UK: Serving The Connected Consumer :The Multichannel Retail Opportunity

Last Updated: 14 April 2011
Article by Deloitte Consumer Business Group

Most Read Contributor in UK, August 2017

According to our latest research, 44% of Retail transactions in the UK involve interaction with multiple channels such as in-store, online, mail order and catalogue.

The Connected Consumer

Customers are driving change and retailers need to respond faster than ever before.

30.11 million people access the internet every day and smartphones are owned by 29%2 of the UK population. These people are what we call 'Connected Consumers', they expect to be connected to their friends, family and favourite retailers all day, every day, wherever they may be.

Our research3 shows consumers who research and shop across multiple channels are spending substantially more than those who shop solely online or in store. These digitally influenced consumers are worth 44% of all (non-food) sales and retailers need to be on their 'like' and 'favourites' lists.

This poses a great challenge for retailers who need new capabilities to compete – real time stock visibility, click and collect, customer reviews, same day delivery – this involves new systems, processes and a whole new way of working and measuring performance.

Figure 1. Evolution of the retail landscape

The opportunity

Multichannel consumers are spending more per visit than those who shop solely online or in store.

In a low growth environment Multichannel retail is a key growth opportunity as shoppers demand more information, faster interaction and a seamless, consistent service on the sales floor, on the phone and online.

Our Multichannel retail consumer research1 shows:

  • 21% of all online transactions involved some research in-store. Physical stores are becoming showrooms, high service locations and convenient collect and return points.
  • Increasingly, online growth appears as sales diverted from other channels, mainly physical stores, thus the traditional 'sales per square foot' metric is likely to start falling. In a Multichannel retail world, return per foot is becoming an unreliable measure of the true return from retail footage as consumers browse in store and complete their transactions online.
  • However evidence suggests retailers enjoy higher online sales in areas where they have a physical presence. Store visits are driving online sales.
  • Pure online retailers are also becoming virtual Multichannel retail players as they benefit from shopper Multichannel behaviours, picking up sales as a result of shoppers researching in the physical stores of other retailers. 15% of sales from a major UK online retailer involve research in competitors' physical stores.

Figure 2. Connected Consumer

Connected consumers are harnessing technology to ensure they are well informed and paying a fair price before completing their transaction. We found:

  • 19% of consumers use review forums to help with purchase decisions.
  • 5% of transactions were made after receiving an email discount offer.
  • 11% of transactions were made as a result of using a price comparison website.
  • 15% of consumers use voucher code websites and 4% of transactions in the past 3 months were as a result of visiting a voucher code websites.
  • 95% of the UK consumers have a mobile handset, 26% of them access the internet through their mobile device and 19% browse the internet once a week or more frequently.

This greater confidence is resulting in higher value and higher volume purchases.

Benefits of serving the connected consumer

Many retailers still approach Multichannel retailing as discrete channels working in isolation rather than enabling the consumer to shop seamlessly across any channel.

True Multichannel retailing is not only good for the consumer but also for business:

  • Increase conversion – Retailers can now reach the consumer at the point of need rather than simply at the point of purchase. This opportunity to increase conversion will require retailers to evolve from selling products to selling services and experiences.
  • Influence consumers across their shopping journey – Connected consumers have instant access to information to fulfil any spontaneous shopping requirements.
  • The opportunity to create a unique, consistent consumer proposition – The increased number of channels requires retailers to develop a unique and consistent communication strategy across all, making a number of cost savings in the process.
  • Capture rich consumer insight – As the connected consumer volunteers and shares information, retailers can leverage this one-to-one dialogue through consumer data analytics to create a one-to-one customer engagement model.

A checklist for Multichannel retail growth

Exploiting the Multichannel retail opportunity requires a retailer to rethink all aspects of the business.

Aligning your strategy to the connected consumer

  • Defining your Multichannel retail strategy Developing a Multichannel retail business strategy that is consumer led and aligned to business goals.
  • Determining whether to build or buy Determining if an acquisition of an existing retail business could accelerate access to a specific channel, technology or consumer.

Building the foundations of a Multichannel retail proposition

  • Achieving a single consumer proposition across channels Creating a single consumer proposition through Multichannel retail interactions (web visits, ecommerce transactions, marketing campaigns, promotions or loyalty cards) to gain insights and an understanding of how to build better relationships and grow profits.
  • Ensuring marketing effectiveness Optimising marketing investments across channels to drive top line growth whilst improving efficiencies in marketing execution.
  • Search engine optimisation and social media Driving search engine rankings and through social media bringing the consumer closer to the business, driving a collaborative approach to product development and sales.

A Multichannel retail operational model

  • Re-designing your operating model Assessing existing business capabilities against future consumer requirements and defining the most appropriate operations and technology required to serve the consumer.
  • Aligning your people and organisation Integrating organisation key functions (e.g. merchandising, pricing, customer service) and aligning performance measures, incentives, culture and learning to incentivise and deliver a seamless Multichannel retail consumer experience.

Drive Multichannel retail profitability and long term growth

  • Running a profitable operation Identifying and understanding operational levers that can reduce costs and improve profitability across a Multichannel retail operation.
  • Redesigning your supply chain Enabling real-time visibility of inventory and forecasting demand across all channels.

Enabling flexible, cost effective fulfilment.

Technology transformation

  • Selecting and integrating the best technologies Choosing the best technologies to serve the consumer and meet the needs of a fast changing business.
  • Optimising your website Improving how consumers find, access and interact with your website.
  • Ensuring information security and service continuity Identifying and managing technology related risks that affect Multichannel retail operations such as PCI/DSS compliance, business continuity, data privacy, security governance, data quality and IT controls.

Defining and executing growth strategies to expand Multichannel retail businesses and consumer offerings

  • Expanding internationally Utilising the online channel to accelerate international expansion by developing an international growth strategy and defining the priority markets, commercial and operating model to execute the strategy.
  • Aligning tax and duties with international fulfilment Reviewing retail operating models to ensure compliance and appropriate application of VAT, Customs Duties and Corporate Taxes.

Footnotes

1.ONS – www.statistics.gov.uk

2. The Deloitte Multichannel Consumer Survey carried out face-to-face interviews with over 2,000 shoppers. The size of the Multichannel opportunity was measured over a

3 month period between September and November 2010. 3. Deloitte Research Survey – Perspective on the mobile consumer, 2011.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.