OUTPUT

When book retailer Borders closed the doors of its UK stores after the chain went into administration in November 2009, the rise of online competitors was named as one of the central reasons for the company's demise. Meanwhile, in January of this year, the BBC reported that music and book retailer HMV was to shut 60 of its UK shops, with the opportunity for consumers to buy these items via the internet, as well as the threat of online downloads, said to be contributory factors. Although the publishing and music industries are much cited casualties of the increase in e-commerce – at least in so much as their physical retail spaces have become increasingly obsolete – there are a great many sectors in which the online world is making it more vital than ever for retailers to boost their competitive edge through more memorable, engaging physical outlets. The importance of carefully considered online presences should also be noted, and particularly the potential for business growth for companies that intelligently integrate physical and virtual opportunities. With old in-store marketing techniques no longer keeping businesses buoyant, what is the potential of multi-channel retailing, and what exactly are these channels?

Although the combination of in-store and online elements can significantly augment a brand's impact, those working solely within a physical space have a great many options available to them when conceiving a multi-channel approach. Of the senses, sight is the most obviously stimulated by retailers, with both static and digital signage providing myriad options to retailers, whether they choose to include kiosk systems, LED-lit lettering, touchscreen offerings or projections, to name but a few of the diverse range of technologies used in this sector. However, those looking to truly differentiate themselves from competitors would be wise to consider engaging multiple senses in their shoppers.

Vanessa Walmsley, senior vice-president of Mood Media Europe, notes: "ROI can certainly be achieved by using just one type of in-store media, whether this is audio, visual or scent. Integrating all three is a great way to optimise investment as it simultaneously links customers' eyes, ears and noses and increases the likelihood of delivering a more heightened and all-round memorable retail experience."

It is this emphasis on experiences rather than simple shopping trips that is key in the new retail space. Businesses improve their chances of developing brand loyalty if consumers are able to engage with them in a number of ways. Social media, e-commerce and smartphones provide shoppers with a conscious form of interaction although the stimulation of the senses, whilst a more involuntary means of engagement, can be similarly impactful.

Consistent messaging across online and in-store environments can also help to solidify a company's place within a given market. As Walmsley continues: "We believe that the two platforms of in-store and online are very different but can and should, in fact, work to complement each other within the retail space. Forward-thinking retailers should be looking at how they can integrate the in-store and online experience of their brand to deepen the relationship with consumers and increase brand loyalty. Whether the customer visits the store in person or via an online portal such as the company website or social networking site, the key messaging of the brand should be linked throughout."

As explored previously on Output, smartphone technology also delivers retailers great scope to engage with consumers both through a different medium and once they have left the retail setting itself. Walmsley states that the growth of the smartphone market 'has added another dimension to the way retailers can interact with consumers', adding, that they 'now have an additional platform of accessibility allowing them to communicate with customers at any time and in any place.'

With so many means of messaging available to retailers, what is the key to successful multi-channel retailing? Arguably, the chief concern is that each company operates through its own bespoke combination of media. What works well in an up-market shoe shop is doubtless inappropriate for a BMX seller. This applies not only to the types of content delivered to consumers but also the means through which this information is conveyed. So, to thrive rather than just to survive in this toughest of economic climates, the importance of truly understanding your key demographics and the types of technology to which they'll respond has never been more vital. Those in doubt need only look at the brands that have ridden the wave of recession relatively unscathed in sharp contrast to the swathes of retail casualties.