Omnichannel
Advertising In 2021:
Using Online
Channels To Drive
Offline Outcomes
While COVID-19 accelerated the shift to online shopping, lockdowns, product limitations, and delivery constraints also reinforced the continued importance of physical stores. These factors inspired new behaviors or made existing behaviors a more common or prevalent practice.
Even with expansion and greater reliance on online channels for both discovery and purchases, consumers still demonstrate the value of in-store experiences, including:
Though these stages in the shopping journey can be simulated and addressed through digital platforms — and people will likely continue to opt for them when busy schedules and a need for convenience are primary drivers — there are times when
customers simply prefer in-store interactions.
At the same time, the advertising ecosystem is changing. The deprecation of third-party cookies has been delayed but is still looming on the horizon, and we’ll soon enter a new era where first-party data becomes a requirement in delivering one-to-one personalized advertising. As consumer behaviors grow increasingly dynamic across shopping channels, marketers need to adopt an omnichannel strategy to maximize the impact of their advertising efforts and stay ahead of these trends.
A recent Criteo survey showed that
of
28%
or friends, family or colleagues
(13%)
(23%)
consumers discovered their next clothing purchase in-store, higher than social networks
140% growth
people who say video chat is their favorite channel to connect with visitors.
in share of
Together, these realities are marking a new era for digital marketers.
Consumer demand for in-store shopping is changing and fragmentation in the retail landscape has created disconnects between the digital and brick-and-mortar customer experiences that are hindering retailers’ advertising efforts.
Other shifts are also happening. First-party data is becoming much more valuable, and marketers are under pressure to develop a better customer view in an omnichannel environment.
Brands need to start thinking about their customers’ journey across both digital and physical channels to capture first-party data and deliver richer experiences.
Ecommerce boomed during the pandemic,
but stores are still king
Stores are where the action is. The vaccine rollouts are on, and consumers are hungry to venture back into the real world. Many miss the tactile, immersive and social experiences that online interactions can’t fulfill, and research shows that people are eager to get back to these in-person activities. That’s one reason the amount of store openings in 2021 is outpacing the number of store closures, something that hasn’t happened in years.
Ecommerce accounts for only about of US retail sales dollars.
13%
Retailers from Warby Parker to Dollar Tree, DICK’S Sporting Goods and Five Below are also exploring and accelerating their store investments because of the added brand value brick-and-mortar provides.
Trends point to stores as the centerpiece of omnichannel experiences
Retailers are expanding their omnichannel services and creating a focus on stores to maximize reach, engagement and revenue impact. They’re accomplishing this through key initiatives:
Localized digital engagement
Click-and-collect
and omni-fulfillment
Store-level
appointments
Creating synergy between online and in-person has never been more critical
Retailers’ digital initiatives accelerated quickly as a result of the pandemic. Ecommerce penetration in the US, originally estimated to reach 24% by 2024, moved from 17% to 33% in just two months according to a McKinsey webinar. But that demand is now leveling as consumers return to stores.
Ecommerce penetration in the US, originally estimated to reach 24% by 2024.
But while customer visits to physical locations are rebounding, digital’s impact and influence on in-store shopping experiences will continue to become more pronounced.
Source: Criteo survey of N=715 U.S. apparel shoppers, April 2021
Retailer websites and apps are the biggest influencer of U.S. consumers’ last purchases, with physical stores coming in second.
Advertising and marketing via websites, social networks and content platforms like YouTube also help retailers maximize reach and engagement across all channels.
51% of consumers use YouTube to research or find new products.
Though these are driving forces behind consumer inspiration, data from digital channels doesn’t tell the whole story.
There are certain things consumers can only do in a store.
Many shoppers still prefer to touch and feel a before buying it.
of US consumers say they miss fitting rooms.
People want to engage with associates, connect and socialize with their peers and participate in classes/events.
Consumers increasingly want to capitalize on buy online, pick-up in-store (BOPIS) / return in-store (BORIS) to save on shipping fees or delivery times.
Click-and-collect sales grew in 2020.
Some categories — furniture and luxury, for example — simply lend themselves to in-store shopping.
Solutions such as digital services and video chat can help close these gaps but cannot fully replicate the in-store experience. Marketers must adopt technology that enables them to connect the impactful moments within the shopping journey to delight customers, regardless of channel.
Retailers are focused on closing the engagement gap
Although most retail sales still take place in stores, digital’s influence on the decision-making process has never been stronger. That’s why retailers need to focus more than ever before on bringing their online and offline experiences together.
The value of retailers’ first-party data is set to skyrocket.
But forward-looking brands will need the right solution to utilize and optimize first-party data. Innovative technology that can manage click-and-collect campaigns and store sales campaigns enable marketers to future-proof their advertising strategies and continue doing addressable, one-to-one advertising across online and digital interactions.
Fortunately, retailers are in a unique position to capitalize on this opportunity to elevate their approach and pull greater value from the commerce data they source in their online and offline interactions with consumers.
While walled gardens will continue activating first-party data within their ecosystems, the majority of online time is spent is spent in the open gardens, including:
66%
of the time consumers spend online is spent in the open Internet
66%
of the time consumers spend online is spent in the open Internet
The ability to activate your first-party data on the open internet is imperative to reaching customers and driving outcomes.
