Mobile Technology Contributing to Omni-Channel Retail
Andreas Mladenow Antoaneta Mollova
Faculty of Business, Economics and Faculty of Business, Economics and
Statistics, University of Vienna, Statistics, University of Vienna,
Vienna, Austria Vienna, Austria
andreas.mladenow@univie.ac.at apmollova@yahoo.com
ABSTRACT
Technological integration and convergence enables customers to
experience conventional, online and mobile shopping. Companies
tailor multiple retail channels in respond to their customers’ needs.
The so-called omni-channel retail strategy suggests an integrated
shopping approach, combining the convenience of various digital
channels with the customers’ personal experience, typical for brick
and mortar settings. Due to the co-existence of multiple sales
channels complementing each other, retail companies may better
engage with their customers. Moreover, the easy and seamless
switching between various retail channels allows customers to
experience the brand holistically, and thus be more satisfied with
the shopping experience and the product per se, and be more brand-
loyal. This paper aims to investigate and analyse – based on recent
literature – the advantages and challenges of omni-channel retailing
on a broad, systematic basis from a business perspective. As a
result, we identify those aspects of omni-channel retailing, where
mobile technologies may contribute either to further improvements
or to eliminate drawbacks.
CCS CONCEPTS
• Electronic Commerce → Online Shopping; • E-Commerce
infrastructure
KEYWORDS
Omni-Channel, Channel Integration, Mobile Commerce, Mobile
Channel, Mobile Technology, Omni-Channel Retailing, Online
Channel, Retailing
ACM Reference format:
Antoaneta Mollova, Andreas Mladenow and Christine Strauss. 2018.
Mobile Technology Contributing to Omni-Channel Retail . In Proceedings
of the 16th International Conference on Advances in Mobile Computing &
Multimedia (MoMM’18). Yogyakarta, Indonesia, 10 pages.
https://doi.org/10.1145/3282353.3282371
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MoMM '18, November 19–21, 2018, Yogyakarta, Indonesia
© 2018 Association for Computing Machinery.
ACM ISBN 978-1-4503-6452-2/18/11…$15.00
https://doi.org/10.1145/3282353.3282371
Christine Strauss
Faculty of Business, Economics and
Statistics, University of Vienna,
Vienna Austria
christine.strauss@univie.ac.at
1 INTRODUCTION
Technological advances with ever shorter innovation cycles
have affected whole markets and as a consequence the business of
the actors [1, 2]. New business models have emerged, novel
products and services create value for suppliers and consumers [3,
4], and the interaction between all parties have been transformed.
The retail business has undergone major changes due to advances
in information and communication technology and its diffusion on
such a broad basis. Interaction between retailers and consumers
may take place over a variety of available and easy-to-access
channels. Customers look for information in various physical and
virtual places. Furthermore, customers nowadays have higher
expectations of the ease and seamlessness of purchasing processes,
as well as of the interchangeability of the available channels [5].
The business approach, which involves coordinated and integrated
sales channels, is called omni-channel [6] and has gained
significance by mobile technologies [7].
Omni-channel retailing is an integrated experience, which
combines the advantages of physical stores and the information
richness of e-commerce. The omni-channel strategy involves the
use of many different coordinated retail channels simultaneously
[8]. According to Ailawadi and Farris [9], the concept of omni-
channel strives for integration of activities within and between
channels as it already takes into account the fact that consumers use
various channels to get in contact with the retailer and to make
purchases. Similar to the cross-channel concept, the Omni-channel
strategy incorporates not only delivery channels through which
customers could get the goods or services, but also channels for
interaction between the consumers and the marketers, through
which no distribution, but only communication between the two
parties is present.
For Mirsch et al. [10], Omni-channel management is the next
evolutionary step after the concepts of multi- and cross-channel.
Compared to these two previous concepts, omni-channel brings a
complete consolidation between the distribution channels and
customer contact points whereby barriers between the involved
channels are eliminated. Freely moving and switching between
retail channels by the customers is the common way of omni-
shopping. Omni-channel is the most extensive approach, allowing
full channel coordination and interaction. McCormick et al. [11]
define omni-channel as “an advancement of the integrated multi-
channel concept”. Omni-channel offers an omnipresent customer
shopping experience, by which all types of channels and devices
are being used simultaneously.
 MoMM’18, Nov, 2018, Yogyakarta, Indonesia A. Mladenow et al.

