Omnichannel Marketing at its finest.
The digital marketing world is progressing so quickly that its terminology expanding every day, and sometimes it can be a bit complicated to understand the real difference between them. For instance, omnichannel marketing is always confused with multichannel marketing, and it is not surprising as they are quite similar to each other.
However, let’s dive deeper into their meanings and find out which one do companies prefer to implement into their business strategies?
Omnichannel refers to a cross-channel content strategy that encourages improved relationships across all platforms and touchpoints. It includes both physical and online experience with traditional and digital channels. Moreover, omnichannel involves all departments’ cooperation as well.
Omnichannel marketing (Omni – “all” ) refers to a sales approach that involves all these channels to send a relevant message to the customers and provide a seamless experience for them. As an example, omnichannel marketing combines digital interactions such as social media and e-commerce purchases with inter-personal interactions. The two main ideas of this approach are to make the customer’s journey convenient and to unify all the messages appearing in the customer’s experience. Customers’ experience is a trip from point A to point B; you would want it to be as smooth and simple as possible. According to the Simplicity Index, around 55% of customers are willing to purchase more if they have a simple experience and 64% of them are more likely to recommend the brand.
How omnichannel is different from multichannel marketing?
Multichannel marketing refers to a sales approach that interacts with customers on different platforms. However, the channels that are used for this strategy are likely not be updated and personalized with the customer’s needs. Almost every business implements a multichannel marketing strategy. In essence, multichannel marketing directly links the customer and their purchases while omnichannel marketing looks at this not as straightforward.
The lines between two of these marketing strategies can seem blurry; however, we would want to point out a couple of important differences. Firstly, the biggest difference between the two is that multichannel marketing focuses on the brand while putting the customer in the second place and omnichannel marketing operates the other way bringing the customer to the centre of the company’s strategy.
Nowadays, most companies use multichannel marketing as their channels can be completely separated from each other. For example, items bought online cannot be returned to the store or online, and the physical store would have different stock. Although many businesses have implemented omnichannel into their strategy, very few have fully taken advantage of it within the business.
Why is Omnichannel so important to the businesses?
Ok, we understood that customer is companies’ “centre of the universe”, but why businesses need to use all of their channels to increase revenues? Marketers using more than three channels in the campaigns tend to have a high engagement rate – 18.6%, while the ones using just single-channel campaigns only got 5.4%.
The main benefit of the omnichannel sales approach is that the unified and personalized customer experience leads to increased loyalty among customers. And everybody knows that customer retention is much more effective than customer acquisition. It was found out that loyal customers are 5x as likely to repurchase your products and 7x likely to try new offerings. Improving customer retention by 5% can increase profits from 25%-95% and also acquiring a new client can cost 5 times more than keeping an existing one.
Omnichannel marketing also brings businesses a more diversified audience when implementing various channels. You have to bear in mind that every customer would prefer a certain channel to purchase items.
COVID-19 effect on omnichannel marketing
Unsurprisingly, COVID-19 has affected the digital world as well; however, some say that crisis is also the best time for opportunities. Yes, the pandemic has changed consumer’s behaviour, but it also created a unique sphere for businesses to implement or improve their omnichannel sales approach to keep with customer’s changing needs.
Probably those who operate only on the online platform were not as affected harshly as those who have physical stores as well. As people are pushed out of their normal routines and comfort zones, they have acquired new purchasing habits. COVID-19 has changed the consumer’s behaviour towards a more eco-friendly mindset, so customers became more conscious and careful with their purchases.
The online ecosystem would not need a huge amount of capital to adjust to the new reality as it can take just a few intuitive steps to get through these “weird” times. Even though consumer behaviour has changed, one factor will always remain the same – the need for a personalized experience.
Author by Shakhzada Shakhimardanova