One reason why Circuit City’s multi-channel customers buy more
It’s a known fact that multi-channel customers buy more than those who shop a single channel at a retailer, but some multi-channel programs work better than others. At Circuit City Stores Inc., a well-tuned order online/pick-up-in-store program that coordinates in-store and online merchandising and marketing messages is a key factor in web-originated sales expected to top $1 billion this year, Forrester Research Inc. says in a report on how the retailer has made the program so successful.
Circuit City’s current program is a build on an earlier program that was only moderately successful, Forrester reports in “Circuit City: A case study in multichannel selling.” Making a difference this time around was re-branding the program as the “24/24 Pickup Guarantee” and the decision to actively market the concept that customers could order online to pick up in-stock merchandise at their local store within 24 minutes of inventory confirmation. When the guarantee isn’t met, the customer receives a $24 Circuit City gift card.
Several other important elements identified by Forrester help to make the program run smoothly. Among them, store associates got extensive training in how to fulfill online orders in store and how to process gift cards distributed in connection with the guarantee. In addition, stores got flexibility in measures they could take to meet the pick-up time; for instance, some have created a dedicated pick-up line at the checkout registers.
The multi-channel campaign announcing the new pick-up program included better signage in stores and a tighter connection between the store visual experience and the online experience. Circuit City also keeps its eye on how the program is going and where it needs improvement with a metric system that scores stores on the number of in-store pick-ups, response times, and whether they achieve the 24-minute deadline, according to Forrester’s report..
Circuit City believes its customers are taking to the program—and that a large percentage of the $1 billion in online sales it forecasts for this year will be picked up in-store, according to the report. But such gains don’t come easy: “A program like this requires a well-defined set of processes and high degree of collaboration with the stores. Poor execution of these efforts can be more detrimental than not offering the service at all,” says Forrester analyst Tamara Mendelsohn.
Circuit City is No. 17 in the Internet Retailer Top 500 Guide to Retail Web Sites.
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