by NielsenIQ
In the ever-evolving world of retail, consumers are changing the way they shop. Omnichannel shopping has emerged as a modern approach to buying CPG products. This integrated approach aims to provide a consistent and unified shopping experience, allowing consumers to make purchases through a combination of in-store, online, and click-and-collect channels. It recognizes that consumers today interact with brands through multiple touchpoints, including physical stores, websites, mobile apps, social media platforms, and more.
Unfortunately, the retail landscape of 2023 is a bit complicated when it comes to omnichannel shopping. While e-commerce has been steadily growing for years, it is the blending and mixing of channels that truly defines the current and future state of retail. According to NIQs Omnishopper data, 2022 brought close to 15 million new online CPG shoppers to the table. Within the US, 86% of CPG dollar sales are represented by “omnichannel shoppers.” More consumers than ever are embracing an omnichannel mindset, with 22% of shoppers (one in five) now planning in-store shopping trips combined with prior online orders. Additionally, more consumers are shifting their spending habits to combat growing economic insecurity and high supply costs. This is leaving many brands in the dark as they scramble to keep pace and stay on the shelf.
This shift presents both opportunities and challenges for emerging brands as they strive to gain a foothold in the market while navigating the complexities of marketing and understanding consumer behavior. On the surface, this seems like a positive development as it opens additional avenues for revenue. However, there are benefits and challenges that should be considered.
The benefits of embracing an omnichannel approach are substantial for retailers, brands, and customers alike. For retailers, it provides a competitive edge by improving customer satisfaction, increasing loyalty, and driving sales growth. By leveraging multiple channels, retailers can reach a wider audience and cater to different customer preferences and needs.
Brands can expose consumers to their products regardless of how they shop, helping them stay relevant and keep pace with demand. Customers benefit from the convenience, flexibility, and seamless shopping experience that omnichannel retail offers. They can choose how and when to interact with a brand, whether it’s through a physical store, a website, or a mobile app, and expect consistent service and product availability across channels. Maintaining a consistent and identifiable brand and message is crucial to ensure a cohesive experience for customers as they transition between channels. Personalized messaging based on previous interactions, consumer interests, or other relevant criteria can further enhance the customer experience. Brands should also create intentional funnels that guide consumers through each stage of the buyer’s journey, regardless of where they start.
In the end, growing a brand and increasing sales in an omnichannel world requires focus and accurate, actionable data. Tracking retail sales, market trends, and consumer behavior all play a role. Brands need to leverage data and analytics to gain insights into how customers engage with their products and make informed decisions. This includes analyzing purchase patterns, identifying popular product attributes, and understanding the impact of pricing and promotions across channels.
One of the biggest challenges that comes with omnichannel shopping is tracking and analyzing data. As consumers navigate between various channels, it becomes increasingly difficult to accurately track their purchases. Mixed purchases, where consumers buy items from multiple channels, can be incorrectly attributed, or overlooked entirely. This poses a significant challenge for brands in terms of understanding their customers’ behaviors and preferences, as well as making data-driven decisions.
Omni sales measurement incorporates the full view of online and offline channels. In the case of the US market, this omni perspective highlights two factors of growing importance. In-store sales continue to outpace the slowed performance of the 2020-2021 period. Nearly 30% of CPG growth was driven by e-commerce. This highlights the true omni nature of consumer demand today and the need to uncover where channel strengths exist across the CPG landscape. In the future of retail, consumers will continue to develop deeper preferences for where particular needs are fulfilled across the omni channel.
Another challenge of omnichannel shopping is the need to spread resources more thinly across multiple channels. To target consumers everywhere at once, brands may find themselves stretching their marketing efforts and resources to their limits. This can result in diluted messaging and a lack of focus, ultimately impacting sales and customer engagement. The goal is to keep the brand messaging recognizable and engaging, so the consumer feels like everything is cohesive as they go between channels. To achieve this, brands must take a consumer-centric approach that keeps the comprehensive customer journey top of mind.
To overcome these challenges and succeed in an omnichannel world, brands must prioritize focus and accurate, actionable data. Growing a brand and increasing sales require a deep understanding of retail sales, market trends, and consumer behavior. Only by leveraging comprehensive and reliable data can brands align their product offerings with the needs and preferences of their target customers and ensure visibility across all channels. To get the full view of your position and opportunity, you need to look at both sales data and panel data. With e-commerce expected to reach $36 billion in 2023 – a 20% projected increase from 2022, every optimization can lead to big gains, but only if it’s based on accurate data.
When it comes to optimizing omnichannel assortment, there are several key areas that brands should focus on.
Omnichannel retail is the way forward in today’s consumer landscape. The blurring lines between online and offline shopping demand a comprehensive and integrated approach to meet customer expectations. Marketers who embrace omnichannel strategies and leverage multiple channels in their campaigns have a 28% higher purchase rate than single-channel marketers. The key is to understand consumer behavior, track customer journeys, and provide a seamless and consistent experience across all touchpoints.
Omnichannel retail is an essential strategy in today’s consumer landscape. It offers convenience, flexibility, and personalized experiences that customers seek. By understanding the interconnectedness of online and offline channels, analyzing consumer behavior, and delivering a cohesive shopping experience, brands can position themselves for success and drive business growth. Consumers will continue to seek convenience, flexibility, and personalized experiences. Embracing the omni future of retail unlocks new opportunities and ensures relevance in the dynamic retail landscape of 2023 and beyond.
To reach omnichannel shoppers, you need to know where they are choosing to shop, how, and why. But that’s only possible if you have access to reliable, up-to-date data. As a member of Foodbevy’s community, you can sign up for a free Byzzer subscription, NIQs platform built for emerging brands and their budgets. Free access gets you 3 free reports and a weekly alert to get you started with data. Byzzer provides breakdowns of a wide range of attributes and markets in easy-to-digest reports. Best of all, we’ll even show you how to leverage this information for your action plan. It’s never too early to start acting on data.
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