Williams-Sonoma Finds Successful Multi-Channel Recipe

High-end cookware retailer Williams-Sonoma has been searching for the right recipe for multi-channel marketing, and the proof is in the pudding. In the third quarter, the retailer's net e-commerce revenues increased 29% compared to the same period last year, contributing to a net revenue increase of 18% in the entire direct to consumer channel, which includes catalog sales. Williams-Sonoma had a strong quarter overall, with retail channel comp store sales increasing 8.1%.

The retailer's e-commerce growth was "driven by strong merchandise strategies and a comprehensive eMarketing strategy including paid search, natural search, targeted e-mail and affiliate marketing," said President and CEO Laura Alber during a recent conference call. In addition, Williams-Sonoma now offers its various e-commerce sites on a mobile platform.

Alber provided insights into the retailer's approach to multi-channel commerce and its importance to Williams-Sonoma. "We continue to study our multi-channel interactions and believe and know that our ability in this is a strategic differentiator versus other retailers," she said.

Williams-Sonoma uses careful analysis to determine the interrelationships among its online, catalog and retail stores, including a recent third-party study, and is focused on continued growth. "We're increasingly aware of the impact of the catalog on our stores and in particular our eMarketing activities on our site to our stores," said Alber. "We believe that this is strategic, that you are seeing sales increases that are due to what we believe is very effective multi-channel marketing. It's a science that we studied by month, looking at what worked. We are testing a lot of new things and experimenting so that we can fully fund those activities that drive customer acquisition and sales to all of our channels."