Omnichannel Retailing: Bridging Physical and Digital Shopping Experiences | Blog | KLA

The Convenience of Online Shopping and Its Global Appeal

Online shopping has become a cornerstone of modern retail, with 83% of South African consumers agreeing that it simplifies their lives, according to YouGov Profiles. This trend is reshaping consumer expectations, as they prioritise convenience, efficiency, and accessibility in their shopping experiences. By allowing consumers to browse and purchase products from anywhere and at any time, online shopping reduces the barriers traditionally associated with in-store visits, such as travel time and limited store hours. In response, retailers are striving to integrate digital and physical elements to deliver the same seamless convenience found online.

Many now offer services like click-and-collect, where customers purchase online but pick up in-store, combining the speed and ease of digital with the immediacy of physical retail. As the global demand for online shopping grows, it’s clear that consumers increasingly view time and flexibility as essential components of their retail experiences.

Demand for User-Friendly Mobile Shopping Apps

As smartphones become indispensable, 76% of consumers expressed a desire for all stores to provide user-friendly mobile apps (YouGov Profiles). This highlights a growing expectation for smooth, efficient mobile experiences that allow consumers to shop anytime, anywhere. Mobile apps are critical in Omnichannel Retail because they bridge the gap between online and in-store interactions. With features like one-click purchasing, location-based notifications, and mobile payment options, these apps enhance the shopping journey, enabling consumers to complete purchases, track orders, and even receive personalised offers in real time.

Retailers that invest in app development not only enhance customer satisfaction but also gain valuable data on shopping behaviours, which can be used to refine marketing strategies for Omnichannel Retail. By meeting consumers’ needs for mobile convenience, brands can cultivate loyalty and encourage repeat purchases in an increasingly competitive landscape.

The Need for More Engaging In-Store Experiences

While digital convenience is essential, 64% of consumers express fatigue with “dull” shopping environments, according to YouGov Profiles . This statistic reflects a strong demand for more engaging, immersive experiences in physical stores. In response, retailers worldwide are experimenting with innovative approaches to reinvigorate in-store shopping. Technologies like augmented reality (AR) allow customers to visualise products in real life, such as trying on virtual clothes or viewing furniture in a simulated home setting.

Some stores host events, workshops, and live demonstrations, turning their locations into destinations rather than mere points of sale. By transforming shopping into a memorable activity, retailers can make in-store visits feel less like a chore and more like an experience worth seeking out, giving them an edge in an Omnichannel Retail landscape dominated by convenience-focused e-commerce giants.

Rising Sympathy for Small Businesses in the Digital Age

The expansion of online marketplaces has brought about significant competition for small businesses, with71% of consumers feeling sympathy for these smaller retailers who struggle against global corporations. According to YouGov Profiles, there’s a growing awareness of the challenges small businesses face in trying to keep up with large, multi-national companies that benefit from extensive resources and reach. Consumers who empathise with this struggle are often motivated to support local shops for their unique, personalised experiences that larger companies may lack.

Small businesses can leverage this sentiment by building strong community connections, emphasising high-quality customer service, and offering locally sourced or distinctive products. By adopting digital tools like e-commerce platforms and online marketing, small retailers can enhance their visibility and accessibility, bridging the gap between online convenience and the personal touch they’re known for. For consumers, supporting small businesses often aligns with their values, making each purchase feel more meaningful.

Preference for Online Over In-Store Shopping

YouGov Profiles reveals that 54% of consumers prefer shopping online rather than in physical stores, a trend largely driven by the ease of accessing a wide variety of products at the click of a button. Online shopping allows consumers to compare prices instantly, read reviews, and make informed decisions without the time constraints of a physical visit. However, many physical retailers are responding to this challenge by adopting a ‘physical’ approach, merging digital convenience with the tactile benefits of in-store shopping. For instance, many stores now offer digital price-matching, self-checkout kiosks, and online reservation of items for in-store pickup. These enhancements allow physical stores to provide a more efficient experience, bridging the gap between the two channels and appealing to consumers who value both convenience and hands-on interaction with products.

