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MKT 3210 Ch. 3 Multichannel and Omnichannel Retailing

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Multichannel and Omnichannel Retailing

MKT 3210 Retailing Management

Evolution of Retail Channels 1) Single-channel retailing 2) Multichannel retailing

• Store || catalog || online 3) Cross-channel retailing

• Store + online + catalog 4) Omnichannel retailing

– A coordinated multichannel retail offering that provide a seamless and synchronized customer experience, using all of the retailer’s shopping channels

– Includes the social media channel  social retailing through Facebook, Instagram, Pinterest, and Twitter

MKT 3210 Ch. 3 Multichannel and Omnichannel Retailing

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Benefits of In-Store Retailing • Touch and smell of products

– Perhaps the greatest benefit offered by stores

• Personal service from salespeople

• Purchase risk reduction

• Immediate gratification

• Entertainment and social experience

• Cash payment

Benefits of Internet Retailing • Deeper and broader selection • More information for evaluating merchandise • More data and information about individual

customers • Ability to personalize merchandise offerings • Data and information to improve shopping

experience across channels • Expanded market presence

Challenges: data security (hacking), privacy concerns (amount of data collected)

MKT 3210 Ch. 3 Multichannel and Omnichannel Retailing

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Mobile Retailing • Transactions on smartphones and tablets

• Great portability  easy access to retail sites anytime, anywhere

• Location-sensitivity – Location data from mobile devices, location-based

promotions

• Small screens – More efforts by consumers on mobile sites

– Mobile sites and apps tailored to OS and devices

– Mobile apps offer more streamlined user experience (UX).

Challenges in Omnichannel Retailing

• Coordinating different supply chains • Managing data flow across channels • Consistent brand image across channels • Merchandise assortment

– Typically, different assortments in different channels – Key: choosing the right assortment level for each channel

• Pricing – Customers expect same prices across channels. – In some case, retailers need to adjust prices due to

competition in different channels.

• Reduction of channel migration – Showrooming and webrooming

 Retailers have yet to provide seamless omnichannel customer experience.