Omnichannel Retail Strategies Using Technology

Simple Modern's Rise to Omnichannel Success and $100M+ in revenue I recently attended AMZ Innovate, where Mike Beckham, founder of SimpleModern, shared 6 takeaways from growing Simple Modern to mega-brand status. In a world with 9.7 million marketplace sellers out there. Only a few have successfully transitioned from Amazon to an omnichannel brand. Here's how Simple Modern did it in 6 key steps: 1️⃣ Choose the Right Product. Aim for mass appeal and differentiation. Steer clear of categories dominated by retailer brands. Example: Avoid competing with Target's Cat & Jack. 2️⃣ Achieve Product-Market Fit. Prioritize superior quality. Constantly improve your product. Start building a customer base versatile enough for various locations. Ensure profitability to fund expansion. 3️⃣ Identify Expansion Channels. Seek channels where disruption is possible, or a gap in physical distribution exists. Find channels congruent with your customer base. Example: Women aged 25-45 for Target. Use publicly available data to gauge a retailer's openness to change. 4️⃣ Win Over the Gatekeeper. Convince the retail buyer. Use your digital sales data effectively. Create a sense of FOMO - "Your customer is our customer." Offer dedicated inventory to each retailer to avoid channel conflict and make each partnership unique. 5️⃣ Solidify Owned Distribution. Entice brand loyalists to buy directly from your site. Retailers often demand high margins and frequently change buyers. Aim for less than 35% of your margin from any external channel. This diversification ensures no channel becomes indispensable. 6️⃣ Invest Profits Wisely. Focus on building brand awareness. Engage in continuous product R&D. Understand that your customers are also the retailer's customers. Retail buyers are looking to maximize profits from limited space. Proper research and data analysis can align your goals with theirs. Remember, making the sale is just the beginning; performance is what maintains the relationship. Consider investing in brokers. The founder's deep involvement is crucial. 💰 Additional Insights: Omnichannel success means complementing, not competing, across different channels. Tailor-specific SKUs for each channel. Merchandise effectively for success. Simple Modern's approach is a blueprint for leveraging Amazon's success into a robust omnichannel strategy. Remember, the right strategy involves understanding your customers, adapting to different channels, and never becoming overly reliant on any single one. #amazonseller #omnichannel

🏷️𝗕𝗲𝘀𝘁 𝗕𝘂𝘆 + 📱𝗖𝗡𝗘𝗧: '𝗧𝗵𝗶𝘀 𝗶𝘀 𝘁𝗵𝗲 𝗳𝗶𝗿𝘀𝘁 𝗱𝗼𝗺𝗶𝗻𝗼 𝘁𝗼 𝗳𝗮𝗹𝗹.' Huge RMN news this week, with Kathryn Lundstrom of ADWEEK reporting yesterday on an innovative partnership between Best Buy and CNET. "The deal represents the first time a publisher and retailer have combined data in this way, said independent industry analyst Andrew Lipsman, and it could mark a turning point if more retailers and publishers partner in the coming months." (I was referring to category-specific digital publishers. We've already seen RMNs partner with other digital publishers like social media platforms.) One thing that makes the Best Buy-CNET tie-up so cool is that it brings together content and commerce in a bi-directional manner between retailer and publisher. 𝗕𝗲𝘀𝘁 𝗕𝘂𝘆 𝘄𝗶𝗹𝗹 𝗶𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲 𝗰𝗹𝗼𝘀𝗲𝗱-𝗹𝗼𝗼𝗽 𝘁𝗮𝗿𝗴𝗲𝘁𝗶𝗻𝗴 𝗮𝗻𝗱 𝗮𝘁𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝘁𝗼 𝗖𝗡𝗘𝗧.𝗰𝗼𝗺. “The ability to understand whether somebody who’s exposed to ads on CNET then actually went and purchased through Best Buy—the ability to close the loop … that’s a totally new innovation,” I note in the AdWeek article. Advertisers also get to extend the audience reach of their campaigns by running concurrently on Best Buy and CNET content. 𝗖𝗡𝗘𝗧 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗽𝗶𝗽𝗲𝗱 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝘀𝗰𝗿𝗲𝗲𝗻𝘀 𝗶𝗻 𝗕𝗲𝘀𝘁 𝗕𝘂𝘆 𝘀𝘁𝗼𝗿𝗲𝘀. This gives in-market shoppers the relevant content and information they need to make better-informed decisions in the aisle. This could represent a key step toward more interactive experiences in store (e.g. accessing CNET content on your smartphone via in-aisle merchandising features) to drive product engagement. CNET content will also appear on Best Buy's O&O ecommerce channels, so it's a truly omnichannel capability that can influence every phase of the path to purchase. The partnership creates a win-win-win-win for the retailer, the publisher, advertisers, and consumers. It's also a great example of a leading RMN executing the retail media flywheel that I wrote about in my inaugural Media, Ads + Commerce article. [link in comments] At the time, I wrote: "RMNs can also now control their own destiny, much like Amazon does with its sizeable media portfolio. By acquiring digital publishers—especially at current valuations—RMNs would gain access to scaled audiences and contextually relevant content that maximize campaign effectiveness while lowering customer acquisition costs. It’s not hard to imagine the potential pairings: grocery chains + recipe sites, pharmacies + health info sites, home improvement retailers + how-to sites, department stores + fashion sites, and sporting goods retailers + sports news sites." What will be the next RMN-digital publisher domino to fall? Share your guess in the comments! #retailmedia #retailmedianetworks https://lnkd.in/gbmH6hsE

