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.
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.
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:
And of course, these factors represent only a snapshot of the myriad influences at play at the decision point.
Watch this video to learn more about winning the shoppers decision point: Win the Moment Shoppers Choose to Buy
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.
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:
When you can’t keep up, you're left at a decision-point disadvantage, prompting critical questions that drive strategic refinement:
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.
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.