Multi-channel e-tail: how can the web better support cross-channel consumers?
We're back from last week's eTail West show, held in Phoenix. Overall, this was a good show for us; it was our first experience attending and a great opportunity to chat with numerous retailers, many of whom are clearly working very hard to maximize sales — with limited resources. As consumer spending continues to contract, what's clear is that there's a laser-like focus on deploying programs and functionality that perform — and can be measured.
Several panels and sessions were centered on multi-channel retailing, and retail marketers were often heard discussing what they are doing to bolster sales, often with reduced budgets. Here are some of the key issues I heard them talking about, and some of cross-channel activities they are working on as they look to optimize programs and serve the increasing numbers of web-influenced customers:
Those who manage the Web are increasingly being tasked to drive more sales to the store. Retail marketers and CIOs alike stated that they are now charged with proving that the web can drive store sales. Several echoed management’s call: if they want to boost ecommerce budgets, ecommerce directors will have to expand the role of the web channel in supporting the stores. And, while budget increases may be forthcoming in some instances, they come with the condition that they directly affect in-store sales — with measurable results.
Customers expect continuity across channels. That means purchase, delivery, in-store pick-up, and customer returns need to happen from any channel, the store, call center, catalog or website. The state of the art for multi-channel retailers today emphasizes website functionality that shows in-store product availability, integration of loyalty programs, and other cross-channel capabilities. Case in point: Ashlee Aldridge, CIO and SVP of direct sales at West Marine noted, "Customers expect us to know who they are, and engage them at any time in any channel."
Customer retention, measurement and profit is in sharp focus. Investment in programs tied to lowering cart abandonment and increasing AOV (average order value) is paramount for retailers, as is identifying key, high-value customer segments. And testing, testing, testing. According to many of the panelists, the process boils down to metrics when it comes to investment. In other words: Can an initiative be measured? How will it drive profit?
"Wait and see" attitude to mobile. It was interesting that mobile was not mentioned much as a tool being tested as a sales driver — at least not for the moment. One panelist, Roger Underwood, SVP of information systems at Finish Line (which operates 700 stores), suggested the volume for mobile use is too small to justify additional investment at this time. Retailers may testing it but they are not yet rolling it out in any major way. Perhaps this is because the handset market is still highly fragmented, which makes it hard to ensure a great user experience on every phone.
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