Retailer Boosts Revenue by 40%:  A 3-Channel Story

Challenge

A leading national specialty retailer wanted to provide the best shopping experience for their customers, regardless of whether they were shopping in the store, through the catalog, or on the web site. The retailer engaged Molecular to:

• Demonstrate how their web site could be used to measurably increase traffic and revenue in their physical retail stores.
• Show how their three main channels – store, catalog, and Internet – can best be integrated to improve the customer experience and support and enhance sales overall.

Approach

Molecular applied qualitative and quantitative research to identify the solutions that would improve the retailer’s Internet channel while driving significant revenue improvements in their retail stores. Based on analysis of the data, Molecular developed and tested a set of solutions that would produce significant improvements across all three of the retailer’s channels, including the store, catalog and Internet. Proof-of-concepts and business cases were created to demonstrate the value of each recommendation and the expected ROI, and usability tests were performed to ensure that each new solution would deliver as expected.

Benefits

Molecular’s research revealed dramatic revenue opportunities and competitive differentiators that will enable the retailer to:

• Increase revenue by 40% by improving the way their store, catalog and Internet channels interact.
• Improve service quality and increase the revenue the retailer can expect to make from an average customer over that customer’s entire lifetime by 100%.
• Convert single-channel shoppers into multi-channel shoppers to extract two times the value from their existing customer base.
• Drive revenue and gross margin improvements across all channels.