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.�
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Posted by Craig at January 21, 2004 06:14 PM