A new type of customer is emerging, the ‘native of the multichannel world’, who will have far-reaching consequences for the retail world. Not only will they expect a multi-channel retail experience, they will demand it. Retailers will no longer have a choice; embracing multi-channel retailing will be a prerequisite for survival.
Key to understanding this new breed of consumer is to recognise that their thought patterns have been changed by the rise of new technologies, in particular, social media and the smart phone. Being always on means they have a requirement for immediacy of information, and through whichever channel they see most fit: if they’re in store they buy there; at home, it’s online; on the move, it’s mobile – the ‘native’ is at home at all of them.
Therefore, delivering the ‘customer experience’ is no longer about a single channel. The customer experience has to be across all channels, often across multiple channels simultaneously.
So what steps do retailers need to take?
For a start, they must truly adopt a multi-channel mind-set. Multichannel is not about just adding and perfecting an online channel.
Merchants must link up the different channels used by consumers so that they can reach them wherever the purchase is made – whether in the shop, over the internet or by browsing a catalogue.
Particularly in Australia, where smart phone penetration outstrips the US and UK, retailers should recognise that mobile will play an ever increasing role in that multi-channel journey, and not always for buying. Often it acts as an information tool to aid the multichannel shopping journey.
Integrated data is key to a multi-channel approach. It should be consistent, relevant and accurate and able to be accessed instantly and across all channels.
Having this data is essential for ensuring a customer experience that will satisfy the ‘native’. It enables retailers to better understand customer behaviour across channels, manage the multi-channel experience, boost sales, improve customer service, increase loyalty and improve reaction times, which in the FMCG market has to be fast.
One challenge will be that the multi-channel ‘native’ will therefore need to be reached by relevant multiple channels – TV, radio, catalogue, social media, mobile marketing. This fragmentation can prove a challenge for managing ad spend and focus, in an economically challenging world.
However, for those retailers - particularly in the FMCG space - that embrace multi-channel retailing, and underpin it with strong data used to improve the customer experience, there will be significant rewards. They will be well placed to gain the edge on their competitors and stand to gain substantial market share.
Kees de Vos
Vice President
Hybris
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