1. Unica OnDemand Advantages of Multichannel Marketing The Webinar will begin at 1:00 PM EST You will be connected to audio using your computer’s microphone and speakers (VoIP). A headset is recommended. Or you may select Use Telephone after joining the Webinar. Dial-in phone: 516-453-0014 Access code: 212-322-664 Presented by: Jeffrey Grau eMarketer Senior Analyst Sponsored by:
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3. Jeffrey Grau Senior Analyst M A Y 2 0 1 0 The Advantages of Multichannel Marketing
4. It is all about “leveraging the strengths of each channel to create an overall customer experience that is greater than the sum of its parts. It’s 1+1=3.” — Kevin Ertell, VP, retail strategy, ForeSee Results, September 2009 What is multichannel marketing?
7. The online channel excels as a source of product reviews, personalized recommendations and 24/7 shopping convenience. Multichannel marketing marries the best of e-commerce and stores Stores are a place to see and touch products, get answers from sales associates and satisfy immediate product needs.
23. Shop in-store, look up online Web access In-store kiosk In-store POS terminal
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25. Most Web access terminals are used by store associates, not customers
26. Who should be the primary users of in-store Web devices? “ Our kiosks are ‘guided selling’ led by an outfitter, which is what we call our associates.” — Kari Blankenship, retail systems manager, Cabela’s “ I am not a big fan of in-store kiosks that consumers can use because it’s a lousy consumer experience.” — Fiona Dias, executive VP, partner strategy and marketing, GSI Commerce “ Our associates are trained to take the customer to the kiosk and help them look up a product.” — Pete Howard, senior VP, Staples Business Delivery
37. Inefficiency Means Lost Shoppers Lack of Product Detail Lack of Mobile Site Non-Relevant Products Non-scalable Site $ $ $ $ $ Inefficient Traffic Reasons for Shopper Drop Off Slow Website POWERING A BETTER INTERNET Making eCommerce More Efficient Sales/Orders $$ Attract More Shoppers Improve User Experience Securely Transact at Scale Commerce Optimization
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A channel refers to an organizational unit in which A channel is not to be confused with a touchpoint which is a medium through which a retailer interacts with a customer. Examples include email, a Facebook fan page, a POS terminal
While the majority of retailers with an in-store pickup program require the customer to pay online, some have the option to reserve online and pay for the product in-store at pickup time. This appeals to customers who feel uncomfortable giving credit card information online or want to see an item before buying it. For retailers, this option makes it easier for customers to make additional purchases, since they pay for the reserved item and other purchases together. Finish Line, a seller of athletic apparel, offers the reserve option.
Retailers cite a number of benefits from offering buy online, pick up in-store. On a tactical level, it increases the opportunity for cross-sells and upsells. On a strategic level, it attracts new customers, leads to higher customer satisfaction and builds customer loyalty. Ace Hardware. 33% of customers purchased additional items when collecting online orders. (eMarketer interview, November 2009) Borders. 35% of customers purchased additional items when collecting online orders (Internet Retailer, January 2009)
Where it is promoted: homepage, product detail page, shopping cart, Confirmation: onsite thank you confirmation, order confirmation email, store pickup notification email Order notification: store location/contact information, store hours, pickup instructions, time allowed for pickup Store location: front register, designated pickup area, customer service desk, loading dock
While smartphones are the wave of the future, there are still compelling reasons why retailers prefer to install Web enabled devices in their stores.
Self-service kiosks, used by 21% of respondents, refer to brand showcases such as a Sherwin-Williams kiosk at a paint store.
With the iPad, a sales associate can carry with her all the product data, the customer data, and the recommendations available online. Because the device is so easily shareable, she can easily pull up recommendations and hand them to the customer. She can show the customer how the brown lounge chair he’s viewing in the store would look in the red color that’s available via special order and place that special order on the spot. Or she can play a demonstration video of the food processor that struck the customer’s interest and easily show customer reviews. The possibilities are endless. --Kevin Ertell, vp, of retail strategy for ForeSee Results, former e-business exec at Borders.com, from his blog, RetailShaken Not Stirred, April 13, 2010
average order values in catalog marketing tend to be higher than average order values in e-commerce, because you can show that customer how those three or four items all work together to create an outfit, and the customer then will be – can go on the telephone to talk to somebody about it, and as a result they’ll spend more. It’s a lot harder in e-commerce to make that whole story happen. Product groupings : You don’t go into a fashion catalog see a whole bunch of pages of blouses, and then a whole bunch of pages of skirts, even though that is what you do on the Web. In the catalog, you’ll have an outfit, and it’ll be wardrobing the jacket, the blouse, the skirt, the shoes, the necklace and everything sold on the same page. That’s a whole different approach. (McIntyre)
Website visitors who arrive from a catalog versus a search engine are more valuable customers in several respects. Mr. Hillstrom says catalog shoppers tend to be better qualified leads than the average customer and thus more likely to convert to buying. Catalog customers already know quite a bit about a retailer’s products by the time they arrive on its Website. The catalog, according to Mr. Clement, gives shoppers a sense of what a retailer’s merchandise is about and how it is organized. Catalog retailers find that the shoppers who arrive on their Website through organic search have much more difficulty navigating the site because they do not know what the key items are or how to find them. These shoppers frequently buy strange things, products that the brand may not even consider to be its key statement items.
“ Catalogs have survived in large part because there is a portion of the population that prefers to shop that way.” —Kevin Hillstrom, president, MineThatData, in an interview with eMarketer, February 2010
Customers respond to catalogs in a different way than they do online, says Aaron Magness, director for brand marketing and business development at Zappos. “We’re looking to find ways to interact with customers in a setting they’re comfortable with,” says Magness. “When you look at retailers like Williams-Sonoma or Victoria’s Secret, their catalogs drive a different type of interaction. There’s still a segment of people that look forward to flipping through a catalog.” To help maintain recent growth in online sales, Boston Green Goods, a retailer of healthy living and eco-friendly products across four e-commerce sites, is launching its second print catalog this month, Green and More, to support its e-commerce site GreenandMore.com. “Our catalogs drive traffic to our e-commerce sites,” founder and CEO Mercia Tapping says. (Internet Retailer, April 2010)
