Multi-Channels: The Real Winners in the B2C Internet Wars

This article presents evidence that multi-channel retailers are out-performing online-only (pure-play) retailers, and that their success is reflected in their market value. Multi-channel retailers are most successful when they define distinct roles for each channel, use the Web creatively as a customer acquisition tool, and work hard at converting browsers to buyers. To help get this last part right, the authors isolate key defection points – critical moments when retailers are apt to lose customers. They conclude that, for retailers, the key to making the most of the Internet is to correctly determine its strategic role in relation to other channels and invest to play that role excellently.