Omnichannel shoppers may be spending their money in more places, but they are engaged and loyal, according to new research from Symphony RetailAI. The provider of artificial intelligence-enabled marketing, merchandising and supply chain solutions shared results of a study showing that those who buy across channels tend to purchase more frequently and spend up to 20% more compared to shoppers who only buy in store.
Among other findings, the research shows that although half of shoppers gave up the channel after one online purchase, those who stayed engaged became more loyal. Seven out of 10 consumers who made online purchases in the first quarter of 2021 returned and bought again in the second quarter, up from the rate of 5 out of 10 in the first quarter of 2020. In addition, the one-third of consumers considered to be long-term engaged shoppers represents more than half of all online sales, making them inherently more valuable.
“Because most grocery retailers operate with narrow margins, it’s important for them to find ways to gain more share of wallet while building customer loyalty,” said Chris Koziol, CEO at Symphony RetailAI. “Providing customers with an online channel to shop how and when they want is a key differentiator, as we see with the increasing loyalty of omnichannel shoppers observed in our data. Therefore, the online grocery trend should be seen as a win-win omnichannel scenario, not a matter of ‘bricks versus clicks.’ Our recommendation to retailers based on these insights is to focus on the complete customer lifecycle and buying journey with an emphasis on driving repeat purchases to build long-term engagement.”
In another finding that reinforces the importance of having an omnichannel presence, the research showed that online sales contributed to 50% of total revenue growth during the first quarter of 2021, a 20% increase from the pre-pandemic period.
Based near Dallas, Texas, Symphony RetailAI is a global provider of role-specific, AI-powered revenue growth management solutions and customer-centric insights for retailers and CPG manufacturers across the entire value chain. The company works with more than 1,200 organizations worldwide, including 15 of the top 25 global grocery retailers, 25 of the top 25 global CPG manufacturers, thousands of retail brands, and hundreds of national and regional chains.