Cross-channel optimization: A strategic roadmap for multichannel retailers

A new, superior retailing model is emerging. This model provides the retailer with powerful new capabilities based on cross-channel optimization. It is not simply about executing the same activities in multiple, separate channels. Nor does it focus simply on integrating or synchronizing channels to support cross-channel shopping.

Instead, it requires a systematic approach to exploit the strengths of one channel to complement the relative weaknesses of other channels. It involves the migration of costly activities in one channel to a lower cost basis in another. In many organizations, however, there remains a general lack of a vision or a systematic approach to achieve what this new model entails—developing multiple points of cross-channel leverage and ultimately optimizing resource allocation.

This paper makes the case for an emerging retailing model, based on a multiyear research study by the Retail Management Institute at Santa Clara University and the extensive implementation experience of IBM Business Consulting Services. The paper elaborates on the conceptual basis for cross-channel optimization and describes a four-stage iterative framework that retailers can use to harness its power.

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Cross-channel optimization: A strategic roadmap for multichannel retailers  (581KB)

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