Bricks and Clicks Business Model: The Best of Both Worlds for Modern Commerce
The retail landscape has undergone a seismic shift in recent decades. While traditional brick-and-mortar stores were once the mainstay of commerce, the rapid rise of e-commerce has led many businesses to adopt a “bricks and clicks” model. This omnichannel approach blends physical and digital channels to deliver a seamless shopping experience.
In this post, we’ll examine the key components of a bricks-and-clicks business model.
We’ll look at the benefits and challenges of straddling both online and offline worlds. Whether you’re looking to take your small business online or add a physical presence to your e-commerce store, understanding this hybrid model is essential in the modern retail environment.
What is a Bricks and Clicks Business Model?
A bricks and clicks business model incorporates both physical and digital retail channels. Brick-and-mortar stores and other tangible assets make up the “bricks” half of the equation. “Clicks” refers to online e-commerce platforms and digital elements.
Omnichannel retailers integrate these channels to provide a unified customer experience. The goal is to leverage the strengths of physical and digital retail in a synergistic manner. This provides consumers with seamless flexibility and convenience.
Bricks and clicks enable retailers to expand their reach. It gives customers options on how and where to engage with brands. According to Digital Commerce 360, omnichannel customers have a 30% higher lifetime value compared to those who shop using only one channel.
Below are some key components that make up a bricks-and-clicks model:
Brick-and-Mortar Locations
Physical stores still play a major role. Brick-and-mortar locations allow customers to see, touch, and try out products in person. Stores build brand familiarity and trust in local communities. Personal service and instant gratification bring people through doors.
Having a physical footprint also enables retailers to provide immersive experiences. Tactile-focused businesses like furniture stores rely on showrooms. Many apparel brands use flagship locations to showcase products in a curated setting.
E-Commerce Platform
An online store allows brands to expand their reach beyond geographical limitations. E-commerce provides convenience for time-pressed consumers. It enables product discovery through digital browsing. Online shopping also facilitates easy price comparisons.
Omnichannel retailers must ensure their e-commerce platforms offer secure transactions and optimized mobile experiences. This provides a consistent brand experience across channels.
Unified Inventory
Keeping inventory synchronized across online and offline channels is vital in a bricks and clicks model. Out-of-stock products frustrate customers and lead to lost sales.
Inventory management software enables retailers to get a real-time view of stock levels. This allows customers to purchase online and pick up in-store. Or vice versa.
Omnichannel Customer Service
Seamless customer support across physical and digital channels is essential. Customers expect flexibility to interact with brands when and how they choose.
That may mean handling a return request online for an item purchased in-store. Or looking up order status on a mobile app. Omnichannel service builds brand loyalty across touchpoints.
Integrated Data
In an omnichannel model, data integration is critical. Retailers need a unified view of customer interactions and purchasing behavior across channels.
Analyzing omni-channel data helps create targeted promotions and personalized experiences. It also aids inventory optimization when sales trends are understood holistically.
These core components enable retailers to reap the benefits of an omni-channel bricks and clicks strategy. Next, let’s examine some of the key advantages this model offers.
Benefits of a Bricks and Clicks Business Model
Blending physical and digital retail channels provides many advantages that enhance the customer experience and boost sales. Below are some of the top benefits:
Expanded Reach & Market Growth
A bricks and clicks model allows retailers to cast a much wider net to new demographics and geographies. While a physical store may only attract nearby customers, an e-commerce store has no geographic constraints.
Omnichannel presence in both online and offline channels means more potential touchpoints for each customer. This expands awareness and drives more conversions. According to Digital Commerce 360, omni-channel customers spend 4% more on average than single-channel customers.
Improved Access & Convenience
Giving customers options on how and where to shop improves access and convenience. Busy consumers can shop online while commuting. Or purchase via mobile app while standing in line at the grocery store.
In-store pickup and ship-to-store fulfillment options also provide flexibility. Customers can browse online and then swing by a nearby location to retrieve purchases. Omnichannel retailers must ensure consistent brand experiences across channels.
Enhanced Customer Experiences
Omnichannel integration also enables retailers to create enriched, personalized experiences. Customers receive tailored promotions based on purchase history and online behavior. Retailers can offer perks like free in-store returns for online purchases.
In-store digital elements like augmented reality virtual try-ons also merge real-world and virtual experiences. These kinds of omni-channel experiences boost satisfaction and loyalty.
Improved Inventory Management
As noted, keeping inventory synchronized is crucial for a seamless bricks and clicks model. Omnichannel retail management systems give retailers visibility into stock levels across channels in real time. This reduces instances of overselling items that may be out-of-stock at a particular location.
