Tier One Retailers Discuss Omnichannel Strategies
With all the showmanship and bright lights of NRF, nothing beats an open and honest discussion of best practices. While some may revel in the constant evolution of AI, and what’s around the corner, it’s the conversations on the day-to-day that often prove to be the most groundbreaking. Revionics’ SVP of Global Customer Success, Scott Zucker moderated just such conversation with a panel of retail experts on “Price, strategies and agility: Thriving in a multi-channel retailer environment.”
Scott was joined on stage by Barrie Carmel, Chief Value Optimization Officer, Bed Bath & Beyond; Moussa Coulibaly, Vice President of Omni Channel Pricing, DICK’S Sporting Goods; and Leonardo Cyreno, Pricing Director, Leroy Merlin Brazil. Together they explored the intricate world of omnichannel pricing, and specifically what steps are necessary to ensure multi-channel pricing success and how to tackle the challenges along the way.
People, process and technology – it’s a delicate combination of these three factors that hold the keys to success of any pricing strategy. For your pricing team to successfully execute a promotion, they need colleagues outside of pricing to understand the end goal. Moussa Coulibaly of DICK’S Sporting Goods describes it as “The art of merchandising and the science of pricing”. Because while data is extremely important in driving successful growth and hitting optimal margin, it’s also the intelligent use of that data that must be applied skillfully. And therein lies the challenge – Getting total get buy-in from teams outside of pricing, to understand the importance of using technology as it relates to KPIs.
The Savvy Consumer
While customers are still shopping at a physical location, Barrie Carmel of Bed, Bath and Beyond states that 80% of customers will begin their shopping by researching products online. And when the customer sees the same product at different prices online versus brick-and-mortar, their trust in the retailer can begin to wane. Furthermore, brick-and-mortar stores are struggling to compete against strictly online stores who can execute a price change with the click of a button. Add in legacy POS systems, and 1,000s of locations, and that same price change is a much harder logistical execution.
The challenge of executing multi-channel pricing within an evolving brick-and-mortar/online dynamic will continue to evolve. The panelists agreed that being transparent with the consumer and maintaining an omni-present focus on strategy will help address and alleviate many of these concerns.
The End Game
While all your concerns cannot be answered in a 30-minute panel discussion, there are some key take-aways that can be derived from this discussion of your peers.
Cultivate a strong change management strategy where pricing and pricing data are not siloed, but rather incorporated into all areas of the business. Continual price testing and showing results is a fantastic way to get senior leadership onboard. And creating a “We are all in this together” mentality will help to engage all teams across all levels.
Understand where your customers are shopping, and in how many channels they shop – keeping in mind that most do research online before setting foot in a store. Then create a dynamic pricing plan that will always address the needs of the customer in all channels. And while each channel is vastly different, the key here is to have messaging that is consistent and transparent.
Leveraging technology and using it correctly will help to meet the expectations of the shopper and get closer to their demands in real time. Having a team that can both understand your objectives as well as having an intimate knowledge of all your systems, will be essential when moving forward in omni-channel.
Finally – the “future of retail” is here now! Waiting to see where to jump in is no longer an option. Start where you are today – and remember, we all must learn to crawl before we can run!
To learn how smart retailers are pricing smarter, not harder, check out our Solutions Center!