From Browsing to Buying: Influencing the Omnichannel Shopper’s Decision Point

Omnichannel Consumer Behavior: What Today’s Shoppers Expect

The evolution of the retail landscape has been markedly influenced by the emergence of the “new” type of shopper, the omnichannel shopper. In fact, over 73% of shoppers acknowledge using multiple channels during their shopping journey.

This development has been propelled by technological advancements and significant shifts in consumer behavior. Omnichannel shoppers distinguish themselves from traditional shoppers by their sophisticated integration of technology into their purchasing processes. They utilize a variety of channels to gather information, compare products, and execute purchases. These shoppers prioritize convenience and personalization, expecting shopping experiences that are tailored to their preferences and responsive to their interactions across both digital and physical realms.

Multi-Channel’s Impact on Purchase Decisions

Omnichannel shoppers exhibit a fluidity in their shopping habits, choosing where to buy based on a blend of convenience, price, and the quality of the customer experience. Their ability to access immediate and extensive product information online allows them to make quicker, yet more informed decisions, though they often delay purchases in pursuit of the best deals. Their product choices are significantly influenced by the robustness of a product’s online presence and community feedback, such as reviews and social media engagement. This breadth of information enables them to make highly informed decisions, often leading them to products that precisely meet their specific needs.

Understanding the “Decision Point”

There is a pivotal moment that occurs when a shopper assesses all gathered information and decides whether to proceed with a purchase – we consider this moment the “Decision Point.” This critical juncture, the moment when a shopper chooses whether or not to make a purchase, is where multiple dimensions of the shopping experience converge, and understanding its dynamics is essential for tailoring effective retail strategies.

Several key factors prominently influence the decision point:

1. Price Sensitivity: Shoppers are highly attuned to pricing strategies and often engage in thorough price comparisons to secure the best deal. The impact of psychological pricing strategies, such as setting prices just below a round number (e.g., $9.99 instead of $10), can also significantly sway the decision to purchase.
2. Promotional Influence: The presence of promotions, discounts, and loyalty incentives can be decisive, providing the perceived additional value that might tip the scales towards making a purchase.
3. Availability and Accessibility: The immediate availability of desired products is crucial; a lack of stock can lead to abandoned purchases and drive potential customers to competitors.
4. Social Proof through Reviews and Ratings: Positive reviews and endorsements strengthen trust and reduce the perceived risk associated with a purchase, particularly influential in an online context where physical evaluation of the product is not possible.
5. Risk Mitigation via Return Policies: Favorable return policies enhance the shopper’s confidence, significantly lowering the perceived risk and facilitating the decision to buy.
6. Logistical Considerations: Shipping options and costs, including the promise of quick delivery and reasonable fees, are critical components that can determine whether the shopper proceeds with the purchase.
7. Ease of Transaction: The simplicity and convenience of the purchasing process, especially on mobile platforms, play a critical role in converting interest into sales.
8. Brand Reputation and Values: The alignment of a brand’s values with those of the shopper and the overall reputation of the brand can greatly influence loyalty and repeat purchasing behavior.

And of course, these factors represent only a snapshot of the myriad influences at play at the decision point.

Real-World Shopper Scenarios: Navigating the Omnichannel Customer Journey

Example 1: Purchasing a High-End Camera

Jane, an amateur photographer, is keen to upgrade her camera to a professional model. Her journey begins online, where she compares specifications, prices, and reviews across multiple e-commerce platforms. Intrigued by a particular model, Jane watches several YouTube tutorials to see the camera in action, which reinforces her interest. However, hesitant to make such a significant investment without firsthand experience, she visits a local electronics store to get a feel for the camera.

At the store, Jane is impressed with the camera’s ergonomic design and user interface, but she finds the store’s price slightly higher than what she saw online. Using her smartphone, Jane checks for current online promotions and discovers an additional discount available through a mobile app, which is not offered in-store. She discusses this price difference with a store employee, who then offers to match the online price and throw in a free camera bag as part of their price-matching policy.

While in the store, Jane also tests several lenses that she hadn’t considered before, guided by the knowledgeable staff. This interaction adds value to her in-store experience but prompts her to check user reviews for these lenses on her phone, directly from the store aisle. Satisfied with the reviews and the deal offered by the store, Jane decides to make her purchase in-store, benefiting from the price match, the immediate availability of the product, and the added bonus of the camera bag.

Example 2: Buying a New Running Shoe

Alex’s quest for the perfect running shoe starts when he sees an online ad for a newly released pair of eco-friendly running shoes. He visits the brand’s website to explore the different color options and reads through customer testimonials. Alex adds a pair to his cart but decides to check competitor sites for better deals or promotions before finalizing his purchase.

