Omni-Channel Retailing: A Strategy for Retailers to Thrive in the Covid-19 Pandemic and Beyond

By Ken Kwong-Kay Wong and Chris McCracken

“In Omni-Channel Retailing, Ken Wong has captured the essential technologies and tools that we use everyday to provide our customers with the products they want, through the channel that best serves their needs.”

-David Markwell, Chief Technology and Analytics Officer, Loblaw Companies Ltd.

“Ken Wong has crafted a formidable yet highly approachable guide that every retail business, large, medium and small, should devour. Retailers who want to do more than survive will find Omni-Channel Retailing an indispensable roadmap to winning and keeping customers.”

-David Agnew, President, Seneca College

“Dr. Ken Wong provides an outlook that is current to today’s Retail industry. His contemporary insights provide relevance to all those interested in learning more about Omni-Channel Retailing.”

-Dr. Seung Hwan (Mark) Lee, Director, Professor, Retail Management, TRSM, Ryerson University

“There is no space for ‘silos’ or functional borders within the organization. All have to be integrated to deliver the best and consistent customer experience. Omni-Channel Retailing explores this strategy, provides proven examples of success, and delivers practical advice to help today’s retailers.”

-Perry Oosting, Former CEO, Clergerie Paris

The COVID-19 pandemic is rewriting the rules of retail. A growing number of shoppers now rely on same-day delivery, curbside pickup, in-home/in-car delivery, and AI-powered drive-thru to get their goods. To accommodate such a paradigm shift, retailers must undertake significant changes in their business models to become digitally enabled and data-driven.

Omni-Channel Retailing is written to help retailers and retail students understand the importance of delivering a seamless, cohesive, and contextual customer experience throughout the shopping journey. This book addresses today’s retailers’ challenges and gives new ideas for implementation. Relevant activities and discussion topics are included to help readers master the concepts.

• Language: English
• Publisher: iUniverse
• Release date: Sep 17, 2021
• ISBN: 9781663226952

Ken Kwong-Kay Wong

Dr. Ken Kwong-Kay Wong is an award-winning professor who has taught retail management for more than a decade in Canada. He co-authored the textbook Pop-up Retail Strategies in Omnichannel Context. His research examines luxury brands and customer experience management. Ken’s work has been published in the Journal of Retailing and Consumer Services, The Service Industries Journal, Marketing Bulletin, and other journals.

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Copyright © 2021 Ken Kwong-Kay Wong

All rights reserved. No part of this book may be used or reproduced by any means, graphic, electronic, or mechanical, including photocopying, recording, taping or by any information storage retrieval system without the written permission of the author except in the case of brief quotations embodied in critical articles and reviews.

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ISBN: 978-1-6632-2694-5 (sc)

ISBN: 978-1-6632-2695-2 (e)

Library of Congress Control Number: 2021919235

iUniverse rev. date: 09/17/2021

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PRAISE FOR

OMNI-CHANNEL RETAILING

"In Omni-Channel Retailing, Ken Wong has captured the essential technologies and tools that we use everyday to provide our customers with the products they want, through the channel that best serves their needs."

David Markwell, Chief Technology and Analytics Officer, Loblaw Companies Ltd.

"Ken Wong has crafted a formidable yet highly approachable guide that every retail business, large, medium and small, should devour. He moves seamlessly across North America and around the globe, bringing back to Canada practical examples mixed in with common sense tactics that can be used by any business to meet the challenges of the post-pandemic retail environment. More than a how-to, this book spells out in crystal clear language why deep and lasting change is necessary. Whether selling cheese at a weekly farmers’ market or running a multi-outlet operation, retailers who want to do more than survive will find Omni-Channel Retailing an indispensable roadmap to winning and keeping customers."

David Agnew, President, Seneca College

"Today’s innovative retailers seamlessly integrate their physical and digital channels to deliver better customer value and total customer experience. Omni-Channel Retailing is an excellent read in explaining the rationale and the process."

Prof. Dipak Jain, President (European) and Professor of Marketing, CEIBS, China

Dr. Ken Wong provides an outlook that is current to today’s retail industry. His contemporary insights provide relevance to all those interested in learning more about Omni-Channel Retailing.

Dr. Seung Hwan (Mark) Lee, Director, Professor, Retail Management, TRSM, Ryerson University

Anyone wishing to competitively excel in the post-pandemic marketplace will find this book extremely valuable.

