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Learn about the strategic advantages of multi-channel retailing
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Philip Jacob
By Philip Jacob
Published on Friday 28th 2009
 
The strategic advantages of multi-channel retailing includes providing retailers with resources like propriety customer information and seamless customer interface.

Learn about the strategic advantages of multi-channel retailing

Multi-channel retailing is helpful to retailers in quite a few ways. Apart from synchronizing customers at various touch points it empowers the retailer with certain strategic advantages.

 

Multi-channel retail helps to develop certain resources which cannot be found out or duplicated by competitors. One such resource includes propriety customer information. The other one is tacit knowledge for providing a seamless customer interface. Both these resources help to build customer loyalty. They also help to bring down costs.

 

As store-based retailers many find it difficult to develop a detailed customer purchase history data. This happens because it is almost impossible to link customers to transactions when the customers pay cash or use third party credit cards. To solve these problem retailers dole out loyalty program cards or solicit for identifying information like telephone numbers.

 

Multi- channel retailing obviates most of these necessities. As most transactions take place online, catalog channels have customer identification information required to send the product to the customer. This apart, internet channel helps to collect data about consumer search behavior as well as transactional data. So, multi-channel retailers have a greater opportunity to have access to extensive, propriety information about their customers. The information can provide a huge and effective leverage to their marketing activities.

 

The tacit advantage of multi channel integration is another strategic resource possessed by multi-channel retailers. Consumers always wish to have a smooth and error free experience when dealing with multi-channel retailers. Some such seamless advantages include buying a product through the retailer’s online channels and picking it up or returning it to a local store; looking for a product on the Internet channel at a local store; and, when unable to find it, finding if it is available for home delivery through the Internet channel. Such seamless exchange is easy, simple and highly challenging.