A Guide to OMO (Online Merge Offline) Retail Approach in Malaysia

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In an era where digital transformation dictates the pace of business strategies, the retail industry in Malaysia is rapidly adopting an innovative approach known as OMO (Online Merge Offline).

This concept, which represents a fusion of digital and physical shopping experiences, is redefining consumer interaction and retail operations.

As businesses strive to remain competitive and relevant, understanding and implementing an OMO strategy has become imperative.

Understanding OMO: The New Retail Revolution

At its core, OMO is about creating a seamless shopping experience that leverages the strengths of both online and offline channels. It’s a strategy that transcends the traditional omnichannel approach by not just offering multiple channels for customer engagement but integrating these channels so deeply that the line between online and offline becomes virtually indistinguishable.

 

The OMO Framework in Malaysia’s Retail Landscape

Integration of Data and Analytics: In the OMO ecosystem, data is king. Retailers are harnessing the power of big data and analytics to understand customer preferences and behavior patterns. This data-driven approach enables personalized marketing strategies, tailored product recommendations, and a more informed inventory management system.

1. Enhanced Customer Experience

OMO is redefining customer engagement by providing a personalized and convenient shopping experience. Features like virtual try-ons, AR-powered shopping, and instant online support even when in a physical store, are elevating the customer journey.

2. Efficient Inventory Management

The fusion of online and offline channels allows for a more dynamic inventory management. Retailers can now optimize their stock levels based on real-time data, reducing overstock and stockouts, and thereby enhancing operational efficiency.

3. Omnichannel Logistics and Fulfillment

OMO facilitates a more integrated approach to logistics and fulfillment. Customers can purchase online and pick up in-store, or vice versa, making the shopping experience more flexible and convenient.

 

The Success Case Study: Purple Cane Malaysia

Challenge

Purple Cane faces several problems that made them use Exabytes New Retail OMO transformation.

a. Lack of Connection Between Online & Offline

Purple Cane, like traditional retail businesses, struggles to provide a great tea experience for online members.

b. Incomplete data

Before using Exabytes New Retail Solution, OMO, they didn’t combine data from their online store and physical retail, making it hard to understand their situation and gather insights.

Integrating Purple Cane’s online and offline data helps the company understand their business better.

c. Difficult in Serving Customer Right

It’s difficult to serve customers, especially when important VIP customers visit the store, and the staff can’t remember their preferences.

d. Low Digital Ads Return

Like many other retailers in Malaysia, Purple Cane has been having a tough time with online ads, and it’s hard for the online team to justify the spending.

How We Assist Purple Cane to Achieve OMO?

Building the Database

As an OMO solution service agency, we helped Purple Cane integrate their retail store members and online members into one system.

We created the “Frontline” App, allowing store staff to collect customer information with immediate rewards.

For customers, we simplified the registration process to just 3 steps. We also improved the accuracy of customer information through SMS verification or Facebook Login.

With these features, Purple Cane can efficiently collect customer information.

Having complete and unbiased data from both online and offline sources helps Purple Cane serve customers better, stock the right products, and run effective campaigns.

As a result, Purple Cane added four times more active members to their database in four months (more than 60% from online ads or organic signups). They also cut the time spent collecting customer information in half and improved the reliability of that information.

Implementing Two-Way OMO Transmission

We helped Purple Cane offer a “buy online and pick up in-store” option to attract online customers to physical stores, with over six locations available in Klang Valley.

All customers need is our mobile app, which allows them to buy in the app, earn points for in-store purchases, receive exclusive promotions, learn about tea, manage orders, points, vouchers, and delivery.

We added a voucher code redemption feature to the Purple Cane app, allowing consumers to use promotions online and offline.

The app also sends personalized push notifications to engage members through different campaigns, saving on digital advertising costs.

As a result, customers who appreciate Purple Cane’s brand and products prefer to buy directly through the mobile app, resulting in lower costs compared to email or SMS marketing.

Exploring Exabytes New Retail Transformation Solution

We aided Purple Cane in implementing a “buy online and pick up in-store” feature, which attracts online customers to visit physical retail locations. There are more than six outlets available for pick-up in the Klang Valley.

To enjoy these benefits, all our customers need is our mobile app. Through the app, they can seamlessly make purchases, earn points for offline shopping, receive exclusive promotions, access tea-related content, manage their orders, points, vouchers, and check delivery statuses.

Within the Purple Cane App, we’ve added a voucher code redemption feature, enabling Purple Cane’s customers to redeem various promotion codes such as discount vouchers, gift vouchers, and reward points, both online and offline.

Our app is designed to send personalized push notifications to users through the “My message” function, enhancing member engagement through various campaigns and bridging the gap between online and offline traffic. This push notification feature has helped Purple Cane save on digital advertising costs like CTA and CPL on other platforms.

As a result, customers who value Purple Cane’s brand, content, and product quality prefer to make direct purchases through our mobile app, resulting in significantly lower sales costs compared to previous email and SMS marketing efforts.

Discover the Exabytes New Retail solution and embark on your retail transformation journey today.

Through these initiatives and executions, “buy online and pick up in-store” customers have become the second-largest consumer group, following only those who visit the Selangor outlet. This initiative has effectively doubled the in-store pick-up percentage.

Additionally, the redemption rates for the “RM10 welcome coupon” and “RM10 point redemption coupon” exceed 75% and 90%, respectively, resulting in a remarkable ROI of 19:1 and 16.9.

Increasing Customer Engagement and Lifetime Value

The CRM program is a vital tool that aids Purple Cane in boosting customer loyalty. It encompasses four main membership categories.

Conclusion

The OMO approach is more than just a trend; it’s the future of retail, especially in a dynamic market like Malaysia. As the line between online and offline continues to blur, retailers must embrace this integrated approach to stay ahead of the curve.

By leveraging technology, data, and innovative strategies, businesses can provide a shopping experience that meets the evolving demands of the modern consumer.

In conclusion, the transition to an OMO retail approach in Malaysia is not just about staying relevant. It’s about setting the pace in the new retail landscape, delivering unparalleled customer experiences, and driving sustainable business growth.

 

Related References:

Malaysia’s Retail Evolution: Adapting to Consumer Needs with Omnichannel Solutions

什么是新零售? 了解新零售 (New Retail Solution) 概念与趋势

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