Blog Post
Growth Marketing
Axel
Vortex
published on:
29.04.2023
Omnichannel Marketing - From a Choice to a Necessity
Table of Contents
Is Omnichannel Marketing the new Multichannel Marketing?
What sounds like a marketing slogan can be proven by experience and studies. The lines between online and offline, as well as between different information and marketing channels, are increasingly blurred. Users expect a seamless transition between various channels and a user-friendly experience when searching for information and making purchases. Companies that have not yet engaged with an omnichannel strategy risk missing out on crucial developments.
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What does Omnichannel mean?
The prefix “Omni” means “all” or “whole.” Hence, omnichannel can be described as “all channels.” These channels include, for example, paid and unpaid search, social media and social ads, banner advertising, WhatsApp marketing, marketplaces, apps, newsletters, one's own website (or online shop), brick-and-mortar stores, as well as offline channels like print or radio advertising.
In summary, the goal is to create a consistent shopping and information experience regardless of device or platform. All touchpoints should be as consistent as possible but also controllable and evaluable.
Examples of omnichannel are found in many large companies:
Check online availability in-store (example: IKEA)
Pick up online orders in-store (example: Tchibo)
Return online orders in-store (example: dm)
Click & Collect (example: Rewe)
Not only do the lines between online and offline blur, but also those between entertainment, information, and sales. There are numerous different customer journeys and paths to purchase. This makes the topic of omnichannel both exciting and challenging. An omnichannel strategy involves various important aspects that must be considered both technically and strategically. Here are the key points in brief:
Omnichannel Communication
Omnichannel encompasses not only the entire purchase process but also the information and, thus, the communication along the user journey, both before and after the purchase. This also means giving customers the choice of communication channel and providing an optimal user experience regardless of the channel of contact.
The challenge lies in integrating different channels and centrally storing all important customer information so that it is available at any time, regardless of the channel. This includes personal information as well as order history, but also communication history across other channels. Users now expect not to have to re-enter their information or repeatedly explain their concerns with every contact.
Omnichannel Payment
Users have long been accustomed to being offered a selection of different payment methods. In brick-and-mortar stores, this has long been “cash or card,” but now mobile payment via app or digital wallet is also an option.
In the omnichannel experience, this means that users can choose the most convenient payment method for them, regardless of the channel. A seamless experience, not only during purchase and payment but also for possible returns or exchanges (refund to the desired payment method).
For companies, this means creating the technical conditions and interfaces necessary to make omnichannel payment as convenient and user-friendly as possible and to connect all payment methods to the relevant channels.
Omnichannel Personalization
An expectation of users that has crystallized over recent years: the most personalized and individualized approach possible. And not only that, but also experiences tailored to one's own interests and situation, such as individual offers and suggestions and communication adapted to preferences.
This personalization is now achieved through online channels in many cases, but it remains a challenge in brick-and-mortar stores. Identifying customers who enter a physical store is a task where we are still in the early stages technologically.
In some industries, however, personalization across different channels has been common practice for some time. Here are two examples:
Hospitality: A user books a room online via the hotel's own website or a platform. Check-in allows for effortless identification, so the on-site staff can address the guest individually and, for example, make recommendations based on past bookings. Additional services can be ordered via app during the stay; after departure, the user receives personalized offers via email.
Travel: A user purchases a ticket online or at a counter. The ticket is then available in the app, along with further information about the schedule, such as train composition. Emails offer hotels or rental cars appropriate to the trip. Prior to departure, the app sends push notifications about delays or changes. After the trip, the passenger receives a personalized newsletter with individual offers.
Omnichannel vs. Multichannel
“Omnichannel is the new Multichannel,” we claim, but what does that mean? Both strategies address different channels, yet their approaches are fundamentally different.
Multichannel (multi = several) means: presence on different channels; various marketing and sales channels exist and are operated independently.
