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Zendor Finds Retailers Slow to Adopt Multi-channel Approach

Press Release

By: Zendor
13 May 2005

Multi-channel retail specialist Zendor continues its analysis of online retailing, undertaking an in-depth study of more than 100 of the UK’s top retailers. The research reveals that while retailers are increasingly selling via more than one channel, many have yet to adopt a truly multi-channel approach. Zendor surveyed retailers across sectors, from clothing to toys to home and garden, which have a transactional website in addition to a store, catalogue or call centre. Zendor’s findings conclude that many sites do not effectively cross-promote other shopping channels available to customers and that access to customer support is poor.

As retailers move online to capitalise on this growing market, many are not taking advantage of the opportunity that a website offers to promote their mail order catalogue and are thus losing potential sales. Nearly half the retailers from the 104 surveyed offer both a mail order catalogue service and an online store, however, only one third (31%) of these offer the facility to actually order a catalogue online.

Providing an easy and convenient multi-channel shopping experience is important to encourage shoppers and give them access to their preferred retail channels. Less than half of the retailers surveyed by Zendor that offer both a mail order and online services offer a simple ‘Quick Order’ (using catalogue codes to find or purchase products) service for customers who browse through the catalogue and then visit the website to order. This forces the customer to then have to search for the product again once online once they have chosen it from the catalogue.

Zendor also found that many of the retailers surveyed failed to promote or provide adequate customer support. Only a third (32%) have a phone number for orders and/or enquiries clearly visible on the main menu so customers can easily find it when visiting or browsing the site. Also, although the majority have a link from the main menu to their contact and customer service details, nearly one third of sites (29%) do not label the link clearly. Titles such as ‘Information’, ‘About Us’ or ‘Find Out More’ can confuse customers who are not familiar with web browsing. 10% of sites just offer an email address or postal option for contact, with no phone number given. This may discourage those customers who prefer immediate, ‘human’ support from the retailer when making a purchase.

A positive finding from Zendor’s research is that overall, retailers are very effective at promoting the high street channel online with many offering a ‘store finder’ service or ‘store directory’. 90% of retailers provide links to store finders that are clearly marked and easy to navigate to.

With a co-ordinated, planned approach, retailers could integrate all their channels and provide a unified image to customers. Simon Weigh, Head of Channel Development Services for Zendor comments, “Multi-channel customers spend up to 50% more than single channel customers, so the more encouragement retailers provide to shop across channels, the more earning potential there is. Retailers need to understand the different ways that customers shop and ensure that each of its retail channels are prominent and cross-promoted. There are relatively simply ways of achieving a multi-channel approach online but so far many retailers are failing to take these simple steps.”