AI's Impact on Retail: 6 Key Themes I'm grateful for Angela Clark, Fiona Tan, Rebecca Wooters, and Alex Friedman's collaboration on our AI panel at Women in Retail Leadership Circle. A few people asked for the highlights, so here are the key themes we covered: 1. AI is a technology tool but can’t be fully leveraged without a definitive business strategy & clear objectives in mind. Essentially, what is your business trying to achieve? Then, what data do you need, and how can AI help you efficiently solve the challenge? 2. Theory is critical in the 1st phase of innovation, but operators quickly move to the 2nd phase = execution. In order to do this well, we all agree you will change processes, which requires spending time with teams, establishing clear KPIs & a feedback loop. 3. All AI initiatives should have specific KPIs (e.g., increase ROAS, increase CSAT, decrease wait times etc.). 4. The first wave of AI deployment in many retail companies involved similar applications & focused on the marketing function -- via connecting further with the consumer & driving efficiency: - Improve customer service via recommendations, alternative services & overall guidance. - Generate creative assets – taking the 1st pass at SEO copy, SEM ad copy, or product description copy. - Create internal team efficiency – recap meetings, free up our talent to use their skills on more impactful work vs. repetitive tasks. - Monitor competitive trends – scraping pricing, new SKU data + flagging search volume insights, etc., to leverage cross-functionally to make better decisions. - Optimize & automate allocation of your marketing spend across channels. - Improve product discovery via delivering the optimal product assortment, at the right price, and in a personalized way (e.g., email, landing page to virtual try-on). 5. The 2nd wave of AI delved into other functional areas of the retail business from operations, sales etc.: - Solve distribution choices – analyze which new doors/geographies you want to expand into. - Inform inventory allocation based on past weather models. - Create synthetic personalities or target consumers (“Sarah”) & use them as a virtual focus group regarding product innovation, shopping behavior, marketing messaging, etc. - Increase speed to market with code assistants for developers. - Summarize customer feedback from emails, text & generate actionable insights for cross-functional teams. - Combat returns - synthesize data to figure out which SKUs are being returned, correlate this to the reason & adjust the product copy accordingly. 6. Some of the concerns raised around AI included: - Ensuring your skills evolve as quickly as AI given the rapidly changing landscape. - Bias & misinformation. - Keeping up with IP laws & regulations, data privacy. - Operating model changes & disruptions. - Employee training. I would love to hear about other ways companies are leveraging AI to get closer to their consumer & drive true value creation. #AI #Innovate

