Multichannel Retailing: An Effective Marketing Concept

Multi channel RetailingHave you ever had customers examining your product and using their phones to find better deals online? This is a retailer’s worst nightmare and is becoming a common trend.

Multichannel retailing is a marketing strategy employed by retailers to extend services to their customers beyond their official website. Basically, this strategy helps you build a better brand and expand sales.

Retail data analytics shows that retailers need to target channels that are more likely to grab the customer’s attention and, in turn, generate more income. The medium you choose could be conventional—like catalogues and mail—or technology-driven—like social media networking, and email.

Best Platforms for Retailing

Let’s take a quick look at three major platforms that are currently bringing retailers more customers.

  1. Social Media
    Facebook, Twitter, Pinterest, and other social networks are widely used by organisations to promote their services or products online. With the recent introduction of the 'Buy Now’ button, users can now make purchases on the go. Once a product is tweeted, the button automatically appears on Twitter. Pinterest has configured the button in such a way that any company can have the feature on their website. Facebook also gives you the benefit of placing the button on the product’s page on their site.
  2. Online Stores
    Popular web stores like Amazon are great platforms to sell your products. These sites have a proven track record and an expansive list of satisfied customers to back it up.
  3. Comparison Shopping Engines (CSEs)
    (CSEs) are another great medium that could help you increase your income. Sites like Google Product Search, Shopzilla, and PriceGrabber are popular CSEs. You can conveniently sell products on these platforms. These engines also help drive traffic towards your official e-commerce website.

Tips for Multichannel Retail Success

When you’re looking to enhance the value of your services online, price is a major consideration. Customers place a premium on the cost of a product and will choose a portal that offers the lowest price. With that said, retail pricing is not the only key factor in determining retail success.
Trust, return policies, collection, shipping charges, and the overall experience of using the website—these are the factors that influence customer behaviour.

Here are three approaches to make your multichannel retailing a hit.

  1. Standing Out From The Rest
    If you want customers to choose your store over competitors, keep your content and web page styling unique. Catchy images, creative product descriptions that emphasise specifications, and special features like offers and discounts are some ways you could tailor your website to stand out.
  2. Uniformity
    Maintain a consistent theme on the website layout. Whether it’s in terms of visual media or textual content, select and organise in a way that fits your website and consumer needs.
  3. Keeping In Sync
    Managing sales and fulfilling customer requirements after the orders have been processed can be a tedious task—especially across multiple channels. But, it’s essential to keep everything in sync in order ensure a hassle-free experience both for the customer and the retailer. A lack of synchronisation can lead to overselling or having to fulfill more orders than you can handle.

Benefits of Multichannel Retailing

Customers are looking for convenient, instant service. This means that as an etailer, you need to review your website and make constant changes to make your store more user-friendly. Let’s examine the benefits you can provide to your customers.

  1. Increased Accessibility
    Watching TV and using a phone or tablet at the same time is a fairly common occurrence in today’s world. Your goal is to get on both platforms so that when a potential customer is exposed to your advertisements he or she can immediately check out your offerings online. This is only one example of how you make yourself more accessible than ever before, leading to increased conversion rates.
  2. Enhanced Sales
    Engagement points are the key to enhanced sales. Focused on customer convenience, your retail site gives customers the benefit of being able to make a purchase from the comfort of their homes. This allows you to extend your reach beyond your brick-and-mortar store. With the tools you have at your disposal today, there’s even more potential for engagement points, which benefits the customer because of increased access to the things they desire, and leads to better profits for you as well.
  3. Better Data Analysis
    As more customers take to your website, you can use the data you glean from their behaviour to better analyse their needs and the various changes you need to make in order to improve your interactions with them.

Employing a multichannel retailing strategy is highly advantageous and can help you boost sales while also providing the best experience to consumers.

References:

http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-value-proposition-in-multichannel-retailing

http://blog.intelligencenode.com/blog/5-online-retail-pricing-strategy-examples-worth-copying

http://study.com/academy/lesson/multichannel-retailing-definition-benefits-challenges.html

yasen


About the Author

Yasen Dimitrov, Co- Founder and Chief Analytics Officer, Intelligence Node, a Retail Analytics Company that helps brands and retailers to optimize their pricing, product and merchandising operations by using real time data.

 

 

 

 

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