Dr. Markus Giesler, Specialization Director, Global Retail Management,

Associate Professor of Marketing, Schulich School of Business, York University

By far the most comprehensive and current reference to omni-channel retailing available. Academics and practitioners will benefit from the depth and breadth of content whether used for quick reference and action on-site, or for in-depth cover-to-cover examination of mission-critical retailing know-how. Learners will find the topics engaging and the layout accessible. Required reading for anyone in this field.

Margaret Osborne, Professor, School of Management & Entrepreneurship, Seneca College

The world of omni-channel never sounds so exciting as it does through the lens of Dr. Ken Wong. He is a master wizard of taking a broad and complex subject and turn it into something tangible and easy to understand by students. This is all done by his vast knowledge and research into the field over the years. Dr. Wong brings a level of almost simplicity to the subject that makes him popular with students because of his passion and depth of knowledge. If there is a textbook that should be read by all students in the field of retail regarding omni-channel and its importance in the retail industry, you will not find a better storyteller than Dr. Wong.

Celeste Saddler, Program Academic Coordinator, Retail Management, TRSM, Ryerson University

If I were a retailer, or studying to become one, I’d take this book with me everywhere, even to bed at night so I could re-read parts of it. In succinct and to-the-point text, enriched with highly useful models, lists, and relevant examples, Dr. Wong leaves no stone of omni-channel retailing unturned. A comprehensive to-do guide to survival and prosperity in the current environment, the book is a must for practitioners, students, and anyone wanting to understand it better.

Dr. Nicolas Papadopoulos, Distinguished Research Professor of Marketing and International Business, Sprott School of Business, Carleton University

Ken Wong’s cunning ability to anticipate trends and explain them to wide audiences is what we need in times when grand transformations are changing the way we run businesses and their operations. His work on the omni-channel markets and how they are redefining the retailing sector in the post pandemic’s never normals is a must read for anyone who wants to see the emerging structure of retailing ahead of us.

Dr. Mark Esposito, Harvard University

During the Covid-19 pandemic on-line shopping has increased in volume. As restrictions ease, and in-store shopping returns, retailers will need to provide their customers with a consistent experience across all channels. This book will aid both students and retailers. The contents are clearly set out and each chapter has a summary and exercises to reinforce the concepts. Given that omni-channel retailing is a strategy that retailers must embrace today, Ken Wong provides a valuable road map.

Dr. Norman Shaw, Associate Professor, Ted Rogers School of Retail Management,

Ryerson University

Covid-19 has upended the dynamics of retailing. Company that are not considering an omni-channel strategy are setting themselves up for failure. Ken Wong’s book cannot be more timely and is a must-read for all business leaders in the retail sector - and beyond.

Dr. Terence Tse, Professor of Entrepreneurship, ESCP Business School, UK

This is a very well-written book. Dr. Wong considered all the necessary concepts of Omni-Channel Retailing with regard to pre- and post-pandemic which can be thoroughly helpful for educators and students. I believe the book can be applied for teaching as a useful source in higher education. I highly recommend this book.

Dr. Alireza Faed, Professor, School of Marketing, Seneca College

Professor Wong’s infallible omni-channel masterpiece is engulfed with apodictically futuristic exposés of innovative contemporary strategies. This omni-channel text embraces a holistic fusion of branding weaved unequivocally throughout each channel in optimizing the overall customer orientated experience. Your thirst for omni-channel expertise will be quenched by the finite specificities in this text.

Prof. Siva Muthaly, Deputy Head, School of Business, Melbourne Institute of Technology, Australia

This book offers deep insights with practical and grounded examples to guide students and young practitioners into the omni-channel journey. A must read for retail professionals.

Juan Marcelo Gómez, Assistant Professor, Ted Rogers School of Retail Management,

Ryerson University

"Omni-Channel Retailing written by Dr. Ken Kwong-Kay Wong is an excellent, engaging, and up-to-date reference guide on this topic of growing importance. The textbook is written in accessible language and the examples really do a great job of effectively illustrating the concepts. This book takes a very practical approach to understanding a complex topic. This book would be a great complement to an introductory university or college level retail course or to support a course dedicated to this topic. Students will find the activities to be very engaging and they provide an excellent opportunity to apply knowledge with practical and interesting examples."

