Creating an omni-channel strategy isn’t just about slapping a consistent brand across both your website and physical stores. It requires an entirely new approach to technology.
Country Road invested a huge amount of money in creating what Stinson calls “the algorithm”. Engineers were put to the task of figuring out a way to make sure inventory was managed in a sophisticated way across physical stores, and all versions of the website as well.
To make such a strategy work, Stinson says the business had to rethink its distribution strategy. As a result, the company no longer depends on the distribution centre for all of its orders. If a product is available anywhere, then the website tells the customer so.
“The algorithm is a formula by which we locate the inventory that’s most appropriate for the customers’ order,” he says.
“It uses a whole lot of criteria, such as how close the product is, whether it’s available online or in store, and what store is able to sell it to them.”
“So the customer can sign on and choose to buy a product, or they can just go further and collect it from a store. It’s a search and delivery system.”
Stinson says if a customer walks into a store and their chosen product isn’t available, then they can choose which store holds the inventory. Usually, he says, the product can be delivered within 24 hours.
“The customer doesn’t necessarily know it, but there is a real-time inventory engine. It makes every store in the chain a full-product offer store.”
“Every store needs to have the same pool of inventory for stores and online.”
Creating an omni-channel entity isn’t just about tying everything together. Businesses need to update their technology to make sure all parts of the business are running in sync.
The concept of an omni-channel store includes, of course, the physical stores. And as Stinson says, any strategy which doesn’t include them isn’t much of a strategy at all.
All staff are trained to use technology in the stores, specifically iPads. The tablets are already available on walls for people to use and browse through the company’s website, but staff are also encouraged to carry them around while helping out customers.
“We use them to improve store efficiency,” he says. “There’s a customer benefit as well – it allows the sales person to transact or engage with them in the fitting room area rather than be welded to the till.”
“This is just in a trial mode right now, but it’s an example of the whole omni-channel world crossing over into all aspects of the business.”
Like most retail businesses, Stinson says the company noticed a spike in the number of sales being made on mobile and table formats.
As a result, plenty of resources have been pushed into those areas of the business. But as Stinson says, there is a need to look at traffic spikes from different locations in order to customise certain experiences.
“What we’re seeing in South Africa, where there isn’t necessarily robust and extensive internet, is that the iPad and mobile are leapfrogging fixed connections.”
“The general uptake of mobiles in that area has leapfrogged the amount of traditional connections. So mobile and tablet experiences are very important.”
So far Country Road won’t reveal just how much extra money it’s made from online sales and the digital strategy as a whole, although Stinson says so far the plan has been more successful than the company first hoped.
“It’s obviously been worth the investment, and we’re going to continue the strategy.”
He left the panel with one final word – be prepared to get things wrong. The important part of the plan is simply realising what’s gone wrong and then acting to fix it.
“We’ve only one year into a three year plan. But we’ve been successful so far, so we’re going to continue what we’ve been doing.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
