Why Omnichannel Retail is Key to Success in 2017

before purchasing in-person at a retail store.

If customers had conducted online research, whether at a retailer’s website or other websites, prior to a purchase, they typically spent 13 percent more in store.

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Dallas, Texas-based fine jeweler Ylang 23 opened up shop in 1985 and was an early e-commerce convert, adding their online store to their website in 2001.

Ylang 23 had always taken a multi-channel approach to business, building up store traffic in the 1980s and 1990s through direct mail advertising. Now, the store feels so strongly about their online business that they carry the exact same merchandise online and in-store.

“More often than not, customers will come in having already done a large chunk of pre-shopping online or through our social channels, particularly our Instagram,” Vice President of Business Development Alysa Teichman said.

“We are really finding that our store strengthens our online business and vice versa. It’s nice to have a platform where our customers can shop in their pajamas at home and then get that touch point and excellent customer service we’re known for in-store.”

Harold Stevens Jewelers, located in San Diego, California, opened for business in 1979 and added an online e-commerce site in 2015.

Ryan Krasner, the store’s creative director, emphasized that the site is “still in its infancy,” and only accounts for about 5 percent of total sales, though Krasner is “pursuing different avenues to improve online transactions.”

However, like Ylang 23, many of Harold Stevens Jewelers’ clients have perused the website before coming in to shop.

“In the local market,” he explained, “mainly people are on the website, then come in to physically handle the product and experience it in person.”

Social media channels like Instagram, to which Harold Stevens Jewelers pays special attention, given the visual nature of the platform, also play a big part in drawing in foot traffic.

“(Customers) check out all channels if they’re interested,” Krasner said.

Even some new retailers that began as e-commerce-only businesses are embracing the omnichannel approach.

Goldyn, a store that sells women’s and men’s apparel plus fine jewelry by brands like Communion by Joy and Selin Kent, is a product of the digital age. The store launched in 2007 as an online-only retailer.

“Fine jewelry is particularly important to our online business because there aren’t the issues with fit and feel that you have with apparel,” said Vanessa Barcus, Goldyn’s owner. “I find that customers are not reluctant to buy fine jewelry online, especially if they are already familiar with the designer.”

Barcus had always hoped to have a physical retail space as well, and waited out the first few post-2008 recession years before opening her Denver, Colorado, store in 2011.

“I’d say it’s quite important to have both an online store and brick-and-mortar shop,” Barcus said. “The two really support each other. Especially with fine jewelry purchases, I find that customers have done a lot of research online and have already perused our website before stopping in. Even if the purchase is not made online, having the products there allows the customers to think about the purchase, which can help make the sale for us.

“Or, vice versa, if a customer comes in and sees something they like in the shop, but it’s a bigger purchase and they want to think about it more, our website allows them to purchase it at a later date.”

Barcus said that “a significant volume of overall sales, particularly fine jewelry sales,” are made online.

Like Goldyn, Ylang 23 relies on the synergy between e-commerce and their physical store to keep their customers’ attention in a changing retail landscape.

But even with more focus than ever on all manner of online and digital sales, Ylang 23 is not neglecting their very first retail channel.

“Eventually, we’d like to add other physical retail locations,” Teichman said. “We believe in brick-and-mortar stores. The direct, customer-facing, customer service aspect is just so important to us.”