Many fashion retailers treat omnichannel as a burden — something they are forced to do, just to keep up. But I try to remind them that, with the right approach, omnichannel also provides an enormous opportunity, since cross-channel shoppers — those who both buy online and in stores — are significantly more profitable than the average customer.
Based on my work with fashion clients, I have found multichannel customers deliver:
• Higher revenue: Average annual revenue is two times that of other repeat buyers.
• Higher margins: Annual margins run about 130 percent higher versus other repeat buyers.
• Greater loyalty: They are 50 percent more likely to keep shopping year after year.
While they contribute an outsized share of the bottom line, multichannel customers tend to represent only 10 to 15 percent of the customer base. In other words, 85-plus percent of customers are not multichannel shoppers. Of that 86 percent, around 60-plus percent of customers are one-time buyers only, and 25-plus percent are repeat buyers who only shop within a single channel.
But what if you can shift this distribution slightly — let’s say just a 1 percent increase in the cross-shopping segment? It would mean reap millions in incremental revenue annually.
These numbers help explain
Based on my work with fashion clients, I have found multichannel customers deliver:
• Higher revenue: Average annual revenue is two times that of other repeat buyers.
• Higher margins: Annual margins run about 130 percent higher versus other repeat buyers.
• Greater loyalty: They are 50 percent more likely to keep shopping year after year.
While they contribute an outsized share of the bottom line, multichannel customers tend to represent only 10 to 15 percent of the customer base. In other words, 85-plus percent of customers are not multichannel shoppers. Of that 86 percent, around 60-plus percent of customers are one-time buyers only, and 25-plus percent are repeat buyers who only shop within a single channel.
But what if you can shift this distribution slightly — let’s say just a 1 percent increase in the cross-shopping segment? It would mean reap millions in incremental revenue annually.
These numbers help explain