Consumers Avoid Chain Stores in Favour of Unique Omnichannel Retail Experiences

With 46% of consumers actively avoiding chain stores, YouGov Profiles highlights a significant preference for unique, locally-owned businesses that offer a personalised shopping experience within the Omnichannel Retail space. This trend indicates that consumers are increasingly looking for retail experiences that feel distinctive and tailored rather than standardised. For chain stores, this shift presents an opportunity to reimagine their approach by localising product offerings and curating store environments to reflect regional tastes and interests. By introducing limited-edition items, seasonal product lines, or in-store events, chain stores can offer experiences that feel as authentic as those found in independent shops, giving them a chance to reconnect with customers who seek out authenticity and uniqueness in their shopping journeys.

Social Media and Digital Marketing’s Influence on Purchasing Decisions

Digital marketing, especially through social media, is becoming a powerful driver of purchasing decisions, with 42% of consumers influenced by social media offers according to YouGov Profiles. In addition, 33% report that branded emails sway their purchase choices, and 27% are influenced by online newsletters. These channels provide a direct line to consumers, offering targeted promotions, updates, and personalised content that resonates with their interests. Effective digital marketing taps into consumers’ desire for tailored experiences, presenting them with timely deals and offers that feel relevant. For retailers, this data underscores the importance of a cohesive, multichannel marketing strategy that aligns messaging across platforms to ensure a consistent and engaging brand presence within Omnichannel Retail spaces.

The Power of Mobile-Targeted Advertisements

With 21% of consumers reporting that they have made purchases after seeing ads on mobile devices, mobile-targeted advertising is an essential tool in the Omnichannel Retail strategy. Mobile advertising allows brands to reach consumers directly, offering location-based notifications or personalised deals that encourage immediate action. Retailers can also take advantage of consumers’ browsing behaviours to send reminders or promotions that reinforce brand visibility. With the global reliance on smartphones, mobile ads play a critical role in connecting with shoppers on the go, making it easier for consumers to discover products and make purchases in real-time.

The Role of Traditional Media in Supporting Omnichannel Retail Strategies

Despite the dominance of digital marketing, traditional media like TV commercials and direct mail remain relevant. According to YouGov Profiles, 33% of consumers are influenced by television commercials, while 24% are swayed by direct mail. Integrating these channels with digital marketing creates a cohesive, multi-touchpoint brand experience, appealing to a wider audience that may span various age groups and demographics. By combining traditional advertising with digital channels, retailers can reinforce brand messaging and maintain a broad reach, enhancing the impact of their campaigns through consistent, cross-platform communication.

Future Directions: The Evolution of Omnichannel Retail

Looking forward, the omnichannel model is expected to evolve further as retailers incorporate advanced technologies like artificial intelligence (AI), augmented reality (AR), and sophisticated personalisation tools. YouGov Profiles reveals that 64% of consumers expect to split their shopping equally between online and in-store experiences by 2025. This anticipated balance underscores the importance of creating a seamless, integrated shopping journey across all platforms. As AI enables more personalised recommendations and AR creates interactive experiences, retailers can offer tailored solutions that meet consumer needs for convenience, engagement, and flexibility. The brands that invest in these innovations will be well-positioned to lead in an increasingly interconnected retail environment.

Conclusion: Strategic Implications for Omnichannel Retailers

Omnichannel Retail is revolutionising the global shopping experience, bringing together the best of both digital and physical worlds. By understanding and responding to consumer demands for convenience, personalisation, and engaging experiences, retailers can adapt to stay competitive. Insights from YouGov Profiles illustrate key trends that highlight the importance of a flexible, cohesive approach. As brands navigate the evolving retail landscape, those that embrace omnichannel strategies can foster deeper loyalty, increase customer satisfaction, and thrive in a rapidly changing market.

Methodology:

Profiles: Segmentation and media planning tool. YouGov Profiles makes it simple to find and understand the audience that matters most to you. With data collected daily, it gives you the power to build and customise a portrait of your consumers’ entire world with unrivalled granularity. More than 12,500 variables are available in South Africa.

Dataset: 2024-10-20

Nationally representative sample of South African adults with access to the internet, aged 18+

n ~ 5529