Once hit by a plague of shuttered doors and bankrupt retail giants, in-store shopping has made a comeback, with 83% of consumers making purchases both online and in person. While eCommerce claims a maximum of 17.1% of all sales, the rest occur at physical retail locations. Those sales are increasingly becoming omnichannel, with shoppers starting their research in stores and then looking to the internet for lower prices, or buying online and picking up the product at a physical location the same day.

This blend of in-person and digital shopping gives consumers the best of both worlds. However, for retailers, it means having a physical store or presence may be necessary to reach their target market.

In fact, the brick-and-mortar space is expected to grow by a CAGR of 29.1% until 2030 thanks to the integration of smart technology and a new in-store experience. Tactics like “buy online, pick up in store” (BOPUS) points and self-checkout also serve to minimize in-store costs but still require careful oversight so they don’t eat into profits.

The importance of in-store experiences

Although the rise of eCommerce has drastically changed the retail landscape, in-store experiences maintain a place of prominence in the industry.

Physical stores offer a tangible, sensory experience that can’t be replicated online. They provide a space where customers can touch, feel, and try out products before purchasing. The human connection and instant gratification of walking out of a building with a purchase in hand add to the allure of in-store shopping.

According to Raydiant, consumers go to physical stores to:

• Experience shopping in a store as an activity (27.6%)
• Touch and feel products before buying (24.7%)
• Not have to wait for delivery (11.9%)
• Avoid paying shipping costs (10.8%)
• Find unique local products not available online (5.3%)

The overall in store experience is the most compelling reason that keeps customers going back to stores, so physical retail needs to focus on offering stellar shopping.

What is experiential shopping?

Increasingly, consumers are flocking to the internet for their shopping needs (eCommerce sales increased 10.7% from 2021 to 2022, while in store sales increased 5.21% for the same period). However, retailers around the world have dug in their heels and created unique offerings to draw customers back through their doors by leveraging experiential shopping.

This concept is an all-encompassing experience for shoppers to engage with your brand and connect on a personal level, focusing more on the customer than sales. It emphasizes physical retailers’ ability to deliver experiences that can’t be replicated online.

The experiential advantage

One of the greatest strengths of experiential retail is that it’s immersive and shareable. That can include the use of extended reality (XR) tools like augmented reality (AR) and virtual reality (VR). This type of shopping inspires people to grab their smartphones and show their sprees in real time to followers, which generates buzz for your brand and produces valuable social proof organically.

Rather than prioritizing sales, experiential retail aims to create an on-brand journey that engages and delights customers the moment they walk through your doors. The goal should always be to build a relationship with potential buyers and focus on their needs, even if you have to refrain from delivering a killer sales pitch.

So, engage customers through personalization. Lush stands as a great example of this: Their stores engage all five senses, and the staff are attentive to every shopper’s wants and needs. Similarly, IKEA’s curated and fully constructed “rooms” allow browsers to gain a sense of what their lives would be like if they incorporated those products into their homes.

Bridge the gap between online and in-store experiences

If you currently have a physical presence, you’re well-positioned to leverage the space and gain an edge in a number of unique ways. But if you don’t have one, you can still construct amazing experiences that inspire and dazzle your customers using technology, social media, and good old-fashioned imagination.

Here are a few ways to link the virtual to the physical world.

1. Craft a seamless omnichannel experience

Ensure the transition from online to in-store experiences are seamless. That could look like enabling customers to add items to their online cart and then check out at a physical location, or order online and pick up in store.

Maintain a unified customer profile that tracks consumer behavior both online and in-store. This uncovers valuable insights you can use to personalize experiences across all channels. You’ll need a customer relationship management system (CRM) to manage this, but smaller retailers can make do with solutions like Shopify and unified inventory and point of sale management.

2. Give online access to in-store inventory (BOPIS)

Let customers check in-store stock online and reserve products for physical pickup. This connects the online and offline shopping experiences and offers buyers more convenience.

BOPIS and Click & Collect are quickly becoming a winning retail strategy in the U.S. They capitalize on the on-demand nature of online shopping without forcing customers to wait for the in-person experience. Instead, they research online, find a product they like, and pick it up (then return it immediately if it’s not what they expected).

3. Ensure consistent branding

Consistency is key to creating a unified brand experience. So, your brand’s identity, values, and messaging should be the same across all in-store and online channels. That encompasses verbiage, color schemes, promotions, and other related elements.

4. Leverage digital to offer an in-store experience online

For online browsers, AR experiences allow them to visualize products in their own space. This is especially beneficial for furniture and home decor retailers like IKEA, which developed an AR app that lets shoppers see how pieces would look in their homes. Meanwhile, at brick-and-mortar shops, VR transports customers to different settings to experience products in applicable contexts.

Virtual stores are also popping up online to build an in-store experience from the comfort of shoppers’ living rooms. XR tools like VR and AR let you craft unique shopping sessions for your customers: They can browse your storeroom virtually or even try on items via AR solutions that superimpose items like eyeglasses, makeup, and hair dye using a smartphone or computer’s camera image.

