Multiple channels to market are fast becoming the norm and the lines between these channels are blurring – particularly in terms of consumer expectation. It is becoming less and less acceptable to have differential pricing, branding or experience across different channels. We’re finding that forward thinking retailers are rapidly moving towards a seamless cross-channel experience with the goal of improving conversion rates.
The general perception of course is that the major driver behind channel convergence is cost saving. This is because managing channels separately results in cost inefficiencies arising from running separate order-management and customer service operations, multiple warehouses and fulfilment systems, and buyers and merchandisers duplicating effort across different channels.
However, while emerging integration technologies have been a key enabler, multi-channel growth is actually being driven by consumers. According to Shop.org, 34% of consumers today use at least three channels when shopping. Research has also found consumers spend up to 10 times more, generating 25 to 50% more profit and demonstrating greater loyalty than their single-channel counterparts. The core driver behind channel convergence then is customer demand.
So where do you start?
Well, one good place to start is to get your people culturally ready to help you make the most of all the channels your business takes to market. This is because, whilst establishing clear and consistent products and services is essential, the experience is what makes the difference.
Recent McKinsey research shows that only 15% of loyalty is gained from perceived product quality and promotional strategies, leaving 85% to the actual purchasing and post-sales experiences of customers.
For example, the person who answers the phone at your call centre could be as knowledgeable about your products and services as your store staff. Returns processes, checkout processes, and customer journeys through your store, could be synchronised with and as easy as they are on the web; simply by mobilising a service oriented workforce.
In short I’m talking about building loyalty and thus competitive advantage, through cross-channel customer-facing cultures that ensure your staff are making the shopping experience as enjoyable as possible.
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