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Sunday
- July 2, 2000
Progressive Retailers Integrade
Bricks with Clicks
To optimize online benefits to in-store shoppers, North
American retailers must roll out Web-enabled devices to offline
shops. According to a new Report from Forrester Research,
Inc. (Nasdaq: FORR), retailers must implement kiosks and
Web-enabled point-of-sale (POS) systems to supplement face-to-face
service and sell product available solely through the Web.
To manage these new multiple endpoints, merchants will need
a channel manager to automate translation of Web selling
tools for use in brick-and-mortar shops.
"To prepare themselves
for this new set of in-store devices, merchants will need
what Forrester calls a channel manager -- a software tool
that brings the basic benefits of online selling tools
into stores," said Seema Williams, senior analyst
at Forrester Research. "Channel managers will translate
online tools and content to new outputs, add intelligence
for cross-channel personalization, and transmit information
beyond the brick-and-mortar store via mobile devices."
Determining which devices and
tools to use will require retailers to map their products
to the most appropriate applications. Retailers will have
to employ channel integrators that will work with eCommerce
design firms to create new interfaces that will not only
be appropriate for in-store kiosks, but also remain consistent
with the online brand. To automate the conversion of Web-based
content and applications for new devices, retailers will
need to get aggressive about features and descriptions.
Once the channel manager is
capable of communicating with all in-store devices, merchants
will need it to intelligently select offers and escalate
services based on individual profiles. By 2002, the channel
manager will connect promotions according to what customers
are buying both on- and offline and endorse both while
a consumer surfs a retailer's Web site. The channel manager
will also provide post-sale service to each device based
on individual customer needs.
By 2003, retailers will take
the final step of adding PDA and mobile efforts to the
channel manager. In addition to translating tools and offering
device-specific intelligence, retailers will require the
channel manager to translate selling tools like gift registries,
comparison engines, and shopping lists to mobile devices
and interactive TV. To do so, it will need to integrate
with a plethora of operating systems and protocols.
"Retailers do not have
the skill to build channel managers -- it is imperative
that they look to the technology industry for help," added
Williams. "They will need content management tools
that present to multiple devices, as well as analytics
service providers to help create channel-based rules."
For the Report "Mixing
Bricks With Clicks," Forrester interviewed 30 executives
at brick-and-mortar retailers that also sell online. Eighty-three
percent of respondents find that offering multiple channels
result in overall increase in sales. In addition, 80% of
retailers plan to roll out kiosks by 2002.
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