Trust is a critical element in consumer relationships with brands. In our recent Winter 2023 Retail Report: The Future of Retail in 2024 through Store Expansion and Investment Dynamics, we discovered that one-third of consumers distrust retailers who only operate on one channel, whether online or offline. This statistic paints a clear picture: consumers demand flexibility and shopping choices.
The reasons for the distrust vary. ‘Cart abandonment’ is one theory attributed to annual losses of $18 billion in e-commerce sales revenue. Single-channel retailers often lack the depth of product offerings and the personalized experiences consumers crave. Additionally, they may be more vulnerable to disruptions, such as website outages or inventory shortages, which can frustrate customers and damage brand reputation.
When consumers trust a brand, they are more likely to engage across its multi-channel experiences. They browse products online, check reviews on social media, and often make purchases in-store. As consumers are born tech-savvy, the demand for seamless shopping experiences across all channels will become the norm. Retailers that use an omnichannel strategy retain 89% of their customers. Those who fail to embrace it risk losing a significant portion of their customer base. The average lost opportunity cost is about 10% of revenue.
Retailers who fail to implement omnichannel retail strategies run the risk of losing 10% of revenue, and a significant portion of their customer base.
The most successful and trusted brands intersect the in-store and online worlds seamlessly. Amazon leads the charge among retailers but also shares its standings with trusted brands like Home Depot, Lowe’s, Target, and CVS Pharmacy.
To thrive in today’s competitive landscape, it will be necessary for retailers to embrace and integrate omnichannel retailing into their strategies continuously. Luckily, retailers are listening–94% of retail companies now use multiple channels to engage with customers.
For more compelling insights into what’s in store for 2024, download our 2023 Winter Report.