From a company’s perspective, a main difference between 2 BUSINESS ADVANTAGES OF OMNI-

multi-channel approach and omni-channel approach is the fact that CHANNEL RETAIL STRATEGY
the former focuses on sales per channel and the latter on total sales
[12]. The integration of multiple channels according to Frasquet 2.1 Customer loyalty
and Miquel [13] requires investments at two levels: (i) a marketing
As a consequence of the value-added and integrated services
level, whereby the brand image and the merchandising get
offered by omni-channel retailers, customers’ level of satisfaction
coordinated, and (ii) at an operational level, whereby logistics
is increased and their perceptions of the business are improved. The
processes and customer databases become integrated. Beck and
more the customers are satisfied, the more loyal they become,
Rygl [14] define omni-channel retailing as a series of actions
visiting the same retailer repeatedly and increasing the amount of
involved in buying or selling a product through various channels,
products they purchase [16]. The enhanced customer loyalty is
whereby the consumer can make use of full channel integration,
perceived as the biggest advantage from an onmi-channel strategy
and the retailer fully controls this channel integration.
for business. The coherent experience offered by retailers is helping
As the state-of-art concept of omni-channel offers many
retailers to overcome the flaws of each channel. Clients are enabled
possibilities for retailers and an up-to-date experience for their
to better examine the favourable channel features, and – as a
clients, there are some challenges to be taken care for in order to
consequence – become more devoted to the brand [23]. Loyal
work in favour of all involved parties [15]. To achieve channel
customers have commitment to the company and are attached to the
synergies, complexity needs to be reduced and cannibalism of some
retailer. They should be differentiated from the customers with fake
channels needs to be eliminated [16].
loyalty, whose repetitive purchasing behaviour is driven only by
Evaluating the omni-channel strategy can be done either from
inertia and habit [24]. Loyal customers are crucial for the future of
the customers’ viewpoint or from the company’s viewpoint.
the business and they deserve special attention. In order to develop
Customers of omni-channel retail organizations are able to
loyal clientele, retailers should understand better what makes the
experience not simply the characteristics of one single channel but
customers visit their shops regularly, regardless of whether through
the features of the company and brand as a whole. They have the
a physical, online or mobile channel. Usually persistent brand
possibility to choose their most preferred point of contact with the
loyalty is build on various factors, such as emotional bond, trust,
company, according to their momentary preferences or situation
repetitiveness, sufficient dialog, ease of use, satisfaction and sense
[9].
of value [25]. The channel integration affects positively both offline
The shopping-process for an omni-channel customer may imply
and online customer loyalty because the efforts of the retailers to
several benefits, such as convenient purchasing [9, 10], time
make the channels interchangeable create positive attitudes and
savings and reduced search costs [12, 17], increased service quality
impressions toward the brand. Satisfaction is the key to customer
[18, 19], enhanced prize transparency [10, 20], higher mobility and
loyalty; committed clients not only revisit the store and buy
higher range of products [21], interactive, entertaining shopping
consistently the products from the same brand but they also
experience [22, 23], and personalization [18]. However, rather than
recommend the products of the company to friends and relatives,
pursuing the user’s perspective our presented analysis will go into
thus being a great marketing force and word of mouth advertisers.
details from the business perspective of a retailer. The pros and
Furthermore, loyal customers are less price-sensitive and reduce
cons of omni-channel from a retailer’s business perspective are
costs of the company for attracting new customers, this way
subject of an in-depth and literature-based analysis.
improving company’s profitability [13].
Against this background, the paper investigates in detail
advantages and challenges in omni-channel retailing underpinned
2.2 Customer trust
with relevant recent literature. As a result from this analysis, we
provide an insight which is two-folded: (i) we identify those areas, Customer’s trust is associated with believes that the retailer is
where mobile technologies may contribute to further improvements responsible, fair, compassionate, honest, and competent. The
in omni-channel approaches, and (ii) we provide rough estimates of sufficient level of communication of the company’s values,
the potential impact of mobile technologies, both substantiated with competences and honest approach are especially important for the
recent literature. trustworthiness of the company. Enhancing trust is one of the main
The remainder of the paper has the following structure: in components of building strong and profitable relationships with the
Section 2 nine business advantages for an omni-channel retailer are customers [26]. Typically, in the traditional physical store the
discussed, while in Section 3 nine challenges are analysed. In source of trust is the vendor, who assists the clients with his/her
Section 4 the identified advantages and challenges are knowledge, experience and understanding and this way helps the
consolidated. The possible impact of mobile technologies is customer make a choice. However, if a retailer incorporates
estimated in a rough categorisation of “high”, “medium” and “low” trustworthy technologies and reliable online elements, customers
for the entire set of 18 aspects elaborated in Section 2 and Section could improve even more their trust in the company. Accessibility
3. Concluding remarks are provided in Section 5. to social media channels, where reviews from unbiased users can
be found and questions could be asked, further enhances the
trustworthiness of the retail company [27].
 The Contribution of Mobile Technology in Omni-Channel Retail
There are few reasons why in consequence of an omni-channel
strategy, the retail company becomes trusting clientele. Firstly,
customers have the chance to gather as much information as desired
and to compare prices and data through different channels, like for
example through the website or with help of a call centre, where
personalized queries are being processed. In the second place, a
coordinated channel-mix reduces a possible customer confusion
during the research phase and makes the choice of goods easier.
Lastly, customers interpret the ability of being able to switch freely
between the channels at any time as self-control. For example, a
client can get informed about a product on the web page and then
visit the brick-and-mortar shop to actually see and/or try on the
specific item [16].
