Cross channel/multi channel integration

28th April 2009

Multi channel/Cross channel

So what’s it all about?

You will I’m sure have heard the phrase, ‘multi channel integration’ frequently, however do you really know what it means to your business or how you even begin the task of understanding what’s required in order to implement an integrated multi channel business?

And just to confuse matters, ‘Cross channel’ is the new multi channel. So not only have you yet to truly get your head around multi channel you’ve now got to embrace a whole new approach. Or is it? Well essentially as far as I can tell it largely means the same thing.

If you read my blog on my top 10 tips for retailers to combat the recession, you’ll have seen a piece in there around the requirement for retailers to be ‘always open’ and that the customer would dictate what channel they interact with you through and would therefore demand an optimized customer experience at all times.

This means providing a convenient multi channel proposition, and for most customers that means;

· Being able to reserve if not pay for a product online but pick it up in store

· Being able to return a product to a store, to your customer service team or to your warehouse, irrespective of the channel they purchased through in the first place

· Being able to return their goods free of charge (e.g.; pre paid delivery)

· Being able to buy in store but have you deliver to their place of work or to their home rather than having to carry their goods around all day

A few tips on delivering a cross channel proposition;

1. Joined­up thinking. E­commerce is all too often still thought of as a silo, and is therefore

thought of in isolation. Whether you’re developing an e­commerce solution for your business

for the first time or moving on to the next iteration of your site, it is the optimum time to

think about integrating all of your channels.

2. Engage your call centre. Are you going to provide your contact centre with the ability to

take sales from customers over the phone? What happens if the site’s down or if they need

additional assistance to help ensure they buy the right product? It’s a great idea to enable operator supported orders.

3. Assist shoppers, in real time. Live chat will enable your customer contact centre to help

guide your customer’s choices. This can be both reactive, through a ‘click to chat option’, or

proactive through ‘rules based live chat’. In the latter case you prompt a customer with the

offer of chatting to a CSA (customer service advisor) when they behave in a certain way (such

as adding multiple items to their basket but not checking out).

4. Visibility. You should develop the capability for the customer and the CSA to view the same

cart concurrently.

5. Collect information. In order to deliver the optimum customer service experience, you

should funnel all customer communication into a customer contact database.

6. Provision for self­service. Provide a knowledge base/dynamic FAQs that will serve the

needs of self service customers who prefer not to interact with CSAs.

7. Provide a store locator showing store product ranges available at each store and leverage

Google Maps to provide all contact information.

8. Buy in store for home delivery. This could be through a Kiosk solution in store or a system for your retail team to place orders for customers, the aim being to meet and maximize demand in store when there’s a shortage of stock, specific sizes, or particular styles in a store

9. Click and collect. Allow customers to buy or reserve products online and pick them up in

store. You should also allow customers to reserve products in store for purchase in store.

Enable customers to select from a list of stores by their proximity for in store pick up.

10. Multichannel returns policy. Provide the ability to buy products online and return in

store. Make sure offline budgets reflect this to avoid staff resentment at having to do extra

work, and do not subtract these offline refunds from offline sales! Give the store a credit for

multichannel refunds (but manage it to avoid abuse).  

So what is it that’s driving this change?

The changes in retail are being driven by the consumer as well as by the proliferation of new channels and the increased choice that this provides. These new channels are continuing to force retailers to rethink their business models as they have driven an increase in competition through new entrants entering their sector as well as existing competitor’s driving their new channels forward finding new ways to interact with customers and add more value to their experience.

Consumers are now empowered by technology, and this coupled with the proliferation of choice and an increasingly competitive environment, puts the consumer in a uniquely powerful position. It is no longer enough to simply be aware of your customer – it’s about understanding them and working to align your brand and everything you do with their needs and behaviour. You must deliver an experience they not only expect but they demand. And you can be sure that if you don’t, your competitors will. And they’re only the click of a mouse away. In fact according to Forrester,

Consumer behaviour and requirements are changing;

· Consumers are increasingly researching and shopping across channels, as a result the complexity of the ‘consumer / brand’ interaction is growing and the challenge is to deliver a consistent experience across touch points with your brand

· The proliferation of channels, brands and media means that the consumers environment is cluttered and more competitive than ever, therefore engaging customers is more challenging than ever before

· Consumers are taking control of their own media consumption and the channels they use, brand presence across the channels is important, as is the ability for a consumer to locate the media relevant to them. For most brands, their customers are now consuming 30% of their media online

· Consumers are more demanding and increasingly expect the ‘personal’ touch, i.e. to be remembered and to be given offers relevant to their wants and needs, there is no one size fits all marketing strategy.

What are the key differences between multiple channel and integrated multi channel businesses?

Retailers with multiple channel businesses tend to operate in ‘siloes’;

Retailers operating multiple channels that aren’t integrated are essentially running a “Siloed business” and therefore are often faced with a variety of challenges and issues including:

· Duplication of investment and effort

· Managing the same data in multiple applications

· Limitations on strategic advantages

· Data inconsistencies

· Inability to share critical business decision making data across channels

· Poorly managed inventory causing lost sales or margin erosion

· Poor customer satisfaction

· A disjointed approach to customer recruitment and retention

Posted In: Uncategorized,

Comments

There are no comments for this entry yet.

Post Comment