Transcript multi

Multi-Channel Retailing
Multi-channel Retailing
• in 2005, U.S. online consumers will spend in excess
of $632 billion (US$) in offline channels as a direct
result of online research.
• By 2006, total spending impacted by Web activity
will total $582 billion, according to Jupiter.
• However, 76 % of retailers do not track customer
behavior across multiple channels.
Multi-Channel Shoppers
• Multi-channel shoppers -- shoppers who use traditional stores, Web
sites and print catalogs –
– purchase 30 percent more than those who use only one retail channel.
• Consumers that either browsed or purchased in all three transaction
channels spent $995 on holiday shopping, compared with consumers
who browsed or purchased in two channels ($894) and consumers
who only used one channel ($591). DoubleClick
• Out of the average $894 spent by multichannel consumers, $572 (64
percent) was spent in retail stores, $233 ($26 percent) was spent on
the Internet, and $89 (10 percent) was spent through catalogs. DoubleClick
• Store Shoppers who also bought online from the same retailer spend
an average of $600 more annually in the store than typical store
shoppers of from the same retailer. Among shoppers at tri-channel
retailers, those who have purchased from all three channels now
represent 34 percent of online shoppers.
• Almost three-quarters (73 percent) of Store Shoppers prefer to
research their purchases online.
Who are they???
• They are ultra-savvy shoppers, time-pressed and
smart about their shopping. The highest incidences
of tri-channel shopping are in the electronics and
clothing markets.
• Brand-loyal multi-channel shoppers -- which Jupiter
calls "actives" -- tend fall in the 19-to-35 age
demographic,
• Women tend to browse in one channel and
purchases in another more often than men.
– Forty-six percent of women and 43 percent of men
browsed on the Internet and purchased at retail stores.
– Whereas, 37 percent of women and 28 percent of men
browsed through catalogs and purchased at retail stores.
The Supershopper
• Super Shoppers are more likely to be customers of
all three channels and purchase four times more
frequently online than the average online shopper.
• Super Shoppers purchase from a retailer's store 70
percent more frequently than the average store
customer and 110 percent more frequently from the
retailer's catalog.
Considerations for Multi-Channel Integration
• the customer's need to touch and try
• the retailer's breadth of inventory
• the customer's likely degree of consideration prior to
purchase
• and the retailer's ability to deliver.
Other Multi-Channel Strategies
• Accepting returns in store for items purchased on
the Web
• Integrating loyalty and registry programs in all
channels
• Permitting store inventory visibility on the Web for
products with high purchase urgency and products
that require "touch and feel"
• Featuring Web inventory visibility in physical stores
for product categories with broad inventory
• Centralizing customer information
• Including traditional store customers in online direct
marketing efforts.
HOWEVER…
• But true brand-loyal, multi-channel consumers represents a
far smaller group than many might think, according to
Jupiter. While an estimated 66 million consumers use the
Internet for purchasing and researching offline purchases,
only about 16 million frequent the same brands on- and
offline.
• "Retailers should avoid the temptation to equate customers'
willingness to transact across multiple channels with store
loyalty," she wrote. "To maximize online profitability, each
retailer must vigilantly segment and analyze its customers,
and thereby determine how much its own multi-channel
buyers merit attention and resources beyond those allocated
to other online shoppers."