Omnichannel

Omnichannel, sometimes spelled omni-channel or omni channel, refers to a way of marketing that integrates multiple ways to connect with a customer and for the customer to respond with a purchase. It is similar, but not identical, to multichannel marketing. Omnichannel marketing puts the customer at the center of all interactions and seeks to make it as simple as possible for a customer to make a purchase. This is accomplished by not only offering different options for buying the product but also by helping to anticipate and remove potential objections to the purchase.

Background

The developments of the internet, mobile technology, social media, and other twenty-first-century technology have radically changed how people shop. For many years, people had very limited shopping options. Someone who wanted to purchase a coat, for instance, would go to the local store, examine the possible options, and make a purchase.

In the 1890s, stores like Sears, Roebuck and Company started providing catalogs that included pictures and descriptions of various merchandise that people could order and have shipped. This was an early form of multichannel marketing, in which a company provides different paths for a customer to purchase a particular product. The development of the internet and online sales in the 1990s provided new channels for customer purchases. The first completely electronic transaction was an album sold between two individuals on August 11, 1994. Within days of that purchase, Pizza Hut became the first company to sell a product online when it introduced a way to order and pay for pizza deliveries via the internet.

Multichannel marketing continued to grow throughout the last decade of the twentieth century and the early years of the twenty-first century, as it became possible for customers to make purchases through mobile devices, social media platforms, and other channels. However, in the 2010s, retailers became interested in an even more customer-focused approach to selling. While multichannel marketing had allowed them to integrate their sales approach to some degree—for instance, customers who looked at products on their phones would find it in their "recently viewed" items if they returned to the store website on their computers—omnichannel marketing efforts increasingly focused on not just the product but also the customer.

Overview

When dealing with a retailer using the omnichannel approach, the customer might still find the product in their "recently viewed" items when accessing the site from a different device. However, a company would focus not just on making the product available but also addressing the reasons a person should purchase it and removing obstacles to doing so. Instead of just reminding the customer about the product, a multichannel marketer might add an incentive to purchase by sending an email or placing an ad in the person's Facebook feed with a discount for the product.

Using technology that enabled it to tell that the person looked at the discount offer but still did not act, the company would then send other ads to the potential customer's other social media feeds over a period of several weeks. Should the person still not respond, the company might try another approach. For instance, if the person had been looking at computer printers, the company might switch to sending ads about how the company recycles its ink cartridges.

If this interests the customer enough to put the product in the virtual shopping cart, but they do not complete the purchase, the company might again change tactics. Acting on the assumption that the customer might prefer to see the print quality before making a purchase, the company might mail a paper ad for retail stores in the customer's area that carry the product. If this works and the person visits a store and makes a purchase, the company can continue the omnichannel approach in other ways. For instance, the person might receive an offer for a rebate that requires their email address. This alerts the company that the customer purchased the item, so it can follow up with offers for discounted ink. Over time, the customer will receive various other offers with reminders to purchase ink and opportunities for special offers and to receive rewards for referring friends. The customer will not, however, receive more ads or information to purchase another printer.

The entire process is focused on the customer's need or desire for the item and any objections or obstacles that may arise to making the purchase. Retailers using omnichannel marketing for more expensive items, for instance, might guess that a person who looks at an item without purchasing several times is being deterred by the cost. That customer might receive a special financing offer to remove that obstacle.

Companies that use omnichannel marketing stand out from the competition because the focus is on the customer. Instead of focusing on selling its product, the company focuses on what the customer needs to be able to buy it. The omnichannel-directed company will provide many opportunities for the customer to purchase so that the customer can do so in whatever way is most convenient and comfortable. The company will also customize its approach for individual customers, using technology to keep track of the customer's interactions with its website, social media accounts, emails, targeted advertisement clicks, and other channels. In addition to allowing the company to determine the best way to complete the sale, the approach also makes things easier for the customer, since the company tracks and connects the information from its various interactions. The customer who has entered a home address and an email address into the website will not be asked for it again during a call to customer service, for instance, because the company has integrated all the information gathered about the customer.

In addition to improving the customer experience and increasing the chances the company will complete the sale, the omnichannel approach also helps in other ways. The company gains efficiency in its internal operations because it does not have to repeatedly gather and share the same information in each customer interaction. The customer feels valued because of the personalized approach and is more likely to become loyal to the company. These benefits also give the company an edge over its competitors, who are more likely focused on their products than the customers. However, the omnichannel approach requires an investment in technology to integrate the marketing channels, making it an expensive endeavor.

Bibliography

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