You’ve probably heard the word omnichannel because it is a buzzword that has been around for the last few years. Nevertheless, many people still confuse its meaning with another popular word – multichannel. In this article, we are going to explain the difference between the two and dig into the challenges you may face when implementing an omnichannel approach in your ecommerce business.
Omnichannel vs Multichannel: What’s the Difference
Nowadays companies are investing a great deal into the development of an omnichannel experience. This happens because consumers’ lives have changed. People usually own several devices capable of reaching the internet. But they do live real lives and drop into brick and mortar cafes, restaurants, and stores. That’s why businesses adjust themselves to the latest requirements of the market and not only become bricks and clicks but also transform the way they interact with customers.
Omnichannel means a cohesive and seamless customer experience through a variety of integrated channels. This term is frequently confused with multichannel but they are quite different.
Multichannel means providing multiple independent channels where a consumer can interact with your product and buy it. Imagine that you sell goods through an online store, social media, catalogs, marketplaces, and retail. All these channels exist equally and offer the same product. They differ only by the way they are sold.
Omnichannel strategy refers to making these different channels connected, forcing them to work in a team, together. As a result, customers get a unified experience where the online and offline presence of business are interrelated and flow through each other.
Fortunately, there are tools such as Google Analytics and Google Tag Manager that enable business owners to manage allof these channels painlessly. They help to track multichannel funnels, different attribution models, etc. This is impossible for brick-and-mortar stores. Online presence allows businesses to personalize data on the highest level.
Omnichannel Best Practices
You already know how to distinguish omnichannel strategy from its younger brother, multichannel. Now, let’s see some inspiring examples of already implemented omnichannel experience.
Disney’s omnichannel solution starts from the website, where you can get access to all of the content produced by the company as well as plan your vacation and find out relative costs. The entertainment giant also allows customers to use th e mobile app to map a route of their trip, book hotels, define attractions to attend, find eateries, manage reservations, add friends to a list, etc. Using the app, visitors to Disney’s amusement parks can even see the wait times forrides and activities. In the park, people get wristbands and cards which serve as both hotel roomkeys and mealcharging tools. They also help to connect photos to the particular account in order to make the pictures taken by Disney’s photographers visible to those who are depicted in them.
Oasis is a fashion retailer that has combined its e-commerce website, mobile application, and brick-and-mortar stores into a single omnichannel experience. First of all, sales representatives in the stores hold tablets and are ready to give you comprehensive and up-to-the-minute information about a product. The devices are also enabled to receive payments so products can be bought from anywhere in the store. If something is out of stock a salesperson can immediately order a product to be delivered right to your door.
Orvis has won the Retailer Innovation Awards 2017 for its omnichannel solution. First, this sporting retailer discovered that the majority of its clients are wealthy seniors. Since this group of people is showing an ever-growing interest in digital devices, the merchant has decided to benefit from this peculiarity. The sales assistants were provided with tablets packed with the preinstalled POS system and the ability to search, compare, and order products right from the device. Since then customers can use assistants’ tablets to buy goods both from online and offline stores simultaneously. While filling checkout information in a store, the technology saves the user’s data in order to enable the marketing team to work with it later. The data gathered this way is used by Orvis to provide more relevant customer experience.
After implementing the solution, Orvis observed a 10% lift in enterprise sales as well as 14% growth in customer engagement.
If you are still hesitant about the benefits of implementing an omnichannel marketing & sales approach, you should consider these figures:
59% of consumers feel frustrated when they can’t find what they need in a preferred channel, according to Magento.
84% of all purchases were searched for on the Internet during the customer journey, according to Deloitte Consulting. At the same time, 90% of customers prefer shopping in a physical store.
Customers who use several channels tend to buy 30% more compared to those who choose a single touchpoint, according to IDC.
90% of shoppers admit that they use smartphones while looking for a product in a brick and mortar store, according to SessionM.
Challenges You May Encounter When Implementing Omnichannel
It’s much easier to put a multichannel strategy into practice because everything you need is to broaden the number of channels people can interact with your brand. The case turns out to be much harder regarding omnichannel. This is about incorporating the different ways consumers buy and then making them part of a sole, consistent customer journey. Such an approach frequently requires organizational changes within your business.
The first challenge you may face is the cost of adopting the omnichannel strategy. Many storeowners have a POS system that has been highly customized for their business. As well, there are order management and ERP systems. All of them have to be customized all over again in case of omnichannel implementation. Depending on your vision of future customer experience, you may even need to replace older technologies with new ones. This complicated work takes a huge investment to be done well.
If you already have a brick-and-mortar store and want to create a website, you will probably encounter the following barrier. Sales representatives who cash in on commission for in-store purchases will be resistant to letting people buy online. They’d rather sell something available there and then to a customer who doesn’t need it than encourage them to order a product on a website. Imagine how it can affect the shopping experience you provide.
To overcome this challenge, you should provide your staff with the ability to track those people who drop into the store first and then make a purchase online. You should implement such technology and pay commission for every online transaction to the sales reps who had a hand in it.
The third challenge you may face is a necessity to reorganize your business. You probably have different departments (marketing, IT, etc.) that have been successfully working for years, but when it comes to omnichannel, old methods break. The ever-changing global market requires an immediate response to its trends and tendencies. You can provide it only if you remove silos between the company’s divisions and make them cooperate with high transparency.
More and more companies are moving to omnichannel and getting huge profits out of it, but it’s a complicated issue that can take a significant amount of time and money. If you decide to change the way you interact with a customer make sure you do it carefully. Every detail has to be pondered, and if you need some advice contact us via the form below. We will be happy to help you.