Read "How to make the most of Omnichannel retailing" and answer the following:
- Assume you are the marketing manager for a small but growing regional omni-channel retailer. You come across this interesting HBR article. Provide a brief synopsis to send to your company's CEO which includes details of Dr. Luo's research study, its findings, and provide actionable strategies for your company based on the findings.
- Why is it that encouraging online customers to visit a store increased profits while incentivizing in-store customers to shop online decreased profits?
- Gathering support from this article indicate why Amazon is opening brick-and-mortar stores (or acquiring Whole Foods).
This is the article link: https://hbr.org/2016/07/how-to-make-the-most-of-omnichannel-retailing
Full Answer Section
The article also provides several actionable strategies for retailers to improve their omnichannel performance. These strategies include:
- Creating a seamless shopping experience: Retailers should make it easy for customers to switch between channels, such as by allowing them to view their online cart in-store and vice versa.
- Personalizing the shopping experience: Retailers should collect data about their customers' online and offline behavior and use this data to personalize the shopping experience for each customer.
- Providing incentives for cross-channel shopping: Retailers should offer incentives for customers to shop across channels, such as by offering free shipping or discounts for customers who make purchases both online and in-store.
I believe that these strategies can help our company to improve its omnichannel performance and increase profits. I would like to meet with you to discuss these strategies in more detail and develop a plan for implementation.
Thank you for your time and consideration.
Sincerely, [Your Name]
Why is it that encouraging online customers to visit a store increased profits while incentivizing in-store customers to shop online decreased profits?
There are a few reasons why encouraging online customers to visit a store increased profits while incentivizing in-store customers to shop online decreased profits.
- Online customers who visit a store are more likely to make impulse purchases. When online customers visit a store, they are exposed to more products and more marketing messages. This can lead them to make impulse purchases that they would not have made if they had only shopped online.
- Online customers who visit a store are more likely to spend more money. Online customers who visit a store are more likely to be in a buying mood. They have already taken the time to come to the store, so they are more likely to be willing to spend money.
- Incentivizing in-store customers to shop online can lead to cannibalization. When in-store customers are incentivized to shop online, they may be more likely to buy products from the retailer's online competitors. This can lead to lost sales for the retailer.
Gathering support from this article indicate why Amazon is opening brick-and-mortar stores (or acquiring Whole Foods).
Amazon is opening brick-and-mortar stores because it wants to create a seamless omnichannel shopping experience for its customers. By having a physical presence, Amazon can make it easier for customers to return products, get help from customer service representatives, and pick up online orders.
The article also supports Amazon's acquisition of Whole Foods. Whole Foods is a well-respected brick-and-mortar retailer with a loyal customer base. By acquiring Whole Foods, Amazon can gain access to this customer base and expand its omnichannel reach.
I hope this information is helpful. Please let me know if you have any questions.
Sample Answer
here is the synopsis I would send to my company's CEO:
Subject: Omnichannel Retailing Best Practices
Dear CEO,
I am writing to you today to share some insights from a recent article in the Harvard Business Review titled "How to Make the Most of Omnichannel Retailing." The article, written by Dr. Xueming Luo, a marketing professor at Temple University, provides valuable insights into how retailers can leverage their online and offline channels to maximize profits.
Dr. Luo's research study found that encouraging online customers to visit a store increased profits, while incentivizing in-store customers to shop online decreased profits. This is because online customers who visit a store are more likely to make impulse purchases and spend more money than online customers who do not visit a store.