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Deciding on the right business model can feel like a high-stakes puzzle. Why do some retailers choose to open brick-and-mortar stores rather than online shops? Why do others stick to e-commerce ventures? This piece will explore the possibilities of each model and answer the big question: Is it possible to have it all? See for yourself why an increasing number of retailers are choosing to run a physical shop with an online store—creating robust, omnichannel experiences.
What is a “brick-and-mortar” store?
“Brick-and-mortar” refers to traditional physical stores that operate out of a building where customers can come in, browse, and purchase goods or services. These storefronts are the bedrock of retail, offering real-life experiences that digital platforms strive to emulate. In a world leaning increasingly toward digital convenience, brick-and-mortar stores provide a sensory shopping experience, fostering a unique connection with customers through face-to-face interactions.
Some benefits of having a physical retail space:
- Local recognition: A retail presence on a street with foot traffic means that you’ll gain recognition in your area without relying only on marketing. Shoppers can chance upon your store, discover a product, and make impulse purchases.
- Community: Opening a small business can mean embedding yourself in a whole new community. You can build stronger personal connections with customers and become an important part of their lives and your store’s neighborhood.
- Loyalty: In-person events and workshops can build loyalty from shoppers and encourage browsing and return visits.
- Customer service: Shoppers prefer to buy products after seeing them in person, and hands-on customer service increases sales and improves customer satisfaction.
Some things to consider:
- Expenses: Renting or buying a retail space can be a large upfront cost, and utilities, renovations, and repairs can add up. Be sure you plan your budget carefully—you can learn how in this guide.
- Regulatory compliance: Running a physical store means navigating regulations. Zoning laws dictate where your store can be located, and health and safety regulations must be followed to keep your space secure and compliant for everyone.
- Staffing: Running a brick-and-mortar location is not a one-person operation. Even in the early stages, you will likely need to put together at least a small team. Finding and retaining dependable workers can be time-consuming—and don’t forget that training takes time and care.
- Location availability: When you open a physical store, you’re not just thinking about what you can afford—you also have to consider which storefronts are available for lease or sale. Finding the perfect spot that fits both your target market and your budget takes some flexibility and smart planning.
What is e-commerce retail?
E-commerce retail refers to the selling of goods and services through the internet, allowing customers to shop from anywhere. Unlike traditional brick-and-mortar stores, e-commerce doesn’t require a physical store, so these retailers can be flexible and scale more easily. As digital technology advances and consumer preferences shift toward online shopping, e-commerce provides a convenient and efficient shopping experience.
Some benefits of e-commerce:
- Available anywhere, anytime: With online shopping, you’re not limited to one geographic area, and your store never has to close for the night. Customers can browse and make purchases on your online store whenever they like.
- Less expensive: No physical store means that overhead costs are considerably lower. There’s no rent or repair costs, no shop to staff, and no utilities to worry about.
- Broader audience: Customers anywhere can discover your store and become loyal shoppers. You can cast a wider net in terms of marketing and social media.
Some things to consider:
- Competition: Without foot traffic, you need to work hard to make your store stand out from the crowd. You need a strong marketing plan to cut through the noise of competitors and bring visitors to your website.
- Less customer interaction: Without face-to-face exchanges, it’s difficult to create a reputation for customer service and build loyalty.
- Ongoing technical costs: Maintaining an e-commerce platform involves ongoing technical costs like design refreshes, cybersecurity measures, server costs, and the integration of new technologies. Ensuring your site remains secure, fast, and user-friendly can significantly impact your overall budget.
- Return and refund issues: Handling returns and refunds online can be more complicated and cost-intensive than doing so face-to-face. The process often requires additional logistics planning and customer service resources, and it can increase operational costs due to shipping and handling expenses.
- Social media and email marketing: You will need to use a variety of methods, like social media, email marketing, and loyalty programs to engage customers and build loyalty. This multitude of contact points can take up time and resources to manage.
Embracing omnichannel retail
As the retail landscape evolves, more and more businesses are deciding not to choose between brick-and-mortar and e-commerce and are instead blending the two together. This omnichannel approach allows retailers to leverage the strengths of both models and serve their customers even more effectively.
An omnichannel strategy includes your physical store, website, mobile app, and social media, creating a unified shopping experience at every touchpoint. This approach recognizes that modern consumers often switch between online and offline channels during their shopping journey and expect a seamless experience throughout.
Here are some ways to help you successfully create an omnichannel retail experience:
Maintain consistent branding across channels
Consistency is key when it comes to branding. Ensure that your brand story, visual identity, and messaging are uniform across all platforms—whether it’s your website, social media, or physical store. This helps in building a strong, recognizable brand that customers can trust.
Tip: Keep your logo, colors, and tone the same across your emails, social posts, website, and store signs. It helps make your brand feel familiar and memorable to customers everywhere they see it.
Synchronize inventory systems
To provide a truly seamless experience, synchronize your inventory systems across all channels. This allows customers to see real-time stock levels, regardless of whether they are shopping online or in-store.
Tip: Allow customers to reserve items online for in-store pickup. This not only drives foot traffic to your physical location but also provides an additional layer of convenience for the shopper.
Make a holistic marketing plan
Develop marketing strategies that leverage multiple channels to reach customers wherever they are. This can include a mix of email campaigns, social media advertising, in-store promotions, and more.
Tip: Use customer data to personalize marketing efforts. For example, if a customer frequently purchases online, send them a special in-store discount to encourage a visit to your physical location.
Create a unified customer service experience
Make sure your customer service team is ready to tackle questions and problems from both online and in-store shoppers. A unified customer service approach helps in maintaining a positive customer experience.
Tip: Train your staff to assist with both online and in-store purchases. For instance, an in-store associate should be able to help a customer with an online order and vice versa.
Personalize the shopping experience with data
Use data collected from both your e-commerce platform and physical store to create personalized shopping experiences. This lets you recommend just the right products and craft messages that really speak to your customers. Using Artificial Intelligence is a great way to personalize the shopping experience for return-users. In fact, according to Khris Digital, AI-driven personalized recommendations contribute to a 15-20% increase in conversion rates.
Tip: Use in-store behavior to inform online recommendations. If a customer buys a certain product in-store, you could send them personalized emails featuring complementary items.
Encourage research online and purchase in-store
Many customers prefer to research products online before making a purchase in-store. So make sure to keep your online presence strong with detailed descriptions, honest reviews, and great photos.
Tip: Highlight the availability of in-store stock on your website, allowing customers to see what’s available before they visit. This can drive more foot traffic to your physical locations.
Integrate mobile technology
With the increasing use of smartphones, ensure your website is mobile-friendly and consider push notifications and SMS marketing. Mobile technology can bridge the gap between online and offline shopping experiences.
Tip: Use geofencing technology to send targeted offers to customers’ smartphones when they are near your store. This can drive spur-of-the-moment visits and purchases.
Foster community and loyalty
Build a sense of community around your brand by engaging with customers both online and offline. Loyalty programs that reward purchases across all channels can help retain customers and encourage repeat business.
Tip: Create a loyalty program that integrates both online and offline purchases. Allow customers to earn and redeem points regardless of where they shop.
Put these tips to work, and you’ll knit together a solid omnichannel strategy that not only makes shopping smoother for your customers but also boosts your retail business. By blending e-commerce with brick-and-mortar, you get the best of both worlds, creating a versatile and enriched shopping journey for everyone.
