Top Omnichannel KPIs for the Retail Brands
Retail brands are looking for proven ways to stay ahead of the curve as the industry becomes increasingly competitive. One practical way to do this is by using omnichannel strategies that focus on providing a unified experience to the shoppers across digital and physical channels, from product search to order fulfillment.
But in this ever-changing market, no business can ever predict business performance based on tonnes of data. Tracking KPIs is essential, especially in an omnichannel business.
It will help retail businesses understand how customers interact with the brand across channels and how they can improve marketing efforts, provide a better customer experience, and increase sales. These are the top Key Performance Indicators (KPIs) at each stage of the customer journey for omnichannel retail brands.
1. Brand Awareness
What sets omnichannel retail brands quite different from other retail brands in the industry? It's their penchant to create brand awareness together on physical and digital channels, rather than going separate ways on both channels.
The brand awareness part of the omni channel customer journey focuses on 2 different KPIs.
a) Traffic generation for the retail brand records the number of unique visitors to different retail channels like online store, social media channel, App store etc.
b) Visit rate shows how many unique customers visited the concerned channels over a period of time.
Yogabar has achieved 100% brand growth due to its unique strategy of creating brand awareness without costly advertising and dedicated budget for marketing.
Yoga studios: The brand showcased their product where health-conscious people are more likely to visit more Yoga studios and made their first sales in Yoga classes.
Packaging: Yogabar was the first food brand that started using bright, pop, happy colors on the packaging, and it has now become a part of their distinct identity. Whenever customers walk into a store, they immediately spot Yogabar products because they have eye-catching packaging. They feature neighbourhood advocates instead of celebrities on the back of their products whose stories the audience can connect with emotionally.
Use of social media: The brand shared inspirational and positive posts on their social media handles through their weekly ‘Happy News Digest’ to do their bit in spreading positivity and making wellness actionable.
Omnichannel KPIs to demonstrate the success of customer engagement strategy are
Length of visit: It reflects the level of involvement a customer expresses to a channel by staying on it for a particular period of time.
Product recommendations and offers per visit: It aims to attract customers to numerous products on the catalog by using highly personalized product recommendations and specialized offers.
Conversion rate on recommendations shows how suitable and customized the content is to each shopper.
Sephora is taking customer engagement to the next level by providing a shopping experience that is truly customized to every unique customer.
Redeem loyalty points anywhere: Sephora customers can rack up points in their user account for using it online or in brick and mortar stores wherever they are shopping.
Unified interaction: Sephora connects its customers’ online purchases to in-store interactions like beauty makeovers, workshops and recommended buys for a seamless online-to-in-person experience.
Beauty bag feature: Sephora’s 'Beauty Bag' feature lets shoppers virtually try on a new product, add them to their bag, and purchase it all with a click, thanks to “expedited shipping” or "pickup in-store" options.
3. Product Trial
Product trial is a crucial phase where interested customers try and feel the products right before making the purchase decision. The stage increases the likelihood that customers will purchase because retail brands offer a risk-free way to experience the products before customers buy them.
KPIs in the product trial phase:
1. Product tried per visit: How many customers tried products per visit? This KPI helps us know how serious the customers are during the store visit.
2. Conversion rate on product trial: The KPI shows how many customers successfully purchased the product after the trial? It is essential as it shows the % of customers that have brought revenue for the retail business.
This KPI is one of the most prominent and accurate indicators that the retail brand converts casual shoppers into paying customers.
Cross channel conversion rate: There are several online and offline channels on an omnichannel retailing platform used by customers for a seamless shopping experience. So, this KPI would determine the cross-channel conversion rate of an omni channel customer.
Which omni channel offering drives the highest conversion rates?
As of 2020, retailers that offer omni channel services continue to have higher conversion rates than those that do not. Among omnichannel retailers, those that offer curbside pickup have the highest conversion rates.
Red Chief, the leather footwear industry's market leader, has grown 15%-21% in-store sales using the Fynd store. Fynd has redefined the way to do business in the retail industry integrating online & offline channels.
It offers virtually everything to succeed in the market like catalog management, Order Management System (OMS), dedicated Account Manager (AM), operations support team, customized offers and focussed growth plans.
It is more important than ever for retail brands to focus on customer loyalty after the pandemic phase. This customer journey stage tells you about loyal customers that are more likely to stick to the brand, recommend it to others and be less price sensitive.
Omni channel KPIs for the loyalty stage
1. Customer lifetime value (CLTV): This metric analyses how much a buyer will spend in the brand store throughout their stay with the brand. If the customer stays for 2 years, CLTV will indicate how much they will spend in your store.
2. Revisit frequency: This key metric indicates how frequently the customers revisit the online/physical stores of the omnichannel retail brand.
3. Retention: It shows the number of customers that make a second purchase transaction within a certain time. Take a look at some of the best customer loyalty programs in retail run by top omni channel retailers:
Value City furniture
Value city furniture is an omni channel furniture brand that offers an ‘Easy Pass’ feature to its customers to keep shoppers' data in one place. It lets customers build shopping lists online and then head to the nearest brick-and-mortar store where a sales clerk pulls up the list and shows furniture to the customers in real life.
Timberland is using NFC technology to combine the convenience of online shopping with the valuable shopping experience of in-person visits. With the installation of ‘Touchwalls’ in stores, customers can learn more about Timberland's shoes and even add them to their online shopping list or purchase them in-store.
Omnichannel KPIs are crucial to identify the success or failure of business strategy at each customer journey stage. These metrics give the right direction to the omnichannel retailing brands and help improve or make corrections to their existing business strategy without losing time. We have highlighted the top omnichannel KPIs that are highly important to track the performance of retail brands. Retailers can use these KPIs to measure their performance against goals and help them make critical business decisions.
Fynd has won the trust and recognition of more than 600 retail brands in the industry. If you want to learn more about the omni channel retailing concept and how Fynd omnichannel solutions are helping retail brands improve their business performance on all retail channels, feel free to Book a Demo or Contact Fynd today.