Whatever way we look at it, internet and mail order based trading provide a more holistic approach to retail brand and trading growth. It may differ in scale and breakdown for any given retailer, but the fact is the general consumer is more and more likely to require multi-channel presence, and indeed very often expects it.
The fundamental challenge for 'conventional' retailing is the funding, resources, and specialist expertise required to put in place and sustain effective multi-channel trading. The infrastructure is capital intensive, resources need to be sustained, and direct trading management expertise is scarce in retail dominated structures.
It is also deciding how best to present product and offer outside of 'bricks 'n mortar', as the evidence shows that purchasing behaviour will differ.
Inward integration (managing multi-channel strategy) and outward integration (presentation of multi-channel to consumer) is vital in controlling the offer and maximising consumer opportunity to shop your brand. How do we configure this to the benefit of all routes to market?
Key trends and benefits in going multi-channel...
- Store traffic offers direct route to online and catalogue trading development./li>
- Existing customers can provide e-mail and address details.
- Incentivising data capture in-store offers immediate sales and future sales.
- On-pack and in-store promotion enhances online trading.
- Store based catalogues or minilogues offer uplift in online traffic and sales.
- Online presence and e-marketing can enhance store trading.
- Inbox promotions enhance direct response sales, and future in-store sales.
- The opportunity to buy is enhanced with online and mail order capability.
- Non-transactional in-store catalogues are expensive; converting to transactional direct response capability gets more for the investment.
- Online trading does NOT take away from store trading.
Challenges in implementing internet/catalogue development...
The offer...
- What is it and how does it differ in content and scope from the store based offer?
- Product development, and range planning?
The customer...
- To whom are we marketing (internet and catalogue)?
- Direct marketing strategy and techniques?
The infrastructure and functionality...
- Web site design, development, and management?
- Direct response handling (call centres, order processing, data capture and analysis)?
- Warehousing and order delivery?
- Information technology and systems?
- Capital investment needs?
Creative and production...
- Creating and managing web site and catalogue?
- Producing a catalogue?
- The craft of direct marketing?
Management and Planning...
- Direct trading expertise?
- Strategy?
- Data analysis, reporting, and information management?
All of this can be procured piecemeal.
Webb Ivory DM can deliver an integrated trading strategy, without the need to invest in infrastructure, continuous overhead, or functional expertise. Therefore Webb Ivory DM will be more efficient, effective, integrated, and aligned to achieving the objective of developing a home shopping and multi-channel enterprise for your brand.
