Report: Multichannel Retail: Using Integrated Technology to Achieve Cross-Channel Brand Consistency TOC

Disparate systems must be linked to provide services expected of a multichannel retailer
Application suites provide the visibility required to run a successful multichannel operation
BT Expedite leads, but the multichannel space is immature so expect market consolidation

Retailers and consumers are interacting through multiple channels and touch points
- Online remains a retail sales growth channel through the downturn
- The catalog channel is heating up as grocers start competing in the space
- Kiosks extend the instore offer and put information at the fingertips of the shopper
- Mobile is mostly used as a marketing tool but expect the channel to be used for purchases in the future

Trading across a number of platforms pushes retailers to focus on cross-channel services
Disparate systems must be linked to provide services expected of a multichannel retailer
- Retail systems were not designed to interact with one another
- Current consumer behavior drives retailers to integrate bricks and mortar stores with online store systems

Brand and service level consistency across all channels is vital for customer loyalty
- Consumers see brand, not channels
- To maximize customer loyalty, consistency is paramount in multichannel retailing
- Data is not being managed at a multichannel level in the UK retail sector
- Without data sharing, many of the top UK retailers are not achieving cross-channel brand consistency

Data sharing provides the visibility required to run a successful multichannel operation
- A single view of inventory data is necessary for building multichannel consistency
- A single view of customer data across channels helps retailers provide consistent customer services
- A single central repository is required for a single view of a retail organization
- The need for data sharing is reduced when using an application suite

Multichannel application suites are not ideal for all types of retailers
- Multichannel suites are not suitable for retailers with complicated supply chains or those with a large amount of customer data
- SMB retailers and those dealing with less data are suitable sectors for a multichannel suite
- Multichannel suites vary in terms of focus on the central process

BT Expedite leads, but the multichannel space is immature so expect market consolidation
- The multichannel retail market is immature
- BT Expedite is leading the pack in the UK retail multichannel application suite space
- Market consolidation warms up competition, threatening BT Expedites leading position

Target the retail CEO and CFO, selling against customer service and loyalty benefits
- The CEO is the technology decision maker in a retail organization
- Sell against retailers multichannel priorities

Firstly understand the retail organization, as not all are suitable to multichannel suites
- Build an understanding of the retail organization, and sell against the pain points
- Mid-tier retailers are great candidates for a multichannel suite
- Multichannel application suites are most suited to the fashion industry
- Allow flex for change and growth

Figure: Online retail spending in the UK increased by nearly 73% from 2003 - 2008
Figure: Consumer broadband subscriber number growth in the UK is petering out and online retail sales are following trend
Figure: Food & Grocery, and Electricals account for 51% of online retail in the UK in 2008
Figure: Increasing customer satisfaction is the top UK retail priority for IT investment in 2009
Figure: Customer brand interaction is more intricate in 2009
Figure: 40% of males research products online before purchasing instore
Figure: Cross channel brand consistency translates into customer loyalty
Figure: Shared inventory and customer data are currently not managed at a multichannel level in the UK retail sector
Figure: Few UK retailers are achieving customer expectations in terms of cross-channel consistency
Figure: Multichannel retailing requires a single central repository
Figure: Datamonitor estimates that BT Expedite is the clear market leader for software and services to UK multichannel retail
Figure: None of the leading multichannel suite providers are offering all multichannel application modules
Figure: Retail CEOs have taken charge of IT purchasing decisions in the UK retail sector

Multichannel Retail: Using Integrated Technology to Achieve Cross-Channel Brand Consistency