What is omnichannel retail? Strategy and tips

In a fast-changing retail environment, countless retailers are looking beyond their traditional stores to reach more customers over a wider area. According to a Palexy AI report, consumer visits per store have dropped from 5600 in May 2022 to 3400 in May 2024, marking a two year low. Meanwhile, online retail is booming. E-commerce sales hit an all-time high of $5.8 trillion globally this year and shopping via a mobile device is driving a big chunk of that growth.

Faced with these challenges, many traditional retailers are betting big on omnichannel retailing. The idea is simple, (but powerful), by creating a seamless shopping experience across a physical store and digital platforms, retailers can stand out from their competitors and outmaneuver online-only giants (like Amazon that now commands nearly 40% of online sales).

This complete guide is going to break down everything you need to know about omnichannel retail. From what it actually means to the benefits it offers, we’ll walk you through why it’s a good strategy for modern retailers everywhere.

What is omnichannel retail?

Omnichannel retailing is all about creating a seamless customer experience across multiple platforms. It allows customers to interact with a brand on their favorite channels while keeping their information intact. This continuity means that customers can switch between sales channels without losing context.

Now, you may have heard of multichannel retail and, at first glance, they do seem pretty similar. But, omnichannel and multichannel differ significantly in approach. Multichannel simply means your brand operates on multiple platforms, such as:

• Social media
• Phone
• Mobile apps
• Email
• Live chat

Omnichannel goes one step further by connecting these platforms to create a unified experience. It also focuses on customer context, so your team has access to customer details across tools and systems. This integration allows customer service reps and brick and mortar store associates to deliver highly personalized interactions. For example, connecting your CRM to a retail POS solution allows your team to instantly view a customer’s order history.

Benefits of omnichannel retailing 

You now know what it is, but why is it so brilliant? Let’s break down the key benefits and show you why adopting this strategy can elevate your retail experience to a whole new level.

Enhances retail customer journey

With a successful omnichannel retail strategy, you’re basically giving customers exactly what they want - seamless, stress-free service on their terms. It’s a surefire way to boost your customer satisfaction score (CSAT) (which is just fancy talk for measuring how happy your customers are with your business).

Here’s how it works:

• Customers get to choose their favorite channel
• Your team gets all the details in one place

This means happier customers who don’t have to repeat themselves a million times (because, that’s super annoying). Considering 60% of consumers say they’ve dealt with agents who had zero context, offering smooth, informed service is a huge win.

Reduces inventory visibility issues

Another big win with omnichannel retail experience is you get improved inventory visibility. This strategy helps businesses get products where they need to be, so nothing’s left sitting on the shelf collecting dust.

With omnichannel, you can manage all the moving parts of your inventory on one centralized platform. Need to coordinate with vendors, distributors, or suppliers? No problem, analytics and streamlined communication tools make it easy to stay on top of everything.

And, better inventory visibility means more chances to upsell and cross-sell. Let’s say a customer wants an item that’s out of stock. Instead of saying, “Sorry, we don’t have it” your team can upsell a similar (and maybe even higher-value) product they’ll love.

Offers more flexibility to meet customers needs 

Customers today want things their way, and they want it now. In fact, Salesforce found that 73% of customers expect companies to understand their unique needs and expectations.

An omnichannel experience gives your business the flexibility to keep up with these demands, no matter where your customers are or how they like to shop. By connecting all your sales channels, your customers can shop using your online and offline channels.

Let's look at an example in the retail industry. Say a customer starts browsing your products on your website, they can easily check if a product is in stock at their nearest store. Or, if they order something online but decide they don’t love it, they can head to a physical location for an easy return.

This kind of flexibility doesn’t just make your customers happy, it builds customer loyalty.

Personalizes customer experience 

By consolidating customer data across all your channels you get a 360° view of who your customers are and what they want. This allows your team to provide spot-on recommendations and truly relevant offers.

For instance, imagine a customer who browses some cool new sneakers on your app but doesn’t buy them. The next day, they walk into your store, and your staff can offer them a discount on the exact sneakers they were eyeing up the day before. That’s the power of personalization.

Businesses are taking notice. In a study by EverString and Ascend2, 69% of companies rated personalizing the customer experience as a top priority. When you show customers that you get them, you’re not just improving their experience—you’re earning their loyalty.

Creating an omnichannel strategy

Want to make your omnichannel customer experience even better? Here are seven steps to help you create a solid strategy.

1. Segment your customers 

First things first, you've got to know your audience. The key to a killer omnichannel strategy is to ditch the one-size-fits-all approach and tailor your game plan to specific customer groups. That means figuring out who they are and what makes them tick. You can segment your audience based on things like:

• Income
• Gender
• Where they live
• Age
• Values
• Past interactions

TIP: If you’ve got a CRM platform integrated into your POS software, it’s probably packed with juicy audience insights. Use it to your advantage and get those demographics working for you.

2. Define multiple channels for each segment

Now that you’ve sorted your audience into neat little segments, it’s time to figure out where they hang out. Are they chatting, DMing, emailing, or picking up the phone?

For instance, if your 20–30-year-old customers are all about your chat feature and they’re your top spenders, then that’s where you should focus your energy. Or, if you find that your older customers prefer to email for more detailed inquiries, you’ll want to make sure your email support offers quick, personalized responses.

