Omnichannel strategy

The evolving digital landscape has made customer journeys more complex, rendering it difficult to understand and improve customer experiences. One of the biggest hurdles is the lingering offline-first mentality within companies. An internal legacy mindset often hampers the full potential of omnichannel sales.

While digital sales channels are growing, many sales teams lack the resources and training to promote digital sales. Offline-first organizational structures suffer from channel silo-thinking, where different teams work in isolation without cohesive strategic initiatives or cross-functional collaboration. A counterproductive incentive model, where compensation doesn't reflect the new digital strategy, leads to poor lead-sharing across channels.

Not all products are fit for omnichannel sales. Some require intricate details that are difficult to convey digitally. These products often need a deep dive into specifications, personalized consultations, or comprehensive explanations.

Such an approach challenges the straightforward, quick-consumption nature of digital. It doesn't mean you should abandon your omnichannel aspirations; rather, you need tailored strategies to address these complexities.

Disparate systems often lead to fragmented data. This makes it difficult to gain a holistic understanding of customer behavior and preferences. Effective omnichannel strategies require robust data management systems that can consolidate and analyze data from various touchpoints. However, integrating data from multiple channels into a single, cohesive view remains a daunting task.

Map the consumer journey

Understand how customers navigate the online/offline dynamics and identify the critical touchpoints they hit toward the final purchase. Are they exploring products on Amazon, comparing prices on your D2C website, or seeking recommendations on social media platforms? Mapping these journeys helps you understand which channels customers use for exploration, price comparison, and purchase.

Segment your customers based on interests, purchase behavior, and preferences. Detailed customer journey mapping for key segments allows you to finetune the customer experience. Define the most effective paths along these journeys, selecting the right channels and touchpoints. Align your marketing mix, including product offerings and services, with each channel's strengths.

Tailor your channel strategies

Each channel plays a unique role, and your strategy should reflect that. Decide what products to sell on each channel and how to price them. Mass merchants might be ideal for volume sales, while your direct-to-consumer website could focus on exclusive offerings. Tailor your digital strategy to navigate the extreme competitiveness of online platforms, leveraging SEO, targeted ads, and engaging content.

Leverage data analytics

Understanding customer behavior is crucial. Use data analytics to map individual customer journeys, preferences, and pain points across channels. This insight helps you identify what drives purchase decisions and what causes drop-offs. If customers research products online but face friction when transitioning to offline purchases, address this gap to improve the experience.

Integrate online and offline channels

Seamless integration between channels is essential. Ensure your systems save customer information across touchpoints. If a customer researches online and then speaks to a sales rep, they shouldn't have to provide their details again. This integration reduces friction and enhances the customer experience (CX).

Offer a consistent and unified customer experience across all channels. Whether a customer is engaging with your company on social media, in a physical store, or on your website, the experience should feel cohesive. Consistency builds trust and customer loyalty, encouraging repeat business.

At Simon-Kucher, we guide you through optimizing your consumer touchpoints for greater engagement. Contact us.

Designing your product portfolio for omnichannel success is crucial for maximizing customer acquisition and lifetime value (CLV). It's not just about filling the digital shelf with every product you offer. It's about strategically aligning your offerings with each channel’s role and your customers’ needs.

Tailor your assortment

One common mistake is to offer the same products across all channels indiscriminately. Instead, customize your product offerings based on the channel's purpose. Classify your product assortment into specific roles. Determine which products are best for attracting new customers. Which are ideal for cross-selling and upselling? Which foster customer loyalty?

For channels aimed at acquiring new customers, feature popular, high-appeal items that attract attention and drive initial interest. For channels serving routine purchasers, you may decide to offer staple products and personalized options that encourage repeat business.

Focus on consumer attributes

Understand what attributes are most important to your customers. Are they looking for affordability, premium quality, or unique features? Recognizing these preferences allows you to align your product offerings with what your customers value most.

Think about the specific needs or occasions your customers are trying to fulfill. Are they shopping for everyday essentials, special gifts, or seasonal items? Tailor your portfolio to meet these needs, ensuring that your product offerings are relevant and timely.

At Simon-Kucher, we can help you tailor your product offerings to maximize acquisition and CLV. Contact us.

Pricing for offline and online channels can be tricky. However, getting it right is essential for maximizing customer acquisition and retention. Consider how much customers are willing to pay and how this varies depending on their stage in the journey.

Customers expect different things from online and offline shopping experiences. Online, they might look for convenience and competitive pricing, while offline, they seek personalized service and immediate product availability. New customers might be more price-sensitive, looking for entry-level products or promotional deals. In contrast, returning customers may be willing to invest more in premium products or exclusive offers.

Offering your full inventory online might seem like a good idea. However, it can lead to excessive price comparisons and downward price spirals. Instead, carefully select which products to feature, emphasizing those that align with the channel's strengths. This differentiation reduces direct comparison and encourages brick and mortar store visits for other products, balancing both channels effectively.

The online channel offers flexibility in pricing, such as à la carte, memberships, recurring revenue models, and loyalty programs. Tailor your pricing model to how your target consumers shop, rather than focusing solely on predictable revenue streams. Understanding customer behavior helps you set prices that drive retention and recurring purchases.

Ensure that your offline and online channels work together rather than compete. Highlight products that are worth visiting the store for and those that can be easily bought online. This approach creates a cohesive omnichannel strategy, enhancing the overall customer experience and driving sales across all channels.

At Simon-Kucher, we can help you enhance your pricing strategy across channels. Contact us.

Ensure hybrid sales capabilities

Customers appreciate the convenience and speed of online shopping but often seek advice during their purchase decisions. While most customer interactions still involve a human touch, many of these can happen digitally through remote selling. Equip your sales team with the tools and training to engage customers via online communication methods.

Tailor support for complex products

Some products are too intricate to sell solely online. They require personalized assessments and detailed explanations. Offer online-only purchases for simpler products, but maintain a team of experts for complex needs across all channels. This approach ensures customers receive the support they need, whether they’re shopping online or in-store.

Invest in digital sales tools

Digital sales tools can significantly enhance the customer experience and improve sales conversion during offline sales. Mobile apps, configurators, design software, and financial calculators help present your full product range in an integrated way. These measures can boost conversion rates as well as cross-and up-selling opportunities.

Establish a dedicated online sales team

Form a team specifically focused on supporting and growing online sales. This team should provide real-time customer support. They guide customers through the purchasing process, suggesting solutions based on their needs, and addressing any concerns. Ensure that your online sales representatives possess deep product knowledge, excellent communication skills, and the ability to personalize the online shopping experience.

Break down channel silos

Encourage a shared vision, common language, and customer-first mentality across all channel teams. Senior leadership should champion the omnichannel transformation, addressing resistance to change and promoting a unified message throughout the organization.

Redesign incentive models

Traditional incentive models often reward individual channel performance, overlooking the importance of hybrid channel trends. Shift toward omnichannel incentives by rewarding contributions at different stages of the customer journey. Recognize and incentivize lead generation, advisory efforts, and sales closures. This approach encourages collaboration across channels and motivates employees to prioritize the overall customer experience.

Leverage customer data for personalization

Use customer data to personalize interactions across all channels. Analyze customer behavior, preferences, and purchase history to offer tailored recommendations and solutions. This not only enhances the customer experience but also increases the likelihood of successful sales.

We can help you break down channel silos and enhance the sales experience. Contact us.