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Zendor Advises on How to Drive Multi-channel Sales

Press Release

By: Zendor
28 April 2005

Retailers often blame online shopping for cannibalising high street sales. However, recent investigations suggest that customers who use a variety of channels when shopping, actually spend more overall. Customers who ‘dip’ into a variety of channels when shopping can spend up to 50% more than single channel customers. This relationship between multi-channel shoppers and an increased overall spend is referred to as the ‘halo effect.’ In order to capitalise on the halo effect, thereby increasing the overall sales revenues, Zendor has compiled the following advice for retailers:

• Avoid conflict - By integrating all channels and ensuring they run as one, rather than separate businesses, the retailer can ensure the customer enjoys a seamless shopping experience.
• Ensure brand consistency - Every channel and element of communication should be used as a vehicle to enhance customer relationships through the brand. The look and feel, the brand message, and stock availability, should all be consistent.
• Promote all channels - Cross-promote and increase awareness of channels to drive activity across the business. Advertise a website in-store, on carrier bags and in the customer catalogue; make catalogues available in-store and via the website; or send promotional e-mails to drive customers in-store.
• Educate call centre staff
- Call centre staff are the key customer interface for the business. It is vital that they are well informed on current stock and promotions, and are able to support all channels effectively.
• Use store space to drive multi-channel sales - The multi-channel retail experience can be promoted in-store. For example, by installing a web kiosk, customers can connect to the retailer’s website to check the availability of products online when they are not available in-store.
• Offer store return of products purchased online - By enabling distance shopping customers to return goods to the store, the retailer will provide customers with a co-ordinated, fluid service. There is also evidence that this encourages customers to purchase whilst in-store - one in four consumers will make a purchase in-store when returning an item bought online (Shop.org/Forrester Research).
• Instigate effective marketing strategies - If a 10% discount is offered in-store, this should also be rolled out across all channels. However, there can be exceptions. On some occasions, the retailer may have dormant stock and an exclusive online can be implemented to drive sales.
• Exploit customer databases - When selling from a distance, the retailer benefits from building-up a valuable customer database that includes information about customers’ channel preferences, purchase history etc. By exploiting this information, the retailer can target customers with specific offers to increase customer retention and recruitment levels.

Whilst driving the halo effect, the retailer must measure sales and returns from all channels. By capturing customer information at each point-of-sale, the retailer can truly begin to assess the leverage, value and profitability of offering customers a multi-channel experience.