This is a paper review plus a little bit insight from a marketer who worked with a lot of companies that want to integrate their channels

1. JOURNAL REVIEW
The Impact of Cross-Channel Integration
on Retailers’ Sales Growth
Lanlan Cao, Li Li, Journal of Retailing 91 (2, 2015) 198–216
TRAM NGUYEN | MANAGEMENT SCIENCE - 606585411

2. TABLE OF CONTENT
1. INTRODUCTION
2. LITURATURE REVIEW
3. METHOD
4. EMPIRICAL STUDY
5. RESULTS
6. CONCLUSION

3. Before we start
Let me tell you a story…

4. Before we start
Let me tell you a story…
This is my team and we are Digital marketing team
This is my team and we are Digital marketing team
We are NOT the only Marketing team in CMG
BUT
.
.
.

5. Before we start
Let me tell you a story…
This is my team and we are Digital marketing team
Ms. Trang
Head of Marketing Dept.
(Traditional Marketing)
Mr. Erik
Head of Digital Marketing Dept.
Ms. Huyen
Head of Media Dept.
We supposed to be integrated, however, in fact, we were very competitivein term of contribution to sales.

6. Before we start
I joined CMG in 2015 and Digital Marketing Department was just created in 2014
We contribute
20%
of sales
And even though
Brought home
Global
Marketing Award
We were always put in DOUBT zone

7. Before we start
Let me tell you a story…
This is my team and we are Digital marketing team
Ms. Trinh
Head of Finance Dept.
Mr. Dean
Head of Sales Dept.
July 2016, we grown
50%
in digital sales
Mr. Erik
Head of Digital Marketing Dept.
Total sales did
NOT
grow as respectively
Our Marketing cost
INCREASED
than last month

8. Before we start
So Mr. Randy called us to his office and ask us if we
cheat in the tracking system!!!
In fact, we didn’t cheat, but I can explain clearly to him
how it happened.
Mr. Randy
Chairman

9. Before we start
I always look for the answer:
WHYDigital marketing sales’ growth doesn’t have correlate effect to
total sale growth?

10. Introduction
- Cross-channel integration is a pertinent topic for multichannel retailing.
- Even though, there are various studies about this topic, the findings related to business
performance are based on limited measures.
- This current study seek to fulfill 2 neglected questions:
1. Does cross-channel integration contribute to firm sales growth.
2. Which firm-level factors increase or decrease the effects of cross-channel
integration on sales.
- Existing studies and its pros and cons has been listed in Table (1)

11. Introduction

12. Introduction
Reason authors choose this 2 questions:
- Sales growth is a preferred way to measure channel performance in existing literature.
- Few studies provide empirical evidence about the impact of cross-channel integration on sales
growth.

13. Introduction
==> By addressing these 2 questions, this study will offer:
1. Comprehensive conceptual framework of the effects on firm sales growth.
2. Advance understanding of cross-channel integration.
3. Combine secondary sources of 71 publicly traded U.S. retail firms between 2008 and
2011 (271 firm-year observations.
• The empirical results confirm the positive influence on firm sales growth and is
moderated by firm.

14. LITERATURE
Cross-channel integration is the degree to which a firm coordinates
the objectives, design, and deployment of its channels to create
synergies for the firm and offer particular benefits to its consumers.

15. LITERATURE
Five mechanisms that cross-channel integration affects firm sales
growth:
(1) Improved trust (+)
(2) increased customer loyalty (+)
(3) Higher consumer conversion rates (+)
(4) Greater opportunities to cross-sell (+)
(5) The loss of special channel features. The first four mechanisms
suggest positive impacts of cross-channel integration on sales
growth; the latter indicates a negative effect. (-)

16. LITERATURE
IMPROVE TRUST

17. LITERATURE
IMPROVE TRUST
INFORMATION
CONVENIENT
LESS CONFUSION
while shopping cross channels
FREEDOM
to use different channels
SELF-CONTROL
SAFETY

18. LITERATURE
IMPROVE TRUSTIMPROVE LOYALTY

19. LITERATURE
IMPROVE LOYALTY
VALUE ADDEDwhich improve perception, attitude and satisfaction and loyalty
BETTER INSIGHT
Identify, understand, response better to customer
LONG TERM RELATIONSHIP
PROFITABLE
MORE PURCHASE

20. LITERATURE
IMPROVE TRUSTHIGHER CONVERSION RATE

21. LITERATURE
MORE CONVINCING
ENHANCE EXPERIN
ENCOURAGE IN STORE SHOPPING
SEAMLESS EXPERINCE
REDUCE CHURN RATE
HIGHER CONVERSION RATE

22. LITERATURE
IMPROVE TRUSTMORE CROSS SELL
• Introduce consumers who visit one channel to other channels.
• Maintain contact with consumers via multi channels, therefore strengthen their
relationships with customers, then funnel them into stores.
• Increased customer data sharing across channels  more complete customer
profile that maximizes cross-selling opportunities.

