services, it’ll also make it easier to run your business, period. Cloud-based programs enable you to access data from anywhere and from any device (as long as you’re connected to the Internet) and when necessary, these solutions can integrate with other cloud software to give you more functionality.
Which brings us to my next point...
2. Pick solutions that integrate well - To effectively pull off omnichannel, you need to make sure that your systems are seamlessly linked. For example, if you’re selling items online and enabling customers to pick them up in-store, your online shopping cart should be able to “talk” to your store inventory system to ensure that the products are actually available on-site.
This is why you should select solutions with integration in mind. Before signing up with a vendor (say, a company that lets you accept online orders), ensure that their system can connect to your existing programs.
One way to start is to talk to your current software vendors and ask about their integrations with other solutions.
3. See it in action - Ask potential vendors for references, and pay these stores a visit so you can check out how their systems work. Ask them about how to implement the solution as well as about any difficulties they may have.
Be sure to put on your consumer cap when evaluating vendors. Complete a purchase from stores that implement omnichannel solutions and gauge the customer experience.
And if possible, see if you can get a free demo from the solutions provider so you and your employees can take their software for a test drive.
Further reading: For more information regarding how SMBs can go omnichannel, read our recent post, The Savvy Retailer’s Guide to Online and Mobile Ordering, Store Pickup and Same Day Delivery.
What do you think?
Should more SMBs look into omnichannel retail? Let's discuss in the comments.
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