The value of online interactions for store execution

Problem definition: Omnichannel retailers interact with customers both online and offline. So far, they have used the richer information available—gathered from customer interactions across digital and physical channels—to optimize the sales process by designing the right channel and supply chain st...

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Detalles Bibliográficos
Autores: Caro, F. (Felipe)|||/items/121490a2-a944-4a64-bba3-a39c8bae1fa1, Martínez-de-Albéniz-Margalef, V. (Víctor)|||/items/9d4f9673-a124-4f1a-8865-57fec2f60df7, Apaolaza, B. (Borja)|||/items/ec965fd5-3131-480c-85c6-17d04b5b8313
Tipo de recurso: artículo
Fecha de publicación:2025
País:España
Institución:Consejo Superior de Investigaciones Científicas (CSIC)
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/118340
Acceso en línea:https://hdl.handle.net/10171/118340
Access Level:acceso abierto
Palabra clave:Shopping lists
Shopping baskets
Clickstream
Webrooming
Demand estimation
Layout
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repository_id_str
spelling The value of online interactions for store executionCaro, F. (Felipe)|||/items/121490a2-a944-4a64-bba3-a39c8bae1fa1Martínez-de-Albéniz-Margalef, V. (Víctor)|||/items/9d4f9673-a124-4f1a-8865-57fec2f60df7Apaolaza, B. (Borja)|||/items/ec965fd5-3131-480c-85c6-17d04b5b8313Shopping listsShopping basketsClickstreamWebroomingDemand estimationLayoutProblem definition: Omnichannel retailers interact with customers both online and offline. So far, they have used the richer information available—gathered from customer interactions across digital and physical channels—to optimize the sales process by designing the right channel and supply chain structures and by personalizing offers, pricing, and promotions. We advance an additional dimension of omnichannel value: retailers can use online clickstreams to better understand customer needs and optimize store layouts to maximize webrooming conversion, which we define as the ratio of sales to webrooming activity. Methodology/results: We develop a model in which in-store purchases depend on the customer’s shopping list and the effort required to locate and reach the products within the store. Category location in the store thus drives the likelihood of a sale. We then apply our model to a large home improvement retailer and find that shoppers’ preferences are revealed by nearby online traffic and hard-to-reach locations lead to lower webrooming conversion. Finally, we optimize category location assignments using our demand model and find that putting higher-interest and higher-price items in the most effective locations can increase revenues by about 2%–5% in comparison with models that ignore online clicks. Managerial implications: We show how using online clickstream information for optimizing offline operations can create significant value. More fundamentally, our results provide a word of caution that in some retailing segments such as home improvement, longer in-store paths might not necessarily be better.Institute for operations research and management sciencesDadun. Depósito Académico Digital Universidad de Navarra20252025-07-1820252025-07-18journal articlehttp://purl.org/coar/resource_type/c_6501info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10171/118340reponame:Dadun. Depósito Académico Digital de la Universidad de Navarrainstname:Consejo Superior de Investigaciones Científicas (CSIC)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2info:eu-repo/semantics/openAccessoai:dadun.unav.edu:10171/1183402026-06-21T12:47:57Z
dc.title.none.fl_str_mv The value of online interactions for store execution
title The value of online interactions for store execution
spellingShingle The value of online interactions for store execution
Caro, F. (Felipe)|||/items/121490a2-a944-4a64-bba3-a39c8bae1fa1
Shopping lists
Shopping baskets
Clickstream
Webrooming
Demand estimation
Layout
title_short The value of online interactions for store execution
title_full The value of online interactions for store execution
title_fullStr The value of online interactions for store execution
title_full_unstemmed The value of online interactions for store execution
title_sort The value of online interactions for store execution
dc.creator.none.fl_str_mv Caro, F. (Felipe)|||/items/121490a2-a944-4a64-bba3-a39c8bae1fa1
Martínez-de-Albéniz-Margalef, V. (Víctor)|||/items/9d4f9673-a124-4f1a-8865-57fec2f60df7
Apaolaza, B. (Borja)|||/items/ec965fd5-3131-480c-85c6-17d04b5b8313
author Caro, F. (Felipe)|||/items/121490a2-a944-4a64-bba3-a39c8bae1fa1
author_facet Caro, F. (Felipe)|||/items/121490a2-a944-4a64-bba3-a39c8bae1fa1
Martínez-de-Albéniz-Margalef, V. (Víctor)|||/items/9d4f9673-a124-4f1a-8865-57fec2f60df7
Apaolaza, B. (Borja)|||/items/ec965fd5-3131-480c-85c6-17d04b5b8313
author_role author
author2 Martínez-de-Albéniz-Margalef, V. (Víctor)|||/items/9d4f9673-a124-4f1a-8865-57fec2f60df7
Apaolaza, B. (Borja)|||/items/ec965fd5-3131-480c-85c6-17d04b5b8313
author2_role author
author
dc.contributor.none.fl_str_mv Dadun. Depósito Académico Digital Universidad de Navarra
dc.subject.none.fl_str_mv Shopping lists
Shopping baskets
Clickstream
Webrooming
Demand estimation
Layout
topic Shopping lists
Shopping baskets
Clickstream
Webrooming
Demand estimation
Layout
description Problem definition: Omnichannel retailers interact with customers both online and offline. So far, they have used the richer information available—gathered from customer interactions across digital and physical channels—to optimize the sales process by designing the right channel and supply chain structures and by personalizing offers, pricing, and promotions. We advance an additional dimension of omnichannel value: retailers can use online clickstreams to better understand customer needs and optimize store layouts to maximize webrooming conversion, which we define as the ratio of sales to webrooming activity. Methodology/results: We develop a model in which in-store purchases depend on the customer’s shopping list and the effort required to locate and reach the products within the store. Category location in the store thus drives the likelihood of a sale. We then apply our model to a large home improvement retailer and find that shoppers’ preferences are revealed by nearby online traffic and hard-to-reach locations lead to lower webrooming conversion. Finally, we optimize category location assignments using our demand model and find that putting higher-interest and higher-price items in the most effective locations can increase revenues by about 2%–5% in comparison with models that ignore online clicks. Managerial implications: We show how using online clickstream information for optimizing offline operations can create significant value. More fundamentally, our results provide a word of caution that in some retailing segments such as home improvement, longer in-store paths might not necessarily be better.
publishDate 2025
dc.date.none.fl_str_mv 2025
2025-07-18
2025
2025-07-18
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/10171/118340
url https://hdl.handle.net/10171/118340
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Institute for operations research and management sciences
publisher.none.fl_str_mv Institute for operations research and management sciences
dc.source.none.fl_str_mv reponame:Dadun. Depósito Académico Digital de la Universidad de Navarra
instname:Consejo Superior de Investigaciones Científicas (CSIC)
instname_str Consejo Superior de Investigaciones Científicas (CSIC)
reponame_str Dadun. Depósito Académico Digital de la Universidad de Navarra
collection Dadun. Depósito Académico Digital de la Universidad de Navarra
repository.name.fl_str_mv
repository.mail.fl_str_mv
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