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Think of omnichannel, and two modes often come to mind. There’s ecommerce, and in-store shopping. For brands in both modes, the goal is often to connect the two, and create an experience that fits with how consumers are looking to shop.
A new study out Wednesday offers a reminder that there’s a third piece of the equation: Mobile. The 2023 Omnichannel Leadership Report from retail platform NewStore found that one in three consumers prefer mobile shopping apps to all other channels. Among shoppers who choose apps or websites or brick-and-mortar, the primary reason is that they prefer the experience, the study noted.
Mobile apps are also a key component for retailers at the forefront of omnichannel operations. NewStore deployed a team of mystery shoppers to audit the omnichannel capabilities of 300 retail brands. The top brands were Hibbett Sports, Shoe Carnival, Bloomingdale's, Sephora and Lululemon. Each of these outfits has a mobile app, with functionalities ranging from in-store scanning at Bloomingdale’s to drops that provide early access to new items at Lululemon. In all, 33% of brands that NewStore reviewed had mobile shopping apps.
As is the case with many other aspects of life that are run through our phones, mobile technology can facilitate shopping in unique ways that aren't available in the other modes.
“Consumer apps are the glue of any brand’s omnichannel strategy because they give shoppers the experience of a flagship store in the palm of their hand,” said Phil Granof, CMO at NewStore. “They do this by bringing together the best aspects of the online and in-store experiences. At the most basic level, because apps run directly on a device, they are faster, more responsive, and easier to use than a mobile website. They can also tap into the native hardware and software capabilities of a device to incorporate features like push notifications, utilize the phone’s camera and enable location data.”
Enhancing the shopper experience
The reminder comes at an opportune time. The shopping experience is constantly evolving, and this year has been no different. Many consumers emerged from a more home-centered lifestyle to return to shopping in stores. Yet, after two years in which the use of ecommerce increased among shoppers and stores integrated more digital capabilities into their operations, many people want to cross between the online and offline modes.
Mobile shopping apps can be a tool that augments each mode. For example, shoppers may use the web for initial research on an item. It’s a good source of discovery, as nothing additional has to be downloaded, and they don’t have to leave their house. But once they’ve discovered a brand, mobile is a good source for conversion, Granof said. It’s within apps where they can find a more personalized and interactive shopping experience. Granof said branded apps offer the opportunity to present product lookbooks, custom product recommendations, branded content and more.
Apps also give brands an opportunity to create a sense of community, Granof said. Many retailers have embraced the ability to extend exclusive offers to product drops or seasonal promotions, as the study found that 89% of branded apps provide access to loyalty information.
“Customers get access to new items or deals while the brand is able to convert them into a loyal brand advocate. It’s a win, win,” Granof said.
By providing a connection point to the web that’s available in our pocket, apps can also enhance the in-store experience. For one, they provide a tool for product research. Granof offered the example of an environmentally conscious shopper.
“Before buying an item, a shopper may want to scan a QR code to determine if the product is made from recycled or eco-friendly materials, and this is very easy to do with an app,” Granof said.
It’s not only consumers who can benefit from mobile tools. Equipping in-store associates can also enhance the experience. Increasingly, consumers expect it. NewStore found that more than half of consumers think store associates should be equipped with a mobile device to help them shop. At the same time, 32% of store associates it surveyed use mobile devices.
“A store associate with an iPhone never has to leave a customer’s side,” Granof said. “They can immediately check inventory, sell items that are not in the store, manage a BOPIS order, or simply check out a customer on the spot. Gone are the days of waiting in line at a cash wrap. All of this benefits the associate because it allows them to provide a more personalized experience, which leads to happy customers and increased sales.”
An app's ability to harness the functions of a phone also plays a role here. Communication tools and the ability to access location data can help to open up a line of communication between associate and consumer, Granof said.
Using location data, “the app UX can automatically adapt when a customer is shopping at a physical location,” Granof said. “This enables features that can improve how shoppers learn about products, pick up online orders and interact with store associates.
Granof offers an example: “What if you could ping an associate from the changing room to let them know you’d like a product in a different size or color, and then follow up with them after you’ve left to order an item that complements your new purchase? That is all possible with a mobile app that is integrated with a brand’s digital and physical channels.”
Employees could also use a mobile device to access information. They would be able to easily look up a customer’s profile and contact them directly to share information about new products and sales, or even when an out of stock item is available again. Increasingly, brands want to deliver a white-glove experience in stores, and mobile can allow be a tool toward bringing it to fruition. The study found that brands it categorized as basic – of moderate price and quality – were the largest adopters of mobile apps, suggesting its potential as a tool to elevate service.
Connect the data first
A fully connected experience is a great milestone to work toward, but it doesn't come automatically. Granof offers a reminder that these mobile experiences are only possible when retail brands have done the work to unify physical and digital channels. It's this work on the infrastructure level that enables the omnichannel experience, and many still have a ways to go. For instance, 31% of brand websites surveyed show store inventory availability. Providing an accurate view of stock across channels is one of the ways that experiences are integrated, enabling a view not only of what's actually available to consumers, but also what items may need to be set aside for buy online pickup in store (BOPIS) orders.
“Unless associates have access to the real-time data that makes omnichannel possible, simply putting a device in their hand isn’t going to move the needle,” Granof said.
In the end, the data forms a dividing line. It's what separates the multichannel brands that have operations set up in multiple modes from those who are omnichannel, and offer an integrated experience that enables customers to access their products whenever they want to, wherever they are.
Trending in Operations
Check out the calendar for May 30-June 2.
Welcome to a new week. Summer is just beginning, but earnings season is moving into its later stages. This week, Chewy, Lululemon and Macy's highlight the quarterly reports, while Hormel will offer an inside look at a CPG. To close out the week, the federal government will release the latest jobs data.
Here’s a look at what we’ll learn about the consumer economy this week:
Consumer Confidence Index: The Conference Board issues monthly data on consumer buying conditions, expectations on inflation and other views on the state of the economy. (May 30, 10 a.m.)
Jobs report: The U.S. Labor Department reports data for May 2023 on the number of new jobs created, the unemployment rate and wages. This report is viewed as a key indicator of consumer demand, as people are more likely to spend if they have stable employment. (June 2, 8:30 a.m.)
Wednesday, May 31: Chewy, Victoria’s Secret, Nordstrom, Salesforce.
Thursday, June 1: Hormel, Lululemon, Macy’s, PVH Corp., Lands End