Why are some retailers appearing to effortlessly reap the benefits of omni-channel marketing where others struggle? For starters, they invest in technology, analytics, and incentives that drive in-store growth.
According to an article on MediaPost, L2’s latest Digital IQ index examined the differences between those retailers that get it, and those that don’t, to see exactly where the division lies.
From the article:
To reach its quantitative diagnosis, L2 — a think tank founded by NYU Stern clinical professor of marketing Scott Galloway — analyzed about 650 data points across four dimensions, including site and e-commerce, digital marketing, social media and mobile.
What are Zara and other digital dunces doing wrong? Galloway, on Friday, preferred to focus on what winning retailers are doing right. “The most successful specialty retailers are prioritizing technology investments, organizational incentives, and attribution metrics that drive online and in-store growth,” according to Galloway.
Which brands are winning the digital retail race? American Eagle, Victoria’s Secret, Coach, and Urban Outfitters, to name a few, by L2’s measurement. The retailers with the biggest year-over-year improvements in their digital IQ’s included Talbots — up 44% — Uniqlo — up 35% — and J.Crew — up 31%.
Overall, however, most specialty retailers still have a long way to go. While 69% of retailers in the study supported online purchase with in-store return, just 14% have made the requisite investments at point-of-sale to support in-store pickup — and only a handful have the capability to ship from the store, a service that provides for more flexible inventory management.