Omnichannel Retailing: Guidelines for Successful Implementation
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School of Business |
Bachelor's thesis
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Authors
Date
2017
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Mcode
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Markkinointi
Language
en
Pages
36
Series
Abstract
Today retailing is turning into omnichannel retailing, which means the integration of multiple retail channels into one, seamless experience. Omnichannel retailing means that the barriers of physical stores and online stores disappear. This change is due to new technologies which in consequence alter customers’ shopping expectations and behaviour: customers use several channels to make a single purchase, they expect to move between different channels and to get seamless experience no matter the channel they choose to use, and they want to have the benefits of both physical stores and digital retail. Now retailers need to find out how to implement omnichannel retailing most successfully if they want to stay in the retailing competition. This thesis provides guidelines for omnichannel retailing’s successful implementation, and in addition defines omnichannel retailing and tells about the consequences of omnichannel retailing. In order to succeed in the implementation, retailing channels can’t be considered as independent units, but all the touch points need to be unified and they need to have the same concept. Online and offline must be combined for example within product fulfilment and information delivery. The role of the physical store should be changed for example into a retailing hub or a showroom. Customers need to be provided with personalized content, which can be done with the help of data collection and technological applications. Technology can also be used in physical stores: in creating the store experience and in helping the sales staff. Within logistics the implementation requires increasing delivery speed, expanding delivery modes and integrating procedures. The organizational structure needs to become seamless, which means that silo thinking must be removed. In addition, incentive systems and measurement methods need to be renewed so that they support omnichannel retailing. For example, analysing channels separately can lead to misunderstandings. Assortments and prices need be the same across different channels, except for some assortment adjustments. Prices need to match those of pure online retailers so that sales are not lost. However, some say that omnichannel retailing makes customers willing to accept higher prices compared to the prices of online retailers. Moreover, customers’ privacy related to data collection, and sales techniques that suit omnichannel retailing need to be taken into account. Omnichannel retailing creates many benefits for retailers: it increases sales, traffic and customer satisfaction. It provides synergies, and enables retailers to take advantage of the best sides of the channels and deal with the negative aspects. However, it isn’t easy to effectuate omnichannel retailing. The implementation causes costs and omnichannel retailing increases competition between retailers. In addition, sometimes the consequences can be negative. For example, showrooms can increase online sales that lead to increase of returns and decrease of profits.Description
Thesis advisor
Kajalo, SamiKeywords
omnichannel retailing, implementation of omnichannel retailing, integrated multi-channel retailing, integrated cross-channel retailing, retailing