Online And Offline Integration Metrics

Online and Offline Integration Metrics By- Joy Agarwal, Department of Management Studies, Pondicherry University.

Objectives will be to:

Understand the two major attributes essential for successful integration of online and offline operations

Focus on metrics that measure these attributes to know how well the operations across channels are integrated

A well-integrated operation exhibits two major attributes:

(A) A seamless customer experience (front end)

(B) A seamless set of internal business processes and operations (back end)

(A) Seamless Customer Experience

It refers to a firm’s ability to deliver consistency as its customers move between online and offline channels

This ability can be measured by identifying metrics using the customer decision process framework

Steps in the customer purchase process AWARENESS KNOWLEDGE EVALUATION OF ALTERNATIVES PURCHASE SATISFACTION LOYALTY DISPOSAL Pre-purchase Purchase Post-purchase

Awareness of online offering vs. awareness of offline offering

Perceived benefits of Web vs. offline offering

Available offering information online vs. offline

Currency of information online vs. offline

Security & privacy associated with purchasing online vs. offline

Response time online vs. offline

Customer loyalty incentive programs online vs. offline

Exchange policies online vs. offline

Associated metrics

(I) The Pre-Purchase Stage

While evaluating alternatives, customers will notice whether the online and offline channels provide the same pool of product offerings

Wal-Mart , the world’s leading retailer, offers nearly the same selection of products and services in its offline stores and on its website

However, differences exist: travel planning services are available through the website but not at offline stores

Inside Wal-Mart

(II) The Purchase Stage

Consistent security and privacy standards in offline and online stores

Toys “R” Us , one of the largest toy retailers, uses ‘secure socket layers’ technology to encrypt all order-related information in transit to the company server

If a user’s browser does not support this encryption technology or if the user does not want to send credit card information over the Web, the website urges customers to call its guest relations department to complete the order by phone

(III) The Post-Purchase Stage

Customers should experience consistent response time to customer service requests whether they use online or offline channels

AT&T Wireless allows customers to look up their accounts on the Web and then send an e-mail to a customer representative, or go to a physical store

(B) Seamless Internal Business Processes and Operations

They refer to a company’s ability to perform all internal processes and operations, regardless of whether a customer is interacting with the company through its online or offline channel

FULFILLMENT SYSTEMS INFORMATION SHARING Metrics for Seamless Internal Business Processes and Operations

Ability to open accounts online and offline

Ability to access accounts online and offline

Integrated customer databases

Seamless order processing

Seamless order tracking

Integrated inventory systems

Most of these metrics refer to capabilities that are clearly ‘available’ or ‘not available’

Metric value will be either a ‘yes’ or a ‘no’

Metrics for Seamless Internal Business Processes and Operations

(I) Information Sharing Metrics

Example: Allowing customers to access their accounts online and offline

They measure the website’s ability to collect and analyze information on customers or products seamlessly between online and offline channels

(II) Fulfillment Systems Metrics

They refer to a company’s ability to deliver on a customer’s order, regardless of whether that order was placed online or offline

Example: Allowing customers to check their order status online or offline, regardless of which channel they used for placing the order

Federal Express customers can get information about the delivery status of a package by going to FedEx.com and entering the package delivery confirmation code. Alternatively, they can call a Federal Express customer service representative and get the same information over the phone

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