It is he who shouts smartest, not loudest, who will reign supreme in the online environment. As well as ensuring your communications are relevant, it’s vital that your messages are consistent across all retail channels.
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As the recession tightens its grip on consumers’ purse strings, reports are predicting that the downturn in consumer spend will drive over 1,600 retailers out of business in 2009, resulting in thousands of job losses and leaving more than one in 10 shops empty.2
The first quarter of 2009 has already seen high street shoe chains Barratts and Priceless Shoes fall into administration, closing 220 stores with a loss of 2,500 jobs.3 Meanwhile, wholesaler Makro announced the potential closure of three UK superstores with a loss of 378 jobs4 and JJB Sports’ lifestyle division shed 438 jobs when administrators closed 45 of the firm’s subsidiary stores.5
A significant opportunity
So what can retailers do in order to weather the economic storm? According to Verdict Consulting, the UK’s leading independent authority on retailing, the internet offers retailers a ‘significant opportunity’.
Even in the economic downturn, the online sales channel continues to experience rapid growth. In December 2008, UK consumers spent £4.67 billion shopping on the web, representing an increase of 14.2 percent year-on-year.6 This strong performance continued into 2009, with post-Christmas online sales rising 19 percent year-on-year.7
Increasingly, consumers are seeing the web as the place to shop in the current climate. And, warns Verdict Consulting, those retailers without an online presence will find it much harder to attain growth over the next five years.
Online overcrowding
But as more and more retailers recognise the potential of the internet, we see a proliferation of online points of sale: internet pure-plays are joined by mainstream high street retailers and smaller niche specialists. Even individuals are empowered to sell via portals such as eBay and Amazon.
In such a crowded environment, internet retailing is no longer simply a case of opening an online store and waiting for customers to visit. Today’s online retailers need to stand out from the competition. The question is, how?
Communication is critical
A survey of internet shoppers conducted by Verdict Consulting revealed that in 2002, around 8 percent of online consumers, representing a combined spend of £30.7 million, said that good marketing and communication with the retailer was one of the main reasons they would make a repeat purchase. Today, that number has almost doubled to 15 percent – and their combined spend has increased almost tenfold.
The numbers speak for themselves: communicating with customers is critical to online success. But, warns Verdict Consulting, whilst a blanket, mass-mailing approach may seem like the low-cost option, this won’t necessarily yield the best results. It’s not simply a case of hitting consumers with multiple communications; rather, your marketing messages – just like other areas of online retail – need to be personalised.
Quality, not quantity, of communication is important here. It is he who shouts smartest, not loudest, who will reign supreme in the online environment. This means ensuring your communications are relevant and that they offer some value add, such as a discount or an update on the latest fashion trends. Meaningful messages are the key to engaging customers.
The need for integration
As well as ensuring your communications are relevant, it’s vital that your messages are consistent across all retail channels. All too often, the internet is seen as a separate part of the business. But for an internet operation to be successful, it needs to be fully integrated with other parts of the business. The stores, the internet and all other routes to market must work together cohesively to offer customers a seamless shopping experience.
So how can you achieve this integrated, multi-channel retail model? On the consumer side, look at the ways in which stores and websites can be used to support one another. For example, in-store marketing initiatives can be used to direct customers online, while online initiatives can be used to increase store footfall. Many retailers also allow customers to buy goods online and return them to the store, or reserve items online for in-store collection.
Systems must be integrated too. The online channel needs to be linked to stock, pricing and other management systems so that managers can view the channel in the context of the wider business. Integrated management is also a must to ensure customers receive a seamless service, regardless of their chosen channel.
The multi-channel solution
According to Verdict Consulting, offering consumers a true, multi-channel proposition is critical to maximise future growth opportunities. Spearheading innovation in this field is hybris software, a leading vendor of multi-channel commerce and communication software. hybris software is the only provider who can unite all applications for every output channel on a single platform, enabling companies to communicate and sell across multiple channels in a consistent and effective way.
