Cross-Channel  Retailers to  Watch

While our ranking of the fastest-growing cross-channel retailers features some of the biggest players in the industry, Retail Online Integration is well aware that there are thousands of other private retailers out there making their own strides. As a result, our staff selected five exceptional private retailers to highlight. They include the following:

Better World Books
Headquarters: Mishawaka, Ind.
Website: BetterWorldBooks.com
Number of employees: 400
2009 revenue: $31 million
2010 revenue: $45 million
Projected 2011 revenue: $57 million

Better World Books, the "online bookstore with a soul," collects and sells books online to fund literacy initiatives worldwide. Even with more than 8 million new and used titles in stock, Better World Books can't really be compared to Amazon.com and other leading online/offline booksellers, according to its President and CEO David Murphy.

"We're a new kind of company — a social enterpise that builds positive social and environmental impact into its daily operations," says Murphy. "We sell used books that might otherwise have gone to a landfill, and use each sale to raise funding for literacy programs. The socially conscious nature of our business resonates strongly with a growing number of consumers."

Another distinguishing factor for Better World Books is that it's very good at selling books across many marketplaces "We list our books on 25 different marketplaces, including our own website," says Murphy. "By giving maximum exposure to our inventory across these channels, and by employing fairly sophisticated pricing algorithms, we're able to find a global market for our books and maximize the value of each book."

In terms of its marketing approach, Murphy says that since Better World Books has a story that people want to hear, the company has invested resources in community building, referral programs and social media. Better World Books also uses performance media channels such as search engine marketing, search engine optimization and affiliate marketing. The retailer is also continuously working at improving how it manages inventory across marketplaces, Murphy adds.

Tip: Try crossing online channels. For many businesses, like Better World Books, syndicating your inventory across third-party markets can pay solid dividends, Murphy says. — Melissa Campanelli

Brooklyn Industries
Headquarters: Brooklyn, NY
Website: BrooklynIndustries.com
Number of employees: 146

Brooklyn Industries, a cross-channel retailer of men's and women's apparel and accessories, is a niche brand that primarily serves a 25-year-old to 35-year-old demographic in urban areas. The retailer has leveraged its innovative and creative staff to differentiate itself from its competitors — without losing focus on what its customers want and expect from the brand.

"We've worked hard to keep our clothing and bags unique, innovative and creative," says Lexy Funk, Brooklyn Industries co-founder and CEO. "This is our major point of differentiation and we speak to this in branding on our website, in stores and through social media. More specifically, we keep a close eye on the market and what customers want. Understanding the voice of the customer and responding quickly to this voice is vital."

What Brooklyn Industries has learned from its customers is that they want the brand to stand for more than just clothes. Becoming a part of the community and creating an emotional attachment with its customers is what Brooklyn Industries is trying to accomplish. That connection is exemplified in Brooklyn Industries' commitment to the environment, from its upcycled retail storefronts and displays to select clothing made with organic materials to its products being manufactured in environmentally friendly factories.

All of these factors have contributed to Brooklyn Industries' rapid growth, which has regularly seen year-over-year sales gains of 25 percent-plus. Online sales for 2011 are up 40 percent year-to-date over last year. So what does the retailer plan to do going forward to sustain that growth?

"We plan to focus on segmenting our customer lists more aggressively for email and print mailings; developing more customer loyalty-driving programs; and striving to capitalize on the rapid growth of social media and mobile," says Funk.

Tip: Always ensure that online to in-store marketing communications are consistent and integrated. Loyal customers shop across channels — they become distracted from purchasing when they notice inconsistencies, Funk says. — Joe Keenan

CableOrganizer.com
Location: Fort Lauderdale, Fla.
Website: CableOrganizer.com
Number of employees: 50
2009 revenue: $13.9 million
2010 revenue: $16 million

Frustrated by the unruly cables around their computers and home theater system, Valerie Holstein and her husband Paul invested $30 in February 2002 to register a web domain name. They began operating CableOrganizer.com from their garage that year. CableOrganizer.com's goal is to offer simple but effective products to help others organize the cord clutter in their homes and offices. Over the years, the company has expanded its product line to include electrical supplies, network products, home theater components, tools and testers. Today, the business has 38,000 square feet of warehouse space, more than 250,000 customers worldwide and sells 42,000 products.

