Fuel your retail multi-channel strategy with advanced analytics

MultiChannel & Analytics Retail

Customers have welcomed the concept of multichannel retail with open arms – the fact that nearly 50% of customers today are multi-channel purchasers tells us this. Why should retailers take note? Because the ones who’ve been successful in this space understand a couple of crucial aspects such as how their customers want to shop with them, and consistently take advantage of the opportunity of being able to present a single view of their brand, regardless of which touch point the customer is using to interact with them. Multi-channel retail also gives retailers more opportunities to present their products in front of customers whom they wouldn’t have been able to reach with a single channel.

The most important aspect of multi-channel retail, however, is that it is the gate-way to the concept of omni-channel retail. So what exactly is the difference between multi-channel and omni-channel? Like we mentioned above, multi-channel means that your brand is present across key channels like brick-and-mortar stores, social media & mobile and still making sure that your brand can reach potential and existing customers on every channel does take a considerable amount of time, money and energy. Omni-channel retail takes this infrastructure to the next level: it links activities among offline shopping and the many digital channels so that a customer can begin an engagement on one channel and conclude the transaction on another. This is especially critical as shoppers are increasingly using a number of channels to complete their transactions, as a recent survey of US online shoppers done by PriceGrabber reveals, 45% of respondents said that they were choosing to combine online, brick-and-mortar and mobile shopping while just 12% said they shopped only in brick-and-mortar shops.

So with multichannel customers having a potential to spend an average 4-5 times more than other customers, what aspects of transaction and customer information should retailers track, and how should they use that information while making decisions related to strategies and tactics?

Use analytics to trace shoppers’ footprints – online and offline

MultiChannel & Analytics Customer FootprintMacy’s keeps track of customer browsing data by recording their browsing history while they surf the Macy’s website. The retailer then uses this browsing history to target e-mail offers. According to Peter Sachse, Macy’s CMO, “There are times we’ll send out 18 million unique emails… down to the point of emailing a shopper with a message like… We just saw you last night on the women’s shoes part of the website, and then send that shopper a targeted shoe promotion.” They can now do the same by looking at location data from mobile devices as the retailer can also use this same information in a case where the customer was present in a store but didn’t make a transaction – mailing a coupon for an offer in the shoe category would be effective. Other possible scenarios include sending customers while they are in the store (provided they have opted-in for the service). The retailer is also working to create “dynamic customer experiences” and Sachse says the retailer intends to customize the content on the home page “based on everything we know about you [the customer]“.

Use analytics to make the multi-channel marketing connect

MultiChannel & Analytics Analytics UsageBass Pro is a retailer of hunting, fishing, camping and related outdoor recreation merchandise. Like most marketing divisions in retail organizations, theirs too struggled to determine the effect of the printed catalogs they mailed out on the brick-and-mortar and online sales. So how did they use analytics in a situation like this to get a better understanding of their multi-channel customers? The retailer tracked which customers brought their catalogs in to Bass Pro stores or placed orders on Bass Pro’s Website after having received the print book. As it captures telephone numbers with most of its store transactions, it reverse-appends them to names and addresses every night. The $325 million-plus marketer then adjusted circulation for subsequent mailings so that they can send catalogs to customers who used them to make purchases through other channels. Bass Pro also found that of its fall/holiday retail and Web sales, almost 34% had some connection to its catalog mailings.

Bass Pro also ensures that it consolidates the databases that marketers keep for each marketing channel into one central depository. This makes it easier for marketers to find retail or online buyers who have been influenced by the catalog, so that they can spend precious time and money on critical customers.

Use analytics to establish integrated customer identity

MultiChannel & Analytics Integrate Customer IdentityAnother retailer who leverages this stored customer information and uses it across channels to establish customer identity is multi-channel flower and gift retailer
1-800-flowers.com. The retailer uses an integrated customer data warehouse for all its brands and channels, and literally keeps track of every customer’s ‘path to purchase’ – for all interactions across all channels. Not only this, the company also identifies a preferred channel for each type of interaction with each customer. The retailer handles the tracking of customer reaction to offline promotions with coupon codes tied to the offline channel, but it also calls repeat customers ahead of anniversaries, birthdays and other occasions related to their loved ones and offer phone-only prices and discounts.

