How Retailers Can Blur the Lines Between In-Store and Online Shopping

A recent EY study of 23,000 global consumers found that most people still want to buy things in-store vs. online. Why? More than two-thirds of customers wanted expert advice when purchasing high-value items, while 3 in 5 consumers wanted to see and touch items before buying them. With that said, studies like this reflect what buyers want today. As Gen Z gains more purchasing power, we’ll see even more blurring of the lines between in-store and online shopping (and many times, customers will shop on their phones while in-store).

The key takeaway? Don’t make consumers choose between in-store and online experiences. Give them the best of both worlds. Let’s look at some of today’s biggest channel-bending trends, and how the average retailer can keep up.

The rise of “adaptive retail”?

Walmart recently released their own study with Morning Consult about what consumers demand out of their shopping experience. The study found that in-store experiences are moving online and vice versa, a trend Walmart calls “adaptive retail.”

For example, shoppers indicated they want practical digital tools that make their in-store shopping experience easier and faster. For example:

• 50% wanted in-store scan-and go technology
• 57% want to use technology to see how items in-store would look like in their home or on their body. Nearly half of Americans favor trying on clothes virtually vs. in a dressing room.
• 50% wanted an app that maps the fastest path through the store based on their shopping list (#BigBoxProblems).

These findings suggest that customers want technologies that are seemingly simple, but solve some of their most common shopping challenges. Meanwhile, more disruptive lifts around technologies like AI-powered customer service may be falling short of customers’ expectations. The same EY report cited above shows half of consumers were frustrated that chatbots were ineffective in resolving queries, while 3 in 10 cited poor customer service or difficulty connecting with agents as significant issues that occurred during digital shopping.

Instead of trying to be all things digital, focusing on convenience and highly personal experiences may be the best way for the average retailer to outpace the competition.

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The good news: composable makes adapting to trends easier

It can seem nearly impossible to invest in digital trends when you’re working with an inflexible legacy commerce system. Even small changes can take months to execute, so testing and learning from the latest technologies may seem out of reach for many retailers. Here’s the good news: A composable commerce approach can make this iterative process much easier to execute. With a composable system, it’s simpler to try new technologies and see how they work for your customers within just a few days or weeks, instead of resorting to months of custom development work.

Given the trends we covered above, here are a few key takeaways:

1. Focus on making shopping experiences faster and easier. A composable commerce system can make it easier to test out features like digital checkout at the point of purchase — whether that means skipping the line in store, or purchasing a product from an influencer post.
2. Embrace “the blend.” Invest in highly personalized experiences that can work for both in-store and digital shopping. Don’t make customers choose. Whether that’s providing virtual try-on or try-before-you-buy options online, or giving consumers a personalized path through the store based on their shopping list, it’s all about convenience that the consumer opts into.
3. Invest in “velvet rope” personalization. Technologies like a Customer Data Platform (CDP) use first-party data to make better recommendations for shoppers. These tools can improve searchability and get people to what they want quickly, avoiding the need to interact with tools like AI chatbots to begin with. To drive loyalty, try giving customers early access to exclusive product drops based on what they like best.
4. Build recommendations and bundles based on actual purchases. All too often, recommendations are based on an arbitrary algorithm rather than actual purchases and previous order history. Tools like dynamic bundling can help you increase average order value on the spot by simply pairing frequently bought items together (e.g. pairing dog food with treats, toys, etc. instead of yet another type of dog food).
5. Bridge the gap between technology and humans. Don’t use chatbots to deflect inquiries, but rather use them as a bridge to a human who can answer questions. This will satisfy the one-third of customers that prefer the high-touch experience of in-store, and the 100% of customers that want your brand’s best service.

While many customers won’t blend online and in-store shopping experiences anytime soon, think of every interaction with your brand as valuable — regardless of where it initiates. Technology should be an enabler, instead of a detractor to these experiences. With composable commerce, it becomes much simpler to experiment with trends before your competitors do — giving your customers what they truly want before they even have to ask for it.