COVID-19 is not the first pandemic to drive e-commerce innovation. When the SARS outbreak struck China, Alibaba was still in its infancy.
While most physical retailers were scrambling to avoid bankruptcy, one company had its best year ever, and a few others returned to profitability. What do you think? The companies with the most advanced digital capabilities came out on top.
Yes, the pandemic has not disrupted the retail market; instead, it has accelerated existing trends. Omni-channel has been the buzzword, and many brands that already had a solid omni-channel platform are flourishing during this period of disruption. Those retailers have also had to make minor adjustments to meet the new market demand in many ways.
Here we will discover how an omnichannel program can help businesses survive in this coronaconomy and what kind of program you may consider choosing.
This article will cover:
- How Omnichannel Assists Your Business to Survive in The Pandemic?
- The Benefits of Omnichannel Program
- Omnichannel Gift Card As One of the Best Choices
How Omnichannel runs amid the pandemic
Although the omnichannel shopping experience has significantly improved customer retention, many businesses have historically lagged behind long-term omnichannel strategy investments. The impact of COVID19 is changing this. These unprecedented times have put considerable pressure on the retail industry. As e-commerce has become essential in the supply chain, we have seen an increase in the adoption of omnichannel strategies.
Omnichannel technology has become a survival tool to cope with unexpected and peak demand. Implementing an omnichannel strategy today will help retailers prepare for the post-coronavirus world and the "new normal" in the year ahead.
The two full-channel strategies implement to help mitigate the ongoing impact of COVID19 are listed below:
Scale on-demand to meet changing shopping habits
Consumer buying habits have shifted as a result of the pandemic. Retailers see an increase in the number of online purchases and bulk orders. Consumers are concerned about delivery delays, so the holiday shopping season will likely begin earlier this year. Many more retailers are turning to omnichannel technology for better inventory management and order routing to prepare for unexpected surges in demand.
Retailers who invest in omnichannel technology to help inventory management will cope with sudden changes in e-commerce orders and thrive in future turbulent times.
Increasing customer loyalty through a variety of touchpoints
When using an omnichannel customer service solution, retailers need to meet people and provide support for the channels (including social media) they think they can use. Give consumers more opportunities to connect with the brand and provide more convenient solutions that consumers like, thereby providing a positive customer experience and increasing loyalty.
In today's uncertain times, it is also essential for retailers to prepare for unforeseen circumstances and changes in consumer habits. Omnichannel technology is a win-win initiative for consumers and retailers. Consumers can enjoy more customer service and diversified delivery options, while retailers can maintain sales and improve ROI through unique delivery strategies.
A Good News from Omnichannel Program
Being omnichannel across your business is more important than ever in 2021. According to a recent study, nearly half of all customers polled planned to do more of their shopping online by 2020. 85.7 percent of those customers say they intend to continue using those online experiences in some capacity in the future. Let's check some good news from Omnichannel Program as consideration for your business.
Pay and earn across all channels
Once a customer has signed up, they will receive loyalty points for every transaction they make, regardless of where they make it. If they shop with you in-store, online, or through social selling, they add to their point total. Customers will be drawn in by the flexibility. Customers no longer have to worry about your store being closed in order to be rewarded; if they want to make a purchase in the middle of the night, they can simply visit your eCommerce store and earn their points. It also means that they can check on their points whenever they want and that they don't have to come into the store to redeem their rewards.
Specific Loyalty-building incentives to the recipient
Rather than being a stand-alone program, this is an effective complement to a points-based customer appreciation program. The idea is to use targeted rewards to reinforce customer loyalty and re-engage customers who may be drifting away from your company. When developing this loyalty program, you should concentrate on four touchpoints:
- Loyalty Program Anniversaries
- Customer Dormancy
- HighlyEngage Customers
Creating this loyalty strategy as an omnichannel program may result in customers who live far away from you. Customers who only shop online are just as valuable as those who shop in-store, so you should still reward them.
VIP tier objectives
With this type of omnichannel loyalty program, you provide a goal for loyal, engaged customers to strive for: VIP status. You begin with an omnichannel points-based program and all of its benefits. Customers can sign up in-store and online, track their points, and earn rewards on all purchases. However, you include a goal to strive for: VIP status. When customers reach a certain number of points, they are upgraded to VIP status and begin earning more points per purchase. You can add some extra perks to make VIP status even more appealing. For example, your VIP customers could have first access to any sales you hold. They might be able to obtain VIP-only discount codes.
Omnichannel provides a kind of fresh air for businesses during the pandemic, and predictably even after. The question now is, which types of omnichannel programs can you consider implementing in your business? The Gift card may become one of the solutions.
Considering Omnichannel Gift Card as Wise Choice
Gift cards are a great way to drive sales to existing customers, online and in physical stores. This retail practice is particularly attractive because it generally generates income higher than the bond's face value.
According to the global gift card survey in the second quarter of 2020, the US gift card market is expected to grow at a compound annual growth rate of 9.2% from 2020 to 2024.
Here are some reasons to consider why omnichannel gift cards become the wisest choice:
An excellent and trackable source of information
Retailers can now use gift card transaction data to understand customer behavior better. Every card has the power to influence consumer behavior and drive sales. To provide an additional dimension, merchants can integrate online promotions through their e-gift card programs, which direct traffic to the desired destination during a specific period and promote consumption at a particular level.
58% of consumers ages 18-35 said they would spend more on gift cards this year than last year. Considering how millennials communicate and shop, this is understandable: they prefer to participate in the experience rather than buy many things. The things they buy for others, they want to be meaningful and relevant. They communicate on multiple channels via social media and smartphones and have little time for face-to-face interaction. So what is more suitable for these young shoppers than gift cards?
Managing returns, rebates, and rewards
Offering a gift card to a customer who wants to return an item without having a receipt is a terrific method to retain their money in your store. This is also an option if a client wishes to return an item after the grace period has expired. You're more likely to keep the consumer satisfied and return to spend the money later if you give them a choice. When returning items for store credit, 81 percent of customers would want to receive a gift voucher or card.
You may have turned on many sales channels, especially online channels such as e-commerce platforms, marketplaces, and social media. But other businesses are doing the same thing. To compete and be ahead of other businesses, you must provide a unique and personalized experience. Through an omnichannel approach such as gift cards, companies can develop a strategy that can be applied across all channels to attract millennials, collect customer data, or even manage returns, rebates, and rewards.
Through this omnichannel program, your business is not only ahead of competitors but also survives the pandemic for a long time to come.
TADA can be a one-stop solution for those who are confused about how to reward the sales team or other employees, clients, and customers. With various secure and integrated rewards, we can help you create the most suitable incentive program for your business. Contact us today!