Dr. Janice Rudkowski, Assistant Professor, Ted Rogers School of Retail Management,

Ryerson University

"A strong brand starts with a clear ‘brand & value’ proposition that drives the strategy and therefore each element of the organization. From concept/design to the final consumer experience. This brand and value proposition together with the overall strategy will need to be alive within the complete organization in order to be prepared and have the foundation for a seamless omnichannel execution. There is no space for ‘silos’ or functional borders within the organization. All have to be integrated to deliver the best and consistent customer experience. In my past CEO roles this integrated strategy clearly increased customer retention, engagement, purchase rates, frequency, efficient inventory management and therefore delivering better results to both the brand and consequently to our customers. Omni-Channel Retailing explores this strategy, provides proven examples of success, and delivers practical advice to help today’s retailers."

Perry Oosting, Former CEO, Clergerie Paris

"Omni-Channel Retailing immerses you into the dynamic and exciting world of retail and e-commerce, describing opportunities and challenges for today and those relevant to the future. Timely and relevant content is presented in a direct, compact, and easy-to-read style. It is organized well with chapter headings, summaries, examples, key terms and end-of-chapter questions. Whether a beginner or expert, retailing students and professionals will all benefit from this book. Well done, Professor Wong!"

Scott Campbell, Coordinator & Professor, School of Marketing, Seneca College

"Omni-Channel Retailing is a comprehensive beginner’s guide to cracking the digital marketing ‘code,’ and attracting, engaging, and retaining the hyper-informed and connected customers of today."

Idris Mootee, CEO & Co-founder, urbancoolab

With current changes to consumer consumption patterns being driven largely by e-commerce and associated omni-channel integration, this book is both timely and relevant. Dr. Ken Wong expertly unpacks the retail strategies and emerging technologies driving the omni-channel experience. With many practical examples, this book is an essential read for anyone who wants to understand the role that omni-channel integration is playing in the retail industry.

Dr. Joseph Aversa, Assistant Professor, Ted Rogers School of Retail Management, Ryerson University

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BRIEF CONTENTS

Foreword

Preface

Acknowledgements

CHAPTER 1 What is Omni-Channel Retailing?

CHAPTER 2 Leveraging the Digital Opportunity

CHAPTER 3 Digitizing the Physical Store

CHAPTER 4 Driving Traffic to Your Store

CHAPTER 5 Connecting Through Mobile

CHAPTER 6 Embracing New Marketing Ideas

CHAPTER 7 Building Omni-Channel Loyalty

CHAPTER 8 Delivering Exceptional Customer Service

CHAPTER 9 Improving Retail Operations with Data

CHAPTER 10 Mastering E-commerce Delivery

Conclusion

Epilogue

About the Author

Self-Assessment Answers

TABLE OF CONTENTS

Foreword

Preface

Acknowledgements

CHAPTER 1 What is Omni-Channel Retailing?

Introduction to Omni-Channel Retailing

The Pandemic Wake-Up Call

Brick-and-Mortar Retailing

Department Stores

Specialty Stores

Discount Stores

Other Forms of Brick-and-Mortar Retailing

Electronic Retailing

Electronic Commerce

Mobile Commerce

Social Commerce

Interactive Commerce

Vending Machines

Direct Selling

Individual Contact

Party Plan and Group Sales

Remote Selling

Direct Marketing

Catalogue

Direct Mail

Telemarketing

Cross-Channel Collaboration

The Evolution of the Retail Landscape

Customers’ Cross-Channel Expectations

The Value of Omni-Channel Customers

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

CHAPTER 2 Leveraging the Digital Opportunity

The Digital Black Hole

The Digital Opportunity for Retailers

Reducing Friction Using Digital Touchpoints

Running Loyalty Programs Digitally

Subscription Business Model

Digitally Connected Consumer

New Ways to Engage Customers

Live Streaming

Augmented Reality (AR)

Virtual Reality (VR)

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

CHAPTER 3 Digitizing the Physical Store

Location Data’s Business Opportunities

Eliminating Queuing and Paying Pains

Accepting Contactless Payment

Utilizing Mobile Checkout Device and Portable Scanner

Establishing Checkout-Free Stores

Facial Recognition Payment Service

Pre-Ordering of Goods Using Mobile

Self-Scanning Using Portable Scanners and Smartphones

Making the Digital Connection in Store

Displaying Website Address and QR Code

Connecting with Social Media

Sending Social Media Advertisements

Sending Promotional Offers via Beacons

Connecting via SMS

Providing Free Wi-Fi

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

CHAPTER 4 Driving Traffic to Your Store

Driving Online Traffic

Search Engine Optimization (SEO)

