As we come back from the Independence Day holiday, consumers actually have a lack of independence to celebrate: the impending end of retail channel independence. Rather than cannibalizing offline sales, the online channel complements it, with online-to-offline tools like store locators among some of the most popular cross-channel marketing tools, according to the State Of Retailing Online. As consumers increasingly cross channels, they bring their expectations with them, pushing retailers to provide the best of all channels consistently across each one. How should retailers celebrate "Channel Dependence"?

Renew family togetherness. If your family is as dysfunctional as mine, you quickly become philosophical about the family togetherness event. What drives loyalty to this chaotic bunch of people who are better known for their idiosyncrasies than their normality? Retailers wax philosophic about loyalty too -- what does retail loyalty mean, anyway? For most consumers it means the basics: price, product, and location, all of which placed above trust in the retailer and top service. So, how can retailers build loyal consumers? Not through loyalty points, but through customer experiences that link to the retailer's brand proposition. After all, the weird aunt who hands out candy is popular for a moment, but playing with cousins lasts all day long.

Pick the right venue. When it comes to the big fireworks show, every municipality tries to attract people to its own events. Some focus on the food, some on the parade, and some on "family events" that have activities for kids. One city in my area is even going after exclusivity: Only people who can verify that they are residents will be allowed in. But just as cities that focus on only one aspect of the experience miss out on the small-town feel and sense of community that is really the core of the experience, retailers that focus on one aspect of their business -- a parade of products to tempt consumers, for example -- miss out on delivering on the core of the shopping experience. Grocery in particular has really struggled with this issue as it gets squeezed between Wal-Mart on the low end and Whole Foods on the high end.

But as consumers get accustomed to technology as part of the shopping experience, thanks to both online shopping and self-checkout, there are opportunities for technology to enhance the grocery experience -- everything from shopping list management to personalized coupons to deli-ordering kiosks. As long as technology helps shoppers achieve their trip objective, consumers are pretty reasonable about trying new helpful technologies.

Watch the big show. No matter what you do during the day, at the end of the day the celebration comes down to the big fireworks show -- and there are big fireworks headed retail's way. Consumers' behavior is much more converged across channels than it used to be. But even though it's difficult to divine consumer technology adoption, that's not really the hardest part. The bigger questions -- and the bigger clashes -- will come over which technologies are best positioned to support these converged retailing experiences. Between POS, eCommerce platforms, and ERP systems, there are multiple overlaps in how to deliver everything from loyalty to promotions to in-store Web experiences -- and no clear answer as to which tools are ultimately the best ones for the job.

So, while consumers celebrate cross-channel experiences by rewarding the retailers that figure out how to enable them, retailers must look ahead to a rougher ride. Truly being consumer-centric means letting the consumer take the wheel of the business. Where will they take us? Into new territory, certainly, but one covered in creativity, experimentation, and community-driven experiences. As channel independence fades away, let the innovation begin!

Happy 4th!
Nikki

Research Referenced In This Issue Differentiating The Grocery Experience (39000) How Digital Media Transform In-Store Marketing (37627) Online Retailers Face A Tough Road Ahead (38978) The Voice Of The Store Manager (39491) Understanding US Cross-Channel Shoppers (38127) US Youth Shopping Data Overview (39339) What Drives Retail Consumer Loyalty? (39390) Who Buys Custom Consumer Products? (39664)

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