Multi-Channel Commerce Success Factors

Success in multi-channel retail requires companies to first assess their core strengths and determine their ability to cost-effectively extend their brand across multiple channels. As part of that assessment, companies need to determine how their multi-channel initiatives will achieve the following capabilities:

• Leverage world-class supplier networks to extend product offerings
• Enable real-time order visibility
• Integrate with point of sale (POS) and Enterprise Resource Planning (ERP) systems
• Ensure channels present a consistent face to the customer, in terms of brand image, pricing and service
• Support cross-channel integration so that customers can buy, fulfill, and return from anywhere
• Promote seamless cross-channel handoff so that online customers are not penalized when returning items to brick-and-mortar store
• Offer a choice of delivery options

Manufacturers looking to migrate their catalog success to the Internet also need to assess their in-house capabilities to:

• Extend their brand to the web
• Cost effectively sell to low-volume resellers
• Provide resellers a web store
• Extend their product lines
• Create new, high-margin revenue sources
• Fill distribution gaps

Unfortunately, in the past, retailers and manufacturers have had limited choices for achieving this level of consistency and performance across all channels. Companies were forced to adapt to the business model of large, inflexible outsourcing solutions, which puts hard-earned brand equity at risk. Another choice was to either purchase point solutions that addressed pieces of the transaction lifecycle, or develop a solution internally. Either option represents a costly investment in technology, implementation services and maintenance. Essentially, companies have been left with an all-or-nothing dilemma, and one that prevents them from focusing on what they do best.

Multi-Channel Retailing Challenges

• Systems are not integrated across channels (specifically Inventory & Order Management)
• Data sources are not integrated or shared across channels
• Cost, effort & skills to develop and maintain .com channels are grossly under-estimated
• Technologies & development of the .com channel distracts retailers of their primary competencies
• Back-end of most .com channels are difficult to streamline due to number of legacy systems that are hard to integrate
• Management has difficulty getting required data/reports to measure performance
• Order management & fulfillment of orders across channels difficult to streamline

Multi-Channel Retailing Industry Best Practice Recommendations

Escalate timing of initiatives to implement distributed order management systems

Retailers at the norm expressed interest in implementing distributed order management within two years, while both the best-in-class and laggards were more bullish, indicating investment within 12 months. Postponing these initiatives will require higher inventory investments to fulfill customer orders as multi-channel activity continues to rise.

Consider Outsourcing Programming to Improve System Integration
The number of retailers who contemplate using outsourcing to solve their technology integration woes was significantly lower for retailers at the norm than for either laggards or best in class, despite their acknowledgement of the pain associated with the costs. Outsourced programming is a viable alternative for budget strapped retailers.

Prioritize initiatives to improve cross-selling and promotional capabilities

Surprisingly, retailers at the norm, with average comparable sales improvements, assigned a very low priority to initiatives in this area. Half of best-in-class respondents rated this as a key strategic initiative, versus 19% of average performers.

Prithvi can help retailers to:

• Grow market share by extending your reach through a consistent and highly personalized on-line marketing strategy 
• Convert web traffic to customers
• Effectively manage high-volume orders, items and suppliers
• Maximize fulfillment efficiency and streamline supplier integrations
• Support multiple brands and store fronts efficiently
• Increase Customer Satisfaction while decreasing call center costs
• Implementation of commerce solutions, product selection, and store front development
• Systems & Integration
• Data migration and Cleanup
• Supplier integration
• Quality assurance and Audit
• Data mining and Analytic services

Sales Channel Development

Storefront Development / Product Implementation

• Integrated merchandise and Assortment management
• Personalization
• Content management
• Dynamic pricing and Promotions
• Shopping carts and Checkout
• Tax calculations
• Shipping cost calculations
• Secured payment processing

Storefront Development & Optimization

Prithvi can help

• We have implemented a number of storefronts
• We have creative and technology partners as well as frameworks and methodologies to accelerate and ensure the quality of storefront developments
• We have consultants that have the technology expertise around the globe
• We combine domain expertise with global delivery to ensure we deliver economically and with high quality

Personalization

• Prithvi On-Line Marketing Optimization
• Search Engine Optimization
• Customer Segmentation
• Affiliate Marketing