Creating harmony in retail: How to navigate the blend of digital and in-person shopping

In today’s dynamic retail landscape, consumers are faced with choices in abundance, ranging from diverse brand and product options to the various channels through which they make purchases.

Even if we think back to the last four years, consumers have been through a roller coaster when it comes to shopping needs and expectations. For many retailers during this period, substantial efforts were directed towards enhancing the digital shopping experience because that is what people needed at the time.

But as we are now in a post-Covid era, it is important for brands to take a pause and assess what truly matters to people now. For instance — is it important to invest in virtual try-on technology, or would consumers prefer to shop in-store now that they are not forced to stay at home? Or for some, they may have realized that curbside pick-up at the grocery store is a convenience they don’t want to lose.

There is always going to be forces affecting the attitudes and behaviors of the retail market. For brands aspiring to prioritize a truly human-centric approach, adopting an agile mindset that is rooted in deep understanding of consumer preferences is paramount. Investment in strategies that integrate both virtual and in-person elements is essential to foster loyalty. This article aims to explore solutions that retail brands can adopt to cultivate consumer closeness by bridging the gap between online and in-store shopping experiences.

Understanding the current landscape

As we know, the retail landscape can change quicker than the seasons. To gain insight on how consumers are feeling toward shopping and spending this year, we surveyed 400-plus U.S. consumers. And we found that despite the e-commerce and technological advancements in retail — in-store experiences are certainly not dead.

In fact, across generations, while 38% of consumers prefer an online and home delivery experience, 46% prefer shopping in store — with other alternatives being online shopping and in-person pick-up (8%) and trying it out in store and purchasing online (5%).

When asked what would incentivize themselves to shop in store, the clear leading factors where a sales or good deal (67%), which is especially important to Gen X (74%) and Boomers (73%), followed by getting what you need faster (52%). .

Of course, many variables could play into these perspectives — proximity and accessibility to retailers, time, stage of life, etc. But what is important for all retailers to take away is the importance of understanding these diverse consumer preferences and adapting strategies accordingly to meet their online and in-store needs.

Building a seamless bridge

While understanding these insights does provide baseline understanding — it is just scratching the surface! For brands looking to create an authentic connection across digital and physical realms, we must go beyond survey data and invest in building deeper connections with your customers and understand their lived experiences. Here are three tips to achieve this:

1. Experience through the lens of a consumer. Brands should immerse themselves in the experience by exploring both in-store and digital shopping journeys of their own, their competitors and other innovative brands. Delve deeper into this exploration by stepping away from a desk and observing people’s behaviors in real-world settings.
2. Identify and understand consumer pain points. Engage with the consumer perspective by taking on challenges like budget-conscious shopping both in physical stores and online. Recognize pain points to establish personal connections with the needs of consumers.
3. Talk with consumers to understand their wants and needs. Utilize one-on-one conversations or panels to build empathy and identify consumer needs, incorporating these insights into future strategies.

Target’s triumph

Target is one example of a retail brand that has achieved remarkable success in navigating the integration of in-person and online shopping through strategic initiatives. By unifying inventory systems, Target ensures a seamless experience for customers transitioning between the digital and physical realms. The brand enhances in-store experiences with interactive displays, personalized recommendations and augmented reality try-on features.

Target also prioritizes efficiency with streamlined click-and-collect services and expanded same-day delivery options. Leveraging data analytics, the brand delivers personalized online recommendations while extending a tailored touch to in-store shoppers through location-based offers, solidifying its position as a leader in modern retail.

The road ahead

Contrary to predictions of the demise of brick-and-mortar stores, the retail landscape remains dynamic. And it is dynamic because people themselves are dynamic, and depending on external and internal factors, the values they want brands to deliver on is always changing.

Think again back to 2020. Safety and social responsibility were table stakes. During this time, we saw that 61% of all consumers felt ‘acting in a socially responsible way’ was a trait that was most important for brands to be delivering on. But fast forward to today, we are no longer rallying together against a global pandemic, and as such, thinking in socially responsible ways is much less important (32%). Rather, consumers feel that ‘valuing my time’ (54%) and ‘being transparent’ (49%) are much more important.

This perfectly highlights the need for agile strategies. If an organization changed their whole business model around social responsibility because that is what was important to customers at the time — how are they doing now?

The retail landscape continues to evolve rapidly, influenced by consumers’ changing preferences and technological advancements. Retailers must balance digital and in-person experiences to meet diverse consumer needs effectively. By taking the time to understand what truly matters to consumers while staying on top of trends like combining physical and digital elements, retailers can foster loyalty and thrive in an ever-changing market.