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Physical service, online purchase

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Categories: Customer Engagement, Physical vs Online
Tags: Avancer Management, Chain Reaction, Halfords
Nigel Palmer: "I myself am passionate about bikes and I’ve been recently actually looking at some independent bike shops, there’s two and a half thousand in the UK.  There’s the big players, everybody knows sort of the lower to medium end of Halfords, but then there’s this big online player who started in a warehouse in North Belfast, called Chain Reaction and they’re really been killing the smaller retailers.  But now they, as that big online retailer realise they need presence.  And I suppose if people have been looking at those online retailers and saying, “How can we encourage those people to come in” could we have got them as a retailer sort of early on?  Equally, there’s a shop in New York that says now, “I can’t sell bikes, yeah, because all the online people, you know, customers come in and they say, let’s have your best price because I can get this on the internet and this is the price of it and will you match it.”  And they said, “No, we won’t.  Buy it on the internet, come in, we’ll make it up for you and we’ll do you a service plan.”  Because actually now they’re making more money out of servicing the bikes and selling the accessories with a higher margin than they are by actually selling the bikes.  And you know that whole servicing element is a place where people can go."
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Physical service, online purchase

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