23. LITERATURE
IMPROVE TRUSTLOSS OF SPECIAL CHANNEL
FEATURES
• Coordinated marketing programs across channels might reduce retailers’ strategic
flexibility and slow their adjustments in the marketplace.
• Channel integration limits retailers’ ability to satisfy the special expectations of
consumers in a particular channel.
• If consumers who are attached to a particular channel no longer find the expected
features and advantages there, therefore switch to competitors

24. Hypotheses
• H1. Cross-channel integration has a positive effect on firm sales
growth.
• H2. Firm online experience negatively moderates the effect of cross-
channel integration on firm sales growth.
• H3. Larger physical store presence negatively moderates the effect
of cross-channel integration on firm sales growth.

25. Hypotheses

26. Hypotheses

27. METHOD
• Qualitative Study
• Quantitative Study

28. METHOD
• Qualitative Study
• Data:
• Using NVivo 9
• Researchers identified 54 empirical codes and retain 27 codes
• Conducted axial coding to search for relationships among the subcategories, then
assembled them into categories. Then categorized the empirical codes by grouping
them into subcategories, based on their underlying similarities.
• Result:
• Been applied to analyze 59 firms

29. METHOD
• Qualitative Study

30. METHOD
• Qualitative Study

31. METHOD
• Qualitative Study

32. METHOD

33. METHOD
• Quantitative Study
• Data: Tested in 71 firms in 4 years

34. METHOD

35. result

36. result

37. result
• The Pearson correlation results (Table 5) indicated that the development level of cross-
channel integration related positively to the following year’s sales growth, industry
dynamism, change in working capital, firm online experience, and advertising
expenditures.
• Regression results. In Table 6, the results of the regression analysis for the researcher’s
model are shown.
• The significant, positive effect of cross-channel integration in both models (Model 1: b =
.022, p < .05; Model 2: b = .105, p < .01) indicated that it stimulated sales growth, in
support of H1.

38. result

39. 1. Multiple channels may improve:
• Consumers’ trust
• Increase their loyalty
• Boost their conversion rate
• Create greater opportunities to cross-sell
 A higher level of cross-channel integration may lead to firms experiencing higher sales growth.
2. Firms with a stronger focus on a specific channel (online, or offline) benefit less from cross-
channel integration.

40. Implication for Theory:
- Identify 04 positive mechanisms and 01 negative mechanism
- Classifying 04 evolutionary stages of cross-channel integration and identifying key indicators of each
stage.
- Specify the importance of each dimension by categorizing them into different stages of development in
cross-channel integration.
- Extend literature on channel additions beyond the effects of new or eliminated channels on firm
performance

41. Implication for Practice:
- Traditional store-based retailers that lag behind in developing online channels should seize the
opportunities associated with multichannel integration to increase their sales.
- Retailers should re-evaluate their physical store networks and optimize their size by closing,
relocating, or remodeling physical stores while implementing their cross-channel integration.

42. Limitation and suggestion:
1. Only focus on sales growth to evaluate the effectiveness of cross-channel
integration, but sales increases often take time to materialize.
 Further research should investigate the short and long term impacts of cross-
channel integration on firm profitability.
2. Limit on the firm level.
 Expand the set of potential moderators of cross-channel integration effects,
beyond firm-level contingencies.
3. Measurement tool emerged from a qualitative, grounded theory approach.
 Make it more meaningful by comparing it with previous research
4. The timeframe for the study is four years
Studies should include more data, pertaining to the years following 2011, once
they are available.
5. Using longitudinal data from publicly traded U.S. retailers gathered from
secondary sources
 Findings may be specific to this research setting. Should use replications of
our study in other economies.
My suggestion:
 Not only revenue but also cost efficiency (MKT cost, operation cost…)

43. Vietnam retailers’ story
It’s a big trend in Vietnam where physical retail store to do cross channel integration
and it seems successful in term of building brand awareness and increase firm’s
sale growth, but not vice versa for online store to attack offline market.

44. Vietnam retailers’ story
They reported to earn
1,057,715,672 NTD profit
in 1st quater of 2018.

45. Vietnam retailers’ story

46. Vietnam retailers’ story

47. Vietnam retailers’ story

48. Vietnam retailers’ story

49. Vietnam retailers’ story

50. Vietnam retailers’ story