Advantages to Online VS Brick & Mortar
Advantages to Online VS Brick & Mortar. An online store, business, or company is usually a small business that is leveraging the connectivity of the internet to operate. In fact, many online businesses are started by a single individual, then expand their operations and staff with time.
Not A Store Front
Advantages to Online VS Brick & Mortar. In essence, an online business executes its operations online and usually has no physical storefront. Having no physical storefront does not imply that the business has no office or operating unit. Instead, the public dealings and customer handling of such a business are remote.
“Brick and mortar” refers to a business that has at least one physical location that customers can visit. The term arose in response to the proliferation of internet-based businesses that customers could only visit online. When businesses retain a physical presence, those storefronts are known as brick-and-mortar stores.
How Does a Brick-and-Mortar Work?
While brick-and-mortar stores and online businesses are opposites, they often co-mingle in the real world. Some businesses are strictly one or the other, especially when it’s a new business just starting out, but many businesses eventually incorporate aspects of both.
For example, an online business may grow to the point that they decide to open a brick-and-mortar location in a city. Conversely, a brick-and-mortar business may scale back its locations to focus on online sales.
Online businesses save on some overhead costs, compared to brick-and-mortar stores, but there are advantages to having a physical location, too. Customers have an easier time trying out products, and it’s easier for a company to build a good customer service reputation.
No Business, No Customers
No business in the world can run profitably without customers. Therefore, the supreme factor in deciding the mode of business is the target audience. For instance, 30% of the direct-to-consumer brands consider physical presence as the current priority for them.
In the U.S. alone, 65% of shopping budgets are spent in physical stores. However, at the same time, 96% of Americans shop from eCommerce websites. Therefore, no matter what type of business it is, entrepreneurs will have to work on the physical and online presence alike. However, books, movies, music, and games are services most Americans prefer to buy online.
Higher customer loyalty and retention
The customer is the ultimate boss of any business, and personalized experiences are critical for satisfying this boss. A satisfied customer is more likely to develop loyalty to a brand. A study by Water house Cooper revealed that 73% of shoppers value a good customer experience over any other service attribute.
A face-to-face encounter with the brand fosters this personalized experience and makes the customer feel connected to the business and staff. As a result, customer retention and loyalty usually go up. Besides, a physical location is more likely to be stumbled upon by local customers. The way to market and promote an ecommerce store versus a brick and mortar one also differs somewhat (although they may employ similar tactics).
- eCommerce Marketing: Most online stores choose to advertise their business online as well. That’s where the customers are, and also the best way to reach a potentially global audience. Using social media to advertise is also a great way to increase customer engagement and it can often be cost effective depending on the channels you use. However, online advertising takes a lot of time and effort, constant monitoring, and can also be expensive, again depending on the channels you use.
- Physical Store Marketing: Physical stores can (and should) advertise online. However, many also choose to use traditional forms of advertising, including print and broadcast promotions. These methods are great at targeting specific audiences and regions. However, they are also often expensive and take a lot of time to do well.
Why Do People Prefer Online Shopping
Online shopping is currently growing three times faster than in-person retail. The customers you are hoping to attract will be a big factor in choosing which business model to use for your venture. Here are some of the most common reasons consumers say they prefer shopping online:
- They can buy from an online store at any time of the day.
- It’s easier to price match online businesses and products.
- Online shopping is more convenient than fighting through traffic.
- It’s faster.
- There are no crowds or lines with online shopping.
- Many items are easier to find online.
- Free shipping makes online shopping more enticing.
Here at Faceless Marketing, we develop engaging websites that speak clearly and directly to your target audience. Our compelling designs showcase your brand personality and key attributes. We build or improve business websites, so they are easy to use, both internally and client-facing. You save time managing your site and take potential customers from interested to engaged.
If your website looks unappealing or outdated, your audience will immediately have a negative impression of your business. They will not find your website appealing, which deters them from your page. You will miss out on leads because they will leave your page for a competitor’s page. Marketing moves fast, but so do we. Our marketing experts have worked with many businesses – large and small to develop their customer base and number of subscribers. Reach out to Faceless Marketing for a quote or FREE consultation. Call 1-800-357-1299 or email email@example.com and check out our YouTube channel for helpful videos.