For online retail companies it is more difficult to convince their
customers in their trustworthiness than the retailers that physically
exist and offer real interaction with the customers. In order to
increase their trustworthiness, online retail companies may
implement different tactics. If the retailer’s brand is still new and
unknown, it is recommended to use quality marks and/or seals of
quality on their website. Adequate user-generated reviews about a
company and its’ products and services may be interpreted as
another indicator that the company is trustworthy. Furthermore, a
professional design of the web shop and clear contact details,
including a phone number and address of physical stores,
warehouse or headquarters, contribute to the impression on the
customer that the company is trustworthy. All in all, customer’s
trust is crucial for the success of a company; it takes much effort to
gain it, but it is easy to lose it. A successfully implemented onmi-
channel concept supports companies to build and maintain a
required level of trust [28].
2.3 Customer satisfaction
Smooth and seamless experience raises the levels of customer
satisfaction significantly. Thus, users are more willing to come
back to the same retailer via one or more of the offered channels.
Furthermore, a satisfied customer is more likely to leave a positive
comment or review in one of the provided channels [9].
Since there is a higher quality of service offered through
integrated channels, a better variety of available products and
coherent information, the satisfaction levels of an omni-channel
shopper are ususally higher than that of a single-channel shopper.
Ease of use, extent of interactivity of the channels, convenience of
usage, perceived usefulness of the products/services, the general
organization responsiveness are some other factors, seen as
determinants for the onmi-channel customer’s satisfaction. In
addition, firms can make their customers happier by allowing them
to co-create, and offering them flexible, convenient, and
personalized shopping options [24].
The positive impact of customers’ satisfaction is believed to
increase the customer loyalty and lead to customer retention.
Therefore, companies should choose carefully which channels to
offer and which technologies to implement in their sales channels.
The wrong choice may have significant negative impact on the
customers’ satisfaction. If for instance, a retailer offers a mobile
MoMM’18, Nov, 2018, Yogyakarta, Indonesia
app, which for various reasons is rated low by customers, this might
have a negative impact on the company as a whole [26].
2.4 Customer´s behaviour
Omni-channel retailers may cross-analyse customer data from
all possible channels; in this way they may gain insights into the
customer’s actions, motivations, buying patterns, trends and may
be enabled to predict their future intentions. Keeping track of the
behaviour of customers over time allows for anticipating their
possible future intentions. Retailers should also take into account
the fact that the customers’ behaviour might vary not only over
time, but also over context. For example, customers may be very
rational when buying a notebook for themselves, and on the
contrary, may be very emotional and irrational when buying the
same product as a present for a family member. To create relevant
customer behaviour models real-time statistics should be combined
with historical data. Onmi-channel retailing companies are enabled
to combine customer data from different channels, observe the
individual’s behaviour from different perspectives, and build a
holistic and complete picture about the customer’s shopping habits
[8]. The analyses of the consumers’ expectations and preferences
are a prerequisite for a customized and individualized offer [17].
2.5 Opportunities to cross-sell
As a result of cross-channel promotions and marketing
practices, onmi-channel retailers have enhanced opportunities for
cross-selling activities. A wide channel-mix enables onmi-channel
retailers to maintain diverse contact and communication with their
customers, which increases cross-selling. Customers are enabled to
freely choose which channel to use and to see transparently the
assortment of products, available across all channels. In an omni-
channel environment a customer may receive a marketing message
over one channel and may perform the buying-process via another
channel. The customer can check for the availability of a specific
product over the different channels, see relevant real-time
information about where the item is available, where the closest
physical location is, and decide on the most suitable way to
purchase. If a product is unavailable in a preferred channel, smart
recommender systems would advise the customer on alternative
items that may satisfy the same needs [16].
2.6 Sales growth
Studies showed, that onmi-channel customers are more likely to
spend more money on their purchase compared to single-channel
or even to multi-channel customers [29]. Considering that
customers are more satisfied and loyal to onmi-channel brands, it
increment of total sales can be expected [16]. Companies can
perform better when they are able to simultaneously satisfy the
needs of their present customers and attract new ones. Through
innovativeness, optimized processes, improved communication,
better differentiation, reduced costs, and better utilized resources,
the onmi-channel company has all chances to enhance the sales
performance more and become more profitable [30].
 MoMM’18, Nov, 2018, Yogyakarta, Indonesia
2.7 Economies of Scale
According to [6] an onmi-channel strategy enables retail
businesses to attain significant economies of scale because of
potentially increased sales and channel synergies. Collaboration
and interchangeability between channels should be considered as a
possibility to reduce operational costs, such as warehouse,
transportation, manpower, and order management costs, and thus
improve the profitability of the company [10]. Furthermore, sharing
of resources and infrastructure across channels could reduce
fulfilment costs. Distribution and customer service costs might
decrease through innovative initiatives like self-service and in-store
pickups of online orders. Digital marketing campaigns of the onmi-
channel retailer are typically more efficient: they could offer more
personalized service to target customers. Once the company has
enough followers in social media channels for example, advertising
costs could decline due to free postings on the official company
social media page. This allows retailers not only to deliver at lower
cost the up-to-date information about new products or store
openings, but also to better engage with their clients. Through data
inputs from various channels the onmi-channel company gains
better understanding of customers’ needs and can deliver better
services with less effort at lower cost [30].
