Mid-Market Retailers Compete Using Cross-Channel Execution

More mid-market retailers are embracing cross-channel strategies in order to compete in an increasingly challenging marketplace. Almost one third (32%) of retailers are addressing cross-channel challenges in 2012, up from 24% in 2011, according to Aberdeen Group in the survey report, titled: The Curious Case For Mid-Market Retail Transformation.

One of the primary reasons mid-market retailers are increasing their focus on cross-channel challenges is: elevated customer expectations. Most (57%) of consumers expect mid-market retailers to sell products at a better price than both larger and smaller competitors, and deliver that product anytime and anywhere, Aberdeen reported in its 2012 report, titled: Best-In-Class Strategies To Overcome Disconnected Customer Experience.

Mid-market retailers are responding to competitive pressures by focusing on four key strategies:

• Collect relevant customer information at every customer touch point: 29%
• Develop a multi-channel, multi-touch marketing plan: 35%
• Create a centralized view of customer data: 35%
• Align IT with customer and business interests: 24%

Upgrading Store Operations

While improving overall cross-channel strategies, mid-market retailers also are realizing the value of boosting store operations performance. As many as 58% of retailers said they were focused on upgrading store operations in 2012, compared to 44% in 2011.

To do so, these merchants are integrating more digital solutions in order to automate processes and address issues such as showrooming. They are upgrading business processes, such as inventory management, customer service management, employee management and back-office functions, Aberdeen reports.

But updating store operations comes with significant challenges for mid-market merchants. Some of the issues they must face include:

• Multi-generational and legacy technology applications: 44%
• Too few IT resources: 28%
• Separate channel organizations: 44%
• No single owner for the omnichannel customer experience: 28%

Addressing Online Technology Challenges

Almost all (94%) of cross-channel initiatives undertaken by mid-market merchants involve the online channel in some regard, in part due to the fact that 67% of shoppers are conducting online research prior to completing purchases.

In order to compete in this complex environment, retailers must employ the latest technology solutions that address personalization, product information management (PIM), and cross-channel operational alignment.

Mid-market retailers cite six key items on the wish-list for improving the online experience:

• Standards-based integration techniques for processes and tools: 77%
• Ability to integrate mobile and social applications with traditional cross-channel applications: 76%
• Ability to engage customers when they enter the online store: 72%
• Real-time customer KPI performance tracking: 66%
• Incorporation of daily/weekly consumer insights into promotional plans: 65%
• Up-to-date product information shared across channels: 53%

Key Takeaways For Mid-Market Retailers

Aberdeen noted six key tactics for mid-market retailers looking to compete in the long term:

1. Deploy automated store-level solutions that shoppers want to use;
2. Bring cross-channel integration down to the store level;
3. Focus on mobility initiatives for consumers and employees in-store;
4. Apply standards-based architecture to reduce the lack of connectivity between customer-facing and back-end operations;
5. Employ cross-channel customer process unification; and
6. Measure store and channel systems performance daily.