2. Retail Channels for Interacting with Customers
Store
Non-store
However, most retailers are are now using more than one channel
to reach their customers
Multichannel Retailers are those retailers that sell their
merchandise or services through more than one channel
Q. Which is the largest multi-channel retailer in the country??
3. Store Channel
Stores offer a number of benefits to customers that they cannot get
when shopping through catalogues or the internet
Comprehensive Browsing
Touch & Feel
Personal Service
Cash Payment
Entertainment & Social Experience
Immediate Gratification
Risk Reduction
4. Catalogue Channel
Catalogue channel provides some benefits to customers
that are not available from the store or the internet
channel
Convenience
Safety
Quality of visual presentations
7. Internet Channel
Shopping over the internet provides the convenience and safety
benefits offered by catalogs and other home-based non-store
formats. However, the internet channel has the following
advantages over store and catalogue channels:
Broader Selection
More information to evaluate merchandise
Personalization
Personalised Customer Service
Personalised Offering
Selling merchandise with “touch & feel” attributes
8. Perceived Risks in Electronic Shopping
The two critical perceived risks in electronic shopping are:
Security of card transactions
Potential privacy violations
9. Evolution towards Multichannel Retailing
Overcoming limitations of an existing format
Stores ----- Internet enabled kiosks ------ Better service, better sales
Expanding Market Presence
Increasing share of wallet
Insight into customer shopping behaviour
10. Capabilities needed for Multichannel Retailing
Capabilities
Store based retailers Non-store retailers
Develop assortments and manage
inventory
High
High
Manage People in remote
locations
High
Low
Efficiently distribute merchandise
to stores
High
Low
Present merchandise effectively
in a printed format and distribute
catalogues
Medium
High
Present merchandise effectively
on a website
Medium
High
Process orders from individual
customers, electronically
Medium
High
Efficiently distribute merchandise
to homes and accept returns
Medium
High
Integrate information systems to
provide a seamless customer
experience
Low
High
