Omnichannel strategy : How consumer electronics retailers should develop mobile marketing ?

Abstract

Omnichannel was a fashionable word in the retail a few years back and in 2014, 71% of the retailers had engaged in an omnichannel strategy and 24% were working toward it (Oracle retail, 2014) : the phenomenon keeps growing rapidly. Nowadays, the customers require to have a flawless experience throughout all the channels, whether it is for information research, for purchase or any others actions the customers may want to take with the retailers. And those who would not satisfy their customers might lose them forever. Moreover, the eCommerce and digital technologies steadily take a greater importance in the retail world. In Belgium, 61% of the 16-64 years old own a smartphone (Digimedia, 2016). We might therefore think that eCommerce and the mobile devices, to a lesser extent, would completely replace the traditional brick-and-mortar shops and that those would eventually disappear. But it is absolutely not the case : people still love physical stores and the mobile is not their main tool to purchase and it is not indented to become so. People are social creatures and love face-to-face interactions. They also want to touch, fell and try the products when buying a product. This is where the concept of in-store digital experience appeared : the use of digital technologies inside a physical store. This concept can delight every consumer : there is still the physical side for the most conservative ones but they can also use their smartphones inside the store to help them in the purchasing decisions. This technique improves consequently their in-store experience and then, the customers tend to buy more. Indeed, improved shopping experience can grow revenue by 5% to 10% over a span of three years and 75% of people have spent more with a company because of a history of positive customer experiences (VisionCritical, 2016). MediaMarkt asked me what they would have to do to develop their mobile strategy and this is the conclusion I reached, especially in the consumer electronics and home appliances sector where the customers still shop in store the most. Moreover, MediaMarkt will be the first to develop its mobile strategy and improving its in-store experience compared to its Belgian competitors who do not even have a mobile application. With this development, MediaMarkt will confirm its position as a leader in the Belgian market.