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Omni-channel retail boon for SA

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 16 Jan 2014
For local retailers to defend and gain market share over the coming years, an omni-channel approach is required, says Adobe Systems' Mike Plimsoll.
For local retailers to defend and gain market share over the coming years, an omni-channel approach is required, says Adobe Systems' Mike Plimsoll.

The omni-channel purchasing trend is set to benefit South African retailers.

By delivering personalised and relevant cross-channel experiences, retailers will provide increased value to their customers, which boosts loyalty and sales.

So says Mike Plimsoll, industry marketing director at Adobe Systems, commenting on the findings of Adobe's Digital Index 2013 Online Shopping Forecast. The report highlights a shift towards omni-channel purchasing - which sees retailers connecting with customers through multiple physical and digital channels.

"These engagements can often happen simultaneously through the trend of 'showrooming'. Showrooming is when customers visit a brick-and-mortar store to scope out merchandise in person, only to make their purchase online, sometimes from a different retailer," he explains.

"Until now, digital sales channels have often been regarded as being in competition with a retailer's brick-and-mortar outlets. Retailers have been sluggish to invest in the digital touch-points in general - preferring to rely on traditional feet in store."

The new wave

However, for local retailers to defend and gain market share in the coming years, he believes a new approach is required - one where physical and virtual channels complement each other in an omni-channel environment.

Plimsoll argues that omni-channel retailers can gain greater consumer insight by breaking down the data "silos" and looking at their customers' habits and trends across the entire customer journey.

Using this knowledge, they can create and deliver a consistent brand identity and experience across all touch-points, while ensuring a personalised and relevant cross-channel encounter.

"The right omni-channel strategy also provides a bridge to the next generation of mobile and social consumer, who is looking to engage with brands across these channels. What this, therefore, allows the retailer, is to increase the value they provide to their customers, which, in turn, increases loyalty, sales and retention for their brand."

For consumers, an omni-channel offering allows them to engage with brands using the channel of their choice and to switch between these channels without compromising on customer experience.

"This will make shopping easier, simpler and more convenient for them, encouraging loyalty and increased spending."

Pain points

Plimsoll notes that delivery, distribution and returns could be an issue.

Showrooming sees customers merging physical and virtual worlds to meet their needs, which streamlines product delivery and simplifies returns policies.

"According to shop.org, 83% of consumers believe in-store return of an online purchase is 'important' or 'very important'. Without the right infrastructure in place, retailers will, therefore, struggle to deliver the consistent retail experience consumers are expecting."

Concluding, Plimsoll says, broadly speaking, omni-channel strategies are still in their infancy, with more work needed in most markets.

"That said, we are seeing some retailers in the UK really embrace the trend - investing in the tools and technologies [needed] to deliver a single view of the customer, while also enhancing the customer experience by offering perks such as free in-store WiFi, multiple delivery, collection and return, and enhanced in-store digital experiences."

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