2. OMNI CHANNEL RETAILING
Omni channel is the convergence of three forces: E-commerce, Mobile technology and Physical retail to create a new kind of interaction for the consumer.
The way customers are shopping is changing, they bounce between devices and channels and the distinction between online and offline retailing is blurring. Customers often browse online and make their purchases in store or get their shopping delivered to doorstep. Their expectations of retailers continue to rise and expect a seamless experience and value retailers who give them that experience. According to TESCO, customers who shop across multiple channels are more loyal customers and tend to spend more. Understanding loyal customers better and giving them the convenience …show more content…
The model has been the “big wave” and has been making a buzz all through 2015. Brands like Wal-mart, Kroger, Amazon, etc., have been experimenting with this business model with high success returns.
While closely observing this model, stores have experienced upselling of products that is when the customer comes to the store to pick up the goods they tend to upgrade or add-on to the existing shopping cart resulting in a profitable sale for the store.
3. MULTI CHANNEL TO OMNI CHANNEL
At times, omnichannel and multichannel describe similar goals and objectives, thus leaving behind a state of confusion and blurring the line of differentiation. To simplify, Multichannel can be described as the operational overview of your business’ multiple channels. That is, how transactions are facilitated across multiple or more than one channel. Where, omnichannel narrates the experience through the eyes of the customer. Rather than multiple channels- it is just one ‘omni’ channel.
According to Serena Potter, VP, Marketing at Macy’s, one the top five retailers of the world in Omni channel strategy, “Macy’s was able to show that for every dollar they invested in search, they drove $6 of sales in …show more content…
The customer owns you” (Galbraith, 2005). This statement beautifully explains the reality for most retailers today and there is little doubt that the customer is becoming increasingly influential on the activities of companies, which are consequently becoming more and more customer-centric (Staflund, 2015). Customer centricity is a strong driver of omni-channel efforts as the retailers choose to implement an omni-channel strategy with the aim to provide the customer with a seamlessly integrated shopping experience (Staflund, 2015). In a customer centric organization, the firm must “literally organize around the customer” and have the ability to conduct business according to the preferences and wishes of the customers in order to build a relationship (Galbraith, 2005). (Galbraith, 2005) He means that this requires a close collaboration and interaction with the customers across all contact points and to then use the results of these integrative activities to reach consistency in the eyes of the customer. Several researchers agree on the fact that companies will have a hard time to survive in the twenty-first century unless they move in this direction of customer centricity, since it is the key to achieving sustainable and long-term growth, profitability and customer loyalty (Galbraith, 2005) (Staflund, 2015). Also, it is believed that companies should now invest into business models that are adding value to customers since they difficult to
Omni channel is the convergence of three forces: E-commerce, Mobile technology and Physical retail to create a new kind of interaction for the consumer.
The way customers are shopping is changing, they bounce between devices and channels and the distinction between online and offline retailing is blurring. Customers often browse online and make their purchases in store or get their shopping delivered to doorstep. Their expectations of retailers continue to rise and expect a seamless experience and value retailers who give them that experience. According to TESCO, customers who shop across multiple channels are more loyal customers and tend to spend more. Understanding loyal customers better and giving them the convenience …show more content…
The model has been the “big wave” and has been making a buzz all through 2015. Brands like Wal-mart, Kroger, Amazon, etc., have been experimenting with this business model with high success returns.
While closely observing this model, stores have experienced upselling of products that is when the customer comes to the store to pick up the goods they tend to upgrade or add-on to the existing shopping cart resulting in a profitable sale for the store.
3. MULTI CHANNEL TO OMNI CHANNEL
At times, omnichannel and multichannel describe similar goals and objectives, thus leaving behind a state of confusion and blurring the line of differentiation. To simplify, Multichannel can be described as the operational overview of your business’ multiple channels. That is, how transactions are facilitated across multiple or more than one channel. Where, omnichannel narrates the experience through the eyes of the customer. Rather than multiple channels- it is just one ‘omni’ channel.
According to Serena Potter, VP, Marketing at Macy’s, one the top five retailers of the world in Omni channel strategy, “Macy’s was able to show that for every dollar they invested in search, they drove $6 of sales in …show more content…
The customer owns you” (Galbraith, 2005). This statement beautifully explains the reality for most retailers today and there is little doubt that the customer is becoming increasingly influential on the activities of companies, which are consequently becoming more and more customer-centric (Staflund, 2015). Customer centricity is a strong driver of omni-channel efforts as the retailers choose to implement an omni-channel strategy with the aim to provide the customer with a seamlessly integrated shopping experience (Staflund, 2015). In a customer centric organization, the firm must “literally organize around the customer” and have the ability to conduct business according to the preferences and wishes of the customers in order to build a relationship (Galbraith, 2005). (Galbraith, 2005) He means that this requires a close collaboration and interaction with the customers across all contact points and to then use the results of these integrative activities to reach consistency in the eyes of the customer. Several researchers agree on the fact that companies will have a hard time to survive in the twenty-first century unless they move in this direction of customer centricity, since it is the key to achieving sustainable and long-term growth, profitability and customer loyalty (Galbraith, 2005) (Staflund, 2015). Also, it is believed that companies should now invest into business models that are adding value to customers since they difficult to