Tag: multichannel

Ikea will focus on stores, not ecommerce

Strong words from the CEO of Ikea.  Furniture Today has an article today that says that a memo is making the rounds in Sweden from Anders Dahlvig, CEO and President.

“According to the memo, which came from Anders Dahlvig, Ikea’s CEO and president, the Swedish company will focus on the in-store experience as “the only sales channel,” putting a halt on “further investments to develop the Home Shopping or Online sales channel(s).”"

An Ikea spokesman followed up later stating that there are no plans to discontinue ecommerce in the US.

This is a surprising move for Ikea, given the fact that their supply chain and merchandise is specifically designed to be small and transportable before reaching the consumer.  Out of all of the furniture retailers, these guys are set up perfectly to excel in the ecommerce market. 

I’m a firm believer in focusing on a few things you can do really well, but abandoning the ecommerce market is a bit too narrow for me.   Either way, it’ll be interesting to watch.


Shop.org 2007 Annual Summit

I’m going to be attending the Shop.org Annual Summit on Sept 17-19th particpating in the online and multichannel event.  If you are going as well, drop me a note and we can connect for a drink, my treat, after the sessions.


Implementing Buy Online, Pick up in Store

Nikki Baird of Retail Systems Research has written a great article about implementing buy online & pick up in store in their weekly column Retail Paradox.  She talks about the ROI potential and if it is necessary for retailers to implement these capabilities. 

Is buy online/pick-up in the store (BOL/PUIS from here on out) the cross-channel activity with the highest ROI? The panel’s consensus: the ever-popular answer, “It depends.” It certainly can provide a solid ROI – despite fears of channel cannibalization, whether coming from stores or from online, BOL/PUIS actually offers growth opportunities. It captures online sales that would have been lost because the consumer needed it “right now.” It also is additive to in-store sales, as consumers coming into stores tend to purchase more than just the item they came in to pick up.”

I agree with these statements and they are all very valid.  I also think that it’s beyond the ROI you are able to measure directly in same store sales year over year.  It comes down to customer experience and the loyalty that the positive experience generates.  We know that 17% of store sales, about $400 billion, is currently influenced by online research.  Forrester predicts this to be over $1 trillion in the next 5 years.  As the reliance on information on the web continues to increase, customers will demand to be able to do business in whichever channel suites them at that particular time.  If a consumer is not able to achieve the experience they are looking for, their loyalty will go elsewhere.  (continue reading…)


Using all channels to improve customer service

Internet Retailer has an interesting article about the importance of good customer service for online retailers with some hints at using different channels to improve the customer experience. 


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