The right technology solution closes the gaps and drives revenue opportunities
A carefully planned omnichannel strategy builds consistency
and synergy around the customer experience, even as shoppers hop from one channel to another.
Offer personalized product recommendations based on behaviors
Suggest brands and items based on what they’re most likely to buy
Combine with what’s available in customers’ preferred stores
Blend what’s on sale in their preferred purchase channel
It’s more important than ever for retailers to address the disparities across channels. By combining online data with in-store transaction details — and by leveraging key opportunities to activate first-party data — marketers can optimize their campaigns to both online and offline outcomes and engage customers based on the entire shopping journey, not just their most recent online purchases.
The value of purchases made through click-and-collect in the U.S. during the pandemic increased by 63% compared to pre-COVID-19 levels.
Retailers should look for a technology partner who can help secure customer data and connect their first-party data to drive value on the open internet. In the next evolution of the retail environment, first-party data will be among retailers’ most powerful assets for these two reasons:
Marketers can further optimize their first-party data with additional datasets, including interest and intent data. Understanding where the consumer resides in their purchase journey can further inform interest and intent and enable even more personalized experiences.
It’s deterministic, tied to identifiable data
It’s persistent, enabling long-standing identification of the user
BOPIS is one service consumers increasingly expect from retailers. It’s also often more cost efficient for the retailer to service the consumer in-store. If a technology provider can merge digital interest and intent with a consumer’s general location, a brand can execute a BOPIS activation and delight their consumer with a great experience, while also saving money.
Source: Seeking Alpha, “Online vs. In-Store: Retail Cost Comparison,” Feb. 20, 2020
First-party data is already present across numerous retail systems. Loyalty card programs, brands’ mobile apps and in-store POS platforms all have the potential to deliver valuable customer behavioral insights. This easily accessible data can also often be found within marketers’ customer relationship management software (CRM) or customer data platform (CDP). The right combination of first-party data, additional data streams and targeted advertising activities enables retailers to nurture a holistic ecosystem for customers.
Retailers seeking to optimize brand recall and overall revenue opportunities may benefit from an approach that blends online and offline data can help to optimize brand recall and overall revenue opportunities. This type of strategy also creates a richer experience that is more likely to persist after people leave your store. You’ll be positioned to drive tangible outcomes for both online and in-store efforts.
Adding online touch points with consumers who are only buying in-store increases their likelihood to buy with you again by 50%.
Source: Analysis of Criteo client data from January 2020
The time to evolve your advertising strategy for retail’s new era is now.
Consumers think about a retailer as one entity, rather than as an ecommerce company, a store, catalog, call center or an app. To create personalized experiences that resonate with shoppers, retailers need to unify the experience and account for each interaction — regardless of channel — to better inform how to engage consumers.
Marketers must create advertising campaigns that are compelling and drive conversions. The right technology partner can incorporate all channel outcomes into their user valuation, decisioning, optimization and personalization engines to maximize ROI. A modern solution enables brands to use store sales data to better understand intent, to reach more of their customers online where purchase decisions are influenced
and to drive revenue across all channels.
Learn More
1.888.603.3626
info@retailtouchpoints.com
omnichannelsales@criteo.com
Engaging
with associates
A recent Criteo survey showed that
of
or friends, family or colleagues
consumers discovered their next clothing purchase in-store, higher than social networks
of shoppers said fast and convenient
pick up is a primary draw of the in-store experience.
Discovering items organically
Faster product
pick up
Engaging
with associates
Testing products
in person
Consumer demand for in-store shopping is
changing and fragmentation in the retail landscape has created disconnects between the digital and brick-and-mortar customer experiences that are hindering retailers’ advertising efforts.
Remaining competitive, capturing more sales and delighting customers requires marketers to adopt tools capable of leveraging additional and better data sources and create synergy between online and
in-person experiences.
28%
(13%)
(23%)
63%
2021
3,199
store openings
2,548
store closings
2019
2018
2021
4,392
store openings
9,302
store closings
2019
3,258
store openings
5,844
store closings
2018
Store-level
appointments
Give shoppers a way to connect in-store or online with a local expert
Create excitement around
in-store events, contests
and promotions
Localized digital engagementents
Make the store central to the purchase experience
Click-and-collect and omni-fulfillment
US in-store sales transactions were up in May 2021 when compared to pre-pandemic levels
8%
55%
107%
73%
of online shopping is done directly with open internet retailers.
Source: Criteo Consumer Sentiment Index, Apr-Jun 2021
Source: eMarketer, Worldwide and China Retail Ecommerce Sales Forecast, December 2020
Engaging with associates
Testing products in person
Discovering items organically
Faster product pick up
of consumers discovered
A recent Criteo survey showed that
of consumers discovered
or
28%
friends, family or colleagues
(13%)
(23%)
consumers discovered their next clothing purchase in-store, higher than social networks
Ecommerce boomed during the pandemic,
but stores are still king
2021
Using Online
Channels To Drive
Offline Outcomes
2021
4,392
store openings
9,302
store closings
2019
3,258
store openings
5,844
store closings