28/01/2010
By Scott Thompson
Retailers face a serious risk of customer churn in attempting to sell between channels, according to the 2010 Multi-channel Retail Report from e-commerce provider, GSI Commerce.
The company polled the views of a representative sample of 2,043 British adults with research specialist Maximiles. When consumers were asked what their typical online response would be to finding that an item was out-of-stock on the High Street, 69 per cent claimed they would visit other brand's websites to compare prices on the same product. Fifty three per cent would enter the product's details into a price comparison engine and 41 per cent say they would simply type the product details into a search engine and review the results. Just four in ten consumers claim they would simply visit the website of the retailer whose shop they had originally visited.
The data also revealed an opportunity for multi-channel retailers to convert seemingly negative customer experiences into sales. More than eight in ten consumers claim that, if given the option, they would be likely or very likely to order an out-of-stock item online while still in the store.
"If you find yourself out-of-stock and leave your customers to walk out the door and search the internet, there's a very good chance that you'll lose the sale to your competition. In a sense, having multiple channels gives retailers a fantastic opportunity to extend their shelf space on the High Street. If you offer a line of five items in-store, you should make sure you also offer 20 items via your 'online inventory' so that, should you run out on the High Street, either the customer or staff can still purchase and order the product on the spot," says Steve Davis, EVP and president international of GSI Commerce. "The cost of retail real estate is so high that it's vital that retailer make the most every single High Street interaction. By expanding the range available to the customer, multi-channel retailers can simultaneously expand both their service and sales opportunities. In many cases it is even possible to reduce in-store inventory while growing customers' selection."
