28

Key metrics and action points

Multichannel retailing is developing rapidlyConsumers are increasingly using more than one channel as part of the purchasing process as consumption becomes more considered.

The ever-connected consumer Consumers today are more connected with friends and retailers through social networks. They have also been quick to adopt informational activities such as searching and checking for products online and using mobile devices.

Consumers want to shop how, when and where they want Consumers have become increasingly demanding and want the freedom to shop and obtain products in a way and a time convenient to them.

Information overload leaves us confused Too much information can leave consumers confused. As retailers trial various communication methods, consumers can feel bombarded, overwhelmed and eventually deterred from entering into a conversation.

Loyalty harder to achieveConsumers are more demanding and expect retailers to deliver a higher level of service and personalised incentives to maintain their custom.

Establish a presence Being seen across a variety of channels is important for retailers to keep up with competition. Providing up to date information on products, services, prices and location and beingaccessible across all channels can add value.

Use social media Retailers should only implement social channels which are appropriate and add value to their consumers. Retailers should use social sites to gain insight and feedback on products and services and then execute improvements and communicate these back to consumers.

Offer flexible fulfilment Retailers need to ensure they offer multiple fulfillment options. Retailers can no longer run their physical stores and online operations as separate functions. Consumers expect a fully integrated service from retailers with the ability to order online and pick up in store or order in store for home delivery.

Consistent messageBe cautious not to overload the consumer with information. Also ensure the messages sent through various channels are consistent. A clear brand image should be portrayed across all communications.

Consumer interaction should be personal and bespoke Retailers need to understand their consumers before beginning a conversation with them. Use CRM data available to provide insight into shopping patterns and habits and then personalise conversations with consumers to drive loyalty.

1

2

3

4

5

Consumer and retail trends Actions retailers should take

1

1

1

1

1

29

Key metrics and action points

The retail landscape has changed The high street is no longer the primary shopping destination that it once was, as retailers have turned their focus to expansion in out of town locations and developing online operations.

The role of the traditional storeis evolving Stores are becoming less relevant as retail spend increasingly migrates online and OOT. Physical high street stores will increasingly become more like showrooms, but still act as the retailer’s hub.

Price transparency is increasing As smart phones play a more integral role in the shopping process they will increase price transparency across numerous retail channels with customers increasingly using price comparison apps such as Red Laser to check prices whilst in store.

M-commerce grows in usage and popularity Mobiles will become an important part of the overall purchasing process. This will increase the amount of spend made through mobiles and also how customers interact with retailers when on the go.

M-commerce will help drive multichannel integration Rather than being another separate transactional channel, m-commerce will play a much bigger role in integrating retailers’ multichannel operations and drive cross channel integration.

Consumer and retail trends Actions retailers should take

6

7

8

9

10

The high street’s demise drives flexibility in formats Retailers with a physical store presence will need to adapt formats regionally and locally to cater for consumers’ changing shopping patterns.

Add value to shopping experience In order for stores to remain relevant in a multichannel world, retailers will need to turn them into brand destinations, which offer a highly immersive and interactive shopping experience. Focus on customer service to disseminate information and provide collection points for customers’ convenience.

Emphasize value added services to draw attention away from price Retailers need to focus on providing value added services and improving the store environment in order to avoid loss of sales to mobile price comparisons.

Remain on top of innovation Retailers need to recognise that m-commerce is a growing part of the purchasing process, however it plays a larger role than being simply a transactional channel. Retailers need to keep up to date with new technologies to improve interaction with customers and integrate multiple channels.

M-commerce is the missing link that connects all channels Mobile is the channel that links all parts of a retailer’s multichannel operation. Retailers will have to work hard to make sure their ‘online shopping carts’ function across multiple channels allowing customers to for example add to ‘wish lists’ or order items through scanning bar codes when in stores.

?

?

?

?

?