e-Retail: Multichannel retail integration

Introduction

An increasingly empowered consumer is now internet shopping savvy and has come to expect a consistent experience with whichever channel they choose to shop. With consumers' expectations and competitive pressures increasing, it is imperative that retailers develop long term multichannel strategies, investing in new technology and incorporating new services in their propositions.

Scope

• Analysis of how the development of multichannel operations has impacted the way in which consumers shop.
• Overview of what the modern consumer has come to expect from their shopping experience.
• The difficulties that have arisen through the creation of multichannel retail operations.
• How retailers can respond to these difficulties and help foster the closer integration and experience consistency between channels.

Highlights

A more empowered and demanding consumer expects a high level of shopping experience regardless of which channel is utilised. It is thus essential that retailers link channels as much as possible, creating a consistent cross-channel experience.

To attain a heightened level of integration across all channels it is essential to invest in unifying both front of house and backoffice operations. In turn this will allow easier and more effective fulfilment strategies and multichannel management of customer data.

New technology such as instore kiosks and more advanced visual imagery online will facilitate the integration of different channels. It is also important for retailers to implement multichannel services such and click & collect, not only to strengthen integration but to enhance convenience credentials.

Reasons to Purchase

• Understand the impact that changing consumer habits have had on their demands and expectations.
• Identify the issues that retailers face when developing multichannel operations and the strategies that they can employ to overcome them.
• Understand what role new instore and online technology can have in achieving closer integration and consistency of experience.

VERDICT VIEW 1
 

CATALYST 1

SUMMARY 1

KEY MESSAGES 2
Consumers are increasingly demanding a seamless and constant shopping experience 2
In dealing with challenges such as multichannel fulfilment and attaining a holistic view of customer data it is imperative that retailers replace legacy systems 2
Implementation of new technology and multichannel services will aid closer integration 2
 

ANALYSIS 3
Evolution of how consumers shop 3
Mobile phones 7
Kiosks 7
Catalogue 7
Demands of cross-channel shoppers 8
Consistency is key 8
Flexible fulfilment 9
Service 10
Multichannel interaction 10
Business intelligence 11
Problems on the road to integration 12
Legacy operations 12
Fulfilment challenges intensify 12
Retailers' management of data 12
Consistency of experiences 13
Resolving problems and achieving multichannel integration 14
Fulfilment 14
Advancing the customer relationship through channel integration 16
Use of technology to create consistency in shopping experiences 19
Instore 19
Online 20
Mobile phones and handsets 23
Conclusion 24
 

List of Figures
Figure 1: Use of remote shopping channels by age group 2008 3
Figure 2: e-Retail expenditure forecast and y-o-y growth 2008-2013 4
Figure 3: Year-on-year growth in online shopping population 2003-2013 5
Figure 4: Online spending share of retail 2003-2013 6
Figure 5: Demands of cross-channel shoppers 2009 - past and present 8
Figure 6: Click & collect penetration - pay online or instore 2008 9
Figure 7: Multichannel interaction - product research 2008 11
Figure 8: Fulfilment options online 2009 15
Figure 9: Development of the customer relationship 2009 16
Figure 10: The use of technology to create experience consistency 2009 19
Figure 11: Good use of video 2009 21
Figure 12: Good use of visual merchandising 2009 22
Figure 13: Good use of interactivity 2009 23