Cross-Channel Marketing: Respect the Shopper!

The advent of new technologies has forever changed the way consumers shop. Today, consumers routinely research, purchase, ship and return products across all 
channels. They're using mobile devices, phones, websites, email, stores and catalogs in whichever combination is the most convenient for them. As shoppers shift between channels, they seek a consistent and transparent experience. They want to be able to research a product online, then buy that product at the same price in-store; or easily return an online purchase at their local mall.

However, today's cross-channel experiences for consumers are far from seamless. Consumers frequently experience dissonance in the shopping experience caused by inconsistent pricing and policies, as well as choppy transitions from one channel to another. These failures in customer "handoffs" — when customers migrate from channel to channel — cost businesses billions in potential sales every year, both in the U.S. and Europe.

To maximize sales within a cross-channel shopping environment, retailers need to respect consumers' unique shopping habits and flexibly work with them in whichever 
channel they choose. Here's a five-step approach to driving more sales and deeper loyalty with today's cross-channel shoppers:

1. Understand customer shopping preferences.
To accommodate the increasing variety of consumer behaviors, retailers must constantly evaluate the big picture and ensure that data is being shared across organizational silos. Home Depot, for example, matches its in-store and online customer purchasing databases to compare the two 
segments of multichannel shoppers and determine the right strategy to serve them.

2. Sync prices, 
products and promos across channels.
While it may not always be possible to match prices and/or product availability across channels, retailers should be aware of disconnects and set consumer expectations accordingly by communicating issues up front. Wal-Mart does this by alerting shoppers that in-store prices may differ from its e-commerce site, while Kohl's offers shoppers an in-store kiosk where they can arrange to have out-of-stock items shipped to their homes.

3. Reduce channel 
handoff failure.
Nothing frustrates consumers more than having to start over when moving from one channel to another. Seamless transitions build good will, making it easier to both buy and sell more. Customers at an Apple Store, for example, have the option of receiving their 
purchase receipt at the counter or via a follow-up email.

4. Test how channels impact one another.
Retailers need to launch test-and-learn programs to identify patterns of cross-channel shopping behavior. One in three multichannel retailers currently use tactics like credit card matchbacks, coupons sent via email and store-intercept surveys in order to measure the influence of web sales on other channels. Retailers are also experimenting with Twitter and SMS to drive web and/or store sales.

5. Personalize every shopper's experience.
Retailers should strive to find tools and services that permit mass customization while facilitating connections with each shopper on the most personal level possible. At brick-and-mortar stores, for example, associates are your 
"personalization engine," helping shoppers find appropriate products. Ratings, recommendations and reviews serve a similar purpose online. E-commerce software providers are increasingly building in multichannel capabilities that enable retailers to customize offers via call centers, websites and mobile apps, depending on consumer preferences.

To compete and win in this new retail reality, merchants must provide dynamic, engaging experiences at whichever touchpoint the consumer chooses to engage in. Even small improvements in channel optimization can yield large gains. Retailers need to not only master the basics, but also continually innovate in pursuit of the ultimate goal: Respect the 
shopper!

David Selinger is the CEO/founder of personalized product recommendation tools provider RichRelevance and can be reached at dselinger@richrelevance.com.