Retail Success Demands Cross-Channel Selling
 By Terry M. Blair

In rough economic times, small retailers can cement sales by ramping up cross-channel selling.

Recent research drives that point home.

First, research shows that in these uncertain economic times, consumers are making fewer shopping trips. And second, a survey found that high-value consumer groups want to interact with retailers across multiple channels – online, in-store and on the phone.

By looking at each of the trends, small retailers can find ways to improve the bottom line, even in the face of slower consumer spending.

Shopping Trips On The Skids
The Nielsen Company reports that U.S. consumers are making fewer shopping trips and looking for ways to combine errands.

The reason? Consumers want to save money in an effort to battle rising gas prices and other economic pressures. Nielsen’s consumer packaged goods (CPG) research shows that shopping frequency across most retail channels is flat or on the decline.

“Value and convenience are more important than ever as rising gas prices impact where and how often consumers shop,” says Todd Hale, senior vice president of Consumer & Shopper Insights, Nielsen Consumer Panel Services.

What actions can you, a small retailer, take to make sure consumers stop at your store when they go shopping? Try these strategies:

• Promote your store’s hours so shoppers know when your doors are open. That will encourage them to combine trips to your store with other errands.
  
• Allow shoppers to phone in orders and arrange a specific time for pick up.
  
• On your Web site, encourage shoppers to call your store to confirm that the merchandise they’re interested in purchasing is in stock. That will prevent customers from arriving at your store only to be disappointed if the item they want isn’t available.
  
• Advertise your store in local neighborhoods. Emphasize the location of your store. Remind customers that shopping close to home can save them time – and gas money.
  
• Stock complementary items. If you sell lamps, sell light bulbs, too. If you groom pets, consider selling treats and pet food, too. Customers may be willing to buy those additional items from you, rather than driving to another store.
  
• Know your loyal customers and keep a good stock of the items that are most important to them.

“Know your shoppers,” says Hale. “Understanding the demographics of your loyal shoppers is absolutely essential for growth. With this knowledge, retailers can determine the products and brands that are the best fit for the consumers shopping in their stores.”

High-Value Consumers Want Cross-Channel Shopping
Earlier this year, a survey by Sterling Commerce, an AT&T Inc. subsidiary, found that “high-value” consumer groups – higher-income consumers, college graduates and younger consumers – have made cross-channel shopping a standard.

Increasingly, these consumers are using the Web as a first touch-point and want to channel-hop between the Web, the store and the telephone to complete their purchases.

The take-away for small retailers: Cross-channel execution can increase consumer loyalty and is essential to retail success.

“Leading retailers are spoiling consumers with cross-channel capabilities – such as returning online purchases to a store, or in-store pickup for purchases made online – and reaping the rewards of the customer loyalty these capabilities engender,” says Jim Bengier, global retail industry executive for Sterling Commerce. “Consumers are demanding new levels of convenience only found when different shopping channels support each other seamlessly.”

What can you do to improve your cross-channel experience for shoppers? Try these tactics:

• Give customers the ability to return merchandise to your store even if they purchase it online or via the telephone.
  
• Give buyers the opportunity to pick up merchandise at your store after they order online
  
• Initiate a gift registry. Make it available in your store, on your Web site and even over the telephone.
  
• Set up a computer in your store that gives customers access to their online accounts. This allows them to view merchandise they tagged or saved online before coming to your store.

(Posted May 2008)

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