2.8 Organizational coherence
Within an optimized onmi-channel strategy there is no intra-
organizational competition for example between sales departments,
the online and offline channels collaborate, serving a common goal.
Effective onmi-channel retail companies will not develop silo
mentality as the information between the channels or between the
different departments flows freely. Channel integration involves
functional interdependencies and if the resources complement each
other, instead of competing, they will facilitate faster and enable
the functioning of a more productive retail channel mix. When
teams within an omni- channel company work for a common goal,
organizational coherence will be strengthened, outcomes and
benefits for the company as a whole will increase [10].
2.9 New competence
The firm’s ability to create good teams from talented employees
operating in an effective way to support the retail channel
integration is referred to as cross-channel human resource
capability. This capability can be of importance to increase
efficiency and enable new and innovative processes. It is argued
that “hard” components of a business (i.e. e.g., technologies,
equipment, software), together with “soft” elements of a business
(i.e. human skills), are needed for improvement and innovation of
processes and services in any business. Employees having direct
contact with customers (frontline employees like sales and service
delivery staff) are especially important for the business outcomes.
Well performing frontline employees must have business
knowledge, technological skills and awareness of current offerings
across all available channels. According to [30] firms are seeking
to attain two main types of firm competences – exploitative and
explorative. Exploitative competences refer to the ability of a
A. Mladenow et al.
company to improve current procedures, whereas explorative
competences refer to the ability of the business to offer novel,
presently unavailable services and operations. Integrating channel
resources within a retail organization typically provides the
company with an opportunity to gain both, exploitative and
explorative competences. On the one hand, channel integration
allows companies to make the best use of their resources and
improve the efficiency of the current operations (exploitative
competences). On the other hand, it improves the business
flexibility and the ability to promptly reallocate resources and
design innovative services in order to attract new clients
(explorative competences). Onmi-channel retailers may generate
knowledge about their clients’ preferences, discover new
customer’s needs and thus introduce innovative services [30].
3 BUSINESS CHALLENGES OF OMNI-
CHANNEL RETAIL STRATEGY
The increased deployment of technological solutions, the
enhanced offering of new information and purchasing channels,
and the integration of the various contact points with customers
might be a challenging task for retailers. Despite the many
opportunities that an integrated channel strategy makes available,
the onmi-channel approach may also bring risks and challenges
along. Some of the questions that confront onmi-channel retailers
are how to adapt to fast-changing technologies, to understand better
the needs of their customers, to find reliable partners, to move the
digitalization process forward, to solve logistical issues in regard of
storage, packaging or transportation, etc. [5].
3.1 Investments
In order to transform a traditional single- or multi-channel
retailer into an onmi-channel retail business, there are some
significant efforts in interactive technology and digitalization to be
made. If there are inconsistent websites in different countries, they
should be aligned into one uniform platform to make the brand
appear in an equal way – globally and across the channels.
Similarly, retailer’s social media pages that vary across the stores,
the retail channels, and between countries should be consistent or
even merged into one [31]. Channel-integrated information
management is needed for retailers to store data from joint
warehouses. Different aspects of the retail enterprise systems
should get synchronized (e.g., search engine within the website and
the mobile application, point of sale (POS) system, content
management, etc.) [32].
The emergence of new technologies (e.g. smartphones, tablets,
intelligent wearables and the related software solutions, such as
mobile applications, wireless payments, e-wallets and e-coupons)
demands an adequate approach for the realization of a successful
onmi-channel approach. It needs to be invested in IT infrastructure
as well as in professionals being able to implement integrated
technological solutions such as cloud computing and big data in the
retailing processes, because those solutions form the basis for price
optimization and personalization of products. Further technologies
that might accelerate retailing business are advanced and
customized in-store electronics, such as virtual screens, digital
 The Contribution of Mobile Technology in Omni-Channel Retail
signage, digital mirror-fitting rooms, self-service kiosks, dynamic
menus for vending machines, tablets for the staff, augmented
reality devices, etc. These in-store technologies often require a
redesign of the store, as in many stores the space is fully utilized.
3.2 Logistics and sustainability issues
As an onmi-channel approach increases the complexity of
operations, retailers should rely on advanced logistical solutions to
be able to track the inventory at all times and to distribute the orders
fast and on time. Retail companies should be able to offer different
options for finding, purchasing and returning products across
physical stores, web shops and mobile shops. In order to deliver
their customers a smooth and seamless experience, retail
companies aim to have an integrated organizational unit, which
manages and handles the logistics from and to different channels.
Additionally, considerable investments in infrastructure and
storage, as well as in distribution capabilities, are required in order
to make onmi-channel retailing possible [33].
