Omni-Channel (Multi-Channel) Retailing

Omni-Channel (Multi-Channel) Retailing

Several weeks ago I wrote on the importance of Customer Service. Extending that concept further within the retail environment, ask yourself if you know where your customers are looking at or buying your product.

Just think of how you might approach the purchase of a new home printer. It probably starts by turning to your favourite device – be it mobile, tablet, laptop or computer – to conduct research comparing features, price points and reviews. You might have seen an ad or commercial or remember talking to friends about they use and more search paths open up. You may or may not see any actual, physical printers at all, opting instead to purchase it online. There are now more ways than ever allowing consumers to access and obtain products and services. Retailers realize that the old bricks-and-mortar model is not the only game in town and customers are arriving on their figurative doorstep through various means or “omni-channels.”

As a result, retailers are starting to implement decisions on Omni-Channel Retailing as it creates value both for the consumer as well as for the organization:

Value for the Customer

Value for the Retailer

It’s all well and good to embrace the concept of omni-channel retailing, but once companies learn how customers are finding their way to their products and services they need to figure out how to use this information in order to evolve and grow. The data gained may very well indicate the need for operational changes and improvements. To inform the process and guide the decision-making process, companies need to assess their infrastructure and prioritize their investment accordingly.

Longer Term Strategic Investment  Making Criteria

Infrastructure Assessment

  • Enables you to grow your network
  • Shows which locations are driving your same store sales numbers
  • Allows easier identification of categories that are worth investing in
  • Grows customer engagement either geographically or by entering other channels
  • Through analysis, you can review which packs or entire brands have a role or not in the development of priority customers
  • Suppliers can more easily align their programs to the organization’s strategy.
  • Improves organizational customer alignment

Prioritizing Investment

  • Scenario planning – leverage business opportunities and “game-plan” potential solutions
  • Rapid testing – validate the concept and fine-tune the execution.  Based on gregarious, timely and standard measurement
  • Measurement of customer impact with results quickly available to senior management

General implementation of an Omni-Channel approach can provide value by increased productivity.  It can also increase the speed at which decisions are made (as seen by the decision maker or customer). Operational improvements can also reduce errors, re-keying, and provide for improved reporting. This approach can then create the ability to leverage data for requirements beyond one area and apply it to other functional areas.

RSVP for Change: Whatever the area you support (whether it be receiving, pick, pack or data mining) place additional attention to the quality of information that you’re capturing. Each step within the End to End is important to the efficient running of the process. Good quality data and streamlined processes can make a significant difference.

Management Insight: In the entire Supply Chain there are various different areas that will need to adjusted and fine tuned. At a high level, are you aware of what areas are the most strategic and most directly support your corporate objectives? Does everyone understand their individual roles and are the processes moving as efficiently as possible? Help your organization to focus on the key objectives in order to improve the ability to service to your customers.

Linda Craig (@LindaCraigRSVP)
More Supply Chain insights at www.Retention.ca