Money, that’s why. E-commerce sites that have a brick-and-mortar presence can make more of it overall.
In a post last spring on their Knowledge blog, Peter Fader, a Wharton marketing professor and co-director of the Wharton Customer Analytics Initiative explained; “Any company that doesn’t have a bricks-and-mortar presence, or at least have it in the planning stages, is making a big mistake,” he says. “It’s vitally important for retailers to be everywhere a customer wants them to be. The key to success for almost any retailer is to have a big base.”
What’s more, many retail categories beg for customers to touch, feel and experience their product before they purchase it. Think of that super soft sweater you had to have after feeling it on the rack or being able to ride that mountain bike through a mini course in the store.
The brick-and-mortar experience is the most immersive and powerful customer touchpoint brands have. It is more than a place to acquire merchandise — it is a place that enriches customers lives. And the power of the retail experience means that it can have an outsized impact on consumer’s perception of your brand and your service.
The financial value of brick-and-mortar in an omni-channel world is underestimated. Brick-and-mortar is still where the vast majority of transactions happen, (to the tune of 90%) and store transactions are generally significantly more profitable than those performed online.
What does this all mean?
Customers are everywhere. They are online, they are in your store, they are online while they are in your store. They post, snap, tweet, ‘gram, like, swipe right. The key for retailers is to be present where their customers are. There is no perfect mix of the above, it is unique for each retailer and the onus is on them to figure out what is right for their brand.