E-commerce trends
Unlock Omnichannel Success: Your Guide to Headless Commerce
Julie Cauville
January 27, 2023
The Covid-19 crisis has heightened the demand for efficient Omnichannel customer services. Competition in online sales is on the rise, and the price for obtaining new customers by D2C brands is predicted to be 26€ by 2022.Thus, businesses are looking for new ways to increase conversion and build customer loyalty.
As a result of the growing competition and rising costs for acquiring new customers, more and more digital native vertical brands (DNVBs) are expanding their presence in wholesale and retail. Primarily due to physical retail's positive effect on online channels. Known as the "halo effect" of brick-and-mortar, it encourages more DNVBs to expand their offline presence.
Are you ready to take the leap and stand out from the crowd? Learn how to create seamless Omnichannel experiences using Headless Commerce. In this blog post, we'll show you the best practices from real-life examples to increase conversion, build customer loyalty and stay ahead of the competition.
What's the link between headless commerce and omnichannel brands?
With the integration of physical and digital retail, a brick-and-mortar presence can significantly enhance an online one by serving as an interactive platform that establishes customer trust. A study by Shopify reveals that e-commerce brands that open a physical store can see an average of 37% more web traffic in the quarter following their opening.
Moreover, omnichannel strategy is becoming increasingly important for retailers, as it allows them to provide a seamless and consistent customer experience across all channels. It leads to increased customer loyalty and sales.
Studies have found that retailers that adopt an omnichannel strategy can expect a 9% higher year-over-year customer retention rate than those that don't. Additionally, omnichannel shoppers tend to spend more than single-channel shoppers, with 4% more in-store and 10% more online, according to McKinsey.
What are headless commerce and its benefits?
Headless commerce involves developing and running e-commerce sites with a distinct customer-focused interface (front-end) and backend dealing with operations like orders and stock.This approach offers increased flexibility and scalability, as updates or changes to the front end do not impact the back end. Additionally, it enables the integration of new technologies and channels, such as voice-enabled devices, virtual reality, and augmented reality, into the customer interface.
Benefits of a Headless Commerce Strategy:
- Flexibility in technology stack selection
- Scalability to handle large amounts of traffic and data
- Improved performance and faster load times
- Better user experience across multiple channels
- Easier integration with third-party systems and services
- Greater control over the customer journey
- More efficient content management
- Better security and compliance
- Increased innovation and experimentation capabilities
What are omnichannel commerce and its benefits?
On the other hand, omnichannel is a strategy that allows customers to shop and interact with a brand across multiple channels and touchpoints such as online, in-store, mobile, and social media. An omnichannel strategy aims to provide a seamless and consistent customer experience regardless of the channel.
Benefits of an omnichannel Commerce Strategy:
- Improved customer experience through consistent branding and messaging
- Increased sales and revenue through cross-selling and upselling
- Better customer retention and loyalty
- Greater flexibility in meeting customer needs
- Increased data insights and analytics
- More efficient inventory management and fulfillment
- Greater ability to personalize the customer journey
- Increased scalability and adaptability to changing market trends
- Better ability to reach and engage customers across multiple channels
- Enhanced brand reputation and customer trust
What are the best practices for creating incredible omnichannel customer experiences?
Creating fantastic omnichannel customer experiences with headless commerce needs a strategic approach. This approach should take advantage of the flexibility and scalability of headless commerce architecture. Here are some best practices that businesses can follow to achieve this goal:
1. Unlock the potential of Headless commerce: Create unique experiences for every customer on every channel - See how Nike and Amazon do it.
With headless commerce, businesses can optimize the front end for different channels, such as mobile, web, and voice. Thus, the brands can create unique customer experiences on several tracks, making it more likely that they will convert.
Brands such as Nike and Amazon are great examples of companies successfully optimizing their front end for different channels.
For example, Nike has a mobile app that allows customers to easily browse and purchase products, exclusive access content, and track their orders. The brand also offers a personalized shopping experience through its website. Customers can create a profile and receive customized recommendations.
Similarly, Amazon's website and mobile app provide customers with an easy and seamless shopping experience. Customers can easily browse and purchase products, access their order history, and track their deliveries. Amazon also offers a voice-enabled shopping experience through its Alexa devices, allowing customers to make purchases using voice commands.
2. Use data to personalize the customer experience with headless commerce: see how Starbucks increases conversion and customer loyalty.
Headless commerce allows businesses to efficiently collect and analyze customer data to personalize the customer experience. For example, they can use customer data to create personalized offers, content, and recommendations. By personalizing the customer experience, businesses can increase conversion and build customer loyalty.
For example, Starbucks uses customer data to personalize offers and rewards for its customers through its mobile app. Customers can earn rewards such as free drinks and food by making purchases and providing feedback. The brand also uses customer data to personalize the menu options available at each store.
3. Integrate physical and digital channels like Zara
Headless commerce enables companies to integrate physical and digital channels easily and provide a smooth customer experience. Thus, digital media can drive foot traffic to physical stores. Mobile apps give in-store customers access to inventory information, product recommendations, and loyalty programs. By integrating physical and digital channels, businesses can create an omnichannel experience that will help increase conversion, build customer loyalty, and stay ahead of the competition.
ZARA is a prime example of a retailer that has effectively transitioned to an omnichannel strategy. The fast-fashion giant has integrated all its acquisition channels to provide the best customer experience possible.
They have adopted the best practices of online sales. This includes creating a mobile app for easy basket preparation, having highly responsive community managers to assist customers on social media, and utilizing email campaigns.
Additionally, they have integrated physical retail elements such as offering click-and-collect, in-store exchanges and returns, and other in-store services.
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