Forrester Research: Forrester Retail Insights Retail First Look: Research & Event Highlights From Forrester

 07 Nov. 2005
Did You Know . . .
61% of consumers have used self checkout, but only 41% of them found it valuable.

93% of Web buyers notice how much a retailer charges for shipping and handling.


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November 17, 2005, 1:00 p.m.-2:00 p.m. Eastern time


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Using Web Content Management To Drive eCommerce, with Kyle McNabb and Tamara Mendelsohn.
Original air date: October 20, 2005



The Top Five Reasons Consumers Abandon Shopping Carts
The Top Five Reasons Consumers Abandon Shopping Carts

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The online channel has grown up independently of its parents, brick and mortar, and historically the generation gap has prevented the two from working together. They don't speak the same language (how many store systems know what SOAP is?), and they don't understand each other's problems (the younger, hipper Web just doesn't get inventory shrink), but they are increasingly dealing with the same consumers -- hence the need for some family therapy and flexibility. Stores are working on getting smarter and the online channel is beginning to reach out and help address in-store issues. Technology created this problem in the first place, so it is only natural that it will play a part in solving it. Here are a few that are working to bridge the generation gap.

  • Employee handhelds. Wireless LAN (WLAN) deployments are increasing -- 38% of retailers have at least pilots running, and another 23% are evaluating the technology. Why does this matter? Because WLAN enables retailers to implement employee handheld devices, and armed with detailed product information through these devices, store employees are better equipped to meet customer needs by offering the right cross-sell and upsell recommendations. Casual Male sales associates carry handhelds that are integrated with the CRM database, allowing them to help customers find outfits that will appeal to them based on their clothing size and preference.


How The Web Is Changing In-Store Experiences

  • Kiosks. POS upgrades and broadband access in stores have made way for stronger, more integrated kiosks. Successful kiosks carry complex integration requirements and require careful usability testing, but if deployed correctly, will serve as a key tool in bridging the offline and online worlds. The Product Advisor kiosk at OfficeMax -- driven by eCommerce data -- helps consumers understand the differences between complex products like digital cameras and makes recommendations based on consumer input.

  • Consumer devices. Handheld and portable devices are beginning to give shoppers more control over their in-store experiences. Stop & Shop Supermarket allows customers to build shopping lists online at home and then access them in the store via its Shopping Buddy -- a wireless device that can be attached to a shopping cart. Shoppers at the Container Store in Manhattan can register a credit card number at the counter and get a wireless handheld scanner. As they walk the aisles, they scan in bar codes on desired items then pay for the purchases, which are then delivered to their homes. Devices that consumers bring with them, like mobile phones, are also emerging as a means for stores to connect with consumers. Early adopters are beginning to test the potential; for example, Jacksons, a UK convenience store chain, sends weekly offers via SMS to shoppers who opt into their mobile coupon program.

  • Loyalty programs. According to The State Of Retailing Online 8.0, a Shop.org survey conducted by Forrester Research, only 48% of retailers capture customer information across channels, and this lack of visibility into all customer touchpoints leads to disjointed customer experiences. When retailers integrate loyalty programs across channels, they get insight into data on customers' cross-channel habits and value. CVS' cross-channel program gives it visibility into its most loyal customers, where they shop, and what they rely on each channel for, allowing the retailer to tailor promotions by customer segment.

  • Commerce platforms. A commerce platform should support more than just the online channel. While traditional commerce platforms focused solely on the online environment, today they have a much more multichannel focus with features like multichannel gift registry and campaign management tools that can include unique promotions for Web, email, and even kiosk channels. Williams-Sonoma's commerce platform drives its multichannel gift registry, which can be accessed online, through the call center, or on kiosks in the stores.

  • Web content management (WCM). As true multichannel marketing emerges and retailers push dynamic, customized content into the brick-and-mortar environment, the role of WCM systems becomes crucial. Many retailers invest in niche technologies to drive these initiatives, resulting in different systems for in-store media, Web, email, and print. Firms should think about these activities more holistically to avoid overlapping investments: When retailers centralize management of content, they can leverage it across channels to ensure consistency and avoid overlapping investments. The Natural History Museum in London uses its WCM system as a central source for scientific research, collections, and exhibit information and then pushes the content to kiosks within the museum and to the Web site.

These are some of the multichannel areas that I will focus on as an analyst on Forrester's retail team. If you have any comments or topics to recommend, drop me a note at tamaramendelsohn@forrester.com. I'd love to hear from you.

Tamara Mendelsohn
Analyst



Research Referenced In This Issue

Getting Retailers Started With A Loyalty Program (36755)
How The Web Is Changing In-Store Experiences (37988)
Kiosk Industry Flails For Usability (36920)
Smarter Stores: Are We There Yet? (37497)
The Forrester Wave™: Commerce Platforms, Q2 2005 (36435)
The Forrester Wave™: Global Delivery Infrastructure Management, Q4 2005 (35915)
Winning In A Wal-Mart World (15484)


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