WJR Business Beat: Omnichannel Retail Works Best (Episode 428)


You must be both online and offline in an omnichannel approach to have the best odds of success, Jeff Sloan says on this episode of the Business Beat.

Tune in below to learn why:

 

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Good morning, Paul!

Well, the pandemic changed many things relative to consumer expectations in their shopping and buying experiences. In fact, 85% of retail executives surveyed in a new study believed that the COVID-19 pandemic has forever changed the nature of retail. So how did it change it? Well, most dramatically by accelerating the need to be online as part of an omnichannel approach in which your brick-and-mortar presence works in concert with your online presence seamlessly.

You see while e-commerce, as part of an omnichannel approach, performs favorably, pure play retailers, those that stand alone without any brick-and-mortar counterpart, are facing the reality that it’s one of the least profitable ways to conduct business. New findings indicate that pure play e-tailers are twice as likely as brick-and-mortar retailers to report that they’re unprofitable. In fact, 44% to 20% report unprofitability.

And that’s according to a survey of global retail leaders conducted by Ipsos for Publicis Sapient and Salesforce. While online retailing seems on the surface of it to be so efficient, a closer look reveals costs that in the brick-and-mortar environment simply don’t exist, for example, like shipping, which many retailers have to bear the cost of given consumer expectations today, as opposed to the brick-and-mortar environment in which the consumer simply carries the package out the door and home after they buy it with no additional associated cost.

So how does omnichannel work more favorably? Well, when there is both an online and brick-and-mortar combination, consumers, for example, can find what they’re looking for online, purchase it and choose to pick it up in store. That’s known as BIPIS, buy online, pick up in store. Again, this brings the cost out and actually, as a bonus, brings the consumer into the store where there’s a possibility of upselling and cross-selling to them, generating additional revenue out of that original sale.

So, the bottom line? You must be both online and offline in an omnichannel approach in order to have the best odds of success. I’m Jeff Sloan, founder and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.

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