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Navigating the Digital Retail Customer Journey: A Comprehensive Guide for CMOs and Brand Managers
Patrycja Hendzel - 12 November 2024 - 14 min read
Reading time: 14 mins
There is much more to digital retail than just selling products online. It has never been as simple as setting up a website and waiting for customers to come. Being successful requires a deep understanding of consumer behaviour and the ways that your brand can engage with customers at every touchpoint along their journey.
This article will provide insight into the importance of knowing your target audience and the whole customer journey, from its early stages of awareness to the final purchase decision.
We will discuss customer journey mapping, personalisation, specific touchpoints, and the use of data analytics to gain valuable knowledge about your customers.
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The Shift From Traditional to Digital Retail
From the early days of the internet, it was clear that many aspects of human life would move to the digital realm. Retail was one of the industries that experienced a massive shift, with over 20% of retail purchases being made over the internet in 2024 compared to 0.8% in 2000 in the US. Furthermore, it is believed that the growth of digital commerce will continue, as it becomes more and more popular.
In 2024, over 20% of retail purchases in the US are made online, a significant increase from 0.8% in 2000. (source: US Department of Commerce)
The growth of digital retail presents both challenges and opportunities for brands. To succeed in this evolving landscape, businesses must adapt their strategies and embrace digital tools to enhance the customer experience. Key areas of focus include:
-Personalisation: Leveraging data insights to deliver tailored product recommendations, targeted promotions, and personalised content. This can increase customer engagement and drive conversions.
- Data-driven decision-making: Utilising analytics platforms and customer relationship management (CRM) systems to gather and analyse customer data, enabling informed decisions regarding product development, marketing campaigns, and customer service strategies.
- Omnichannel integration: Creating a seamless customer experience across all channels, including online platforms, mobile apps, social media, and physical stores. This requires a cohesive strategy and integrated technology infrastructure.
Omnichannel Strategies and In-Store Technology for a Great Digital Journey
The proliferation of mobile devices and social media has blurred the lines between online and offline experiences, compelling leading retailers to adopt omnichannel strategies. Rather than relying on a single channel, omnichannel retailing integrates various touchpoints to create a cohesive and consistent customer journey. This approach recognises that consumers interact with brands across multiple platforms and seeks to provide a seamless experience regardless of the channel.
73% of shoppers use multiple channels during their shopping journey. (Source: Harvard Business Review)
A successful omnichannel strategy requires a deep understanding of customer behaviour and preferences, as well as the integration of technology to bridge the gap between physical and digital touchpoints. For example, IKEA has effectively implemented an omnichannel approach by leveraging its mobile app to enhance the in-store experience. Customers can use the app to locate products, access detailed information and reviews, and even utilise design tools to visualise furniture placement in their homes. Integrating digital tools within the physical store environment empowers customers and enriches their shopping journey.
In addition to mobile apps, retailers are leveraging a range of in-store technologies to enhance the customer experience and drive engagement:
Interactive displays: Touchscreen kiosks and interactive displays give customers access to product information, promotional offers, and personalised recommendations.
QR codes: QR codes placed on product displays or throughout the store can provide instant access to product details, reviews, and even exclusive online offers.
Smart mirrors: Smart mirrors enable customers to virtually try on clothes or accessories, experiment with different looks, and even share their experiences on social media.
Beacons: Bluetooth beacons can deliver personalised messages and promotions to customers' smartphones as they navigate the store.
Digital Touchpoints in The Retail Customer Journey
Your customers are interacting with your brand across a multitude of touchpoints. Each interaction – from a glance at a social media post to an in-depth exploration of your website – shapes their perception and influences their purchasing decisions.
Retailers need to optimise each touchpoint to create a seamless and engaging customer journey.
Digital magazines: We develop engaging digital magazines for Lidl that seamlessly blend product showcases with lifestyle content, offering customers valuable information and inspiration while subtly promoting their offerings. See an example of a digital retail customer journey for Lidl.
Mobile-first experiences: Mobile devices are increasingly becoming the preferred method for online shopping. Ensure your website is fully optimised for mobile, offering a seamless and user-friendly experience on any screen size. Consider developing a dedicated mobile app to provide a more personalised and convenient shopping experience.
