Investments in infrastructure are part of the solution
It’s important to recognize that retailers are not left out when it comes to investing in their e-commerce infrastructure. Most of the big chains in particular are making big investments. A case in point is Target, which recently said it plans to open three new package sorting centers over the next year — two in greater Chicago and one in the Denver area — to advance its approach. of using stores to fulfill online orders. These centers receive goods from stores and deliver them to customers.
Customer experience is crucial
Investments in infrastructure are important but will not automatically win the game for retailers. Strategies that improve the customer experience are most likely to lead to success.
Engaging shoppers: Take the case of regional grocer HEB, which edged out Amazon and Amazon Fresh in earning the top spot in Dunnhumby’s premier e-commerce retailer preference index. HEB also outperformed Walmart, Sam’s Club, Kroger, BJ’s Wholesale Club and Sprouts Farmers Market. What made the difference for HEB? It was the combination of a simple, easy-to-use shopping experience with a terrific emotional connection to customers, Dunnhumby said. Other retailers can learn from these strategies.
Beyond comfort: E-commerce is often seen as a convenience channel, but retailers need to understand that price is also a crucial factor for many shoppers. Dunnhumby’s recent Consumer Trends Tracker revealed that many omnichannel shoppers, who shop both online and in-store, are struggling financially. The tracker found that omnichannel shoppers are more likely to have children and pets in their household and therefore have a harder time balancing their budgets. Retailers need to be aware of these dynamics in planning strategies.
Out-of-stock management: The Dunnhumby Tracker also found that perceived out-of-stocks online are 7% higher than in-store, underscoring the need for e-commerce to better manage operational fundamentals.
The ultimate goal is not just e-commerce
There are many ways to improve e-commerce strategies. But retailers’ goal shouldn’t just be to entice consumers to buy more online. Symphony RetailAI recently reported that households shopping in-store and online are growing at a rate of 10% year-over-year, making them extremely valuable to retailers. The analysis also revealed that omnichannel customers are more loyal than their in-store counterparts.
The reality is not a competition between online and in-store, but rather an improvement of these two sales channels. After all, consumers will ultimately decide how they want to buy. The job of retailers is to meet these needs.
