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Omnichannel approaches to getting a complete customer view

Omnichannel communications, which allow customers to switch between online and offline channels seamlessly, are the leading priority for US customer experience professionals, according to an April study from SurveyMonkey.

  • 37% of adults in the US and the UK research products on a retailer's website and then buy them in store, while 36% consider items in a store and then buy them online, according to a January survey from Coveo.
  • When shoppers discover a product from an influencer on TikTok and can purchase that item in-store, or they can purchase an item in-store and use their mobile app to continue engaging with the brand, that’s a good omnichannel experience, something our analysts said Sephora had accomplished.

Analyst insight: “When retailers are thinking about how to build out these channels, both digital and physical, they need to think about them as how they complement each other, and how they work together,” said our analyst Arielle Feger, on a recent “Behind the Numbers: Reimagining Retail” podcast.

Retail media offers valuable in-store opportunities

Retail media is the second-fastest growing media channel in the US this year, after connected TV (CTV), reaching $45.15 billion ad spend this year and $106.12 billion by 2027, according to our forecast. The in-store opportunity is small but growing, reaching $240 million this year and $880 billion by 2027.

  • As stores are where the majority of retail transactions occur, everywhere within the store is an opportunity to present customers with advertising—including TV walls, in front of store kiosks, and between aisle signage, according to our analyst Zak Stambor.
  • The best in-store retail media ad opportunities exist where consumers are already waiting like a deli checkout line.
  • One example of targeting in-store shoppers is by leveraging new technology like smart carts, which engage customers throughout the store. Retailers can also capture shoppers’ attention by engaging with them through an app.

Analyst insight: “There's just such a huge opportunity to finely tune each of those locations within the store to the individual consumer or types of consumers who go to the store,” said Stambor.

Experiential and experimental tech is luring people into stores

As more than a quarter of the US population currently uses augmented reality in some capacity, according to our forecast, and many of these purchases take place in stores, it’s important to leverage this technology effectively to create memorable experiences.

  • When adding experiential or experimental tech in-store, it’s important to make it collaborative, as this can help consumers feel included in the creative process and like a part of the community. “And it’s also a great opportunity for brands to get even more customer data and learn about what consumers are interested in and what they want to see from the brand,” said Feger.
  • This technology should offer customers value, feel authentic, and align with the specific brand. For example, you wouldn’t go to an apparel store to reach consumers interested in buying consumer electronics.

Analyst insight: “It really comes down to the most basic principle: Know your customer, and know what your customers are interested in or might be inclined to engage with,” said Stambor.

Listen to the full podcast.

This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.