Five Differences between Offline and Online Stores
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Five Differences: Offline and Online Stores Charles E. Crouch © Charles Crouch 2004-14
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While traditional retail stores are familiar, when a store goes online, merchants quickly discover the retail environment is not the same. There are major differences between offline and online, and one must take these differences into account when constructing a new store or refitting an existing one. Five differences between offline and online stores are discussed: - Location - Construction - Size - Presentation - Personnel In the end, retailers can use these differences to their advantage, always remembering that customer needs come first.
Transcript of Five Differences between Offline and Online Stores
Five Differences: Offline and Online Stores
Charles E. Crouch© Charles Crouch 2004-14
While we’ve been building offline stores for thousands of years...Fast Food Restaurant, Pompeii, 79 AD
Photo: C. Crouch
Online stores are barely 20 years old!
Images: telegraph.co.uk
Dell circa 1996Amazon circa 1996
When going online, merchants quickly found that selling is not the same!
Markets are alteredCustomers actions change andStores become different!
Here are five ways offline and online stores differ
Location
Construction
Size
Presentation
Personnel
LocationOffline stores have a physical location which must be taken into account:• easy street address to be found• convenient customer access• no (hopefully) nearby competitors
Photo: iStockPhoto
Offline stores require a commitment in time and effort by customers to go there. This often
makes them more likely to buy.
LocationOnline stores are located someplace in an online world where:• there is no obvious physical presence• accessible by a worldwide audience, 24/7• competitors are (unfortunately) only one click away
Online stores require less customer commitment; a simple click to visit. Keeping potential customers on the website is a major challenge for online stores.
ConstructionWhether building a new store or refitting an existing one, constructing an offline store is a significant task:• months, if not years, in time• major cost, especially for high quality retail space• specialty contractors and skills required• changes and modifications are not easy
Photo: iStockPhoto
Offline stores operate on longer time frames. Changing them can be a major effort, so alterations
are typically made every five to ten years.
ConstructionSince it has no physical presence, an online store is built in a different manner:• days to months, especially using pre-built packages• variable cost, depending on features and functions• but specialty developers are still required
Photo: iStockPhoto
Changes and modifications to an online store can be made any time. This means online stores can react
faster to changing market conditions.
SizeOffline stores must be large enough to accommodate:• the size of the merchandise• the expected number of staff and customers• space for deliveries and storage
Photo: C. Crouch
Constructing an offline store large enough to hold everything can be a major cost.
SizeOnline stores are sized in a different manner:• bandwidth to send and receive data• power to show websites and process transactions• storage to retain website and customer information
Photo: iStockPhoto
While it is easy to add capacity to an online store,fast changing conditions, such as an overly popular
sale, can still overwhelm servers and cause the store to go down.
PresentationAll merchants must display their products to attract customers and encourage them to buy. The physical layout of your store reinforces both:• your company image• the type of customers you attract
Photo: C. Crouch
In an offline store, customers can use all their senses to enhance their selection criteria
Presentation
For an online merchant the main connection with your customer is through a screen:• customers can only see and hear• criteria such as size and weight are not possible
Photo: C. Crouch
The visual presentation is even more important, as this is the main selection criteria for customers.
Personnel
Offline stores must hire, train and manage staff for face-to-face service:• each store location• local regulations must be observed
Photo: C. Crouch
While face-to-face staff provide a great advantage, they require ongoing management attention.
Personnel
Online stores also use staff to:• provide a pleasant experience, even if not face-to-face• use partners and service providers for many functions
Photo: Hubspot
Whether own staff or external partners, online stores can use people from worldwide locations.
Putting it All TogetherRespect the differences between offline and online stores
Use them to your advantage
Keep your customer needs at the top of your store criteria
Photo: iStockPhoto
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