The consumer market has drastically changed over the last few years, as more retailers are adopting an omnichannel retail strategy. This involves providing a unique experience across all channels, allowing the customer the opportunity to shop in-store, online, and through their mobile devices.
In January 2017, the Harvard Business Review conducted a survey and analyzed the shopping behaviour of approximately 46,000 Americans. The data revealed that nearly 73 percent of individuals used “used multiple channels during their shopping journey. We call them omnichannel customers.”
Therefore, marketers now believe that having a strong omnichannel foundation can have a positive impact on the company’s customer lifetime value (CLV). Today we’re looking at the relationship between an Omnichannel Retail Strategy and CLV, and offering some tips on how to boost your CLV.
Streamline Customer Service Operations
Companies need to place importance on their customer service operations and continually look for new ways to optimize this process. This means creating a strong omnichannel strategy that allows businesses to collect data both physically and digitally.
This data would reflect customer satisfaction and could be analyzed by upper management to understand where the business could improve. By constantly adapting and keeping the consumer’s happiness in mind, this will increase the CLV overall.
Integrate Storefront Technology
Nowadays, it’s crucial for a company to have both a physical and an online presence. But as more consumers shy away from visiting physical locations, retailers need to think of new and exciting ways to improve the in-store experience.
Several leading organizations that have utilized an omnichannel strategy have equipped storefront employees with state-of-the-art technology. For example, Apple, you can walk up to any Apple employee and pay for a product right on the spot. All workers are equipped with an iPhone that can process major credit cards, meaning you don’t have to wait in line. By providing your team with technology, you’re essentially streamlining several processes simultaneously and saving time, which creates a positive experience for the consumer. This tends to lead to an overall increase in CLV and can translate to establish a strong sense of brand loyalty.
Showrooming is a marketing term that refers to when a consumer is in-store and about to purchase a product, but suddenly opts not to buy because they believe there’s a lower price online.
In certain situations, showrooming can be used to the retailer’s advantage, especially if the company is able to provide floor employees with the right tools and training. So, it’s important to properly engage with customers as they choose to shop across various channels. An integrated omnichannel retail strategy combats this, as consumers can feel confident knowing they can purchase the product through various mediums offered by the company. This ultimately leads to an increase in CLV over time because the consumer has the power to purchase the product through all channels.
Enhance The Buying Experience
The general public will always flock to where they can get the best value for their dollar; after all, it’s part of human nature. This is why it’s important that a business’ prices, both in-store and online, match. If this equilibrium is broken, you’ll inevitably lose business and damage your reputation with consumers. The bottom line is all prices must be the same, otherwise it could harm the organization’s CLV and negatively offset brand loyalty.
Empathize With The Customer
This relates back to the point about collecting data from the consumer, which can then be harnessed to provide further insight into their behaviours and patterns. Gather information to understand what the consumer wants and needs. By empathizing with the public and isolating their specific desires, you can cater your strategy based on that information, which will inevitably increase customer lifetime value over time.
It’s evident that a strong omnichannel strategy directly increases your company’s CLV. If you’re looking to create a unique retail experience that incorporates the omnichannel strategy, check out the Salesfloor platform for an innovative way for customers to connect with their favorite stores and improve their overall online shopping experience.