Fundamental and critical points for a successful onmi-channel
strategy are the design of the warehouse network and the inventory
locations in order to deliver the purchases to the customers. It can
be distinguished between forward and backward distribution
systems, both equally significant for the business outcomes of the
retail organization. Forward distribution represents the movement
of goods from the retailer distribution centres (e.g., warehouses,
stores) to the customer. Backward or reverse distribution represents
the opposite movement of goods – from the customer back to the
retail company [33].
Order fulfilment (forward distribution) should provide
customers in a fast and efficient way with the ordered products.
Therefore, retailers should decide for each received order, which
warehouse, distribution centre or physical store is the most suitable
to fulfil the order efficiently, considering the customer’s location
for the particular delivery [34]. The forward distribution includes
direct in-store buying (offline sales channel), or delivery options
(online and mobile sales channels). The delivery modes a retail
company could offer vary from home delivery to pick-up services.
Home delivery is convenient for customers, as they receive their
orders without having to leave their homes. Typically, retail
organizations offer standard time home deliveries, as well as
express ones, whereas the latter provide the customer with their
goods within the same day. More resourceful retailers offer flexible
home delivery times, whereby customers may choose a specific
time slot for delivery [35].
The pick-up services on the other hand might be divided into
click-and-collect and reserve-and-collect services. The former
represents the situation, by which the customer already finished the
purchase of the goods online and just picks them up from the shop
(usually a service free of charge), whereas the latter describes a
practice of reserving products online, and receiving and paying for
them in the physical store. Ordering online and picking up the
purchase from the physical store is well-liked by many customers.
Some retailers offer a further option for their clients, namely after-
sales-service of returning online purchases in the store [34]. The
advantage for the vendor in all cases when the online customer
MoMM’18, Nov, 2018, Yogyakarta, Indonesia
visits the physical store is that there is a chance for further sales on
the spot. However, these practices are a challenge for the retailers’
supply chain management and require a thoughtful approach [35].
The process of returning bought goods back to the retailer is
inevitable in the retail business. Especially in fashion industry,
backward distribution is almost as important as forward
distribution, because many different criteria and details determine
the choice of a client in apparel shopping, several criteria and
details cannot be presented online (e.g. look and feel, next-to-skin
comfort). Retailers should make it possible for customers to return
products in a fast, convenient and cost-efficient way. An onmi-
channel strategy requires fully interchangeable client contact
points, which applies also to product returns (e.g. a customer should
be able able to return an online-purchase back to the physical store
for replacement or refund) [33].
However, a majority of retailers that strive to offer onmi-
channel experience to their customers do not offer this
interchangeability. The reason for this discrepancy lays in the fact
that the amount of returned goods, coming from online purchases
is significantly higher than from returned products, which were
bought offline. Customers in the brick-and-mortar shop are able to
try, touch, feel and experience the products, and therefore they are
more certain about their buying decision; whereas the online
purchase allows the customer to try on the product only after
delivery [36]. Typically, returned goods in a physical store are not
added to the store inventory but rather forwarded to a warehouse or
return centre, i.e. a process causing costs for transport and
administration. There are several reasons for not keeping the
returned products (e.g. the item is not in the store’s range of
products, avoiding too much stock,of he same product, shortage of
space, etc. [33].
Based on the level of integration of inventory and picking
methods, there are three types of warehouse organization (cf. [33]).
The first type is SI-SP, meaning that there are separated inventories
(SI) and separated picking (SP) procedures for store and for direct-
to-customer (online) orders. The second type is II-SP whereby the
inventories are integrated (II) across the channels but the picking
zones are still separated (SP). Both organizational methods are
typical for non-integrated multiple sales channels. The last
warehouse organization type, II-IP includes integrated inventories
and integrated picking zones. Therefore, the products bought across
the different channels could be taken from integrated inventories
and can be picked up from various, coordinated and integrated
places, and this is one of the main requirements of an onmi-channel
approach. Retailers that offer integrated inventories and pick-up
services, provide a more flexible and demand-driven supply chain
management. Creating full integration across sales channels in
regard to organization of the warehouse management is a
challenging task. Typically it brings cost efficiency and helps
customer experience seamless processes.
As reported in [33], the majority of the retailers offer a broader
range of products in their online channels than on the shelves in
their physical store(s). Defining the assortment for each channel is
a strategic challenge for retailers. As there is limited store capacity,
the range of goods is also limited. Furthermore, the storage
 MoMM’18, Nov, 2018, Yogyakarta, Indonesia
expenses are higher in a brick-and-mortar shop than in a
warehouse. Newly established retail companies tend to have in the
beginning a smaller online assortment of products compared to the
range of products in the physical store. Over time, the online
assortment typically expands, until it exceeds the offline selection.
Delivery speed and delivery mode are further critical elements
of the logistics in omni-channel retailing. Many companies that sell
through an online or mobile channel, offer express deliveries,
which are fulfilled within twenty-four hours or sometimes even
within an hour, in most of the cases for a higher transportation fee.
