Chapter 3Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
PPT 3-*
Web & Email
“clicks and bricks” approach
Why are Retailers Using Multiple Channels to Interact with Customers?
Customers want to interact in different ways
Each channel offers a unique set of benefits for Customers
PPT 3-*
Shopping in Non-Store Format?
$200 Billion Catalog and Direct Sales
$ 4 Billion TV Home Shopping
$ 50 Billion Internet Retailing
PPT 3-*
Positive Outlook for Future
Younger people are growing up with computers - view them as an appliance
55% of U.S. households have Internet access now and more have access at work
Women use the Internet almost as much as men now
40% of people buying cars go to the Internet for info before seeing a dealer
PPT 3-*
“Look and See” attributes vs. “Touch and Feel”
attributes (?)
predict satisfaction prior to purchase
Might not need to “Touch and Feel”
PPT 3-*
Present electronic retailing does not reflect the future potential.
Penetration of electronic retailing will be a function of the degree to which retailers take advantage of the unique properties of the internet
Search agents provide unique and critical benefits to consumers.
Store-based retailers are well positioned to exploit this opportunity, but many will not.
PPT 3-*
3. Expand Market
PPT 3-*
Maintaining _____ _____ across channels
Pricing across channels
Strives to help merchants optimize their merchandising and customer service tools
Mission of improving the online consumer’s shopping experience.
Multi-channel retailing trends:
Placing weekly “print” circulars on-line to create a seamless multi-channel experience
(29% of companies surveyed did this)
When making an on-line purchase, allow for “in-store” pickup.
(33% of companies surveyed did this)
PPT 3-*
Train all store associated on online return processes.
List 800# on home page along with customer service hours of operation.
Provide a well laid out, simple to navigate information, with contact information, FAQ’s, guarantees, return policies.
Include a store locator, with hours and events.
Gift certificates should be redeemed both on and off-line.
Send email notification of order status.