O2O can be defined as a strategy or a business model that seeks to efficiently integrate the benefits of using online commerce channels with offline commerce channels.
In other words, the O2O model can be used in the direction of online trading to offline trading. This form is used when the first step is to find consumers who use online media in search of the goods and services they need.
Subsequently, the company takes them to the physical stores to make the final purchase of these products. That is, companies use online media to capture their potential customers. Immediately, they are directed towards the establishments of the physical stores where they can make the purchase of said products.
Certainly, when using the model in this direction, the first step is to find potential customers. To do this, companies can use different means such as email and internet advertising to attract customers. Then, use other techniques to get them to leave the online space and lead them to the physical space to make the purchase of the product.
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On the contrary, if the O2O model used goes in the direction of offline commerce to online commerce; offline space is used first. Since, consumers are first found in physical stores looking for products. To then take them to the online space to make their purchase.
What is the O2O model used for?
Naturally, companies use the O2O model to give their customers the opportunity to make their purchases when and where it is most convenient for them. The purpose is to provide the customer with different options to make their shopping experience more pleasant and comfortable.
Of course, this is a result of knowing that customers today use different channels to make their purchases. These channels can be physical or digital. What the O2O model intends is to integrate these channels in order to achieve greater satisfaction for its customers.
In addition, the company with this model adapts its sales channels according to the needs of the client. This allows you to provide more sales opportunities and increase customer loyalty. Because, more security and trust is generated in the interactions that customers have with the company. Because, it is the customer who finally searches, compares and decides how he wants to buy your products.
What results do companies that apply the O2O model obtain?
Among the most important results obtained by companies that apply the O2O model we find:
1. Integration of physical and online stores
Firstly, the integration of physical and online stores makes it possible to build a multichannel strategy, where all sales channels are integrated. Obtaining great benefits for the participants of the supply chain and all the associated processes. In addition, channels can be used to attract more customers and facilitate sales. Above all, taking advantage of technology.
2. Increased store visibility
Second, greater visibility of stores is achieved. This means that it is not necessary for stores to be located in high-traffic physical spaces. For what rather the stores become visible from the online media and this allows a reduction in costs. Since, the stores are promoted and attract customers through online media.
3. Sales increase
Third, companies can achieve an increase in sales. This, because there is a greater conversion of potential customers. This strategy pursues that the client not only looks for the product, but actually buys it. For that reason, the level of sales is increased and consequently the profits of the company increase.
4. Greater knowledge of consumer behavior
Finally, the company has a better understanding of consumer behavior. Since online media allow more information to be obtained about important consumer data, since the entire customer journey is recorded.
All this allows for a better analysis and design of strategies to promote products and better attract customers. Knowing what, how and when the customer buys. Customized solutions can be offered.
What results do consumers get with the O2O model?
Among the main results obtained by the consumer we find:
- Best prices: The consumer obtains better prices compared to the prices of a direct purchase. In addition, you do not incur shipping costs, which gives you greater benefits.
- Get more information and more variety of products: The consumer has access to a greater amount of information on the product they are looking for and related products. This helps you compare different products that might best meet your need.
- Time saving: Time can be saved in the search process, in the purchase process, in the payment process and in the delivery process. All this helps the consumer to optimize their time and obtain a solution tailored to their needs.
In conclusion, we can say that the O2O model is used by companies to offer better solutions to customers. So that each client finds and buys what they want, how they want it and when they want it.
The integration of online and offline sales channels allows us to offer customers an experience adapted to their needs. Which turns out to be a more pleasant and satisfying experience.