To what does the company attribute its success? "There are plenty of things which we do well, but that's not enough," says Juan Ribero, vice presdient of marketing at CableOrganizer.com. "We're always on the lookout for areas that could use improvement, and putting positive changes into action. I think our ability to take a hard look at ourselves, assess our strengths and weaknesses, and adapt accordingly have been key to the company's success."

In terms of marketing programs for the remainder of the year, CableOrganizer.com will be investing in more pay-per-click advertising and and site personalization, as well as improving its site search, site speed and product videos, according to Ribero.

Tip: Make customers' experiences with your business "match." Create a feeling of continuity whether they're visiting your website, shopping in your store, speaking by phone with a customer service rep or browsing your catalog. — Melissa Campanelli

overstockArt.com
Headquarters: Wichita, Kan.
Website: overstockart.com
Number of employees: 20
2009 revenue: $2 million
2010 revenue: $3,040,000
Projected 2011 revenue: Around $4 million

overstockArt.com has had its fair share of hard times during the past few years as a result of the economic downturn. But now the dog days are over. With a 52 percent year-over-year sales increase in 2010, overstockArt.com is certainly becoming a retailer to watch.

How will it sustain its recent success going forward in 2011? overstockArt.com will continue to send out e-newsletters, postcards and catalogs to its customers

After all, it's these types of campaigns that contributed to the company's record-breaking holiday season.

"We worked hard to segment our customer base and to pitch to our existing customers, who know firsthand the value we offer," says Amitai Sasson, vice president of marketing and technology for overstockArt.com. "Our ability to communicate the value and our quality to our customers via email, Facebook and postcards throughout the year had the desired effect that culminated in our holiday season success."

New initiatives for 2011 include deals on daily-deal site Groupon throughout the U.S. and newspaper campaigns.

Another fun aspect of overstockArt.com is "Artist Become," also known as ArtistBe.com, a social/e-commerce platform for up-and-coming artists to display their art.

"ArtistBe.com allows us to give an open stage to the next great artists of our generation and, in addition, offer our customers original and innovative art from around the globe at a fraction of the cost," Sasson says. "It's just a win-win for everyone. … It truly is a great platform to be a part of."

The last factor overstockArt.com attributes its success to is great people.

"This is the secret sauce to any initiative," notes Sasson. "We have a great group surrounding us, from the CEO to the production team. Everyone is in-tune to the customer's needs and the importance of the customer experience in our online art gallery — from landing page to the art hanging on the wall."

Tip: 1. Take care of your customer.
2. Surround yourself with great people
3. Give your customers a chance to be heard.
4. Give your employees a chance to be heard.
5. Give your people a sense of ownership and a stake in the company's success. — Meredith Cunningham

The Pond Guy
Headquarters: Marine City, Mich.
Website: ThePondGuy.com
Number of employees: 35
2009 revenue: $4.8 million
2010 revenue: $6.2 million
Projected 2011 revenue: $8 million

The Pond Guy is your quintessential small business success story. Company founder Jason Blake started working a summer job in high school cleaning and servicing ponds in his Michigan neighborhood. Upon going away to college, he realized the demand was there to make it a legitimate, full-time business. So that's what he did. The Pond Guy has grown from humble beginnings into an $8 million business.

Several factors have contributed to The Pond Guy's recent success, says Blake. They include the following:

Instead of cutting back on advertising, The Pond Guy has increased its advertising budget, most notably its catalog circulation.
In a difficult economy consumers decided "staycations" were the new thing. The Pond Guy encouraged this line of thinking by helping consumers turn their properties into "waterfront" real estate. The soft housing market also led many homeowners to decide to weather the storm in their current home and opt for spending money on things like additions or landscaping.
New online initiatives from The Pond Guy such as increased email campaigns and the development of a customer Q&A blog have helped the retailer to engage its customers and encourage repeat business. Investments in live chat and employee education have helped to create better customer experiences.
The Pond Guy expanded its product line to better serve niche segments of its market. This has allowed the company's wholesale business' incremental sales to increase, as well as open doors that were once closed.

To ensure future prosperity, Blake says The Pond Guy is investing time and resources into advanced online site search; tweaking personalized product recommendations; triggered email campaigns; loyalty programs; and making better informed marketing decisions via its marketing database.

Tip: Make sure the feel of your brand is consistent across all channels. This is something we've struggled with but plan to change. — Joe Keenan