subject: Changing the way retailers used to look at cross-selling solution [print this page] Changing the way retailers used to look at cross-selling solution
Experience with the growth of multi-channel retailing has been convincing till now. Retailers are feeling more comfortable in leveraging their vital presence across various channels like catalog, web stores, kiosks, call centres. As per their findings consumer segments are more active and driven to modern way of shopping things. It means, retailer have wonderful moments with the share of customer's wallet.
Customer Value is being created:
Multichannel retail is a fad today as consumer behaviour report says Multi-channel shoppers are showing promising results in terms of higher value and frequency of purchase. As compared to single channel shoppers, they are always on high radar. About 65% of online shoppers use catalogs. All in all, 60% of retailers believe in this new way of selling things.
Challenges for retailers:
Although, customers have effectively no issue with the process, there can be some hindrance for retailers. There are already some major findings on its issues.
These are:
Loss of sales account, around 2-4% of the revenue
Inconsistent customer experience
Lower order accuracy and fill rates
Higher inventory management cost
Idle inventory with lower returns
The problem lies at different level in different segment. Retailer face problems while integrating web, catalog and call centre operations with their on-going store operations.
Here are the reasons organizations face difficulties in multi-channel retailing solutions.
Organizational issues:
Organizational structures, leaderships, metrics that drive the responsibilities can be conflicting
Incentives and commission programs are not attached to cross-channel selling
Merchandizing and inventory management issues:
Inconsistent merchandising, order fulfilment and inventory management processes
Ambiguity in inventory management across channels resulting in poor synergies
Lack of demand aggregation across channels
Problem in customer operations:
Confused customer experience and feedback
Ignorance and lack of proper communication with the customer
Lack of understandings on customer's habit in cross-selling channels
No guarantee of customer loyalty because of low cost switching
Inability of executing loyalty programs and incentives across multi-channels
Poor customer interactions
Limited opportunity to capture profit scale of multi-channel customers
Technology barrier:
Multiple databases of disarranged customer and order information
Substantial investments
All these hurdles can create a stigma on this shopping solution. However, number of companies are coming up with unique approach and forming cool strategies for multi-channel retailing.
Possible strategies to adopt:
The idea is to build a customer centric approach and an organization that can support the system. The process involves complex organizational changes and proper IT strategy. The need is for common merchandise hierarchy, centralized order management capability and centralized customer and inventory data.
Significant changes are required to apply the right strategy. The improvements are required in areas like organization structures, Business processes, people, technology, supplier relationships, and customer relationship management.
Top companies can help retailers scaling multichannel retailg capabilities and leverage the benefits of cross channel marketing solutions. Thus retailer can successfully garner customer satisfaction and grab a larger share of profit.
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