🛍️ Mastering the Dynamic Landscape of Omnichannel Retail in 2023 🌐 In a world where digital and brick-and-mortar converge, omnichannel retail is a necessity. 🚀 Harvard Business Review notes 73% of shoppers desire brand engagements across multiple channels, signaling a retail revolution. 📊 Inventory Visibility:  - Effective inventory management thrives on real-time data, offering a clear view of stock levels.  - Shoppers increasingly validate online inventory before venturing to physical stores. 🛍️ Seamless Shopping Experience:  - 96% of retail executives emphasize seamless customer experiences.  - Success hinges on impeccable inventory availability, aligning products with customer expectations. 🏬 E-commerce to Brick-and-Mortar:  - Despite digital growth, 54% of consumers favor in-store experiences.  - Brands bolster physical retail presence, recognizing the timeless allure of brick-and-mortar. 🛒 BOPIS (Buy Online Pick-Up In Store):  - BOPIS propels store visits with an 85% conversion rate for additional in-store purchases.  - Retailers incentivize BOPIS with discounts, underlining its pivotal role in driving sales. 🔄 BORIS (Buy Online, Return In-Store):  - In-person returns boost subsequent purchases by 47%.  - Aligning with the quest for a seamless omnichannel experience, this trend gains prominence. 💼 Personalization:  - Omnichannel personalization, fueled by data synthesis, navigates strategic decision-making.  - Point-of-sale system integration provides a holistic customer view, amplifying personalization. 🌐 Supply Chain Collaboration:  - 68% of retail executives foresee supply chain disruptions impacting growth.  - Enhanced coordination within the supply chain is critical for optimizing product flow. 🤖 Automation:  - Automation elevates the customer experience, with chatbots enhancing support services.  - A 25% increase in planning efficiency is observed, particularly in demand planning. 🤝 Customer Expectations: Consistency, Speed, and Stock Availability:  - 90% of customers expect consistent interactions across all channels.  - Meeting expectations, including 2-to-3 day shipping, cements customer satisfaction. 🚀 Digital Transformation:  - Technological integration ensures a uniform inventory view.  - Technology-driven transformations enhance efficiency and accuracy. In a retail landscape where adaptability is key, embracing these trends is a strategic imperative. Traversing the omnichannel terrain, one thing is clear: meeting customer expectations through seamless experiences and sustainability is the pathway to prosperity. 🚀 #OmnichannelRetail #RetailRevolution #SupplyChain #CustomerExperience #SustainabilityInRetail

DTC operators: I don't have to tell you it's tough out there. Iconic digitally native brands that went public like Allbirds and Warby Parker are down 70-90% from their IPO price. 8-figure brands are struggling to get to the next level. And brands of all sizes are getting acquired for pennies on the dollar or unfortunately shutting down. One segment that has shown resilience, and even prosperity, in this hostile climate? Large retailers like Walmart and Target. Here's what those companies have in common: - Huge volumes of data - More resources to invest - Infrastructure and data specialists to analyze what customers want and when they want it Most of us don’t have access to that level of data or resources… But things are changing. Recent advancements in AI have enabled data intelligence platforms like Proxima to give brands of all sizes access to datasets, tools, and insights that even the playing field. What kind of efficiencies does this unlock? - 26% lower CAC - 31% higher ROAS - 2x+ more efficient Ad Spend 3 questions to ask yourself, now that data intelligence is on your side: 1// "What's my core acquisition strategy?" An omnichannel approach is essential for success in this competitive environment. Meta may still be king, but you have to diversify your channel mix. Use data intelligence tools to determine which channels your core customers spend their time on – then meet them where they’re at. Make it easy for them to engage and purchase. 2// "Who are my best customers and how can I find more like them?" Data intelligence tools can surface hidden insights about your existing customers that will inform your retention strategy. They can also tell you: - Where else your customers shop - Which influencers they follow - How much they spend - What they buy - And more 3// "How does my performance stack up to similar businesses?" Seeing how your peers are performing can help answer burning questions like: - Is it just me or is Meta ad performance down this month for everyone? - What’s the average CPA for brands like mine? - What percentage of my ads should be video? TL;DR – tapping into data intelligence can unlock efficiencies and insights that fuel growth. And Proxima can help. Got questions? Let me know in the comments!

Is physical retail a thing of the past? Think again. It's evolved, reshaped by tech advancements and rising customer expectations. Sure, #eCommerce has soared, inspiring a surge of online-first brands. Yet, brick-and-mortar stores hold their ground, offering a personal touch that online can't match. To remain competitive digital brands must up their game and bring the store experience directly to their customers. Enter #omnichannel retail: the fusion of the physical and digital to win at eCommerce. Here's how: 🏬 Same-day "Buy Online Pick-Up In Store" not only lets customers collect their online orders within a few hours of placing them, but it also enables retailers to cross-sell and upsell in-store items. 🚚 "Ship From Store" lets retailers utilize their in-store inventory to offer same-day and next day deliveries for online orders, while simultaneously increasing the inventory turnover rate. What's your take on the future of physical retail? Drop your thoughts below! #ShoppingandtheRetailIndustry #Retail #ShipfromStore