Pay-Per-Click (PPC)

Digital Display Advertising (DDA)

Social Media Advertising

Digital Analytics

Website Design

Intelligent and Visual Search

Customer Testimonials

Product Filtering

3D Scanning

Web Content That Delivers Value and Utility

Transforming Retailers into Storytellers

Location as a Proxy for Relevance

Leveraging Artificial Intelligence (AI)

Hyper-Personalization

AI-Enabled Tweets

AI-Enabled Chatbot

AI-Enabled Voice Commerce

Other AI Applications

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

CHAPTER 5 Connecting Through Mobile

The State of Mobile

The Mobile Makeover

Leveraging Mobile Applications

Mobile Application vs. Mobile-Friendly Website

Driving Mobile Purchases with Artificial Intelligence (AI)

Displaying Store Information on Foursquare and Google’s Knowledge Panel

Foursquare

Google’s Knowledge Panel

Optimizing the Mobile Experience

Portrait Video and Photo Format

Short-Form Video

Multifaceted Messaging Apps

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

CHAPTER 6 Embracing New Marketing Ideas

Being a Customer-Obsessed Retailer

Advantages of Mobile Marketing

Emerging Digital Marketing and Advertising Technologies

Conversational Marketing

Real-Time Marketing

Blockchain, Multitouch Attribution (MTA), and Artificial Intelligence (AI)

Entering the Age of Hyper-Personalization

Artificial Seasonal Peaks

The P.R.I.C.E. framework

Maintaining a Competitive Advantage

P: Price

R: Range

I: Information

C: Convenience

E: Experience

Measuring Marketing Investment

Metrics and Benchmarking

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

CHAPTER 7 Building Omni-Channel Loyalty

Omni-Channel Customer Journey

Connecting with Customers at Every Stage of the Shopping Journey

E-mail Marketing

SMS Shopping Buddy

Free Wi-Fi

QR Codes

Data Collection at the PED

Customer Satisfaction Survey

Tapping into Emotional Loyalty

Taking Emotional Loyalty to the Next Level

Improving Loyalty Programs with Gamification

Reviewing Partnerships and Customer Segments

The Customer Relevancy Model

Customer Frequency and Elasticity

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

CHAPTER 8 Delivering Exceptional Customer Service

Providing Effective Customer Service based on the S.E.R.V.I.C.E. Framework

S: Superior Service Across Channels

E: Exceptional Content

R: Relationship-Driven Programs

V: Visionary Tactics

I: Infallible Follow-Up

C: Confidence-Building Communication

E: Empowered Customers

Managing Store Experience During COVID-19

Social Distancing

Booking a Store Visit

Shopping Hours for Elderly and Disabled Customers

Curbside and In-Store Pickup

Cashless Transactions

Takeout & Online Orders

Employee Temperature Checks

Omni-Channel Personal Shopper (OPS)

Providing Same-Day Delivery Service

Uber Eats, Uber Direct, and Uber Connect

Payment Plans

Payment Relief

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

CHAPTER 9 Improving Retail Operations with Data

Benefits of Implementing a Data-Based Retail Strategy

Leveraging Artificial Intelligence (AI) to Improve Retail Operation

Being a Data-Based Retailer

Linking Customer Insight to Sales

Data-Based Ranging, Pricing, and Insight

Ranging

Pricing

Insight

The D.I.A.L. Methodology

Best Practices in D.I.A.L. Implementation

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

CHAPTER 10 Mastering E-commerce Delivery

Investing in E-commerce Growth: Myths and Facts

Planning for E-commerce Success

Mastering E-commerce Delivery

Amazon’s Delivery Options

Analyzing Clickstream Data

Stepping Up to Reach Customers

Video Commerce

Personalization

Remarketing

Summary

Key Terms

Self-Assessment

Activity

Discussion

Endnotes

Conclusion

Epilogue

About the Author

Self-Assessment Answers

To my wife Winnie, my daughter Lydia, and my family members Hello Ma, Hello Dad, and Hello Chiu

Thank you for your love, understanding, patience, and confidence.

FOREWORD

There is a new normal in our world today and it is about adapting. Retailers who have survived the last two years must change the how they do business. Omni-channel retailing is well past being a fad – consider how we now shop at major retailers these days