Drivers and technology-related obstacles in moving to multichannel retailing

Today, multichannel retailing is a key strategic issue for most retailers. Yet, while there are many drivers associated with retailers going multichannel so too are there technology-related obstacles, however, few prior empirical studies explore these themes. In light of this, by using a multi-case approach to understand the key drivers and technology-related obstacles associated with retailers moving to multichannel retailing our study makes two key contributions. First, we extend prior theory by providing novel empirical insights into the main drivers underpinning retailers using a multichannel strategy. We find that meeting customer needs and increasing sales were the primary drivers behind retailers using the strategy, although there is diversity in the way retailers respond to these motives. Second, we provide empirical support for a proposed theoretical framework which summarises the key technology-related obstacles retailers encounter when going multichannel, by stage of implementation. The framework reveals that retailers face technology-related obstacles when implementing a multichannel strategy due to the need to switch/acquire resources and achieve channel integration. Furthermore, the framework highlights that these resource and channel integration issues are often interrelated with each other and with other staff engagement and cultural issues, vary by retailer and stage of implementation, and pose greater obstacles to retailers using new and multiple channels than the extant literature suggests

Better customer insight - in real time : a new tool radically improves marketing research

To identify what influences the attitudes and behavior of customers, most companies rely on surveys, focus groups, and ethnographic research. The trouble is, surveys and focus groups tap customers’ memories, which are unreliable, and the presence of observers can cause customers to alter their behavior. The authors, three academics, believe they have found a new research tool without those flaws: real-time experience tracking. Conducted over mobile phones, RET allows companies to inexpensively collect instant, unbiased feedback from customers 24 hours a day. In RET, participants supply the answers to a four-question survey every time they encounter a brand, be it through a direct interaction, such as a purchase or ad, or an indirect one, such as a conversation with another customer. The process is incredibly simple: They need only text a four-character message. One major benefit is that RET allows firms to track campaigns as they unfold and readjust them toward the most effective tactics. [insert ref="callout-01"] This article describes how a growing number of companies, such as Schweppes, Energizer, and Fox, are using RET to inform their marketing decisions, increase sales, and help customers improve their own experiences

The effect of search channel elimination on purchase incidence, order size and channel choice

This study investigates the impact of eliminating a search channel on purchase incidence, order size, channel choice and, ultimately, sales and profits. We analyze customer panel data from a large retailer over a five-year period. The retailer conducted a randomized field test in which the firm eliminated its catalog for half of the panel. We find that channel elimination decreases purchase incidence, especially for customers who, before the test, were heavy users of the telephone purchase channel that aligns with the catalog search channel. As expected, channel choice for purchases is shifted toward the internet and away from the telephone channel. Interestingly, order size per purchase increases. We investigate the impact of channel elimination on profits across different customer segments. We calculate a net positive impact because the savings from eliminating the catalog compensate for lower sales revenues