If you’re unsure about investing in XR tools, consider “live” social events that feature you or a member of your team, an influencer, and some of your best-selling items. Host the online event on your preferred social media channel and invite customers to join the party, shop top picks, and engage directly with your brand. You can personalize and curate these events to meet the needs of specific target audiences and offer an in-person experience without them having to leave the house.

For a lower price tag, you could host online events where you show off model and product photography, do an unboxing session, or invite users into your warehouse or packing area.

5. Seize unique opportunities to build community

You don’t need to have a dedicated retail space or storefront to foster an incredible in-person experience. Partnering with local markets or other brands is an effective way to reach new customers and give your existing consumer base a unique chance to engage with your brand.

Pop-up shops at markets or local events give customers access to special deals and novel experiences in a more personal setting. These events can be low- or no-cost options (depending on your partnership) to attract new shoppers and boost exposure for your brand.

From seasonal markets like Christmas fairs and Spring Flings to activity-based pop-ups like a yoga class accompanied by racks of fitness apparel, the opportunities are nearly endless. Whatever event you organize, keep your focus on building relationships and a sense of community among consumers and let the sales roll in organically.

Differentiating in-store experiences

In the current retail landscape, differentiation is vital for a brand to thrive. Luckily, you can enhance the unique aspects of your in store experiences through a number of tactics.

1. Personalization

Modern customers expect personalized experiences, so leverage consumer data to offer tailored recommendations in your store.

That can take the form of a sales associate suggesting products based on a buyer’s online shopping behavior or sending individualized offers to their phone when they’re at a brick-and-mortar location. In the latter example though, you first have to ask for the customer’s permission to access their location on their phone, or you may find yourself in breach of U.S. consumer privacy law.

2. Innovative in-store experiences

Craft unforgettable, interactive in-store experiences with innovative technology. Consider creating themed areas in your store where customers can try out products in real-world situations. You can even incorporate virtual reality headsets for shoppers to experience products in a unique way, view demos, or learn more about an item’s features and benefits.

Sometimes you can achieve this with a simple screen and videos; other times, you’ll want to add VR or AR. Certain cases, meanwhile, will require you to allow customers to test the product firsthand. Think of Nespresso, which offers customers a complimentary cup of coffee upon entering the store.

3. Expanded convenience

Convenience is a major contributor to purchasing decisions. So, offer mobile payment options, in-store kiosks to check online inventory, and an easy way to order out-of-stock items for home delivery. The goal is to make the shopping experience as smooth and convenient as possible.

Linking your in-store experience and your online shopping experiences and inventory management are critical to enabling this kind of flexibility. Additionally, you’re able to switch the customer to an online order seamlessly and let them know when to come back to pick up their order or when it’ll arrive at their door.

4. Community engagement

Physical stores can act as community hubs where customers have the opportunity to engage with like-minded individuals. This can manifest as themed events, workshops, or clubs that encourage shoppers to spend time in your store.

5. Exclusive in-store offers

To give consumers a reason to visit your physical store, consider giving exclusive products or discounts that are unavailable online. Although 14.9% of shoppers choose online stores because they can use discount codes and other offers, you can entice them to venture into your store if the price is right.

The challenges of uniting digital and in-store experiences

When trying to harmonize in-store experience and eCommerce experiences, retailers often face hurdles such as disjointed systems, inventory management issues, and difficulty providing consistent customer experiences across all channels.

However, with a strategic approach and the right tools in place, you can overcome these obstacles.

1. Disjointed systems

Retailers often operate their eCommerce and physical stores as separate entities, with distinct inventory, sales, and customer relationship management systems. This can result in disjointed shopper experiences and inefficiencies in managing stock across channels.

Solution: Implement integrated systems that can manage online and in-store operations. Unified commerce platforms provide a single view of customers, inventory, and sales for all channels. That enables retailers to streamline operations, improve inventory management, and provide a seamless buyer experience, regardless of where or how people shop.

Shopify is a prime example of a solution that can manage this seamlessly: Its system functions as a point-of-sale, retail stock manager and online eCommerce system all in one, making it ideal for small retailers looking for a single integrated solution.

2. Inventory management

Maintaining accurate and efficient inventory management across multiple channels can be a daunting task. Issues such as overselling due to inaccurate stock counts or an inability to replenish popular items quickly can diminish customer satisfaction and hurt your business’s reputation. An online shopper should have the same product availability information as a visitor in a physical store.

Inventory management software provides real-time stock visibility across all channels, which reduces the risk of overselling and ensures efficient stock management. For instance, say you have three ItemX’s in stock, two of which are in your retail location, and an online customer purchases two of them. An inventory management system allows you to ship both of them from the store so they show up together.

Solution: Partner with a service provider like MyFBAPrep to relieve the pressure of inventory management. MyFBAPrep specifically can ensure accurate stock counts, efficient fulfillment, and timely B2B replenishment.

