Getting From Multi-Channel Retailing To Cross-Channel Excellence

By Jesta I.S. Inc.

Regardless of the current hype, the impetus for the move to multi-channel retailing has little do to with technology, but rather is an attempt by the retail sector to catch up with customer expectations. Today's informed consumer is well-acquainted with the value of branding, and consciously defines herself by the stable of brands she chooses to buy. What she finds confusing, however, are differing policies, procedures, or information for the same item, from the same brand, that happens to be accessed through different channels. She is busy enough, and expects consistent policies and a high-level of service from her chosen brands. She wants to buy anywhere, ship anywhere, and return anywhere, all wrapped with a consistent message and level of service.

While consumer expectations for uniformity make perfect sense, the reality for retailers is very different. Typically, each retail channel (and its related IT systems) was built in a piecemeal fashion. The legacy merchandising system installed in the 1980's runs brick-and mortar just fine (though it's getting more expensive to maintain). The catalog/call-centre system developed in the 1990's manages that channel very efficiently,and that snappy new web-based e-commerce platform has certainly helped grow that business. Tying together the processes, procedures, and systems is what will give her what she wants; anything, anywhere,anytime.

In their most basic form, multi-channel retailers are using disparate systems, run by separate organizations (and importantly, separate inventories) for each channel. While each unit may, in itself, be profitable, finding and harnessing synergies to enhance that profitability throughout multiple channels remains elusive. Each channel is effectively run as a separate business, sharing a common brand logo.