Data analytics also help retailers optimize inventory for omni-channel demand trends. Items can be moved between fulfillment channels to meet customer expectations.
Higher Revenue & Reduced Overhead
A bricks-and-clicks model ultimately drives more revenue by expanding reach and touchpoints. It also creates retail synergies that reduce overhead. Online purchasing data may reveal that a particular physical store location gets very little foot traffic. This allows retailers to consolidate and reduce lease costs.
Shared inventory across channels also lowers carrying costs. Overall, deftly combining physical and digital retail channels generates higher revenue at lower costs.
Challenges of Implementing Bricks & Clicks
Of course, seamlessly blending brick-and-mortar and e-commerce channels poses some unique challenges. It requires a strategic approach and well-integrated systems. Here are some of the top hurdles brands face when implementing bricks and clicks:
Managing Disparate Technology Systems
Since physical and digital retail evolved separately, their technology systems often don’t natively integrate. Retailers must stitch together point-of-sale, inventory, CRM, content management, and other solutions across channels. This is challenging but critical for unified data.
Updating legacy backends while implementing new digital infrastructure is complex. It requires strong IT resources and planning. The right omnichannel retail systems make integration and data synchronization vastly easier.
Aligning Brand Experience
From visual design to content to customer service, retailers must align brand experiences across channels. Customers expect a consistent experience whether shopping online or in-store.
For example, a specialty retailer needs unified product descriptions and images online and on in-store signage. Sales associates must be able to seamlessly assist customers who first engage on e-commerce channels.
Brand guidelines and content strategies ensure messaging is on point across channels. Omnichannel training is essential for store associates.
Managing Orders & Inventory
Order fulfillment and inventory management grow exponentially more complex with omnichannel retail. Inventory must be visible and optimized across multiple warehouses, stores, online listings, and more.
Retailers must decide which fulfillment nodes or stores will handle online orders. Are orders shipped to customers’ homes, or picked up in-store? Managing omni-channel logistics requires sophisticated inventory management systems.
Securing Omnichannel Data
Unifying data across channels also introduces enhanced security risks. Retailers must ensure customer data remains protected and PCI compliant as it flows between systems.
Omnichannel cybersecurity threats are evolving risks that retailers must monitor vigilantly. Outages that disrupt channels can also impact omnichannel synergy. Redundancies and contingency planning are a must.
While tricky, these hurdles can be overcome with the right solutions, partners, and integration strategies. The customer experience and revenue benefits make the effort very worthwhile.
Examples of Successful Bricks & Clicks Retail Models
Many traditional retailers have evolved to adopt unified omnichannel presences. Below we look at some real-world examples of top brands executing bricks and click models successfully:
Walmart
The world’s largest retailer has embraced a strong bricks and clicks strategy. Walmart offers in-store and curbside pickup for online orders at over 3,500 locations. Customers can also return online purchases to physical stores.
Associates can look up online purchase history in-store to personalize service. The unified inventory gives Walmart real-time visibility across channels. Voice ordering via Google Assistant allows omni-channel convenience.
Ikea
The furniture giant blends physical showrooms with robust e-commerce capabilities. Ikea’s online store offers over 12,000 products available for home delivery. In-store kiosks allow customers to browse the full catalog and place online orders for out-of-stock items.
Ikea is also combining AR with its printed catalog to enable virtual furniture previews. Coordinated across digital and physical assets, these omni-channel features minimize customer friction.
Sephora
The cosmetics brand is the epitome of bricks and clicks synergy. Sephora’s ‘stores as hubs’ approach blends the digital and physical beautifully. Stores host events and classes to drive foot traffic.
Associates use iPads to help customers find products, read reviews, and place online orders. Sephora also offers buy online, pick up in-store options. Virtual try-on tech and in-store beauty services round out the experience.
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Key Takeaways
In today’s retail environment, integrating e-commerce and physical stores is a must to meet customer expectations. Bricks and clicks enable retailers to expand their market while offering the convenience of omni-channel experiences.
However, the model requires tackling challenges like unifying brand identity, managing orders across channels, and synchronizing inventory. Retailers must blend digital elements like AR and virtual try-ons with tangible in-store experiences.
Omni-channel personalization depends on harnessing integrated data across touchpoints. When executed strategically, bricks and clicks retail reaps higher revenue, brand loyalty, and expanded demographics. This powerful model brings together the tactile and the virtual for the best of both worlds.
