What is the difference between creating and implementing multichannel strategy vs an omnichannel strategy? How can you use the concept of omnichannel in your customer experience strategy?
You can find out in our Ultimate Guide to Omnichannel, but in short:
Multichannel refers to companies using multiple channels (e.g. social media, email, PPC) to engage their customers, giving them an option to choose the channel of their choice. omnichannel, however, is about viewing the entire experience and journey through the eyes of the customer, optimizing across all channels (online or offline) so that it is seamless, integrated and consistent.
Omnichannel realizes that customers vary in their journey to purchase and that they may start at one channel and move through various others before they reach the end point. So what the difference? In simple terms, omnichannel is multi-channel done the way it is supposed to be.
Still unsure about omnichannel vs multichannel?
The internet has changed the way consumers interact with brands. They now have numerous options and channels, which they can use to make and influence their purchasing decisions.
To add to this, the increase in electronic devices such as laptops, tablets and mobile phones has given consumers various options to satisfy their shopping needs. A consumer may be introduced to a new product via an email, then visit the website on their laptop, review the product ratings online and visit the store to gain further advice, before finally purchasing the product on their mobile.
This offers multiple opportunities for marketers and journey designers to connect with their audience, but also raises a challenge in that they must ensure interactions with their customers are kept consistent and seamless across all channels. In summary, omnichannel marketing is about putting the customer at the center of your strategy and if you are not focusing on it as much as you could be then now is the time!
Omnicannel insights across vertical markets
omnichannel is one of the most prominent tools for reaching consumers, particularly the younger generations of shoppers. Extensive research points to omnichannel as the marketing and sales strategy of the future, however, there are many challenges in implementing an omnichannel strategy.
One of the leading barriers is the lack of familiarity associated with digital platforms. For omnichannel strategies to be successful customer trust not only needs to be enhanced, but educational efforts must be employed to ensure that consumers are comfortable using emerging digital technologies.
A study by strategic marketing consultants at Imperial College Business School looked at omnichannel shopping behaviour of millennials across vertical sectors, including electronics, sports clothing and footwear, and toys. The study, which consisted of both quantitative and qualitative analysis, revealed some interesting findings.
Electronics
Shopping behavior differs based on the tangible and intangible costs associated with the purchase. Young consumers tend to inform themselves thoroughly before purchasing expensive and more personal electronics.
Interviewees revealed that they typically need reassurance on products such as TVs, laptops and cameras, preferring to go in store to see these items first. Additionally, a number of respondents revealed that they attempted to research these products in store but struggled to understand the “technical lingo” surrounding them.
The consulting team recommended brands to use short one minute “how to” videos, clearly demonstrating the benefits and limitation with specific products in comparison to others.
The research found that for high involvement products, helpful staff with extensive product knowledge is highly valued, whereas less expensive electronics purchases tend to be done online, as the evaluation is more focused on price and face-to-face advice is not needed.
Sports clothing and footwear
The clothing and footwear market was extremely popular among the millennials who were surveyed with 64 percent of respondents buying clothes once a month or more. A majority of 75 percent of respondents prefer to purchase in store, the main reason being down to the shopping experience, the opportunity to test the product and see how well it fits.
The majority of respondents revealed that a typical journey for more expensive products involves the consumer first researching the item online, then visiting the store and finally purchasing the product online if available at a better price.
Other key findings
The research found a number of features that act as a bridge between online and offline shopping behavior and helps accelerate consumers purchasing decisions. In the retail sector, flexible return features was mentioned quite frequently, with a number of respondents using ASOS as an example of a company that allows their customers to conveniently return products by sending a package that includes all deliveries and requires very few steps.
Delivery option innovation is another area, which could help set retailers apart. More than 90 percent of respondents claimed to have used smart delivery at least once before in their purchases and 80 percent confirmed that they facilitate their decisions when shopping online. The majority of these respondents had tried various delivery options, such as next day delivery, economy delivery, click and collect and scheduled home delivery. 63 percent of respondents would choose an e-commerce platform over another if it offers smart delivery options.
When asked about click and collect, consumers recalled retailers Argos and John Lewis and the next day delivery option was associated with Amazon Prime by a number of respondents. The research revealed growing expectations for these delivery options, with consumers demanding more accurate, cheaper and convenient service.
Conclusion
Many organisation struggle to see the difference between a multichannel and omnichannel strategy. If this difference is not understood, companies will inevitably fall behind.
Omnichannel is about understanding that although they have similarities, every consumer is different in regards to their journey and their expectations are greater than ever. Organizations must ensure that the customer experience is consistent across the right channels, whether that be online or offline.
The experience – and more significantly expectations – are diverse across various markets. As an organization, you must ensure that you have an understanding of your audience’s expectations for your products and firm. In other words, have an understanding of what they value, narrow down the common journeys and ensure that you are providing them with a consistent experience that will enable them to trust you.
Companies must go above and beyond to meet the rising expectations their customer have ensuring that they are always looking ahead in order to exploit innovative opportunities. The research conducted by Imperial Consulting Group, found that organisations that go the extra mile to make the customers life easier, will be rewarded.
Special thanks to the team at Imperial College Strategic Marketing Consulting Group for sharing their research findings with us: Mayssa Abed, Irene Casaburi, Salma Gaber, Shay Khosrowshahi, Devora Mateeva and Karim Mamlouk.