Story image

Multichannel retailers, your customers are not fools

07 Jan 14

Multichannel retailers must concede that without some compelling and legitimate reason (note this means in the eyes of the consumer) pricing cannot be different across channels for individual consumers.

Every one of your 1000 stores is competing with every online retailer that is selling similar products. Most importantly your customers will not accept an inability or unwillingness to match your own online pricing in store.

As ecommerce continued to expand during the 2013 holiday season we saw an increase in retailers implementing price matching. While overall this is a positive step its imperative to understand that its how these policies are executed that will determine success.

Gartner research shows consumers actually appear to reward retailers that they can trust to provide competitive pricing without having to request it from the store personnel. Further analysis indicated that price matching polices were not converting consumers from browsers to buyers and in fact customers are traveling to competitive stores to make purchases even when a price matching policy is in place.

So what’s the issue? Consumers do not want to have to do the research and reject being inconvenienced by a slow and clumsy process.

Ultimately reversing the drain in market share caused by digital retailers will require a more aggressive approach than price matching. Rather the results point to success that is more strategically driven with knowledge of competitive pricing and a deliberate thought process around channel contribution to total retail sales.

Retailers that fail to draft and execute a strategic multichannel pricing strategy including proactive competitive pricing and multichannel consistency will continue to lose market share to nimble competitors.

Your customers are not fools so treat them the way you expect to be treated.

By Robert Hetu - Research Director, Gartner

IDC: NZ IT services market will near $4B in 2023
As cloud adoption grows with every company seeking the competitive advantage it can provide, the opportunities in IT services are expanding in kind.
HPE invests in services with new A/NZ execs 
With IT services spend growing in Australia and New Zealand, HPE is appointing execs for software and technology services in the South Pacific.
NZ’s $3.45bil IT services market fueled by competitive advantage
"With regards to cloud adoption, organisations are prioritising innovation and security over cost and scalability.”
Avaya expands AI offerings with new partnerships
The additions to the ecosystem will enable Avaya to add prioritisation and natural language processing to its UC solutions.
Hillstone CTO's 2019 security predictions
Hillstone Networks CTO Tim Liu shares what key developments could be expected in the areas of security compliance, cloud, security, AI and IoT.
Kiwis make waves in IoT World Cup
A New Zealand company, KotahiNet, has been named as a finalist in the IoT World Cup for its River Pollution Monitoring solution.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
Oracle Java Card update boosts security for IoT devices
"Java Card 3.1 is very significant to the Internet of Things, bringing interoperability, security and flexibility to a fast-growing market currently lacking high-security and flexible edge security solutions."