Multi-channel retailing using the example of THELOOK.com
Due to changing technology, purchasing behaviour has changed significantly in recent years. Today, customers rely on a variety of information and sales channels during the purchasing process. They have got used to looking at offers in the stores, look them up in the printed catalogue, compare them with other offers on their smartphones, and purchase them at home through the online shop.
By tapping the online sales channels, a company can take full advantage of very valuable turnover potential. New opportunities arise to create a novel buying experience for the customer through an interactive presentation of the products on offer.
Essential factors for successful online sales are, for example, personalised offers and product recommendations. These offers can be presented via e-mail marketing campaigns or shown to the customer when entering the online shop through the presentation of the product range.
Various intuitive ways to access the range of products
Under THELOOK.com, PKZ sells the retail brands PKZ, Feldpausch, Burger and BLUEDOG. The entire online shop is set up specifically for each retail brand. For example, if the customer enters the online shop via the bluedog.ch microsite, the THELOOK.com – BLUEDOG store with a product range specific to that retail brand is displayed.
- Retail brand-specific presentation of the range of products. Here: BLUEDOG
In addition to the retail brands, the origin of the customer (Google, microsites, etc.) and the order history of the online and offline purchases are used for a comprehensive merchandising concept (personalisation and recommendations).
When presenting the range of products, an intuitive and inspiring access to the products is of great importance so that the customer can find the right item quickly. The product range must be accessible through a variety of options, such as a clearly laid-out navigation, an intelligent search functionality, or alternative access means (via online magazine, in-video shopping solutions, etc.).
As well as through the general main categories “Women” and “Men”, the product range of THELOOK.com is also accessible through “Brands”. Faceted navigation (filtered search) is available to limit the range of products within a category.
- Access page to the range of products via “Brands”
Available product information is shown and functionalities such as “Save item for later”, “Recommend item”, or “Reserve in a store” are available on the product detail pages. Special attention was placed on an emotional presentation of the detail page. A product is presented using different product views, large-sized pictures, style tips (combinations of items on the model), and videos.
Further access options to the product range are an intelligent and fault-tolerant product and content search and an online magazine for an inspirational access. The “Looks” area completes the access concept accordingly. “Looks” presents a fashion trend and shows the customer which items from the product range fit that trend.
Multi-channel: Seamless linking of online and offline
Interesting shopping functionalities in a multi-channel strategy result from the right combination of online and offline trade. For example, on the detail page, the customer is shown the entire stock of an item available at the stores and offered the option to have an item reserved in a store to try it on. In addition, customers are offered the option “Pick-up in a store” during the order process.
- Product presentation on the product detail page
Display of the stock in stores and the option for reservation in a store
Customer loyalty
For the long-term success of a company, good customer loyalty is also crucial. To achieve this, the customer should be offered service and support functionalities across all channels via a uniform and personal communication.
One very effective method to improve customer loyalty are customer loyalty programmes, in which corresponding incentives are created through patronage discounts. With their Insider Card, THELOOK.com offers a customer card that can be used as a means of payment as well as for collecting points and patronage discounts across all four retail brands (PKZ, Feldpausch, Burger, and BLUEDOG). Should customers forget their customer card when purchasing in a store, they can have the purchase credited to their account later using an online form.
- Customer loyalty: the PKZ Insider Card
Credit purchases made offline
Mobile
THELOOK.com also offers an iPhone/Android app with the following functionalities:
- Customer card for in-store purchases (customer number can be scanned through the POS system)
- Vouchers (overview and option for redemption)
- Points overview of the loyalty programme
- Converting loyalty points into vouchers
iPhone and Android app for mobile access to the customer account
Conclusion
A successful multi-channel strategy is characterised by a sales interface with high conversion rates, services for the customer across sales channels that offer added value, and a flexible operational level (in the form of a suitable system architecture and efficient operating processes). At the same time, the solution must be scalable, flexible, and it must be possible to add further functionalities.
Technical challenges
| System | Tasks and responsibilities |
| ERP | The ERP system is the control system for the product master data, the stock management, and accounting. |
| CRM | The CRM system is responsible for the central customer management and the operation of the customer loyalty programme. In addition to the management of loyalty points and patronage discounts, additional vouchers and gift cards are made available centrally through the CRM. |
| POS | In addition to the in-store sales, the POS system is responsible for the interaction of the stores with the e-commerce platform. The POS system is used, for example, to send reservations to the stores or to record and refund returns of online orders in the e-commerce platform that are returned in a store. |
| Fulfillment | Online orders are routed to a fulfilment partner through the e-commerce platform. Via a cross-docking concept, the e-commerce platform ensures that sufficient stock is available so that the orders can be sent out. In this process, stores are instructed to shift stock and requested to pass on to the fulfilment partner the goods for dispatch to the customer. Along with the dispatch of orders, the fulfilment partner is responsible for returns management and the processing of returned products. |
| E-commerceplatform | The actual online sales are ensured through the e-commerce platform. The product master data is exported from the ERP, enriched in the central PIM (Product Information Management) system, presented via the online shop and sold online. In addition to the online sales, the e-commerce platform is responsible for the coordination of the required data from the specialised systems and the initialisation of the corresponding processes. Along with the e-commerce functionalities, the e-commerce platform provides a CMS system through which the various content areas, such as online magazine, “Looks”, or the microsites (www.pkz.ch, www.feldpausch.ch, www.bluedog.ch, www.burger-zurich.ch) are maintained |
| Integration system | In order to reduce the end-to-end interfaces and to centralise the interface logic, a central integration system is responsible for the communication and the data exchange between the systems. |
The term multi-channel retailing means the parallel use of several offline and online sales channels (stores, printed catalogue, website, online shop, smartphone). For retailers, this translates into new challenges in the channel integration and the synchronisation of these customer touchpoints. In addition to ensuring consistent communication that matches the target groups, the channel-specific customer needs must also be taken into account.
> This article was published in the Marketing & Kommunikation magazine. A pdf (800 KB) can be downloaded here.
