Retailers believe their in-store sales will shrink 14% in the next 12 to 18 months. This kind of statistic should set off alarms for your clients. The prediction is based on shoppers’ changing habits. To excel in the new omnichannel market, your clients need an omnichannel advertising plan.
The latest overview of the omnichannel marketplace comes from eMarketer, Oracle and Bronto. In the U.S. Retail Omnichannel Statpack 2018 report, retailers suggest the current retail sales picture breaks out as shown below. The numbers in parentheses reflect the anticipated state of retail sales 18 months from now:
- In-store 42% (36%)
- Retailer’s website 27% (30%)
- Amazon/other large marketplaces 20% (22%)
- Retailer’s mobile app 11% (12%)
Based on these numbers, your clients should be targeting and selling to customers in multiple channels. Unfortunately, many retailers are missing a big opportunity in mobile. At least 38% of shoppers research a purchase through mobile and go to a store to make a purchase. The eMarket/Oracle/Bronto findings indicate that only 49% of retailers have a dedicated mobile strategy.
In addition, retailers say the following advertising formats drive the most sales:
- Social media 62%
- Email marketing 52%
- Paid search 40%
Your clients should know that consumers who turn to social media before they go shopping are 29% more likely to buy on the same day and four times more likely to spend more than consumers who don’t use social channels. To get a sense of specific audiences who use social media, check out the AudienceSCAN profiles available at AdMall from SalesFuel.
Your clients should also know that their in-store sales are, to some extent, linked to the product lines they carry. Here are the percentages of consumers who buy these specific products in-store as opposed to online:
- Food and beverage 96.8%
- Household paper/plastic products 88.0%
- Home furniture/furnishings 71.8%
- Medicine/vitamins 64.9%
- Apparel 55.8%
- Consumer electronics 50.9%
While consumers may be buying the bulk of the above-listed products in stores, that doesn't mean they're researching only in stores. Your clients' advertising should be omnipresent to help them reach all of their audiences. With the right advertising, they can win more digital business, because consumers appreciate the convenience (56%), logistics/time spent (46%) and low-cost options (45%) that this channel offers. They can also score in-store sales by offering Wi-Fi for customers, in-store shipping and in-store pickups and returns.
Help your clients optimize their multi-channel advertising. They need this strategy to maintain their market share in the increasingly competitive world of retail sales.