Complementing E-commerce with Physical Stores
According to a study by FEVAD and Kedge Business School, 89% of e-commerce businesses believe that their online stores and physical shops complement each other. This strategy, known as O2O (Online-to-Offline or Offline-to-Online), aims to merge digital and physical commerce, attracting traffic from the web to physical stores and vice versa. But what actions should you take to optimize this strategy?
1. Highlight Click and Collect
Launched in the 2000s, click and collect is a “web-to-store” system where customers order online and pick up their purchases in-store. According to FEVAD, 41% of French consumers use click and collect, making it a popular option. This approach offers several advantages for e-commerce businesses:
- Cross-selling opportunities: When customers visit the store to pick up their orders, they often discover other products, leading to additional purchases. This system can generate 40% more sales, according to Genius.
- Enhanced customer service: Interacting with customers in-store allows you to improve their shopping experience, increase satisfaction, and foster loyalty.
- Cost reduction: Click and collect eliminates delivery costs, as customers come to the store to retrieve their orders.
- Improved sustainability: By reducing the need for delivery trucks, this method lowers the carbon footprint associated with transportation.
2. Consider E-Reservations
According to FEVAD, 12.1% of online shoppers use e-reservations, which allow customers to reserve products online and pick them up in-store. This option offers several benefits, especially for buyers:
- Convenience: Customers can reserve products anytime, anywhere, saving time.
- On-site payment: Customers can test the product before purchase, ensuring satisfaction.
- Availability alerts: Customers receive notifications via email or SMS if the product is in stock.
E-reservations enhance customer satisfaction and increase the likelihood of repeat visits.
3. Utilize Ship from Store
“Ship from store” involves fulfilling online orders from a physical store rather than a central warehouse. This method addresses the common frustration with delivery delays—81% of French consumers find delivery to be a source of irritation, according to E-commerce Mag. Benefits of ship from store include:
- Avoiding stockouts: If a product is unavailable in the warehouse, it might still be in stock at a store, preventing missed sales opportunities.
- Improved responsiveness: Faster delivery times and better management of unexpected demand surges or warehouse disruptions.
- Increased sales: By reducing missed transactions and enhancing customer satisfaction, your revenue can grow.
- Win-win relationships: This system benefits both you and your customers, creating a positive shopping experience.
4. Modernize the Customer Experience with Phygital
The concept of “phygital” refers to the digitalization of physical stores. Phygital strategies can revolutionize the customer experience through various tools:
- Digital kiosks: These connect the online and offline worlds, saving time during busy periods, offering more product options, and communicating promotions or updates.
- Mobile apps for customers and staff: More efficient than computers, these apps allow for quick access to product information and customer preferences.
- Mobile payments: Streamlining the checkout process to enhance customer satisfaction.
- Clienteling: Using CRM software to track customer identity, purchase history, and preferences, enabling personalized service.
5. Provide Detailed Information to Customers
A well-optimized e-commerce site can boost physical store sales by an average of 14%, according to E-commerce Mag. To maximize visibility and improve customer experience, enrich your digital content with:
- Optimized product pages: Include detailed descriptions, high-quality images, relevant keywords, and customer reviews.
- Comprehensive information pages: Clearly present your business, offerings, contact details, and more.
- Real-time stock visibility: Display messages like “coming soon,” “out of stock,” or “available in store.”
- Complete Google My Business profile: Ensure your business is visible on search engines by adding your address, hours, phone number, website link, and photos of your physical store.
6. Build Partnerships with Other Retailers
If you have a limited number of physical stores but want to maintain a local presence, consider forming partnerships with other retailers. For a commission, your customers can pick up their purchases at partner stores. This strategy offers several advantages:
- Win-win relationships: Strengthen social ties with customers while helping your partners gain visibility.
- Nationwide reach: Be close to your customers across the country by partnering in strategic locations.
- Market credibility: Build trust and credibility by associating with reputable distributors.
Integrating O2O and O2O strategies can transform your business by optimizing the synergy between your e-commerce site and physical stores. By emphasizing these functionalities, you enhance the customer experience and boost your sales.
Conclusion
If you’re looking to implement these strategies and maximize the potential of your e-commerce and physical stores, XPECTED DIGITAL is here to help. Contact us to discover how we can support your business in this transformation.