Fast delivery can make a retailer gain distinction and popularity but
as it is related to higher costs, not all customers are willing to pay
extra for that special delivery. Thus, offering several delivery speed
models enables customers to chose an adequate delivery service
[34].
Another challenge for retail companies is providing sustainable
delivery and environmentally friendly transportation solutions. To
stay competitive, agile delivery models are being offered and order
deliveries within the same day or on the next day are not an
exception but a requirement from customers to up-to-date retail.
Not only is the increasing amount of order deliveries causing
environmental concerns, but also the failed deliveries and the
customer returns are a reason for further vehicle tours. Many times
when ordering for example fashion articles online customers order
different sizes of one product or purchase few similar products with
slight differences in the designs, intending to finally pick just one
item and return the rest. In order to have a sustainable business,
vendor companies should consider this aspect and work for
decreasing the carbon footprint they leave and invest in eco-
friendly vehicles. As the online retail channel enables retailers to
share more information, they can engage their customers through
building stronger dialog on environmental policy of the company,
which may result in improved sustainability but also in more
engaged and loyal clientele [36].
3.3 Reorganization
Aligning all offered channels might be a major challenge in
terms of organizational issues, as an omni-channel approach
requires changes in organizational structures and processes. In
traditional businesses when a new channel becomes available,
mostly also a new organizational unit starts operating. However, in
order to provide a coherent service through the different channels,
onmi-channel retailers should merge organizational units and
enable integrated organizational structures [33].
A possible approach for cross-departmental collaboration is to
create individual organizational structures to lead the processes in
the distinct channels but have the key decisions coordinated. This
way the retailer would still offer coherent onmi-channel experience
for his clients. Attracting and recruiting talented digital
professionals as well as identifying inner-organizational key-
players who will bring forward the technological upgrade of a
company are organisational issues. Yet sometimes it is difficult to
find the right tech-savvy people and to keep them motivated to
implement tech-based ideas and to support seamless omni- channel
service [38].
A. Mladenow et al.
In large international companies reorganization is highly
complex. Many teams working on a local level get downsized and
new functional roles emerge. For example, the enterprise marketing
team should transform its working practices from a previously local
or/and single channel level to a coordinated, aligned and globally
coherent marketing level. An integrated onmi-channel approach
might require adjustments in logistics, financial, and other
departments of the firm [31].
3.4 Free riding
The so-called free riding problem in retail consists of two
customer practices – showrooming and webrooming.
Showrooming describes a customer practice of examining the
products in a brick-and-mortar shop and then purchasing them
through a digital channel, usually at a lower price. People do that
in order to be sure of the physical quality of a product and then
search online for the same or a similar product and buy it online at
a better price or better service conditions. Some examples for
showrooming are when a customer visits physical shops to test the
ergonomics of a chair, the size of a fridge, the fragrance of a
perfume or to try on a leather jacket. After experiencing the product
physically, the customer has an opinion whether it has the needed
quality and then he or she searches in the internet and purchases the
same item from elsewhere [39].
The opposite customer approach is also known – webrooming,
whereby clients look for goods online, because of the bigger
variety, and then buy in a real shop, because they can get the
product right away. Another reason for webrooming might be that
customers do not have to pay for delivery when buying in-store and
are also able to touch and experience the product before actually
paying for it, which especially for clothing, shoes and jewellery is
of major importance. This customer behaviour is also known as
ROPO effect (research online, purchase offline) [39].
Both approaches, show- and webrooming, make customers
postpone their shopping process and not buy right at the moment
when they see or get informed about the product. However, when
customers simply change the channel of purchasing, they do not
affect the retail company in a negative way. Within the onmi-
channel concept, retailers strive for their customers to research for
information and purchase from more than one retail channel. Prices
across customer touch points are equivalent in an onmi-channel
environment and therefore customers are not motivated any longer
to search for the best price across the different channels. Clients can
switch freely between the retailer’s channels and finally purchase
from any of these channels, experiencing a satisfying and seamless
service. Omni-shoppers are less likely to check on the rivalry,
because they are typically loyal to the onmi-channel brand [8].
The free riding problem appears, when customers do not just
switch channel but also provider, and then buy products from
another vendor. The client usually benefits from the free riding
process [40]. The retail company might suffer from lost revenues
when customers use it only as a showroom/webroom, without
buying anything. Companies that sell not just one single product
brand but offer various brands, which could be found in partner or
competitor stores too, might often suffer from that problem [9].
