PCF Consulting Group

Does your company have "Channel Tunnel Vision"?

Many retailers base their multi-channel initiatives on a single-channel strategy or core competency -- reflecting the firm's dominant or historical channel -- whether stores, the web or catalogs. They often apply the tools that have been honed for managing one channel to the others.  And often, they inappropriately drive the customer to the core channel rather than the channel that's most profitable, as they protect the core or are misled by inappropriate operating metrics.

While this approach can be quick to market, it often leads to sub-optimal conversion of customer traffic and lower revenue.  It also may not be intuitive or pleasant for shoppers. 

That's where PCF can step in and help.  PCF calls this "Channel Tunnel Vision" and has developed a number of ways to help clients expand their vision and become true multi-channel leaders.

Some Common Examples of "Channel Tunnel Vision" that PCF Consulting Has Seen:

• A specialty store chain with over 280 stores and a growing $ 40 million website decides to expand its giftcard program by adding the ability to purchase a giftcard to its website.   However, the retailer didn't enable its website to accept giftcards as a payment tender.  As a result, shoppers can buy the card on-line, but only use the cards in stores.  The retailers focus is clearly on driving traffic to the store channel, not serving client needs in an easy and transparent way.
• A major department store operates successful web and catalog operations, but doesn't link the channels. So, for example, when a shopper at its flagship store wanted to purchase a leather coat in a particular size and style, they became very frustrated.  Unfortunately, the store stock had been depleted and store personnel could not check (or order from) the on-line inventory where hundreds of units were available.  By not properly tying channels together, the brand lost a sale and turned off a top customer, who ended up buying their coat elsewhere.  They also lost an opportunity to maximize inventory efficiency.
  
• A $450 million multi-channel retailer with over 300 stores and a catalog base had a relatively new e-commerce site and began to experiment with e-mail.  Eight of their first 10 e-mails presented only store promotions that could not be found on-line and failed to offer e-mail recipients the opportunity to link or click-through to the company's new website.  Management wanted to know why their website wasn't growing faster.
  
• A specialty store chain that also operates a growing website used re-purposed merchandising photography from store circulars on the website.  The photos were originally taken for stock imagery, not to aid direct selling.  When used on website landing pages and in e-mails, the photos looked terrific and helped the company avoid costly additional photography.  Yet, on-line shoppers wanted to buy these specific fashions and became frustrated when they couldn't find product on the site or in-stock (since the retailer didn't plan for on-line marketing exposure and increased volumes), yet the photos were used for merchandising purposes.  Site abandonment rates grew dramatically, as did negative customer emails...missed sales, but low cost?