According to the American Customer Satisfaction Index Retail Report 2015 survey, overall retail satisfaction is declining as Internet retail satisfaction is improving. Even though customer satisfaction with Department Stores actually stayed steady or even improved, foot traffic declined nearly 10%.
This decline in foot traffic makes it difficult for retailers to execute on their two strategic priorities: grow revenues and increase profits from increasingly empowered customers. All too often, those priorities counter each other because growth tends to come with huge costs. One option to reconcile these two objectives is building their own online Marketplace.
The online Marketplace business model is the natural replication of the department store model – federating brands to create a unique shopping experience. By providing customers with more choice, fair prices, and a high-quality shopping experience, Department Stores and Malls can leverage existing brands and offer a unified and truly omnichannel experience – all without disrupting their traditional business model.
The Marketplace model is by far the best and most efficient way to meet customer requirements.
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Written by Barry Murphy
Barry Murphy is the Director of Content and Product Marketing at Mirakl. In this role, Barry leads the alignment of Mirakl's offerings to market needs for the next generation of online commerce. Barry previously ran product marketing organizations for X1 and Mimosa Systems (now part of HPE). Barry also had a highly successful stint as Principal Analyst at Forrester Research. Barry received a B.S. from the State University of New York at Binghamton and an M.B.A from the University of Notre Dame.