To achieve maximum market penetration and to reach as many potential customers as possible, a multi-channel sales strategy is vital. As an online retailer selling you should identify and use as many sales channels to profit your business. Some channels are better than others, some channels are costly while others are time consuming. In this post I hope to list the different multi-channel sales strategy options available today and to highlight some pros and cons for each channel.

Selling Online? – 10 Multi-Channel Sales Strategies to Consider:

1. Invest in online merchandising – As an online retailer your website is really your lifeline. When it converts well the business is making money and when it converts poorly the very existence of the business is in question. When it comes to online merchandising work never ends. Images could always improve, text could always better explain the product and the products themselves could always be better positioned across the site. The pros of online merchandising are low investment and quick turn-around as it is really up to you, while on the cons side it could be time consuming at times if you don’t have a defined plan.

2. Sell over the telephone – At first glance it seems that using the web to promote telephone orders might not be cost effective for an online retailer, however when you consider the fact that it suddenly opens the doors to up-sale and cross-sale other products it becomes clearer. On the pros side, trained customer support agents could better ‘close’ a sale over the phone, better deal with possible objections compared with content on the site and funnel feedback back to the management team. On the cons side this channel could prove costly to the business and make it too easy to order over the phone than through the site.

3. Advertise off line – When considering to advertise off line we’ve always raised an eyebrow because tracking and reporting on the effectiveness of this channel was always questionable. Once we learned how to track sales from off line advertising by analyzing a dedicated landing page in Google Analytics, offering a unique telephone number and asking customers to quote a reference number this channel became more viable. On the pros side it gives the business more options to reach its target market especially using niche publications, but its cons are the large investment needed and low conversion rates when compared to other channels.

4. Sell on eBay - To better understand its size and positioning as a sales channel, eBay’s turnover is larger than the GDP of many countries which means eBay is big, very big. As a true online retailer you must consider selling on eBay to reach as much of your target market as possible. The pros of selling on eBay are tapping into its high level of traffic and attractive costs, while the cons are the fact that you will be competing with other sellers which might require you to reexamine your pricing structure and often compete with better priced re-furbished / re-sealed products.

5. Sell on amazon – Similar to eBay, Amazon has high levels of traffic and now days allows sellers to sell on its web properties similar to eBay. The pros of selling on Amazon are its higher conversion rate compared to eBay, its large affiliate network and ability to rank highly in the organic search results, while the cons similar to eBay are the fact that you will be competing with other sellers and its approach to uploading new products isn’t as easy as it could be.

6. Use Google Merchant – Also known as Google Base, this free service from Google allows online retailers to list products on its first page results. In most cases products will appear just below the paid results and will include an image, title, price and direct link to the product. The pros are the fact its free and quick, while there are very few cons, perhaps the initial investment of creating and automating a product feed.

7. Invest in natural SEO – The most cost effective sales channel with the lowest cost per acquisition is the natural traffic channel also known as organic traffic. By optimizing your website in accordance with the search engine guidelines you will notice that with time organic traffic will find its way to your site. In terms of pros, the traffic to your site is free and qualified meaning you are likely to convert well, while in terms of cons it might take a while to build. A good start is to look at your backlinks and build them up.

8. Use Google paid search – Although Yahoo and Bing offer paid ads services, Google AdWords is the biggest which makes sense starting there. Using targeted ads, you are able to place your products or services in front of your target market. In terms of pros, you are getting access to large numbers of potential customers while their state of mind in intended on purchasing, on the other hand in terms of cons it could prove very costly, especially if the price per click is high and the overall conversion rate is low.

9. Launch an affiliates programme – Using affiliates to promote your products or services is a true multi-channel sales strategy because some affiliates can act as paid search partners, some as organic search partners and some offer highly focused niche traffic. The pros of running an affiliate programme are mostly financial as you would expect to pay commission only for success, while the cons are the resources needed to managing the programme to maximize its effectiveness.

10. Turn your customers into your brand agents – This channel, often overlooked is a method of turning your customers into brand agents or brand ambassadors to complete your multi-channel strategy. To achieve this, your product or service (many times both) have to be at their highest levels, your site has to have tools for sharing information easily such as bookmarking tools and a referral scheme will help as well. In terms of pros, customers value recommendations highly and often friends share the same taste which will result in high conversion rates, while on the cons side you would need to ensure the referral scheme isn’t open for abuse.