To find out more, please visit www.hybris.com
2. www.money.uk.msn.com, 2 January 2009
3. www.bbc.co.uk, 19 February 2009
4. www.itn.co.uk, 11 February 2009
5. www.bbc.co.uk. 19 February 2009
6. www.silicon.com, 15 January 2009
7. www.silicon.com, 17 February 2009
The first quarter of 2009 has already seen high street shoe chains Barratts and Priceless Shoes fall into administration, closing 220 stores with a loss of 2,500 jobs.3 Meanwhile, wholesaler Makro announced the potential closure of three UK superstores with a loss of 378 jobs4 and JJB Sports’ lifestyle division shed 438 jobs when administrators closed 45 of the firm’s subsidiary stores.5
A significant opportunity
So what can retailers do in order to weather the economic storm? According to Verdict Consulting, the UK’s leading independent authority on retailing, the internet offers retailers a ‘significant opportunity’.
Even in the economic downturn, the online sales channel continues to experience rapid growth. In December 2008, UK consumers spent £4.67 billion shopping on the web, representing an increase of 14.2 percent year-on-year.6 This strong performance continued into 2009, with post-Christmas online sales rising 19 percent year-on-year.7
Increasingly, consumers are seeing the web as the place to shop in the current climate. And, warns Verdict Consulting, those retailers without an online presence will find it much harder to attain growth over the next five years.
Online overcrowding
But as more and more retailers recognise the potential of the internet, we see a proliferation of online points of sale: internet pure-plays are joined by mainstream high street retailers and smaller niche specialists. Even individuals are empowered to sell via portals such as eBay and Amazon.
In such a crowded environment, internet retailing is no longer simply a case of opening an online store and waiting for customers to visit. Today’s online retailers need to stand out from the competition. The question is, how?
Communication is critical
A survey of internet shoppers conducted by Verdict Consulting revealed that in 2002, around 8 percent of online consumers, representing a combined spend of £30.7 million, said that good marketing and communication with the retailer was one of the main reasons they would make a repeat purchase. Today, that number has almost doubled to 15 percent – and their combined spend has increased almost tenfold.
The numbers speak for themselves: communicating with customers is critical to online success. But, warns Verdict Consulting, whilst a blanket, mass-mailing approach may seem like the low-cost option, this won’t necessarily yield the best results. It’s not simply a case of hitting consumers with multiple communications; rather, your marketing messages – just like other areas of online retail – need to be personalised.
Quality, not quantity, of communication is important here. It is he who shouts smartest, not loudest, who will reign supreme in the online environment. This means ensuring your communications are relevant and that they offer some value add, such as a discount or an update on the latest fashion trends. Meaningful messages are the key to engaging customers.
The need for integration
As well as ensuring your communications are relevant, it’s vital that your messages are consistent across all retail channels. All too often, the internet is seen as a separate part of the business. But for an internet operation to be successful, it needs to be fully integrated with other parts of the business. The stores, the internet and all other routes to market must work together cohesively to offer customers a seamless shopping experience.
So how can you achieve this integrated, multi-channel retail model? On the consumer side, look at the ways in which stores and websites can be used to support one another. For example, in-store marketing initiatives can be used to direct customers online, while online initiatives can be used to increase store footfall. Many retailers also allow customers to buy goods online and return them to the store, or reserve items online for in-store collection.
Systems must be integrated too. The online channel needs to be linked to stock, pricing and other management systems so that managers can view the channel in the context of the wider business. Integrated management is also a must to ensure customers receive a seamless service, regardless of their chosen channel.
The multi-channel solution
According to Verdict Consulting, offering consumers a true, multi-channel proposition is critical to maximise future growth opportunities. Spearheading innovation in this field is hybris software, a leading vendor of multi-channel commerce and communication software. hybris software is the only provider who can unite all applications for every output channel on a single platform, enabling companies to communicate and sell across multiple channels in a consistent and effective way.
To find out more, please visit www.hybris.com
2. www.money.uk.msn.com, 2 January 2009
3. www.bbc.co.uk, 19 February 2009
4. www.itn.co.uk, 11 February 2009
5. www.bbc.co.uk. 19 February 2009
6. www.silicon.com, 15 January 2009
7. www.silicon.com, 17 February 2009
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