Interactive websites: When Burger King was consolidating its branding strategy, we created an interactive website that communicated the brand's environmental and sustainability efforts to a wide audience. They dubbed it “the most engaging content they had ever seen.” See an example of a digital retail customer journey for Burger King.
Post-purchase communication: The customer journey doesn't end with a purchase. Nurture relationships by sending personalised follow-up emails, requesting feedback, offering exclusive discounts, and providing exceptional customer support. This fosters loyalty and encourages repeat business. Here are some key digital touchpoints that deserve your attention:
Mapping the Customer Journey in Retail
Mapping the customer journey can feel overwhelming at first, but it is worth the effort. Once you build yours, you will better understand the customer experience your business provides at each step and touchpoint as well as what could be improved. Let's look into customer journey mapping in more detail.
Key Stages of the Retail Customer Journey
The retail customer journey typically encompasses five key stages:
Awareness: This is the initial stage where potential customers become aware of your brand or product. They might discover you through social media, online ads, search engine results, or word-of-mouth referrals.
👉Key focus: Capture attention and make a positive first impression.
Consideration: Intrigued by your brand, potential customers move into the consideration phase. They actively research your products, compare prices, read reviews, and seek information to evaluate your offering.
👉Key focus: Provide compelling information, address concerns, and build trust.
Purchase: This is the moment of truth! The customer makes a decision and completes a purchase, whether online, in-store, or through another channel.
👉Key focus: Ensure a smooth and convenient transaction process.
Post-purchase: The customer journey doesn't end with the sale. This stage focuses on building relationships and fostering satisfaction. Follow up with order confirmations, shipping updates, personalised recommendations, and opportunities for feedback.
👉Key focus: Exceed expectations and foster loyalty.
Loyalty: Through positive experiences and ongoing engagement, customers become loyal advocates for your brand. They make repeat purchases, recommend your products to others, and actively engage with your brand online.
👉Key focus: Nurture relationships, reward loyalty, and encourage advocacy.
Customer journey mapping can increase customer satisfaction by 15%. (Source: Aberdeen Group)
The Importance of Data-Driven Customer Journey Mapping
Data-driven customer journey mapping provides the clarity and direction you need to create a truly customer-centric experience. By analysing data from every touchpoint, you can:
Uncover hidden patterns: Identify trends in customer behaviour, such as common paths to purchase, popular product categories, and preferred channels of interaction.
Identify pain points: Discover areas where customers encounter friction or frustration, such as slow loading times, confusing navigation, or a complicated checkout process.
Understand motivations: Gain insight into what drives customer decisions at each stage, such as price sensitivity, product features, or social proof.
Personalise experiences: Tailor content, offers, and communication according to individual customer preferences and behaviours.
Measure effectiveness: Track key metrics like conversion rates, customer satisfaction, and customer lifetime value to assess the impact of your strategies.
Tailoring Customer Experiences Across Different Channels
Today, the market is extremely competitive and it is essential to maximise your reach to stay ahead of your competitors. One way to do this is to choose multichannel marketing strategies that cater to slightly different audiences. This can be difficult at first, as it requires knowledge about more than just one demographic: however, machine learning algorithms can help you analyse data from various channels to identify patterns and create buyer personas to serve as a guide.
Why Channel-Specific Tailoring Matters:
Reach the right audience: Different channels attract different demographics. Tailoring your message ensures you're speaking the language of your target audience on each platform.
- Optimise engagement: Content that performs well on Instagram might fall flat on LinkedIn. Channel-specific content maximises engagement and resonates with users.
- Reinforce brand identity: While adapting content to each channel, maintain a consistent brand voice and messaging to reinforce your identity across all platforms.
- Enhance the customer journey: A seamless experience across channels creates a cohesive and satisfying journey for your customers.
Every channel you use should have dedicated content and tailored messaging that resonates with the specific audience of that platform. The communication style on a social media platform like Instagram is entirely different from the language used on professional platforms, and it's important to adapt your strategies accordingly.
Leveraging Insights To Optimise the Customer Journey
As we have said before, the insights you can get from the customer journey map based on actual customer behaviour are invaluable. They are especially useful when creating tailored content that helps you connect to your audience on a much more personal level.
