|Sumesh K Menon||20-07-2016||0 comments|
The growth at which Online sales grows is always been a nightmare for the conventional retailers, especially for those who runs chain of physical stores. They can relax now. Experts say that, you will benefit more by having a clear synergy between Physical store and online store and increase your business and customer retention.
One of the research articles in Harvard Business Review magazine clearly shows, how retailers can maximise their revenue by having an orchestrated strategy to use both the channels. Research findings are interesting. It says that, “Encouraging online customers to visit a store doubled profits ”
Understanding about a customer’s demographic and purchasing behaviour is crucial here. Some of the questions you should ponder on before strategising are
Do a sample rollout and find out
Lets take a scenario, Customers are encouraged by Coupons, and you already have an Omni-Channel presence with few physical stores and an online store. Study shows that, After a close look on the purchasing behaviour of a segment of customers, its been found that, when you encourage your Online customers by offering discount coupons which can be redeemable at any of your physical stores, the profits increased multi fold. But study also shows that reverse is not true, ie., when you encourage your offline customers to buy from online store by giving discount coupons, shown a result decrease in profit by 51%.
Why the profit is increasing when encouraging your online customers to visit physical store ?
This strategy will be more effective, especially if you have some intelligent data with regards your customer demographic profile.
Like, encouraging online customers to visit offline store can me more effective,
These points clearly shows that if you have physical store along with an online store you can create a match winning game by effectively implementing right strategy. And this is being validated by real time stories, where the online only stores , have started heavily investing in physical stores. For Eg: Amazon has already started one store in Seattle and on its way to open few others too.
In a nutshell, Physical stores are more important than ever before, if you start to embrace the balance between online and offline store.
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Ref: Harward Business Review – july-august 2016 edition.