Multi-Channel Retailing
Becoming multi-channel retailer is hard work, but worth it, NRF panel says
Plenty of research has documented the value of the multi-channel customer, but little is known about why customers shop across channels and what it takes to entice them to shop multiple channels. That’s the assessment of Krishnan Menon, executive vice president, global business development of Carlson Marketing, who moderated a 7:30 a.m. panel discussion on multi-channel retailing Monday at the National Retail Federation’s annual convention in New York City. The panel also featured Shelley Nandkeolyar, vice president of interactive marketing and e-business for Home Depot, and Susan Neal, vice president of business development for children’s clothing retailer Gymboree.
That multi-channel customers are more valuable is by now a given, with research showing that a three-channel shopper shops more often and spends more than a one- or two-channel shopper. Thus retailers have an incentive to create a strong multi-channel presence. But that’s easier said than done, Menon said. For retailers who have been barraged with statistics about the value of multi-channel shoppers, Menon’s observations are surprising. He told attendees:
• Little is known about what drives the multi-channel shopper
• Retail IS systems do not move fast enough to make a true multi-channel presence felt
• Online operations have huge interface, performance and reliability issues. “E-commerce software is second only to Microsoft Windows in software put out with bugs,” he said.
A recipe for multi-channel strategy, he said, should include order online, pick up at the store; ability to return purchases to any channel; online catalog quick shop; cross-channel customer i.d.; brand consistency; and integrated communications--the same offer in all channels.
More retailers haven’t adopted a unified multi-channel strategy because of competing priorities and the lack of a clear understanding of the value of a consistent multi-channel approach, Nandkeolyar and Neal told the audience. “It’s important, but it takes resources, investment and commitment across the board,” Neal said. Added Nandkeolyar: “It’s still early and it’s difficult to understand the feedback from customers. There are still a lot of trials going on.”
Nandkeolyar, who also served stints with the online operations of Williams-Sonoma and Martha Stewart, said that once an organization gets behind a multi-channel strategy, it must move forward decisively. “Don’t dabble,” he said. “If you do it, get behind it and make it happen. Be an evangelist and be ready to take the push back that it can’t be done.”
Story link
Posted by Craig at January 21, 2004 06:14 PM