In the past few years, the retail industry underwent a massive shift. The rise of eCommerce has already transformed the B2B commerce retail industry, and now omnichannel commerce is changing the landscape altogether. However, it cannot be neglected that the central nature of human beings lies in socialization and the need for human experiences, which is why there is growing evidence that brick-and-mortar stores are on the cusp of a resurgence now that the pandemic has almost subsided.
The future indicates that digital-only approach doesn’t work anymore. In this blog, will discuss the challenges that led to the rise of eCommerce and uncover why omnichannel experiences in the retail industry may rule the future.
The revolution in eCommerce left no industry untouched. Following its unprecedented impact, increasing competition, changing customer expectations, complex supply chains, travel limitations, and reduced sales opportunities were only some of the challenges leading many retailers to operational survival, particularly for those relying heavily on brick-and-mortar sales. eCommerce became number two on the list of causal factors for the retail apocalypse because there was almost no good or service that buyers could not purchase online, posing an existential threat to brick-and-mortar alternatives.
Change is not easy, but necessary for growth. Here are some of the challenges B2B Commerce retailers faced leading them to rethink their eCommerce approach:
Challenges B2B Commerce retailers faced during and post-pandemic
The Zeal for Online Shopping
The era of shopping malls' dominance is long gone, yet modern consumers still desire the option to shop both in-store and online. Even though the past few years have propelled eCommerce to new heights, physical stores remain vital to the shopping experience. According to Forrester, following the lift of COVID-related restrictions, a significant number of consumers reverted to shopping in physical stores, leading to an unprecedented year-over-year growth rate of 14% in offline US retail sales in 2021. Today, customers engage with brands and purchase through various channels, creating a novel landscape in B2B commerce.
Forrester further states that the total retail sales are projected to reach $5.5 trillion by 2027, with online sales accounting for 30% of the market. In another study by McKinsey, data revealed that customers who use multiple channels to shop, also known as omnichannel shoppers, make 1.7 times more purchases than those who use a single channel. Additionally, these omnichannel shoppers also tend to spend more than their single-channel counterparts.
What is Omnichannel Commerce?
Omnichannel commerce is a strategy that allows businesses to seamlessly integrate their physical and digital channels to provide a unified shopping experience for their customers. Meaning customers can access a retailer's products and services through multiple channels, such as in-store, online, mobile, social media, and more. It enables enterprises to reach their customers where they are and provide them with a more personalized and convenient shopping experience, ultimately leading to increased sales and customer loyalty.
How Omnichannel Commerce Drives Digital Transformation in eCommerce?
Here are some of the ways omnichannel in B2B eCommerce is helping B2B enterprises address the above challenges while complementing brick-and-mortar sales:
Increased Sales:
By combining digital and physical sales channels, B2B retailers can increase their sales by offering customers multiple ways to purchase products. For example, a customer may discover a product online, research it in-store, and then purchase it online for delivery. In addition, by providing both online and in-store options, businesses can cater to customers' unique preferences, leading to increased sales.
Enhanced Customer Experience:
Digital transformation and B2B commerce solutions can improve the customer experience by providing online product information, real-time inventory availability, and personalized recommendations. These features enable customers to make more informed decisions and feel confident in their purchases. Additionally, brick-and-mortar stores, provide a physical space for customers to engage with products and get hands-on demonstrations to further enhance the overall customer experience.
Improved Customer Loyalty:
Omnichannel B2B eCommerce allows B2B retailers to provide a seamless and consistent customer experience across all touchpoints. This consistency builds trust and loyalty among customers, as they know they can always rely on the business to provide a high-quality experience. Additionally, by offering personalized experiences and convenient purchasing options, retailers can improve customer loyalty and retention rates. According to research by Invesp, enterprises having omnichannel customer engagement strategies retained 89% of customers compared to 33% for companies with weak omnichannel strategies.
Higher Customer Satisfaction Rates:
When customers are given flexible options in purchasing products or services on their terms, they’re more likely to repurchase. This convenience and personalization result in higher customer satisfaction rates, as customers feel valued and appreciated by the business. In turn, satisfied customers are more likely to recommend the business to others and become repeat customers.
Improved Operational Efficiency:
Omnichannel B2B commerce can improve operational efficiency by streamlining inventory management and order fulfillment while reducing redundancies. By integrating online and offline sales channels and touchpoints, retailers can better manage inventory, track customer data, and optimize their marketing efforts. This, in turn, leads to improved efficiency and cost savings for the business.
Access to a Broader Customer Base:
By leveraging digital and physical sales channels, B2B retailers can reach a broader customer base. While some customers may prefer online purchasing, others may prefer in-store experiences; offering both options can help retailers reach customers where they are and provide a consistent brand experience across all touchpoints.
Where is the future headed? It’s Omnichannel.
Omnichannel experience entails streamlining experiences between touchpoints, whether digital or physical. A B2B commerce solution plays a vital role in adopting omnichannel commerce. These solutions enable businesses to automate and streamline their B2B processes, making it easier to manage inventory, fulfill orders, and track shipments across multiple channels. According to McKinsey's recent research, retailers have been aware of the importance of omnichannel strategies and personalization for several years. It’s time you take advantage of omnichannel experiences to drive seamless communication, create positive shopping experiences, and ultimately retain more customers.
Adapt your strategy for retail’s new reality
In retail’s new reality, a business’s ability to adapt and improvise will define its competitive advantage. And the right technology ecosystem can make all the difference. Revamp your approach to B2B commerce with Microsoft’s business applications, built on Azure, tightly integrated with Office 365. Our comprehensive digital commerce services and products packaged with Microsoft Dynamics 365 expertise enable seamless omnichannel sales and meaningful customer experiences, accelerating your digital commerce modernization. Get in touch with our experts today and learn how to control all aspects of your B2B eCommerce to drive hyper-personalized customer experiences.