Ideas For Retail Success
 By Lee S. Shaffer

Small retailers need an edge to successfully compete against the big boxes.

They need to win and keep customers by delivering an exceptional shopping experience. And they need to meet customer expectations by making products available through multiple channels.

Cross-Channel Retailing
Sterling Commerce, a global software and business services company, recently released the results of a 2007 consumer survey showing the importance of cross-channel retail operations to meet increasing customer demands.

The survey found that 80 percent of respondents felt it was important to have a choice of shopping online, in a store or by telephone when choosing a retailer. The survey also found that 90 percent of respondents said it was important to be able to return merchandise to a physical store location regardless of how they purchased the item.

“Achieving cross-channel excellence is the next evolution in multi-channel retailing, and is a difficult process to execute well,” says Steve Poplawski, retail industry executive at Sterling Commerce.

It’s especially difficult for small, local retailers. But you can find ways to offer customers a cross-channel shopping experience, even if you don’t sell products online. Try these ideas.

• Develop a customer-friendly Web site that displays your products. Prompt prospective Web site customers to call your store to make sure the products they want are in stock. If they’re ready to buy a product they see on your Web site, offer to have the product packaged and ready for their pick up at your store.

• Mail product catalogs or postcards to existing and prospective customers. Invite recipients to call your store or your Web site for more information about the products you’re promoting.

• When prospective customers call your store inquiring about a product, provide as much information as you can. Encourage them to go to your Web site to see photos of the products they’re interested in.

For small retailers who sell online, allowing cross-channel product returns can boost sales.

For instance, the Sterling Commerce survey found that only 22 percent of survey respondents said it was very easy to return catalog or online purchases to a store.

Providing a cross-channel return option can not only positively influence the initial buy decision, but the store return can also easily translate to an exchange or, even better, an additional sales opportunity.

Fifty-five percent of respondents said that when they return an item they’re likely to get a replacement for their returned item and would spend time looking around the store to see what other merchandise is available. Seventy-eight percent of respondents said they were somewhat likely to purchase additional merchandise during a trip to a store to return an item.

Focus On Customer Experience
In addition to building a multi-channel sales capability, a 2006 survey from Deloitte & Touche USA LLP found that improving the customer experience can significantly increase sales.

The survey tapped the opinions of more than 4,400 consumers. Eight out of 10 of those surveyed said that their most recent store visit wasn’t prompted by advertising or marketing, including television, radio and online ads, direct mail, coupons, and displays and signs.

“By talking to consumers who did buy as well as those who did not, our study found that the most direct way to turn shoppers into buyers and increase share of wallet is not through traditional marketing, but by enhancing store navigation, improving customer service and ensuring a seamless multi-channel experience,” says Pat Conroy, national managing principal of Deloitte's Consumer Business practice.

“Our findings make clear that every retailer has significant opportunities to improve conversion by delivering a better customer experience.”

So what should that experience include?

The survey showed that consumers who went to a store intending to buy an item but did not purchase it said that the No.1 reason was that they couldn’t find the item, either because they couldn’t locate it, it was out of stock, or sales help was not available to find it.

“The message is clear: Customers cannot buy an item if they cannot find it,” says Scott Bearse, leader of Deloitte's Retail Stores practice. “Stores need to be easier to navigate and more intuitively organized.”

For example, Bearse explains that a store designed like a valley – with a lower center and higher sides – makes it easy for customers to see what they want and therefore makes the store easier to shop.

“In addition, putting service where and when it is needed is mission critical. Retailers who direct resources to screening, training and compensating helpful and knowledgeable sales associates will reap the rewards with increased conversion, as well as opportunities to cross-sell and up-sell.”

(Posted March 2007)

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