Several successful direct-to-consumer (D2C) brands have taken the plunge and opened physical stores. Is it worth the extra cost and effort? For a digital-first brand, opening a physical store can take your business to a new level. It can boost customer engagement, multiply sales opportunities and build brand legitimacy. However, to be able to justify the associated costs, an omnichannel sales strategy will need to be realized with the utmost (strategic) care and attention
When it comes to e-commerce brands looking to open a physical store, the key lesson which I learned, is that customer intimacy and technical product expertise are the most valuable brand assets which you can have. If you have spent years getting to know your audience and their needs, you don’t want to undo all that good work when transitioning to an omnichannel model. Let’s look at some key strategies to help you identify, steer clear or overcome the potential pitfalls on the road to omnichannel success.
Offering an experience that resonates with your audience
Brands that prioritise core values which capture the concerns of the public have the highest success rates. This is especially true in post-COVID times, when people are looking for more meaningful experiences when they’re out shopping.[1] A great example is Gymshark, which offers stylish sportswear based on the values of quality, health and inclusivity. The company rose to fame through a platform of influencer marketing, with professional athletes posting videos of themselves wearing Gymshark gear on YouTube. Sports enthusiasts around the world followed soon, by connecting with the brand and creating a new community. The result? In just over 10 years, the brand has gone from zero to 10 million customers![2]
This example shows how a brand can apply a disruptive approach to establish a much closer and stronger relationship with its audience than many traditional brands have ever managed to do. Their deep understanding of their customer is reflected in the design of the brand’s first flagship store on London’s Regent’s Street. On arrival, visitors can enjoy a healthy green juice, try a workout class in the Sweat Room or get bespoke gear recommendations with the VIP shopping service. This immersive experience gives customers the same sense of belonging as the brand’s online presence does.
Rather than diluting the brand experience with a standard store, the flagship is a haven for brand fans. Therefore, the important omnichannel lesson is: Always serve your core audience first. By appealing consistently to the audience’s values and staying true to them on every channel, the brand can ensure its following of a consistent in-store brand experience and customer service, which boosts the value of other channels too
[1] Rogers, K. (2022) Future consumer index: Moving out of brands’ reach, EY. Available at: https://www.ey.com/en_nl/consumer-products-retail/future-consumer-index-moving-out-of-brands-reach
[2] https://nl.gymshark.com/pages/about-us
Are physical stores worth the investment for online-only brands?
However, the cost of setting up a physical store is still significant. How can brands justify and recoup the necessary investment? This requires a long-term perspective and strategy based on the fact that the brand will generate more sales by reaching more customers. Stores in prominent locations can attract a lot of attention and generate significant local interest. Giving these shops a more local feel can further increase affinity. As part of an effective omnichannel strategy, the store can super-charge the retailer’s other channels and by doing so increase sales and improve customer satisfaction ratings. These positive effects can be further enhanced by implementing cross-channel services such as ‘buy online, pick up in-store.’ These models can spur more goods being purchased in the shop during pick up.
Ensuring a consistent brand experience across channels
It is of vital importance that brand perception and service towards customers are consistent across the mix of sales channels. Only then, your omnichannel sales strategy will be successful, generating additional brand strength and boosting revenue. Something which Dutch fashion and jewellery company My Jewellery does very well. This family-run business, which offers affordable designer jewellery, grew out of a blog started by a young jewellery enthusiast in 2011. An e-commerce site followed two years later, then pop-up stores and finally its first physical store in 2015.
At every stage of the customer journey, My Jewellery ensures a consistent brand experience, critical to maintaining customer intimacy. Each touchpoint should strengthen the customer relationship and reinforce positive feelings about the brand. That’s something that a store is set up for the best. Some brands struggle to replicate the tone or ‘vibe’ that makes their brand ‘sing’ online in their physical stores. As mentioned, success comes from understanding the values your brand represents and making them resonate across all channels.
Understanding consumer values
My Jewellery was able to survive the pandemic and thrive as an omnichannel brand, and it now has 27 physical stores in the Netherlands and Belgium. This success is a direct result of the brand values which are associated with love, beauty, celebrating special moments and affordability. These same brand values have been successfully transferred to its stores. This proves that when done right, the intensity of the physical brand experience can reinforce the customer’s positive perception of the brand.
Using every touchpoint more effectively
Beyond its function as a shop, any physical retail space you add to your channel mix can and should be used to influence the activity levels of other touchpoints. Hosting events or product launches can help generate a peak in social media buzz and exposure. Additionally, a store can be used to support the overall operations of a brand in search of the best customer experience. Examples of this are using your store as a mini-warehouse, a returns hub, or even a micro-fulfilment centre (MFC) during peak sales periods.
Getting pricing right
In today’s inflationary economy, consumers are hypersensitive to prices and therefore highly cost-conscious. This makes it essential that price consistency is assured across all channels to avoid customer confusion and maintain brand integrity. Simply put, one channel will be ignored when another offers a bigger bang for the customer’s buck. It’s only logical that consumers will not flock to your stores when your website offers better prices and/or more discounts. Online and offline pricing strategies should therefore always be aligned.
The bottom line
A successful omnichannel strategy can generate serious growth for your brand in terms of brand awareness, brand strength and overall revenue. However, this will only be the case if the customer approach is professional, consistent and distinctive.
Adding an additional channel to the mix must always be approached as the highest development priority for your brand or company. Therefore, all disciplines need to be represented in the project team. Interdependencies and the stakes involved mean that nothing can be left to chance.
Always make sure to start the project by first and foremost identifying what your successful and customer-centric contact points need to be. This will help engage your audience in terms of brand identity and customer service.
Want to find out more about what it takes to successfully switch to an omnichannel sales strategy? Stay tuned for our next blogs.
Can’t wait? Contact us today and let’s explore how to make your brand’s omnichannel sales strategy a success.
