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Chapter 3

Multi-Channel Retailing

McGraw-Hill/Irwin
PPT
3-1
Levy/Weitz:
Retailing Management, 5/e

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights

Todays empowered consumers live in a multi-channel world


Research products online, buy offline, and demand service everywhere

Consumers buy
what they want,
when they want,
wherever they want.

clicks and bricks


approach

Web & Email


(Internet)
Call Center
(Catalog)
Brick & Mortar
(Store)
Kiosks
(In-Store Access)

Pervasive
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Why are Retailers Using Multiple Channels


to Interact with Customers?
Customers want to interact in
different ways
Each channel offers a unique set
of benefits for Customers

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Unique Benefits Provided by:


Store Channel
Catalog Channel
Internet Channel
Kiosk Channel
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Unique Risks Associated with:


Internet purchases

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Whats the Big Deal About


Shopping in Non-Store Format?
$2.5 Trillion U.S. Retail Sales
$200 Billion Catalog and Direct Sales
$ 4 Billion TV Home Shopping
$ 50 Billion Internet Retailing
Just a Drop in the Bucket, But Growing Fast!
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Positive Outlook for Future

Younger people are growing up with


computers - view them as an appliance
55% of U.S. households have Internet access
now and more have access at work
Women use the Internet almost as much as
men now
40% of people buying cars go to the Internet
for info before seeing a dealer
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What Merchandise Will Be Sold


Successfully Over the Internet
Look and See attributes vs. Touch and Feel
attributes (?)

Degree to which information can be used to


predict satisfaction prior to purchase

Might not need to Touch and Feel

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Summary
Present electronic retailing does not reflect the future
potential.
Penetration of electronic retailing will be a function of the
degree to which retailers take advantage of the unique
properties of the internet
Search agents provide unique and critical benefits to
consumers.
Store-based retailers are well positioned to exploit this
opportunity, but many will not.

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Reasons for Becoming


a Multi-Channel Retailer
1. Increase ____ __ ______
2. Overcome Limitations of Existing Format

3. Expand Market

4. Leverage ________ ______


5. Brand Name, Inventory, Customer Database
6. Develop ________ in Customer Shopping Behavior
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Issues Confronting a Multi-Channel Retailer

Maintaining _____ _____ across channels


Merchandise __________ offered in each channel
Pricing across channels

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_________ Key to Multi-Channel Retailing


Create a seamless
experience
Synchronized &
consistent service
regardless of
channel

Ordering
Returns
Refunds

Make it easy
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Know thy
customer
Needs and
preferences
One to One
marketing

Call Center
Shopping
advice
Customer
service

Provide support

Founded in 1994
Strives to help merchants optimize their
merchandising and customer service tools
Mission of improving the online consumers
shopping experience.

Multi-channel retailing trends:


http://www.e-tailing.com/newsandviews/details/edetail04.pdf

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Biggest Trends in Internet


Back-to-School Retailers (25 surveyed)
Placing weekly print circulars on-line to create
a seamless multi-channel experience
(29% of companies surveyed did this)
When making an on-line purchase, allow for
in-store pickup.
(33% of companies surveyed did this)
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Best of Breed Factors


Multi-Channel Retailers
1. Train all store associated on online return processes.
2. List 800# on home page along with customer service
hours of operation.
3. Provide a well laid out, simple to navigate information,
with contact information, FAQs, guarantees, return
policies.
4. Include a store locator, with hours and events.
5. Gift certificates should be redeemed both on and offline.
6. Send email notification of order status.
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