Connecting Multi-channel Retailing with Multi-channel Shopping
One of the key questions that retailers must answer when it comes to managing a successful multi-channel organization is what do consumers expect when it comes to cross-channel shopping.
A recent research report from Sterling Commerce (covered in Internet Retailer, MediaPost and RTMilestones) showed that multi-channel shopping has become a "standard part of the purchase path for high-value consumers (higher-income consumers, college graduates and younger consumers), with shoppers increasingly using the web as a first touch-point and then hopping channels before completing their purchase in any channel."
The results mean that "consumers are demanding new levels of convenience only found when different shopping channels support each other seamlessly." Retailers that achieve "cross-channel execution can increase consumer loyalty and share of wallet...making integration across channels essential to retail success.”
Specifically, 64% of consumers went online before making a purchase in the past three months (81% of high-value consumers). 57% researched online prior to a store purchase with 24% of them using a coupon or rebate found online (77% and 32% respectively for high value consumers).
The cross-channel activities deemed most important were the ability to return items purchased online to a store (81%), to pick up items purchased online in a store (56%), to access gift registry information regardless of channel (56%) and to access an online kiosk and their online accounts in the store (37%).
A few more relevant reports:
- Jupiter Research recently did a study (covered by Retail Merchandiser) which found that online retailers should "view the online world not as separate channels, but as an ecosystem that requires a diversity of marketing approaches and an embrace of new and ever-changing methods to engage increasingly sophisticated online shoppers." They must "leverage the most effective platforms and channels on the Web, including affiliate networks, search engine marketing, lead generation and ad networks."
- A UK report from eDigital Research (covered in the Retail Bulletin) found similar results. Up to 31% of UK Christmas shoppers went online for pre-purchase research, showing "how the boundaries between online and offline shopping are becoming blurred". Shoppers went online searching for sale items (70%), comparing prices (59%), looking up product information (50%), checking stock availability (33%), and inquiring about opening times (23%). 42% of researchers then purchased online while 25% purchased at the store.
- Another interesting UK report is from BT Global Services (also covered in the Retail Bulletin). It shows that companies are driving customers away because of their short-sighted approach to multi-channel strategy. Specifically, customers are frustrated by "a perceived lack of internal communication and consistency between the various channels and a tenacious approach to using automated call centers and self-service machines to cut costs." Additionally, the research showed that "the most multichannel prone customer tends to be a more profitable consumer for retailers as they are more likely to engage in cross-selling and up-selling." Customers using two channels spend 114% more than single channel shoppers, while consumers using three channels are 48% more profitable than those using just two. Therefore, "it is vital that businesses integrate their channels as customers expect contact with a firm to be channel agnostic.”
Finally, two eMarketer articles. The first covers a report from USC's Center for the Digital Future which showed that more than two-thirds of US online buyers reduced their retail store purchases because of online shopping (up from the 65% in 2006.) Although other reports have shown that web buyers still buy more in stores than online (which still wins out over other channels such as catalog, phone and TV shopping.)
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A recent research report from Sterling Commerce (covered in Internet Retailer, MediaPost and RTMilestones) showed that multi-channel shopping has become a "standard part of the purchase path for high-value consumers (higher-income consumers, college graduates and younger consumers), with shoppers increasingly using the web as a first touch-point and then hopping channels before completing their purchase in any channel."
The results mean that "consumers are demanding new levels of convenience only found when different shopping channels support each other seamlessly." Retailers that achieve "cross-channel execution can increase consumer loyalty and share of wallet...making integration across channels essential to retail success.”
Specifically, 64% of consumers went online before making a purchase in the past three months (81% of high-value consumers). 57% researched online prior to a store purchase with 24% of them using a coupon or rebate found online (77% and 32% respectively for high value consumers).
The cross-channel activities deemed most important were the ability to return items purchased online to a store (81%), to pick up items purchased online in a store (56%), to access gift registry information regardless of channel (56%) and to access an online kiosk and their online accounts in the store (37%).
A few more relevant reports:
- Jupiter Research recently did a study (covered by Retail Merchandiser) which found that online retailers should "view the online world not as separate channels, but as an ecosystem that requires a diversity of marketing approaches and an embrace of new and ever-changing methods to engage increasingly sophisticated online shoppers." They must "leverage the most effective platforms and channels on the Web, including affiliate networks, search engine marketing, lead generation and ad networks."
- A UK report from eDigital Research (covered in the Retail Bulletin) found similar results. Up to 31% of UK Christmas shoppers went online for pre-purchase research, showing "how the boundaries between online and offline shopping are becoming blurred". Shoppers went online searching for sale items (70%), comparing prices (59%), looking up product information (50%), checking stock availability (33%), and inquiring about opening times (23%). 42% of researchers then purchased online while 25% purchased at the store.
- Another interesting UK report is from BT Global Services (also covered in the Retail Bulletin). It shows that companies are driving customers away because of their short-sighted approach to multi-channel strategy. Specifically, customers are frustrated by "a perceived lack of internal communication and consistency between the various channels and a tenacious approach to using automated call centers and self-service machines to cut costs." Additionally, the research showed that "the most multichannel prone customer tends to be a more profitable consumer for retailers as they are more likely to engage in cross-selling and up-selling." Customers using two channels spend 114% more than single channel shoppers, while consumers using three channels are 48% more profitable than those using just two. Therefore, "it is vital that businesses integrate their channels as customers expect contact with a firm to be channel agnostic.”
Finally, two eMarketer articles. The first covers a report from USC's Center for the Digital Future which showed that more than two-thirds of US online buyers reduced their retail store purchases because of online shopping (up from the 65% in 2006.) Although other reports have shown that web buyers still buy more in stores than online (which still wins out over other channels such as catalog, phone and TV shopping.)
The second eMarketer article, about their own Multi-Channel Retailing report, maintains that "any retailer who isn’t using the online channel to promote offline sales—as well as online sales—is missing a sizable opportunity." For example, they estimate that for every $1 in online sales, the Internet influenced $3.45 of store sales, and that by 2012 the combination of Web-influenced store sales and retail e-commerce sales will account for 28% of retail sales. They also note that 63% of US online buyers made their holiday purchases in two or even three retail channels (this number would have been even higher if consumers who researched products in one channel then bought them in another were included.)
Posted by Universal Ad
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