Majority of Retailers Receive Failing Grade on Cross-Channel Integration

- February 11, 2010

Santa Clara, CA. – February 11, 2010 –

CrossView, a retail technology solution provider whose clients include Advance Auto Parts, Moosejaw and vineyard vines, recently completed a study of the cross-channel capabilities of 26 top retailers. Included in the study were Best Buy, Target, Abercrombie & Fitch and PetSmart, among others.


The study finds a majority of retailers are failing on cross-channel integration. Highlights of the study include:

·    58% of retailers offer different prices across channels on the same item

·    Only 38% ensure marketing promotions are available across all channels

·    96% of retailers cannot access online customer profiles in-store or via call center 



“This study tells us that the majority of retailers have a long way to go when it comes to meeting customers’ needs across their web, in-store and call-center touch points,” notes Mark Fodor, CrossView’s CEO. “However, some retailers we examined, such as Best Buy, have made great strides in integrating across channels, primarily by using platforms that allow a single view of the customer at all stages of interaction.”


 
Also of interest is CrossView client Moosejaw, which has implemented a true cross-channel platform, scored perfectly on the criteria outlined in the study. "Moosejaw is a strong example of how even mid-sized retailers can seize the technology capabilities available in the market today to gain a single view of the customer," Fodor observed.



The study examined 26 top retailers between December 1, 2009 and December 11, 2009 across three channels: online, in-store and call center. The retailers were evaluated using a variety of criteria, including consistency of pricing and promotions, and access to customer profile information. The highest scoring retailers were Best Buy, The Limited and Aeropostale. 
 
 

“This mystery shop and data-driven approach of CrossView is quite impressive. This is an effective way to classify the retailer's readiness towards the growing needs of the digital customer. The cross-channel benefits, opportunities, and pitfalls as faced by some of these top-tier retailers is reflective of big picture challenges facing cross-channel retailers and consumer industries as a whole. Especially poignant is the extent of actual disconnects and the lack of integration has been captured between traditional and non-traditional sales channels. Lack of unified and coordinated pricing, promotions, customer relationship management, and order management shows that there is a gaping hole to fill when it comes to customer connectivity. Aberdeen data indicates that at least 65% of multi-channel retailers signify lack of cross-channel integration leading to high sales opportunity costs and loss of customer share of wallet. CrossView's mystery shop results display a similar trend", says Sahir Anand, Research Director, Retail, Hospitality, and CPG, Aberdeen Group- a Boston-based technology research firm.
 


Other channel-specific findings from the CrossView study include:

Web

“The web proved to be the strongest performing channel, which we expected,” according to Fodor. “The study validated significant failings of retailers to translate what works for them on the web into other channels. A consumer may be able to create a customer profile online, yet most retailers can’t get a view that information in the store or within their call center.”

He added: “Among many of the retailers examined, there were missed opportunities for up-selling, building customer loyalty, and increasing convenience online, which puts them at a disadvantage when compared with competitors who have already stepped up their online game.”

Findings specific to the web channel include:

·   Only 35% of retailers allow in-store pick-up of online orders
·   
69% of retailers display appropriate accessories alongside products
 
·   96% of retailers studied offer both product descriptions and availability status 


Call Center

“Most call-center reps were able to provide the same level of product detail that was available on the web. The biggest inconsistencies were in pricing and promotions. Many still aren’t offering the same promotions that consumers are finding online, and some even refused to match online pricing. This is incredibly frustrating for shoppers, leading to feelings of distrust and increasing the likelihood of defection,” said Fodor.


Call-center highlights include:


·   62% of retailers could not access online customer profiles 
    
·   55% of call-center representatives failed to up-sell or cross-sell
 
·   12% of retailers offered different prices via phone than those quoted online 
 


In-Store

“By far, in-store is the most deficient channel,” Fodor observed. “There is a complete and glaring gap in access to inventory, customer information, and promotions. As more consumers begin a purchase online, they’re coming into the stores armed with information on the product and the competition. Retailers will increasingly need to be prepared to react,” he said.


He added, “Even for those who do have access to the information, the process of obtaining it in-store can be cumbersome. It may only be available at customer service desks, which often have long lines, or require a manager’s assistance. All of these obstacles decrease customer satisfaction.”

·   Only 1 of the 26 retailers surveyed could access the customer’s online profile 
  
·   93% were unable to access pending online orders
35% could not match online promotions 


About CrossView:
CrossView brings more than 12 years of experience building cross-channel solutions for clients ranging from top 10 Internet retailers to organizations expanding into multiple channels. CrossView’s premier product suite is integrated with a company’s core retail management systems to bring together all of the information around customer, orders, products, pricing, promotions and inventory and make that information available to shoppers across all sales channels. For more information, visit www.crossview.com.

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