Harnessing the power of cross-channel retail

The reality is that online sales are becoming too popular for retailers now to treat as a separate entity from other retail channels, and the key for retailers is trying to achieve truly seamless cross-channel alignment.

Previously cross-channelling has presented numerous challenges, such as difficulties adapting older systems designed for store-based retailing to online sales as well as issues around managing order information, inventory levels and customer data across multiple channels.

The recession and tough economic times has meant that retailers have moved to lower inventory levels, which has made cross challenging even more difficult. This isn't necessarily a bad thing, as it has meant that new IT solutions have been created that can link order management and inventory systems, and provide enterprise-wide, real-time information to those that need it.  In addition, supply chain fulfillment systems are optimizing key processes such as shipping. These increasingly aligned cross-channel supply chains can help retailers improve margins while maximizing their inventory investment and continuing to meet customer service requirements.

What is cross-channel retail?

In essence, cross-channeling or solution integration is about delivering seamless customer service across multiple sales channels. It is the retailers strategy of sharing and selling products across different channels through to the same customer.

This may not sound overly important, but its important to remember that those customers who shop both online, in store and by phone are the best customers; they typically spend up to 30 percent more than single-channel shoppers.

The difficulty is obvious; retailers need to be able to offer cross-channel solutions that can execute this seamlessly, therefore generating revenue, not losing it.

Redefining the customer experience

New and successful cross-channel solutions will allow retailers to redefine the customer experience. This in turn can improve merchandising, overcome inventory challenges, capture lost opportunities, take advantage of real-time demand information and achieve operational efficiencies never before possible. 

There are several innovative, next-generation cross-channel solutions available to retailers, which include:

• In-store and online merchandising functionalities that capitalise on consumer demand preferences.

• The ability to order merchandise online and pick it up in-store or have it delivered directly to the customer.

• Purchasing and utilising gift cards and loyalty programs across any channel.

• Launching marketing campaigns and promotions, which can be used both online and offline in the stores.

With the swift implementation of this, retailers are able to realise inventory optimisation and achieve more effective assortment planning based on accurate cross-channel demand.

The benefits of cross-channel retailing

If done right, then cross channelling and can provide a wealth of advantages for businesses. These include:

• Increased revenues by using multiple cross-channel capabilities to effectively capture lost sales opportunities.

• Cross-sell and up-sell opportunities during customer in-store pickup.

• Improved overall customer satisfaction by offering more services in-store and online.

• Better customer contact, communications and marketing through improved service options, enhanced personalization and business intelligence.

Lower order and fulfillment costs by improving merchandising and inventory management, streamlining fulfillment processes through distributed fulfillment capabilities, implementing intelligent order routing and shipping cost optimization and by lowering costly store-to-store transfers.

• Extended capabilities of existing POS and WMS (warehouse management systems).

• Superior merchandising decision making by obtaining new demand and forecasting information never previously available.

One thing is for sure, with the increase in technology and the move to multi-selling platforms, integrating systems and cross-channelling is essential for retailers to get right. The rewards are just too great.

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