Merchandising for cross-channel success by Rich Beattie, Mercado

Many retailers are failing to understand the difference between 'multiple channel retailing' and 'multi-channel retailing'. This significant distinction means their eCommerce and physical operations are not being integrated in a consistent and seamless manner. The result, inefficiencies and inconsistencies, leave customers confused and frustrated, resulting in a loss of profits and worst still, a negative effect on customer loyalty.

A successful multi-channel retailer realises that offline sales may be the result of online research and that their site is an effective tool for cross channel marketing. These successful retailers understand that conversion may not be the be-all and end-all and are aware of three key themes that can result in successful e-retailing.

The first key theme is breaking down the barriers between channels. The market is full of 'multiple-channel' retailers, taking the rather narrow view; they have brick-and-mortar customers, catalogue shoppers and their online customers. The bottom line is that customers are customers - regardless of channel. Viewing channels as separate entities, creating a competitive "us versus them" culture ultimately discourages cross-channel (web to store) consistency and lucrative cross-channel shopping.

This leads to the second theme: smooth transitions from one channel to another. In the new world of e-retailing, it is important to provide this effortless transition in between channels. The cross-channel shopper expects that one channel will pick up where the other leaves off. Industry experts agree that the power of one channel to positively affect another is significant, and cross-channel shopping is becoming more the rule than the exception. According to these same experts, growth in cross-channel business will actually surpass the growth of online business in the next three to four years.

The third key theme is to ensure a brand's promise is delivered online. Customers are loyal beings who continue to shop because they are satisfied with the service or product that a certain brand delivers. Recent search and navigation improvements have enabled shoppers to be guided through a selection process that truly reflects the experience provided by knowledgeable in-store sales assistants, enabling customers to easily and quickly find what they want, when they want it.

In the years to come, as cross-channel shopping takes off, the most successful multi-channel retailers will be those who carry out effective cross-channel merchandising strategies. A retailer's online channel represents great direct-sales revenue potential, as well as being one of the most important marketing mediums.

The three key themes - breaking down the barriers between channels, delivering the brand's promise online and providing a seamless shopper transition from one channel to another - are the key areas that retailers have to consider when devising a complete and holistic approach to multi-channel marketing and retailing.