Personalisation in the Digital Retail Journey
Personalisation plays a truly revolutionary role in e-commerce and marketing. According to statistics, personalised content increases the chances of high ROI. Most internet users value online experiences tailored to their wants and needs, and by showing potential customers that you care about their individual preferences you build trust and loyalty. This can lead to repeat business and referrals, meaning success for your brand.
76% of consumers say they’re more likely to purchase from brands that personalise. (McKinsey)
One of the greatest examples is Coca-Cola's "Share a Coke" campaign, where personalised labels are printed with individual names, creating a sense of connection and exclusivity for consumers. By utilising this strategy, the brand increased sales by several percentage points, proving that personalisation directly impacts purchase decisions.
Using Predictive Analytics To Anticipate Customer Needs
By gathering data about customers and their behaviour, companies can use predictive analytics to make better, informed decisions about every step of the customer journey. Today's machine learning algorithms can analyse enormous amounts of data to find patterns and trends that may be difficult for the human eye to spot, making them an extremely useful tool for businesses.
Predictive analytics can also be used to plan marketing campaigns more effectively by helping to target the right audience at the right time with a highly personalised approach. This kind of data can also make it easier to expect changes in customer preferences and allow businesses to adjust accordingly, minimising losses during potentially low seasons or shifts in market trends.
How To Make the Most Out of Predictive Analytics in Retail?
By harnessing the power of data and machine learning, retailers can anticipate customer needs, personalise their experiences, and optimise every step of the customer journey.
How Predictive Analytics Works:
Predictive analytics leverages historical data, statistical algorithms, and machine learning techniques to identify patterns and predict future outcomes. By analysing past customer behaviour, purchase history, and other relevant data points, retailers can gain valuable insights into future trends and preferences.
Applications of Predictive Analytics in Retail:
- personalised product recommendations,
- targeted marketing campaigns,
- price optimisation,
- churn prediction and prevention.
Digital Retail Customer Journey: Real-Life Examples
DCS Group Case Study
Challenge: DCS Group, a cosmetics distributor in the UK, needed to transform its annual Category Insights summary into a more interactive and easily digestible format for its clients.
Solution: Rhapsody reworked the whole report, turning the 100+ page document into a digital experience with visually appealing imagery and mobile-friendly interactive elements to provide a better viewer experience.
Results: Rhapsody created a modern product – complete with templates for future editing – thus allowing DCS Group to offer its website visitors a great experience without sacrificing content depth or quality.
👉 See this digital retail customer journey example here
Lidl GB Case Study
Challenge: The grocery chain wanted to increase its visibility and customer engagement through a digital version of its existing print magazine.
Solution: Merely turning the print magazine into a digital format was insufficient: the online version had to be an experience of its own, worth the customer's time and attention.
Results: Lidl GB's collaboration with Rhapsody resulted in a digital magazine that was opened over a million times over four seasons. The September 2022 edition alone got half a million views, a figure that showcases the potential reach of digital publications. The mobile-friendly format allowed for easy access and was a key factor in the magazine’s success, as most users accessed it from their mobile phones.
👉 See this digital retail customer journey example here
Burger King Case Study
Challenge: Burger King wanted to communicate its environmental and sustainability efforts to a wider audience.
Solution: Rhapsody's designers worked on a microsite that kept the aesthetic of Burger King's existing branding while incorporating elements that put the focus on the company's sustainability commitments. It told the story of Burger King's eco-friendly initiatives through an engaging website and captivating visuals while keeping a tone consistent with the brand’s other marketing and informational materials.
Result: The website was seamlessly integrated with other Burger King websites and media, making it easily accessible for users coming from different touchpoints. The brand’s team was happy with the cohesive message and user-friendly design we delivered, going as far as to call the content the most engaging they had ever seen.
👉 See this digital retail customer journey example here
Taking Care of Your Customer Each Step of the Way
Ready to take your digital retail strategy to the next level? Schedule a free, no-obligation consultation with our team of experts to discuss your needs and discover how we can help you create a customer journey that drives results.
How will your service help me understand my customers' digital journey in a more in-depth way?
What strategies do you recommend for personalising the customer experience across multiple channels?
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The Frames, 201–202, 2nd Floor,
1 Phipp Street, London, EC2A 4PS, UK
Copyright ©2024 Rhapsody Ltd. All rights reserved.