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The competition between store and online is creating some surprising multichannel demands that get IT industry response at the Retail Big Show, writes Retail Technology editor Miya Knights

The competition between store and online is creating some surprising multichannel demands that get IT industry response at the Retail Big Show, writes Retail Technology editor Miya Knights

 

Judging by exhibits at the National Retail Federation (NRF) ‘Retail Big Show’ in New York this week store operations are still the main battleground for retail IT spending.

 

Nevertheless, there was an interesting trend to be discerned from those vendors with new products or features to help manage the transition from store-based or online/catalogue-only operations to ones that embraced multichannel retailing. Cloud-based enterprise resource planning (ERP) and business management software provider, NetSuite, was just one example of such a newcomer to the show.

 

Migrating online to stores

 

NetSuite was at NRF with its latest retail point-of-sale (PoS) company acquisition, Retail Anywhere, in response to demand from customers extending their customer-facing online operations to physical stores. Branden Jenkins, NetSuite general manager of its retail products business unit and formerly Retail Anywhere chief executive, said: “Customers are asking why build themselves when NetSuite has the back end that provides the system of record.”

 

Baruch Goldwasser, NetSuite e-commerce marketing manager, said the front-of-house capabilities across channels coupled with the back-end functionality built into its core SuiteCommerce platform increasingly brought it into competition with the likes of larger best-of-breed or platform providers, like IBM ATG, Oracle and Microsoft. “But implementing our cloud-based system can cut implementation times to 18 months instead of three years,” he added.

 

Jenkins added that NetSuite could now work on instore peripherals with OPoS certification – the Microsoft Object Linking and Embedding (OLE) for retail PoS device standard. “We have a common set of drivers to let retailers play with all sorts of instore equipment,” he said. “They can take advantage of the new exciting developments coming into retail. But with our CaaS [commerce-as-as-service] they can connect to all the data in NetSuite living on top of the ERP layer to maintain a 360-degree view of the customer.”

 

Applying store merchandising online

 

Catering to growing multichannel retail brands works both ways, as Kurt Heinemann, chief marketing officer of e-commerce testing and targeting provider Monetate, knows only too well. He said clients like are Macy’s, Best Buy and J Crew increasing average order value and conversion rates by increasing the sophistication of online merchandising and better integrating it with more targeted marketing campaigns.

 

“We would talk years ago about creating a great personalised shopping experience,” Heinemann commented. “But, online, that really just meant reviews and a few rollover pictures. For the first time the e-commerce channel is being exposed for marketers, so it can be tailored on a geographical basis, for instance. Buyers in New York are not going to want the same merchandise as in LA.”

 

A client and its agency recently used Monetate technology to run a TV ad campaign that directed shoppers online, where they were greeted with pages that highlighted the merchandise featured in the campaign. “The top benefits are increased average order value and conversion rates,” Heinemann added. “And some of our clients find that working with their agencies makes them more agile online, as part of offering a truly omnichannel experience.”