BrainTrust Query: Do brick and mortar retailers really want to make online shopping succeed?

By Bill Bittner, President, BWH Consulting
(www.bwhconsulting.com)

I've been doing some work with an online retailer and it has really made me wonder if brick and mortar retailers that have online stores really want to make this channel succeed. It seems that the big focus for online shopping has been a "me-too" kind of maneuver -- defensive rather than offensive.

It has made me wonder if brick and mortar retailers are missing the whole point.

Online retailing means a lot more than saving the consumer a trip to the store. It means using all your electronic archives to gain a detailed understanding of your customers so that you can create specific offers and services targeted directly to their needs.

Imagine if you could follow every customer who comes into your store, see what items they pause over, what items they finally purchase, what categories they shop based on price, the categories where they are brand loyal, and when they make significant changes in their buying habits (that first box of diapers).

Now, imagine how you would use this knowledge to make each customer's experience unique. This is difficult in a physical store environment, but online you have the opportunity to change the customer's view of the "store" based on all their past activity. Each customer can see the items that are important to them without having to deal with all the other things that may not be of interest. Margins can be adjusted in various categories based on the customer's preference. Manufacturers can be offered promotions targeted to likely consumers.

Discussion Questions: Do you think retailers are attempting to fully exploit the "demand management" capabilities of the online channel or are they still protecting their brick and mortar store base?