 The Contribution of Mobile Technology in Omni-Channel Retail MoMM’18, Nov, 2018, Yogyakarta, Indonesia

3.5 Pricing behaviour toward each regular customer. In an online environment,

the user’s searches and preferences can be used to later address
Setting the “right” product price, which generates high profit for
these customers with personalized offers. Two types of customer
the company and still attracts customers at the same time, is a
data collections can be distinguished – overt collections, where
challenging task in any business. In an omni-channel approach
customers are aware of their information collection (because the
there are various additional aspects that deserve to be considered
firm makes the effort to inform them) or covert collections,
carefully when it comes to pricing decisions. Due to a high price-
whereby customers do not know about his or her data being
transparency enabled by (mobile) technologies, customers have
collected. Even though firms could access unbiased data through
increased price sensitivity. Sellers on their part, are more averse
covert data collection and the customer is not disturbed by
than before to change their product prices in order to attract
messages about cookies, this type of information collection
customers to their side. Nevertheless, retail companies should
constitutes a violation of privacy and is regulated by law in many
consider such a strategy that protects the brand’s price image,
countries [28]. Retailers should be aware that a part of their
otherwise the perceived value of the brand might decrease [41].
customers are so-called “disconnected users”, who do not use
Price consistency across channels is a further concern of an
online and mobile technologies. This group of people is potentially
onmi-channel retailer, and is crucial for meeting customers’
excluded from special offers or best deals and retail companies
expectations of seamlessness and to generate profits for the retailer.
should try to also understand their shopping behaviour [5].
An onmi-channel client requires coherent, singular brand
experience across all available channels and will be irritated if
product prices differ. However, promotions and discounts may vary
3.7 Channel synergies
across channels or across customer segments. It is therefore not a Business organisations are challenged to offer such retail
necessity to have one uniform price across all channels, but it is channels that lead to new customers, to increased sales and finally
advisable to develop a coherent pricing strategy, offering to improved profitability of the company. When introducing a new
meaningful, fair and adequate prices [42]. customer touch point, some companies fail to make the channel
distinctive, attractive to customers and easy to use. Furthermore,
3.6 Privacy the contribution of each channel to the company’s success is
typically not easy to evaluate.
A further challenge for retailers is to find the right compromise
3.7.1 Channel features. Different retail channels have different
between the degree of personalization of their goods and services
features, and the combination of all offered channels contribute to
they offer and the degree of required privacy of their customers.
the integral customer experience. Buyers usually expect in each
Through loyalty cards or cookies on their websites, retailers are
distinct retail channel to receive particular experiences in specific
able to collect information about their customers and their
channels. However, as the borders between the channels in an
preferences. Using this data enables retailer to offer and suggest the
onmi-channel environment get blurred, the specific characteristics
right product to the right customer at the right time. Not only large
of the individual channels might get diminished. Channel
companies, like Apple, Amazon, Google and Facebook track their
integration restricts the retailers’ capability to satisfy particular
customers’ behaviour but almost every retail company collects,
customers’ expectations in regard to each specific channel.
keeps and exploits information about their clients..Many customers
Therefore, some of the long-standing clients who are attached to a
perceive targeted marketing as an intrusion into privacy. Customers
particular retail channel might get disappointed when there is a
nowadays tend to become more aware of who collects and holds
change in the way they were used to purchase before, and they
information about them and what information is public. Moreover,
cannot find the features and advantages within that individual
who owns, controls and is allowed to share the customer
channel anymore. As a case in point, a customer is used to socially
information is a serious concern, as sometimes the owner is not the
interact and get advice and support from in-store shop assistants.
retail company itself but a third party (for example a marketing
But as new technologies for self-service, like mobile apps or in-
agency) [5].
store kiosks, are integrated in the onmi-channel store, the customer
Usually customers are willing to be informed on special offers,
might have an unsatisfactory shopping experience because he or
adjusted to their preferences. However, customers might feel
she perceives a reduction of direct contact with employees, which
uncomfortable receiving highly personalized offers and might get
weakens the social relation to the retailer. This may finally lead to
concerned about their privacy, when they realize how much and
declined loyalty for the retailer’s brand. In order to overcome this
what type of information retailers have collected and stored about
issue, retailers should try not to completely eliminate the specific
their personal life and their behaviour; this issue is referred to as
characteristics of each channel and especially when it comes to the
the so-called personalization-privacy paradox. Therefore, retailers
physical channel, to attempt to keep the personal human assistance
should choose carefully on basis of which data a customer shall be
available [16].
addressed. They should find a compromise to balance the
3.7.2 Channel cannibalization. If the onmi-channel retailer does
mentioned personalization-privacy paradox in a way that customers
not succeed in generating synergies across channels, it is likely that
trust the brand and the company [28].
one or more of the channels lose their customers and fade over time.
Customer data might be used both in online and offline context.
Adding a new channel often leads to disposition of customers to
In face-to-face contact, employees might be encouraged to
perform a more detailed research and to postpone their purchase.
approach the client with his or her name and to show adjusted
 MoMM’18, Nov, 2018, Yogyakarta, Indonesia
There is no positive effect, if regular customers just place their
orders in another channel, without increasing the number of
products they usually buy. If the new channel fails to attract new
customers, then the retailer has failed to successfully implement the
onmi-channel strategy as customers simply migrate to the new
channel and choose to shop there instead. Pure shifts from one
channel to the other are cost-intensive for the retailer and might
cause further negative effects: not only that this might lead to a
zero-sum in the finance of the firm – the benefits of one channel are
offset by the losses from another channel (called also channel
cannibalism) but also spill-over effects might cause losses for the
company as a whole and the retailer’s profits might decrease in the
long run. An example typical for channel cannibalization is, when
a pure brick-and-mortar retailer decides at one point to include an
online channel as an additionally available channel. To attract
customers to the online channel, the retailer offers his products in
the web shop at lower prices than in his brick-and-mortar shops.
