Cross-channel

We assessed how well connected retailers are across their online and offline channels to understand how they are bridging the divide, as well as how effective their efforts are in driving customers to stores.

The relevance of shops has come under the spotlight, with footfall declining and store closures becoming the norm.

But with online sales growth slowing, many retailers are investing to connect their online and offline channels to create a frictionless shopping journey, to eliminate any barriers to purchase.

Encourage cross-channel behaviour

Click and collect has gradually become engrained in customers’ shopping habits, providing convenience for shoppers and an opportunity for retailers to drive additional purchases in-store.

The importance of click and collect has seen John Lewis invest in new store formats where collection points are positioned at the heart of the store, as well as opening a ‘Click and Commute’ shop at London’s St Pancras station.

Despite being regarded as fundamental for any multichannel retailer, 18% of multichannel retailers still don’t offer click and collect in store.

Retailers are, however, also opting for third-party collection points, with 29% of retailers offering this through the likes of Hermes and Collect+. Third-party collection and returns are vital for retailers with limited or non-existent store networks to build a physical presence.

This has seen the likes of luxury etailer Farfetch partner with Doddle collection points as part of its aim to create a “360 degree shopping experience”, while Asos and Missguided have partnered with Asda’s Toyou collection points.

Be channel agnostic

With stores standing as one of the biggest costs to retailers, customers are also being encouraged to research online and purchase offline to drive store profitability.

One digital initiative to drive footfall to stores is offering store stock visibility online. However, only 26% of retailers have implemented this strategy, made possible through developing a single view of stock.

Screwfix is a prime example of this. While founded as a mail-order operation, the DIY specialist has since developed a store network underpinned by store stock visibility in local shops. The retailer partnered with Oracle to gain a single view of stock across the business, allowing customers to check availability in stores and collect within 60 seconds.

The likes of Argos and Schuh have taken this one step further, enabling customers to reserve online and pay in-store.

With this, retailers would benefit from implementing geo-location on their sites to create a more seamless experience for customers on the go. With online traffic migrating heavily towards mobile, it’s surprising that only half of retailers offer geo-location on mobile devices.

However, physical space brings restrictions in the volume of products made available in store. As such, nearly a quarter of retailers offer a holistic view of the range in-store through self-serve digital screens, while 19% have armed employees with transactional tablets, making it possible for customers to order in-store, and have products delivered to a convenient location.

Importance of customer data

Just as important as digital screens and in-store tablets – if not more so – is enabling shoppers to browse with ease on their own devices. However, only 36% of retailers provide Wi-Fi in store.

For those that make the process easy, there is a great prize: the collection of customer data.

One in 10 retailers are using beacons to detect a customer’s location when they enter a store, offering retailers access to their personal details and the opportunity to personalise the experience through communications.

While costly, strong digital networks allow retailers to invest in innovative customer facing capabilities, such as augmented reality, which can further personalise in-store experiences. Bathstore, for example, has developed its viewAR tablets to enable shoppers to virtually enter, walk around and explore bathroom designs.

Cross-device shopping is also underpinned by customer data. Over 80% of retailers enable cross-device shopping so customers can browse on the desktop and continue their journey straight on to mobile, making it an essential practice.

While retailers are inundated with customer data across the online channel, the accumulation of data across the store network is still limited. As such, retailers’ digital strategies should be focused on understanding the role that its digital channel plays in driving footfall to stores. Stores must evolve with a digital backbone to complement cross-channel shopping habits, and new technologies should support, rather than replace, staff interaction.