Country: Canada / Industry: Retail (eCommerce) / Technology: WordPress – WooCommerce / Year: 2020
About TD Mercado
TD Mercado is a mid-size fashion retailer with only online stores. The company has over 100K SKUs with a sharp focus on Women’s Fashion.
Setting the Stage: Understanding the Fashion Industry's Landscape and the Company's Challenges Before Adopting an Omnichannel Strategy
The company was struggling to keep pace with the rapid shift to mobile shopping and saw a decline in sales over the past few years. They realized that to stay competitive in the industry, they needed to develop an omnichannel strategy to reach and engage customers across all online channels.
TD Mercado understood the potential for an omnichannel strategy to connect with customers and drive sales in an ever-changing retail landscape. With the integration of the omnichannel digital strategy, retailers can tap into new sources of value. However, prior to their omnichannel strategy implementation, TD Mercado’s success was heavily dependent on Sales via Social Media, and their e-commerce channels represented a small percentage of their total revenue. They also had a disjoint experience for customers across different channels with inconsistent pricing and uncoordinated operations. In order to stay competitive in this environment, FashionCo knew they needed to revamp their approach.
Challenges and Opportunities in the Fashion Industry Prior to Implementing an Omnichannel Strategy
- Changing consumer behaviour: The rise of eCommerce and the increasing use of mobile devices for shopping have led to changes in consumer behaviour, with more and more customers expecting a seamless shopping experience across all channels.
- Competitive landscape: The fashion industry is highly competitive, with many retailers vying for customers’ attention and loyalty. Implementing an omnichannel strategy can help a fashion company stand out from its competitors and attract more customers.
- Limited personalization: Before the implementation of the Omnichannel strategy, the company’s data-gathering was limited and therefore the company was not able to personalize the customer experience.
- Inconsistent customer service: Customers were facing challenges when it came to customer service, as the company’s customer service experience varied across different online channels, leading to customer dissatisfaction.
- Fragmented inventory management: The company was facing challenges with inventory management, leading to stock shortages and overstocking, this was impacting the customer experience and also the company’s bottom line.
- Creating a consistent brand experience: The company worked on developing a consistent brand voice and visual identity across all channels to ensure that customers had the same experience whether they were shopping in-store, online, or on mobile.
- Enhancing the online shopping experience: TD Mercado invested in its e-commerce platform and made it more user-friendly and responsive. They also added features like product reviews, social proof, and 360o Product Views to make it easier for customers to find and purchase products online.
- Increasing customer engagement: To keep customers coming back, TD Mercado used data from previous purchases to personalize marketing and offer targeted promotions and discounts. They also implemented a loyalty program to reward customers for repeat purchases.
Gnosys Digital and TD Mercado joined forces to create a comprehensive strategy for Web and mobile sales. Together, we developed several key recommendations:
- Identifying areas of focus: In an effort to enhance customer loyalty, increase the number of omnichannel buyers and promote brand recognition, the teams determined TD Mercado’s key areas of advantage on mobile such as curated content and product selection.
- Designing the mobile channel: The mobile channel was built to drive traffic and encourage purchases, with a focus on relevant content and current products.
- Managing pricing promotions: To avoid any conflicts in pricing promotions across different geographic locations and online and mobile channels, the teams set benchmarks and defined decision-making roles.
- Improving customer service: By aligning incentives, processes and systems, the teams created an environment where employees could better attend to customer needs and promptly resolved out-of-stock issues.
- CMS: WordPress + WooCommerce
- Mobile Application: Flutter
- Hosting: TDWS Cloud Servers
- SEO: RankMath
Increase in accumulated traffic within one year
Increase in mobile revenue within one year
Achieving Success: Measuring the Impact of Omnichannel Strategy on Sales, Customer Satisfaction, and Business Performance
- Increased online sales: As a result of the improved online shopping experience and targeted promotions, online sales saw a significant increase, with a reported boost of 3x in the first six months and 5x boosts in its mobile revenue.
- Improved customer retention: The personalized marketing efforts led to increased customer retention, with a reported increase in repeat customers.
- Enhanced customer satisfaction: The seamless shopping experience across all channels and improved customer service led to higher levels of customer satisfaction, as measured by customer feedback and survey data.
- Cost savings: The integration of the different channels led to cost savings, such as inventory management and reduced costs related to pricing inconsistencies and issues with out-of-stock issues.
- Increased Brand Awareness: The new Omnichannel strategy and the implementation of different campaigns had a positive impact on brand awareness, the company saw a rise in the number of customers visiting its website, and also the number of followers on its social media platforms increased.
- Increased cross-selling and upselling: Thanks to the cross-referencing data and customer insights, the company could identify patterns in customer behaviour and target them with offers that would be relevant to them, as a result of which the company has seen an increase in cross-selling and upselling.