When US retailer Target discovered that multichannel customers spend four times as much as in-store customers and 10 times more than digital-only customers, steps were taken to elevate the buying experience across every touchpoint. The result? Sales increased by almost 25 percent and digital sales soared by 195 percent.
It’s a lesson retailers big and small can learn from. Today, four in five US shoppers are influenced by digital touchpoints with customers interacting with at least six during their path to purchase.
Retailers can leverage cloud technologies to deliver seamless digital customer experiences across multiple touchpoints, from e-commerce sites and social media to mobile apps and in-store kiosks. Thanks to the Cloud, personalized recommendations, real-time inventory updates and efficient order fulfillment is possible, elevating the digital buying experience.
personalized recommendations.
Beauty company Sephora keeps its customers engaged by utilizing their knowledge of purchase history and preferences. The French multinational retailer sends personalized push notifications, such as, “We noticed you recently purchased a moisturizer. Here are some other products you might like”, directing customers to relevant skincare from its selection of 340 brands. Sephora uses similar strategies across its personalized emails, promotions and its loyalty program.
Cloud solutions make this possible by enabling retailers to collect and analyze customer data, and create personalized recommendations based on past purchases and browsing behavior. This means customers see products they're more likely to be interested in, making their shopping experience more enjoyable and relevant.
69 percent of customers are more likely to purchase from a brand that personalizes buying experiences. Retailers can maximize the chance of this by using cloud analytics to understand buying trends and customer preferences, meaning more tailored promotions,and enhanced customer satisfaction.
real-time inventory updates.
Low-price retailer Walmart operates more than 10,500 stores and numerous eCommerce websites in 19 countries. To manage its vast inventory—spanning clothes, groceries, toys and home improvement—Walmart utilizes a robust cloud-based inventory management system. Walmart can provide customers with real-time information about product availability on its website and mobile app, sending notifications regarding the availability of items back in stock, for example.
With cloud-based inventory management, customers can see real-time stock levels. This helps avoid the frustration of ordering an item only to find it's out of stock. They can also get notifications when an out-of-stock item comes back in stock.
Additionally, cloud solutions’ advanced analytics capabilities help retailers analyze sales data and predict future demand. This makes informed purchasing decisions possible, which in turn helps optimize stock levels and reduce waste, as well as enabling more efficient logistics and inventory distribution across the supply chain.
efficient order fulfillment.
Spanish fast fashion retailer Zara has gained a competitive edge for its ability to have catwalk-inspired, must-have looks ready to buy, worldwide. Zara employs a cloud-based order management system (OMS) that centralizes all order information across ecommerce, physical stores and mobile apps. The OMS supports multiple fulfillment options, such as ship-from-store, click-and-collect and home delivery, choosing the most appropriate option based on inventory levels and customer proximity.
The easy integration of cloud solutions with other business systems like e-commerce platforms, POS systems and CRM software ensures that all parts of the business are synchronized—and this means smoother operations and better customer service.
Plus, cloud platforms can automatically send notifications to customers about their order status, including confirmations, shipping updates and delivery notifications. This proactive communication keeps customers informed and reduces any anxiety or frustration whilst purchases are in transit.
Companies with a solid omnichannel retail strategy retain an average of 89 percent of their customers compared to 33 percent for companies with less established omnichannel strategies. Retailers that fail to embrace cloud technologies could find themselves with increasing data management challenges, higher operational costs, slower innovation and reduced flexibility—all of which negatively impact the overall digital buying experience.
Retailers who master the digital buying experience and deploy cloud technologies effectively will take digital touchpoints to their full potential, and reap the rewards.
Find out more about how we can help retailers harness cloud technologies here.