Learn how our robust omnichannel prep and fulfillment solutions can remove the burden of inventory management so you can concentrate on improving your customer experience on every channel.

3. Consistent customer experiences

Creating a seamless buyer experience across multiple touch points can be a complex endeavor. Consumers expect consistency from brands, whether they’re shopping online from a mobile device, browsing your website on a desktop, or visiting a physical store.

Solution: To ensure uniform branding, messaging, and service levels on all channels, train staff to provide the same quality of service in stores that customers receive online, and coordinate marketing and promotional activities on each platform you use.

Employing a CRM also helps track shopper interactions at every touch point to promote personalized and consistent consumer communication.

4. Personalization

With the vast amount of customer data available, retailers are expected to provide personalized experiences at every turn. However, many businesses struggle to synthesize that information into actionable insights.

Solution: Leverage data analytics to understand consumer behavior, preferences, and needs. You can then use that information to tailor offerings and enhance customer engagement. Consider implementing AI-powered tools as well, since these can provide valuable insights and automate personalized online and in-store recommendations.

CRMs are crucial for maintaining a unified customer profile and tracking buyer interactions across touch points. This data can then guide personalized product recommendations, offers, and services, thereby improving customer experience and loyalty. Additionally, advanced CRMs can predict future behavior to foster proactive consumer engagement.

Make the most of your physical location

For retailers with both a physical store and an eCommerce presence, Capitalizing on your physical location is paramount. It’s possible some of your online customers are unaware you even have a brick-and-mortar store, so you can expand your audience in both spaces with a relatively low investment.

Here’s how we recommend you make the most of your physical location.

1) Establish a hub for distribution & in-person shopping

Permanent locations can provide a hub for distribution as well as in-person shopping experiences that build closer brand relationships.

As a distribution hub, your physical location could house a majority of your inventory, which you would update on your eCommerce platform as sales occur. Allowing in-person shoppers to see your distribution process and practices builds trust in your eCommerce branch and encourages omnichannel growth.

For in-person shopping, your physical location lets you create unique experiences. Consider hosting a pop-up by partnering with local influencers or leveraging XR technologies to demonstrate your supply chain process. Or, simply set up a destination for shoppers to come in and engage with your brand and products or pick up their online orders.

2) Offer your customers additional choices

A great way to enrich the customer experience is to let them choose their own adventure. Retail locations allow prospective buyers to select the shopping method or experience they prefer. That can include buying online and picking up in store (BOPIS), curbside deliveries for limited or no-contact interactions, shopping online and reserving to pick up and pay in-store, and other options.

For shoppers who enjoy interacting with a brand face-to-face but lack the time for it, the ability to browse online and select items for in-store pickup can be an attractive perk. Similarly, the cost savings and reduced carbon footprint gained by side-stepping traditional delivery fees and packaging could appeal to eco-conscious consumers.

3) Mobile apps

Branded mobile apps provide a direct connection between online and physical shopping through features such as in-store navigation, product information, customer reviews, and the ability to check a location’s inventory. Apps can also provide personalized offers based on a buyer’s location within the store or push notifications about sales and promotions. Again though, you have to ask for explicit permission to avoid running into consumer privacy laws.

4) Beacons and IoT

Beacons are small devices that use Bluetooth technology to send targeted messages to smartphones based on their proximity. Retailers can harness beacons to provide tailored discounts or product recommendations when customers are near specific products. However, keep in mind that many customers find this invasive, so you should have them opt in via an app first.

The Internet of Things (IoT) also opens up opportunities for smart fitting rooms and shelves to improve the in-store customer experience and provide valuable data on consumer behavior.

5) Self-service kiosks

With self-service kiosks, customers can easily check product availability, read buyer reviews, and even purchase from the store floor. They bridge the gap between online and offline, providing shoppers with a convenient, self-directed experience.

Additionally, they reduce costs for many retailers because they don’t have to pay a sales assistant for the same services. Take McDonald’s, which saw a 20% increase in average order size after introducing a self-service kiosk at Dodger Stadium, along with reductions in operating costs.

6) AI and machine learning

AI and machine learning are increasingly essential to retail success. From chatbots handling customer service to AI-driven personalization tools, these technologies enrich both online and in-store shopper experiences. They can craft tailored recommendations, automate consumer interactions, and even predict future trends.

Wrapping up — Moving towards a harmonious balance between eCommerce and in-store experiences

Just a few years ago, much discussion revolved around whether or not eCommerce would wipe out brick-and-mortar retail. Now, online and in store experiences have become more closely linked as customers adopt a fluid approach to shopping. That’s evident in the major store retailers opening today; they’re smaller and offer experiences beyond simply browsing products.

Whether or not you currently have a physical space, keeping an eye on this “old but new” trend towards in-person shopping can help you carve out an edge and expand your business. It’s the perfect time to reimagine your approach to customer experiences, both online and in the real world.

Focus on crafting unique and streamlined shopping for all consumers, deliver on your promises, and prioritize the customer relationship at every step of their journey.

Published: February 17, 2022
Updated July 11, 2024