Multi-channel has to be a real team effort
 
Thu, 2nd April 2009
 
 

Multi-channel has to be a real team effort

Thursday April 2nd 2009

It is absolutely essential to have everybody onboard the introduction of multi-channel into an organisation as the exercise is difficult enough even with the support of all employees in the business.

This was the key message conveyed by Tony Prescott, new business development director at Asda, to delegates at the BRC Multi-channel Conference in London this week, who says people have a general reluctance to change and most store-based staff will see the introduction of an online operation as both a competitor and a pain.

"There are lots of barriers and internal departments may see online as only a small percentage of sales so question why they should bother with it. If it is only one per cent of sales then they think they can give it only one per cent of their effort. Many people in stores still think buying online is a flash in the pan," suggests Prescott.

The solution to this is to convince the store teams that the internet represents a major part of a company's growth strategy. "Employees need to be shown how markets are moving and that most retailers who are doing well have an e-commerce strategy. Their concerns and anxieties have to be broker down through two-way communications," he suggests.

As well as convincing the stores teams of the benefits the internet can bring to a business Prescott says there is also likely to be some pressure brought to bear by the board. "They always want results tomorrow but they do not want to put in the capex. They'll be asking, 'how long is the payback?' When you start these businesses they are loss-making and nobody wants losses," he explains.

Prescott suggests multi-channel integrations require long-term commitment for long-term gains and that it is vital everybody in the organisation understands the long-term goals. For this, he suggests companies require a strategy that comprises a series of tactical implementations - such as launching the site, launching a catalogue and launching digital downloads. These are short-term projects but they must be aligned to the long-term objectives, which will probably take between three and five years to fully complete.

The key learning that Prescott has taken from his work introducing multi-channel into his previous employer Woolworths and latterly at current employer Asda includes: a strategy is essential; communication and engagement are keys; at best expect apathy from people in the organisation; and major process change will be necessary.

He suggests it is imperative that few mistakes are made when implementing changes in the stores. "If you put in-store collection in place and it does not work then you'll never be forgiven and you'll be hounded out because stores people are very unforgiving," he explains.

 
 
category Retail  |  source The Retail Bulletin
 
   
 
 
 
 
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