How is Omnichannel Paying Off for Retailers?
Omnichannel elements are paying off big time for retailers that know how to use them. We’ve noticed that the most impressive fiscal results come from companies using nontraditional platforms in creative ways. Today’s top omnichannel retailers show that revamping a marketing strategy to reflect changes in the digital sphere can dramatically improve revenue and sales. To get a better feel for how omnichannel pays off for retailers, we’ll examine the marketing strategies of Macy’s, J.C. Penney, and Gap Inc.
Macy’s in-store pickup and digital wallet
In the past year, Macy’s has adjusted and revamped its marketing strategy to include omnichannel elements. The omnichannel additions were implemented as a part of Macy’s initiative to improve growth.
Terry J. Lundgren, CEO and chairman of Macy’s, said that the corporation’s focus on omnichannel has gained momentum over the new year. Seamless marketing over various platforms will allow Macy’s to respond to customers’ wants and needs.
“Having now reached such a healthy profitability rate, we are shifting our resources and energies to growing the topline faster while maintaining this high profitability rate level,” he said. “We have now fully aligned our management team to fuel organic growth within our existing omnichannel business as customer shopping patterns evolve.”
As a part of their omnichannel campaign, Macy’s has begun offering an in-store pickup option for customers. Macy’s has also implemented its digital wallet: a smartphone app that lets shoppers who create a personal profile see special offers and discounts via mobile device. This app also speeds up the purchase process for customers.
And so far, it looks like customers are loving the company’s new omnichannel applications.
Macy’s 2014 revenue was higher than in years past. Macy’s says the improvement are a result of stronger customer relationships, which they attribute to the “support of an omnichannel strategy that is being driven by emerging customer shopping preferences.”
J.C. Penney’s catalog
J.C. Penney’s revenue struggled a couple years ago. However, the company was able to improve sales numbers after making major omnichannel renovations to its marketing strategy.
In 2013, the retailer merged its ecommerce and in-store marketing and sales campaigns. After fusing the two, J.C. Penney saw a 6% increase in ecommerce sales.
Now, two years later, J.C. Penney is still making additions to its omnichannel strategy. Earlier this year, the retailer announced its plans to bring back its catalog, which it had stopped publishing in 2010. Chief Executive Myron “Mike” Ullman said the elimination of J.C. Penney’s catalog was a bad move, and caused the retailer to lose many of its customers.
While a mail-delivered catalog may seem like an old-fashioned marketing tool, J.C. Penney believes that the catalog will bring back and retain a significant portion of their client base. Craig Elbert, Bonobo’s vice president of marketing, said that catalog customers spend more and tend to be a retailer’s most supportive customers overall.
Resurrecting the catalog brings optimism to the company. J.C. Penney spokeswoman Kate Coultas said that the print option will improve sales across multiple platforms.
“This is part of our omnichannel efforts designed to drive traffic to J.C. Penney wherever our customer decides to shop,” she said. “Online, via mobile or tablet, or in store.”
Gap Inc.’s order in store and WiFi
Gap Inc.’s revenue is on the incline – largely due to its focus on omnichannel over the past year.
The company’s fourth quarter and fiscal year results reflect the new focus on omnichannel. 2014 brought new digital capabilities for Gap customers, adding a new Order in Store capability to the shopping experience. This builds upon Gap’s current omnichannel suite, which includes Reserve in Store, Find in Store and Ship from Store.
Over 1,000 Gap stores also provide WiFi to enhance a consumer’s omnichannel shopping experience. This gives shoppers access to mobile apps and sites, encouraging the use of multiple channels throughout a shopping experience.
As Gap looks to improve revenue in 2015, the company will only increase their focus on omnichannel. The company expects to spend approximately $800 million on omnichannel, and names rolling out “omnichannel initiatives” as one of their forward-looking statements.
Convinced by the success from these omnichannel campaigns?
Don’t be afraid to revamp your own omnichannel practices! Get your creative juices flowing by checking out our top picks for omnichannel marketing or learn how to get started with our easy, three step guide to omnichannel.