December 08, 2014

Tell Me What You Think Of This Omnichannel Strategy

Here's what one of our loyal readers told me:
  1. She wanted to buy an item.
  2. She visited the store. Item was available.
  3. She takes item to cash register.
  4. Sales Associate says "Double points begins tomorrow ... do you want to delay your purchase by a day to earn double points?"
  5. She says "no".
  6. Sales Associate says "If you are willing to receive the item at home, I'll ring it up for you tomorrow, and deliver it to you next-day. You'll get double-points and have the item in 36 hours."
  7. Loyal reader says "ok".
Do you understand what just happened here?

The omnichannel solution, being celebrated by raised glasses of champagne among omnichannel advocates, resulted in three key outcomes.
  1. The customer got the item 36 hours later instead of immediately.
  2. The customer earned double points, which means the customer will pay less for merchandise in the future, lowering company profit in the future.
  3. The company generated less profit because it had to spend $5 +/- to next-day the item to the customer.
#Omnichannel!!

I'm not sure how we, as an industry, got to this point in our evolution. This is what happens when trade journalists, researchers, vendors, and consultants are influencing those driving the bus.

Does anybody measure profit anymore?

Or am I missing something? If I'm missing something strategic that results in greatly increased profit, please let me know.