What is your multi-channel sales strategy?
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This is a guest post by Ran, online marketing manager of Photo Paper Direct, a UK based online retailer selling a rage of office supply and Inkjet Cartridges. If you’d like to submit a guest post on the Unconventional Marketing Blog

I’ll tell you. About two years ago, these signs started popping up all over Fargo as a new and convenient way of marketing. I have to say that the very first bright, neon signs I saw like this did catch my attention and cause me to stop and read them. The problem was that after a little while, others thought they would make some money with this new and successful advertisement and set out to replicate the success of the originator. I am not sure exactly how much it costs to put one of these signs in front of your business. I believe about $150 / week. As you can see, it would only take about two weeks to recover the cost of the materials used to make and alter the sign’s message, then pure profit.

The major problem now is that the novelty of these signs wore off and now they are just like all the other billboards in town begging to interrupt our lives in the hopes of selling us something. The bang for the buck advertisements these signs once had is now gone. They only attract the people who were already looking for whatever is being sold. What are people to do now when they want to get their message out about a new deal or gizmo? Doing something different works for a while, but that requires lots and lots of change to stay ahead. How does this relate to online advertising?

Remember when the fold down ad corners popped up online and everyone went crazy to stick ads in there because people were intrigued? Well, that novelty has worn off and pretty quick I might add. Or how about Google Adsense? It is no wonder Google always has to invent new ways and places to stick ads in order to keep up ad generated revenue. Ads in video, ads on the sidebar, ads in email, ads on their own version of Wikipedia now named Knol, ads on cellphones and the list will go on.

What if, and I mean a big what-if, you took all of the money you planned to spend on advertising and interrupting people’s lives and used that money to better your service or product. You would probably end up with a product that people will start talking about because it has become truly useful or over the top in a way that will separate itself from anything similar to it. It would be like spending the time to run a free clinic to get people interested in a sport or new hobby. The end result could be more sales of your product for helping others get involved, or perhaps more recognition as an authority on the subject increasing your demand.

A funny thing happens when your demand goes up, so does your salary. This will never happen overnight, but it will eventually happen as you increase the value you contribute to others. In other words, you separate yourself from the pack and distinguish yourself or product, allowing for people to talk about it openly. When was the last time someone was ecstatic about the McDonald’s dollar menu and told you about it?

edit* If you don’t have these signs in your town yet, you could make a lot of money by being the first to start.

The two greatest items that can be marketed are either a one-of-a-kind, patent pending contraption that is the only thing that can do its job (at least better than the rest), or a not so valuable, cheaply made, easy to replace item that comes in bulk.

Everyone has probably heard of the Dyson vacuum cleaner by now. If you haven’t, they are the end-all, be-all of vacuum cleaners. The key to its success and also the justification of its price is the ability to vacuum the whole house without losing one pound per square inch of suction. I really don’t know if a $500 vacuum is worth purchasing, because I have never bought one. But I do know that my family’s Hoover vacuum is over 20 years old and still works like a charm.

This leads us to the Farberware cook set. The Farberware 19-piece cook set can be found on Amazon.com for about $60. Why on earth do people buy cheap cooking ware? I know I have bought cheap sets of pots and pans because they were a “great deal.” The truth is, I only use 3 of the 19 pieces, and I have to watch the food like a hawk in order to not eat charcoal for dinner. When I finally make the cross over in buying a nice pan, pot and sauce pan, I am going to go all out and buy the best or close to best I can find. If you have ever cooked on an $80-100 pan, you will instantly notice the difference. Not only does the food cook more evenly, but the pan lasts forever. This brings us to the tale of two marketing strategies.

1. Provide the highest-quality product possible (HOM furniture).

2. Provide the most you can for the least you can (Costco).

Both of these work really well when it comes to making money. The first option is to sell something that is valuable for a higher cost, meaning it takes less to sell in order to make good profit. The second choice is to sell as much as possible with a smaller profit margin to a lot more people. Both will make good money, but one typically has a lot less inventory and takes up a lot less space.

Personally, I think standing behind a great, one-of-a-kind product is much easier to sell and feel proud of than a bunch of cheap knock-offs. The people who support their product 100% are going to have happier customers and deliver a higher-quality product. I am not saying there isn’t a marketing place for lower-quality products, because there is. The point is to provide the product you are most comfortable selling and ideally know the most about. Nothing turns someone away quicker than a salesman who doesn’t know enough about his or her own product. If I know more than you about what I am buying, you have probably lost my sale.