Merchandising 2.0

Implementing the strategy

How do operations, finance, and systems match this synergistic approach? The majority of multichannel businesses still have fragmented systems. Lacking systems integration, they must maintain information in multiple channels, which means greater potential for errors and inconsistency between systems.

The key to cross-channel consistency is having single operational data stores and data warehouses across all channels for access to cross-channel product assortment. In other words, you'd like everybody to be using the same data — information entered into one system of record and moved electronically to multichannel systems.

How? Start with systems development. Open standards and service-oriented architecture (SOA), a way of designing programs so systems are integrated and can exchange data, is becoming more commonplace.

To get the information you need to provide consistent customer experience and service across channels, you should do the following:

• Provide online, real-time visibility of inventory across channels
• Price products via the item master, which has dozens of data points (description of item, vendor, when available, cost, retail selling price)
• Develop a single purchase order writing and maintenance process
• Accept gift cards/certificates as payment and validate them online across channels
• Investigate alternative payment methods such as PayPal and Bill Me Later
• Accept returns at any channel
• Determine what strategy gets the highest percentage of recovered cost to achieve overstock reduction and liquidation through stores and e-commerce.
• Offer customer loyalty programs across channels
• Be able to offer customized or special merchandising products
• Provide consistent pricing and promotions across channels.

Keeping your prices and promotions consistent across channels doesn't mean that better customers don't get specials or services such as free shipping, or that store sales or regional price points aren't sometimes necessary.

But there must be a rationale for discrepancies, and that means a sophisticated product-pricing engine that can manage all channels. There might be regional competitive reasons to change prices, for example.

Also bear in mind that while product copy and length may vary between channels, there should be a single statement of product information of the particulars about the product that remains constant across channels.

Different channels of the same business no longer have to compete for sales. Encouraging creativity between marketing, merchandising, and retail management will make different channels more synergistic, increasing sales beyond what channels can do single-handedly.

---

Curt Barry is president of F. Curtis Barry & Co., a Richmond, VA-based fulfillment consulting company.

Related Articles:

Web 2.0: What It Really Means to You
The Effective Website: Keeping Your Eye on the 2.0 User
Analytic Tools Meet Web 2.0