A few days later, while passing a mall, Alex decides to visit a physical store of the same brand to try on the shoes. Inside, he appreciates the personalized service and receives expert advice on his running style and shoe needs, which he hadn’t fully considered during his online research. The in-store experience is compelling, and he learns about an in-store exclusive offer that includes a free fitness consultation with purchase.

However, Alex steps out of the store to think it over and uses his phone to search for additional reviews, particularly focusing on long-term durability, which he learns from fellow shoppers is crucial for his running needs. Finding reassurance in the positive feedback, he returns to the store, ready to purchase. The combination of the in-store promotion, the hands-on testing, and the additional information gathered online convinces Alex to buy the shoes and take advantage of the free fitness consultation, making his in-store purchase feel like a well-rounded decision.

Addressing the Decision Point Disadvantage

The “Decision Point Disadvantage” encapsulates the challenges brands and retailers encounter in seamlessly influencing the omnichannel shopper’s purchase decisions. This disadvantage emerges from the complex, scattered nature of consumer journeys that unfold across multiple touchpoints, each vying for the shopper’s attention and presenting an opportunity to win or lose a sale. Key challenges include ensuring consistency across these touchpoints, capturing the comprehensive data needed to fully understand what consumers see and experience, and the ability to swiftly act on insights and measure the impact of these actions. Without deep, data-driven visibility into every factor that influences the decision point—whether online or in-store—retailers and brands find themselves strategically disadvantaged, often ceding ground to competitors who better navigate these complexities.

Key Challenges Leading to the Decision Point Disadvantage:

1. Inconsistency Across Channels: A seamless omnichannel experience is vital for influencing shopper decisions. Discrepancies in pricing, product availability, promotional offers, and customer service between online and offline channels can confuse shoppers and push them towards competitors who provide a more unified shopping experience.
2. Lack of Integrated Data Insights: Many retailers struggle with capturing and integrating data across channels to gain a holistic view of consumer behaviors. This gap in data leads to missed opportunities for personalization and timely engagement, which are crucial for influencing purchases at the decision point.
3. Limited Visibility into Shopper Interactions: Without visibility into how shoppers interact with different touchpoints, brands cannot effectively optimize these interactions to enhance the shopper’s journey. This lack of insight can result in ineffective marketing strategies and a poor allocation of resources, ultimately risking the sale.

Strategies to Overcome the Decision Point Disadvantage:

• Enhanced Data Analytics: Investing in advanced analytics solutions that can integrate and interpret data from multiple sources is crucial. This integration allows brands to understand shopper behaviors and preferences in real-time, enabling personalized marketing and more precise inventory management.
• Unified Omnichannel Strategy: Developing a cohesive strategy that ensures consistent messaging, pricing, and customer service across all channels. This approach should be informed by robust data analytics, ensuring that every touchpoint is optimized to contribute positively to the decision-making process.
• Real-Time Data Utilization: Utilizing real-time data to quickly adapt to changes in shopper preferences and market conditions. This capability can significantly enhance the agility of promotional strategies and inventory decisions, keeping offers relevant and timely.
• Comprehensive Customer Journey Mapping: Detailed mapping of the customer journey across all channels helps identify key decision points and the factors influencing them. This understanding enables targeted interventions that can effectively sway shopper decisions at critical moments.
• Continuous Feedback and Adaptation: Establishing continuous feedback mechanisms to gather insights directly from shoppers and front-line employees. This ongoing loop of feedback and adaptation helps refine the shopping experience, making it more aligned with consumer expectations and responsive to their needs.

Questions Brands and Retailers Are Asking

When you can’t keep up, you’re left at a decision-point disadvantage, prompting critical questions that drive strategic refinement:

• Are we presenting the right experiences, online and offline, to foster customer loyalty?
• How confident are we that consumers have the best information and choice to help us win the sale?
• If promotions or product placements aren’t producing or increasing sales, do we know why?
• How well are we keeping up with competitors across channels – at the category- and SKU-level?

By addressing these questions and challenges, brands and retailers can not only mitigate the Decision Point Disadvantage but also enhance their strategic agility and competitive standing in the omnichannel marketplace.

What Wiser Is Hearing

The future of retail lies in understanding and strategically influencing the decision point, where every interaction could lead to a sale or a missed opportunity. By taking a more proactive and unified approach, brands and retailers will not only satisfy the demands of the modern shopper but also foster enduring loyalty. From where we’re sitting – and through our work with organizations from Amazon to Whirlpool to Talking Rain – we are hearing more and more about the urgency of implementing a unified approach to understanding and improving the shoppers’ decision point.