Omnichannel (omni = all) aims for a unified shopping experience and seamless communication and connection across all channels. Related is Cross-Channel Marketing, which connects various, but not all, channels.
In contrast, the Single Channel Strategy means serving one sales channel, such as the online shop or the brick-and-mortar store – a strategy that is increasingly being abandoned, as it no longer aligns with modern buyer behavior.
The Differences Between Omnichannel and Multichannel Strategy
In the multichannel strategy, as defined above, each channel is considered separately. Measures are defined along the user journey on this channel. The approach and content are channel-specific. The focus is on reaching as many potential customers as possible by spreading measures across different channels.
Omnichannel, on the other hand, uses standardized information and processes, aiming to create a consistent customer experience. All channels are considered in optimizations. The approach is personalized, yet consistent across the different channels.
Advantages and Significance of Omnichannel Marketing
The goal of omnichannel marketing is a consistent message and a seamless branding experience. It should ensure a positive user experience along the personalized customer journey, regardless of the channel. Customers can easily switch between channels; data and information remain intact, and the purchase is simplified. Users have the option to choose if and how much interaction they need during purchase (from intensive customer service support to self-service models) or where and via which payment methods they wish to purchase.
This way of thinking received a boost during the pandemic due to the demand for contactless shopping and the focus on e-commerce. Driven by the omnichannel developments of many large companies, user expectations and requirements increased during the search for information or a product. This means that not only corporations and international companies need to engage with omnichannel, but this topic is becoming increasingly important for the entire retail sector.
Omnichannel in RetailInterestingly, Germany seems to lag a bit in omnichannel development compared to other countries. A 2022 survey asked respondents about the importance of various factors in the shopping experience. In Germany, 34% indicated that a seamless offline-online experience was important to them, while in the USA, UK, Spain, and France, it was significantly higher, over 50%. Since the offering influences expectations, it is expected that this number will significantly increase here in the future. In contrast stands the retail sector and its efforts to implement omnichannel measures. According to a 2022 survey, 76% of respondents in German retail reported indicating the availability of their retail inventory in the online shop. 18% further have planned this. 70% offer in-store orders, 53% enable ship-from-store, and almost 23% more have planned this. A similar survey from 2015 in the DACH regions showed significantly lower values, with just 36% having an online availability check back then.
These numbers show how much the importance of omnichannel has grown for retail in recent years. It is expected that this development will continue.
B2B Omnichannel Marketing
A McKinsey survey in 2021 among decision-makers in the USA revealed that they regularly use ten or more channels to interact with suppliers, compared to five in 2016. This highlights the importance of omnichannel marketing in the B2B sector as well. The requirements for good B2B e-commerce can be translated into omnichannel communication. Examples of a good customer experience are the online display of availability as well as good customer service and real-time service. Thus, findings for omnichannel marketing can be broadly applied to both B2C and B2B sectors.
What makes a good Omnichannel Customer Experience?
A well-functioning omnichannel approach is oriented towards customer preferences regarding information channels, sales channels, and payment options. All systems are perfectly aligned, creating a cohesive experience rather than a linear funnel. Information and communication are personalized and intention-driven. Users seeking entertainment or information, for example, can be put off by intrusive advertising. The message and brand experience are consistent across all channels and touchpoints. Implementing this is no easy task.
Do you want to benefit from the advantages of an Omnichannel Strategy but need support in implementation? As an experienced agency for omnichannel marketing, we are here to help you create a seamless customer experience across all channels. From conception to implementation, we offer tailored solutions for your success.
Axel
Vortex
Axel Zawierucha is a successful businessman and an internet expert. He began his career in journalism at some of Germany's leading media companies. As early as the 1990s, Zawierucha recognized the importance of the internet and moved on to become a marketing director at the first digital companies, eventually founding internetwarriors GmbH in 2001. For 20 years – which is an eternity in digital terms! – the WARRIORS have been a top choice in Germany for comprehensive online marketing. Their rallying cry then and now is "We fight for every click and lead!"
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