Use analytics to cross-sell across multiple channels

Retailers who effectively review insight from their analytics systems also spot opportunities to cross-sell other products. For example, when electronics retailer Best Buy analyzed customer data of shoppers who bought iPods, the retailer identified that customers tended to return in about two weeks to purchase accessories. The company took advantage of these insights and began to include literature about accessories with the iPod – but more importantly, it sends out timely emails to buyers about available accessories to give them that little extra push.

Retail analytics: giving your multi-channel strategy direction

MultiChannel & Analytics StrtaegyAn efficient retail analytics system that’s able to track customer preferences in terms of products and channels is a critical requirement for multi-channel, cross-channel and omni-channel retailers. It’s essential for such a retail analytics system to be able to store multi-channel analytics collected in a customer data warehouse, so that it can capture and record activity across channels. Retailers can then create behavioral targeting models according to channel preferences, cross-sell the right products at the right time and customize offers.

Is your retail analytics system capable of collecting this vast variety of data across retail channels?

Newsletter

Get the monthly dose of Retail Insights

Signup for the monthly FRESH Newsletter to gain refreshingly current insights, learn industry trends, perspectives and expert points of view on every aspect of the Retail Industry.

Adroit management of the supply chain is indispensable for fashion retailers

To stay on top of the chain, fashion retailers must keep their supply chains malleable, efficient, and well-coordinated.

Learn more

The Pentagonal Pillar That Supports The Omnichannel Edifice In Fashion Retail

Fashion retailers are moving quickly towards formulating a solid omnichannel strategy. Here are the top five elements to consider.

Learn more

Virtual Fitting Rooms: Changing Rooms Going Virtual To Lay Fit-Related Doubts To Rest

Virtual web-based fitting rooms are making the shoppers be sure of the fit of a garment before they order it online.

Learn more

‘Try At Home Before Buying’ Is Blurring The Lines Between Online And In-Store Fashion Retail

Online fashion retailers are welcoming the trend of trying at home before buying to activate shoppers and boost sales.

Learn more

Analytics For Fashion Retail

Analytics can make an incredible difference in the way Fashion Retail works, right from choosing the best pricing and markdown strategies to predicting the next season trends.

Learn more

Endless Aisles In Fashion- Blurring The Line Between In-Store And Online Shopping

Fashion Retailers can trim the store while increasing the assortment, reduce the inventory while never going out-of-stock and above all boost the customer experience with ‘endless aisles’.

Learn more

Using stores for order fulfillment: Optimizing inventory across the retail spectrum

We explore ship-from-store trends and discuss how retailers are using their stores to fulfill online and regional orders, in a move to compete against pure play ecommerce giants like Amazon and eBay.

Learn more

Connect and re-connect with shoppers through O2O marketing

Omnichannel retailing is opening new opportunities for apparel brands to create shopping differentiation by connecting customer journeys from clicks to bricks and vice-versa.

Learn more

Markdown Optimization Demands Precision – Are Fashion Retailers Ready To Drive Results?

In the world of omni-channel marketing, progressive retailers are implementing new and impactful ways to manage pricing, inventory and multichannel fulfillment to optimize markdowns and cut losses.

Learn more

Are fashion retailers exploring big data to make granular targeting decisions?

Targeting the new fashion customer requires integrating a wider set of big data across store, digital, social and mobile interactions, and stitching together a picture of the customer journey that opens up new possibilities for personalized and highly relevant marketing.

Learn more

Data-driven Strategies to Control Margin Erosion in Fashion Retail

Read this Manthan whitepaper titled 'Arrest Margin Erosion by Optimizing the 5Ps of Fashion Retailing' to learn how Fashion businesses can use data-driven strategies to control their season’s success and significantly impact the bottomline.

Download Whitepaper

3 Secret Ingredients of the Fast-Growing Retailer Recipe

Fast-growing retailers with well-defined value propositions are being celebrated as modern retail success stories. This article looks at three of these bright retail sparks and the elements that make them so appealing to customers.

Learn more