Social media drives purchase decisions for digital natives.
37% of digital natives browse for products on social media (compared to 9% of digital adopters), making it an increasingly crucial buying tool for retailers.
The state of omnichannel selling and logistics in 2024.
Success for omnichannel retail requires a cohesive strategy across all digital and physical channels.
Key Takeaways
Create a frictionless selling experience
Transcend traditional multichannel approaches by embracing unified commerce to create a seamless experience across all platforms.
Optimize delivery and logistics
Shoppers want enhanced delivery options that includes out-of-home delivery like store lockers, premium shipping, and simple returns.
Unleash the potential of generative AI
Enhance customer experience and operational efficiency by leveraging AI to create personalized, automated interactions.
Embrace hybrid retail
Omnichannel success increasingly requires a physical footprint. With real estate prices and acquisition costs low, 2024 can be a growth year.
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Step 1: Pre-Purchase
37% of digital natives browse for products on social media (compared to 9% of digital adopters), making it an increasingly crucial buying tool for retailers.
While search engines are the most common place for browsing and price-comparison, online marketplaces like Amazon are a steady second option. However, a strong website experience and social media presence are vital for engaging with many shoppers.
Adopters vs. Natives: Consumers’ preferred channels for product research. Source: Retail Economics, Auctane
Step 2: Purchase
Customers often browse online for DIY, home furnishings, and health & beauty products despite commonly purchasing them in-store. Conversely, electronics and apparel shoppers tend to browse in-store before making online purchases.
The presence of physical stores in an omnichannel strategy can create a ‘halo effect.’ This significantly boosts online sales for the brand in the store’s surrounding area. Warby Parker, for example, reported a tripling of online sales in areas where they open physical stores—this can be the first step in building new store locations to building new customer bases.
Step 3: Delivery
While 55% of shoppers will start browsing elsewhere if free shipping takes longer than two days, only 25% of businesses offer it. In fact, over half of retailers see rising shipping costs as the main threat to business performance.
34% of retailers plan on increasing shipping costs in 2024 to maintain brand standards and combat rising costs. However, only 6% of all shoppers are willing to pay for two-day delivery. The customers that are willing to pay for premium delivery largely expect next-day or same-day options.
Step 4: Returns
Digital natives are likely to pay for returns if the process is simple. Simple doesn’t mean self-service, either. Instead, shoppers prefer carrier collection and drop-off locations.
34% of retailers plan on increasing shipping costs in 2024 to maintain brand standards and combat rising costs. However, only 6% of all shoppers are willing to pay for two-day delivery. The customers that are willing to pay for premium delivery largely expect next-day or same-day options.
Consumers vs. Retailers: What do consumers think is the most important element of the delivery experience? Source: Retail Economics, Auctane
Step 5: Post-Purchase
Inconvenient returns and high shipping costs are big risks to your brand loyalty. A better omnichannel post-purchase strategy helps your business automate customer communication and other time-consuming processes.
When asked about AI during their buyer journey, shoppers find it most impactful in logistics and last-mile delivery communications (e.g. order and delivery updates, managing returns and exchanges). Utilizing AI at these time-sensitive touchpoints is pivotal for customer satisfaction and driving repeat purchases.
Consumer interest in AI as a part of the shopping experience. Source: Retail Economics, Auctane
| Stage | Business | Digital Adopters | Digital Native |
|---|---|---|---|
Pre-Purchase |
Roughly half of retailers plan to increase marketing efforts in 2024 | Browse on search engines and marketplaces | As likely to browse on social media as other channels |
Purchase |
Undervalue in-cart options like premium or out-of-home delivery | More likely to purchase from a physical retailer than online | More likely to purchase online than from a physical retailer |
Delivery |
Plan to raise delivery prices | More likely to expect free delivery | More willing to pay for delivery |
Returns |
Typically offer online-initiated returns | Prefer online-initiated returns | Prefer out-of-home returns |