The same clients buy the same items and quantities but now
through the online channel at a reduced price. The customers are
not motivated to visit the physical shop directly, as the retailer has
not implemented a cooperative and supplementing channel
strategy, but simply added a new channel that competes with the
old one [18].
3.7.3 Channel evaluation. Typically, in traditional retail the
different channels are evaluated individually, but in an onmi-
channel environment it becomes more difficult to understand the
contribution to success of each channel separately. This is due to
the fact that the onmi-channel strategy is based on synergy effects,
and synergy effects are difficult to quantify and assign by nature.
For instance, one specific channel might not bring profits to the
business but because of that channel, general progress is achieved
for the company. The challenge for the onmi-channel retailer is to
be able to track and evaluate the popularity and the
accomplishments of each channel separately and to understand over
which mechanisms and to what extent each channel influences the
success of the company as a whole. Having information about each
channel is important, as at some point a channel might become
obsolete and might bring less benefits to the company than it
contributes to its prosperity [10].
3.8 Customer expectations
Current trends for digitalization and integration of provided
retail channels shall be followed in order for retail companies to
offer the best experience for their clients. But while such a one-shot
investment like the onmi-channel service implementation might
move the digital transformation of the company forward, it does not
necessarily guarantee a sustainable competitiveness in the long run.
Due to short technology-cycles, a service or feature that is highly
valuable and innovative today might become regular across
competitors just in weeks time and completely outdated in the near
future. Companies should constantly review and analyze their
approaches and process effectiveness in order to keep up with
increasing customers demand and expectations [8].
A. Mladenow et al.
3.9 Customer relationship management
Customer relationship management (CRM) focuses on the
optimization of customer profitability and on customer value
management [22] and aims at improving internal operations and
customer service. Typically CRM is based on data collected from
multiple channels; customer-related data is collected and stored
separately for each of these channels. Therefore, it is a challenging
task in CRM to store, manage and integrate the data collected
through the various channels, and then generate and maintain
adequate customer profiles or customer group profiles. From the
viewpoint of the retailer, ideally all the information collected
through chats, calls with the customer, purchase history, as well as
online behaviour and behaviour in social networks are collected
and serve to generate a customer profile or customer group profiles
consisting of facts and predictions [43].
4 MOBILE TECHNOLOGIES TO OMNI-
CHANNEL RETAIL
The in-depth discussion of nine advantages (cf. Section 2) and
nine challenges (cf. Section 3) provides a consolidated
understanding on pros and cons of a retailer’s omni-channel
strategy. From an economic and managerial viewpoint we derive a
list with three categories for advantages and three categories for
challenges. In each category those advantages and challenges are
listed, (i) where mobile technologies may contribute to a larger
extent (“high potential”), (ii) where mobile technologies may
contribute to a medium extent (“medium potential”), and (iii) where
mobile technologies may contribute only to a very limited extent or
not at all (“low potential”) (cf. Table 1). For each item we list those
publications that substantiate the assignment to a subcategory.
The evaluation and appraisal provided in Table 1 has two
dimensions: it shows (i) which advantages of an omni-channel
approach can be intensified, and which challenges can be mitigated
by mobile technologies, and (ii) on which advantages and
challenges the possible contribution of mobile technologies is high,
medium or low in terms of omni-channel impact from a retailer’s
perspective.
Mobile apps have effect on several advantages and challenges.
They are very well supporting customer loyalty and enable for
example location-based services like beacons and geofencing,
which are two alternatives to target push notifications to increase
customer engagement which in turn leads to customer loyalty.
Mobile couponing would be one out of several means that may be
performed efficiently by retailers as it encourages customers to visit
brick-and-mortar shops as well as online shops.
Another effect via mobiles could be generated in combination
with advanced digital signage systems. Continued stories are
proposed in [44] for retail brick-and-mortars, where dynamic
content “follows” the shopper from one display to the next.
Providing such continued stories not only over digital signage but
also via mobiles (as another display inside or outside the premise)
would support an omni-channel experience, and therefore have
impact on channel-synergies and cross-selling increase.
 The Contribution of Mobile Technology in Omni-Channel Retail MoMM’18, Nov, 2018, Yogyakarta, Indonesia

Table 1. Potential contribution of mobile technology to may contribute to various degrees (low, medium and high).
improve omni-channel retail Categorization and assignment is substantiated by adequate
scientific literature. Future work could distinguish between
Mobile industries and between technologies. Furthermore, the application
techno- Advantages Challenges of a more fine-grained method to quantify the potential contribution
logy of mobile technologies in certain areas could deliver more detailed
• Customer loyalty • Investing in results.
[13,16,25] technology
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