3. Map your customer journey 

Now, let’s take a good look at the path your customers walk before they buy. Mapping their journey helps you understand how they interact with your brand from start to finish, and where you can step in to make their experience smoother (and more likely to end in a purchase).

Start by identifying key touchpoints, like when they first discover your product, when they ask questions, and when they’re ready to buy. From there, figure out how they hop from one channel to another (maybe they start on your website, move to social media for a quick question, then head back to the site to buy).

Knowing these steps can help you create a seamless, connected experience that feels natural and makes customers want to keep coming back.

4. Offer cross-channel customer support 

Customer questions don’t always fit neatly into one box, and neither should your support. Offering cross-channel support means your team is ready to help regardless of where your customers reach out from.

For example, if a customer starts a conversation on Instagram DMs but needs more detailed help, they shouldn’t have to start over on the phone. Instead, they should continue their conversation, and your support team should have all the context they need.

5. Implement POS technology 

Your point of sale (POS) system is not just about ringing up sales anymore. No, it’s more than just a payment system. Now, it’s about connecting your physical store to your online platforms in real-time. With the right POS technology, you can track inventory, process transactions, see the different channels your customers are using, and even offer personalized recommendations based on customer data and customer behavior.

For example, if a customer's looking on your website and then walks into your store, your team can pull up their previous online purchases or even offer them the item they left in their cart.

6. Add automation to your UX

Adding retail automation to your user experience (UX) makes shopping faster and smoother for customers while freeing up your team to focus on the important stuff. Whether it’s automated chatbots that answer common questions instantly or personalized email follow-ups, automation keeps things moving without losing that personal touch.

7. Test and monitor regularly

When it comes to omnichannel retail, there’s no “one size fits all” solution. What works for one business might not be the best for another, so it’s all about testing, tweaking, and finding what clicks for you.

Play around with different content, email subject lines, formatting, and templates - really get in there and experiment. The key is to make testing a regular part of your routine so your strategy stays fresh and adaptable in this fast-moving retail world.

Potential challenges with solutions for omnichannel retailers 

Like every successful strategy, there are some potential downsides that you'll have to consider.

High initial costs in technological investment

When it comes to investing in omnichannel retail, there are cost-effective, scalable options available. For example, investing in a top-tier POS system can seamlessly integrate your in-store and online operations without blowing your budget.

TIP: Looking to explore your options? Check out our Best POS system for ecommerce guide or discover how you can secure funding with Epos Now Capital.

Data analysis across platforms 

When sales happen in-store, online, and on social media, all of that data needs to be analyzed and stored in one place. Without the right tools, this can get messy and confusing. You might find it hard to track which channel is bringing in the most sales, what your customers are interested in, or even how to offer them personalized recommendations.

The solution here is to use a tool that connects all your data sources and gives you an easy-to-read dashboard. This way, you’ll have all the insights you need at your fingertips. Some platforms even offer automated reports to help you make data-driven decisions. To get started, check out our guide on omnichannel POS features.

Staff training with new tools and processes

If your staff isn’t trained on the new tools or how to handle customer interactions across multiple platforms, your strategy could fall flat. You need to train your team on how to use the POS system, how to assist customers over chat, and how to handle orders from different channels without any hiccups.

The good news is that many systems have easy-to-use interfaces and offer training sessions or support materials. Plus, ongoing training will ensure your team stays up to date. To help, check out our POS support resources to get your team on track. The more confident they are with the tools, the better your customers will feel when interacting with them.

Examples of successful omnichannel retail solutions

Some of the biggest companies in the retail industry have absolutely mastered the art of omnichannel retail. Let's take a look at a few standout examples:

Walmart

WalMart is definitely one of the standout leaders in omnichannel retail. With a $1.2 billion investment in improving its omnichannel commerce program, WalMart is on a mission to be the first to deliver a truly seamless shopping experience across every channel. Whether you’re doing some online shopping, shopping via mobile, or in-store (or a mix of all three), Wal-Mart's goal is to make it fast and easy for the customer.

A major win for WalMart has been the roll-out of its online grocery pickup service, which has expanded to 140 locations across 25 metro areas. In the third quarter alone, this service grew to 85 additional locations. And it’s paying off: Customers who use online grocery pickup are spending nearly 50% more than those who shop in stores only. This is exactly the type of omnichannel shopper WalMart is targeting, the one who shops across multiple platforms and is looking for a smooth, integrated experience.

Amazon 

Amazon, a multinational tech giant, reigns as the largest internet company in the world by revenue. It is not only the biggest online marketplace, but also leads in areas like AI assistants, live-streaming platforms, and cloud computing. With services ranging from Amazon.com and Amazon Alexa to Amazon Music, Prime, Web Services (AWS), and even Amazon Go, the company covers many of sectors.

What sets the company apart is their laser focus on user experience. As Forbes aptly put it, “Amazon has earned our trust by delivering the products we want, on time, intact, in the same branded brown boxes, consistently.”

To meet the diverse demands of its massive user base, Amazon has adopted a robust omnichannel strategy that spans all of its offerings. The success here lies in its data-driven approach. Amazon uses customer data to create personalized, responsive interactions across multiple platforms, ensuring that users feel heard and understood.

Amazon’s omnichannel strategy is about seamless integration across channels. Whether it's inventory management, central fulfilment, or customer service, every aspect of Amazon’s operations is connected. This allows them to fulfil customer needs in whatever way the user prefers, whether through their website, Alexa, mobile apps, or even physical stores like Amazon Go.