Do You Know What is O2O Commerce?
In Online-to-Offline (O2O) commerce, companies treat their online and offline marketing channels as complementary instead of competitive. Some examples include:
- Click and collect - where customers buy products online and then pick them up in-store
- Online shopping during a physical visit
- Returning items purchased online to a physical store
A testament to the importance of O2O was demonstrated in Amazon’s acquisition of Whole Foods.
Amazon invested over $13 billion in the acquisition because they understood an undeniable reality about consumers: Despite all the fascination with devices and digital services, most sales still happen in physical stores.
76% of consumers who search for products or services in their local area end up visiting a store within a day, with many of these visits resulting in purchases. Spotify estimates show that over 80% of retail sales will happen in stores to 2021, and possibly beyond.
These stats make it clear that an effective marketing campaign can’t afford to overlook offline strategies.