A customer views, tries on or checks out products in a stationary store, and buys them online with home delivery (e.g., because of the lower price). A customer buys a product on a mobile app, and decides to pick it up at a stationary outlet (e.g. to avoid shipping costs or having to wait for a courier). A customer makes a purchase online, but is not satisfied with it - and makes a return or exchange on the spot without having to show a physical version of the receipt or other document confirming the order (because everything is in the same system). These are just 3 of the most common examples of situations that perfectly illustrate what omnichannel in eCommerce is all about, i.e. the intermingling of different sales channels, according to consumer demands.
In this article, we'll take a closer look at how omnichannel can transform your customer relationships and why you should pay attention to this approach in running your online business.
What does omnichannel mean in eCommerce?
Omnichannel is an approach to online sales in which customers are free to use different sales channels, switching between them according to their needs and preferences. The goal of this approach is to create a consistent and integrated shopping experience regardless of the channel in which customers shop or communicate with the company. It is intended to help increase customer satisfaction, build lasting relationships with customers and increase sales and turnover for the company.
On the store's part, ensuring a consistent shopping experience across all communication and sales channels requires actions on various levels - from providing exactly the same product information (which a customized PIM system can help with) to guaranteeing the ability to make purchases and other activities easily on each channel.
Among the intersecting sales and communication channels, we will mention first and foremost:
- online store,
- stationary store,
- mobile application,
- social media platforms (e.g. Facebook's Marketplace or Instagram),
- sales platforms (such as Allegro, Amazon, eBay, etc.),
- price comparison sites (such as Ceneo.pl),
- chat and/or hotline.
Omnichannel versus multichannel - where is the difference?
The omnichannel approach is very often confused with multichannel - but it is definitely worth knowing the difference between the two. Mistakes occur because both concepts assume the use of multiple sales and communication channels. However, while omnichannel focuses on making the various channels intertwine, multichannel develops them independently of each other. Thus, omnichannel emphasizes providing the best possible and consistent shopping experience for consumers - giving them the shopping freedom to transact in the way that suits them best. The goal of multichannel, on the other hand, is to increase the number of channels through which a purchase can be made (and thus better business turnover), but without combining or intermingling them.
| omnichannel | multichannel |
|---|---|
| Omnichannel is an approach to online sales in which customers are free to use different sales channels, switching between them according to their needs and preferences. | Multichannel is an approach to online sales that aims to increase the number of channels through which purchases can be made, but without them intermingling. |
So it can be said that in a way omnichannel is a higher level of multichannel, which has emerged in response to changing consumer preferences. However, this does not mean that one of these concepts is better than the other - it all depends on the type of business you run, its needs and size.
Benefits of omnichannel approach
More and more companies are leaning toward an omichannel approach to improve their competitiveness and increase the effectiveness of their marketing efforts. This type of strategy provides customers with greater shopping freedom due to the ability to choose where not only to make a purchase, but also where to exchange a product, make a complaint, pick up or get the information they need. In this way, the customer's experience with the brand is improved, which positively influences their opinion, loyalty or recommendation to others. After all, when using different sales channels, customers often share their experiences with others - for this reason, omnichannel can be an important tool in building lasting relationships with customers.
Omnichannel also brings with it a greater ability to track the entire sales process, allowing for better data analysis and optimization of operations. Entrepreneurs can more easily track how customers use different channels, check which channels are most effective and control what information is most important to customers. Based on the lessons learned, they can in turn improve the processes taking place.
As a result, omnichannel can help increase sales and turnover for the company. The availability of products and services across channels, as well as consistent and tailored offers, can attract new customers and increase customer satisfaction. In the long run, this is likely to increase customer loyalty and improve the company's performance.
How to implement the omnichannel concept in a store?
Implementing an omnichannel approach in eCommerce first and foremost requires integrating various sales and customer communication channels, such as online store, stationary, social media, email, chat and phone. Here are some steps you should take to implement an omnichannel approach:
1. Customer needs analysis
the first step is undoubtedly to understand your customers' needs and preferences, which is essential for designing consistent and tailored marketing strategies. To this end, it is worthwhile to study customers' buying behavior, their preferences regarding sales and communication channels, as well as the ways they search for information about products (develop the so-called customer journey, i.e. your customer's purchase path). On this basis - in turn, make decisions such as, for example, designing a mobile application, providing the possibility to use Click&Collect, implementing appropriate payment methods (e.g., deferred payments in both online and stationary stores) or using AR/VR capabilities.
2. Integration of systems
the next step is to integrate different systems, such as CRM, warehouse systems, payment or delivery modules, to allow customers to use different sales channels freely and the company to handle orders more easily.
3. Personalization of offers
the next step is to integrate different systems, such as CRM, warehouse systems, payment or delivery modules, to allow customers to use different sales channels freely and the company to handle orders more easily.
4. Continuous optimization
it is important to remember that implementing an omnichannel approach is an ongoing process that requires constant monitoring and optimization of activities. Therefore, it is worthwhile to regularly analyze data from various sales and customer communication channels to identify areas for improvement and adjust marketing strategies. Today's business landscape is changing very rapidly (we are currently seeing changes due to the development of artificial intelligence, among other things), and you need to constantly keep your hand on the pulse so that you don't make some changes too late compared to your competitors.
Omnichannel implementations - examples
Examples of the application of omnichannel in practice show that the implementation of such a business strategy brings many benefits for both customers and companies. Companies that opt for this approach increase their competitiveness, improve their brand image, and achieve better profits. This is because such an approach is necessary to meet customer demands and remain competitive in the market. Examples of companies that have successfully implemented an omnichannel strategy include IKEA, Sephora and Nike, among others
IKEA
IKEA allows customers to access its product offerings not only in its stationary stores, but also on its online store and mobile app. This allows customers to easily compare prices, check product availability and place orders online. The company also offers the option of picking up ordered products in the stationary store or home delivery. It also provides applications using AR for better understanding of its products and customization. All of this makes customers more willing to take advantage of the offerings, and their loyalty grows.
Sephora
In Sephora's case, customers can place orders online and then pick them up at a stationary store. The company also provides a mobile app that allows customers to scan product barcodes in-store and get additional information and product reviews. Sephora also uses virtual reality for online consultations and tutorials, as well as to "try on" selected cosmetics in the mobile app. Such opportunities encourage people to take advantage of the offer by launching multiple communication channels.
Nike
Nike customers can purchase products both in stationary stores and through the online store. In addition, the company has a powerful mobile app that allows customers to browse products, personalize orders, track physical activity and take advantage of exclusive offers.
More non-standard examples include eyewear brand Warby Parker, which provides a "Home Try-On" service that sends free eyewear samples to customers' homes.
Although the above examples are diverse in terms of how omnichannel is implemented, they brilliantly demonstrate that this type of approach supports building relationships with customers, which is not without impact on the company's performance.
Omnichannel - summary
Until recently, we have been talking about omnichannel as a fast-growing trend in the eCommerce industry - a result primarily of the return to stationary stores after the COVID-19 pandemic, when the vast majority of purchases were made online. The rapid growth of eCommerce over the past 3 years has forced the need to find a way for online and offline channels to intermingle, transforming the conduct of sales and organization of marketing activities. Nowadays, it can be said without a doubt that this approach provides stores with increased turnover due to the delivery of perfect customer service and tailoring to the preferences of each consumer. So if you haven't yet decided to implement an omnichannel strategy into your operations, perhaps this is the last call to increase your competitiveness in this way.
