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Retailers must develop a strategy that can successfully serve customers in different channels.
Omnichannel vs multichannel retailing is a topic that has been in the news lately. This article will take you through the differences between these two options and how they can be used to your advantage.
How Does Omnichannel vs. Retailing through Multiple Channels Work?
When it comes to omnichannel vs. multichannel commerce, an omnichannel strategy helps you to integrate all of your company’s demands. Everything from your marketing activities to cross-training your employees contributes to a smooth client experience. Retailing through Multiple Channels differs from traditional retailing in that it provides several of the same sales channels, but none of them are linked.
Omnichannel provides clients with the same shopping options as multichannel, but they are all interconnected.
Retailing using several channels
From the customer’s viewpoint, omnichannel retail is an entire company strategy that provides a seamless experience. The user experience (UX) links every interaction a customer has with a firm, whether it’s online, in-store, on a mobile app, or through email.
An omnichannel experience isn’t achieved by selling things over several channels. To accomplish so, you’ll need to integrate your sales channels, payment systems, and other areas of your organization so that your buyer’s interactions with your firm are smooth.
Sellers must integrate sales and marketing efforts in a common data hub, change to a customer-centric strategy in all areas, and use analytics at all levels to offer this seamless UX. Customer-centricity is a hallmark of omnichannel retail.
Let’s pretend you own a natural foods specialty business that sells via a brick-and-mortar location, an online store, Amazon, and a mobile app. Customers are also targeted via a weekly email newsletter, printed discounts in the mail, and a loyalty program.
If all of these approaches work together, you’re an omnichannel retailer. Customers may, for example, make an order online and pick it up in-store, connect to their mobile app to check previous in-store purchases, and their loyalty points are updated regardless of where they shop. All of their marketing and sales interaction points are linked. This results in a consistent customer experience, which is at the core of an omnichannel strategy.
Retailing through Multiple Channels
Multichannel selling is selling products using multiple sales channels. If you sell on just one website, you’re not a multichannel seller. However, if you sell on your website, a mobile-enabled site, a Facebook Shop, and Amazon, you’re a multichannel seller. Multichannel selling is reaching buyers on two or more sales channels, and these can be connected or not. This also means that omnichannel is a method of Retailing through Multiple Channels.
Retailing through Multiple Channels can make the sales process a little harder for your customers. For example, if your customer orders online, they have to wait for the item to be shipped to their home. If this was an omnichannel retailer, they could order online and pick it up right away in the store, which is a strategy called buy online, pick up in-store (BOPIS).
Omnichannel vs Retailing through Multiple Channels: Which is Best?
When you compare omnichannel vs Retailing through Multiple Channels, you’ll find that omnichannel has its benefits and is preferred for many situations. However, that’s not to say that it’s always the right choice. Retailing through Multiple Channels allows sales to occur on any of your sales channels without paying for integration. Omnichannel has added costs, such as when an employee has to locate an item ordered online, notify the customer their order is ready for pick up, and then handle the transaction when the customer retrieves their order. These added costs reduce profit margins.
The following situations are ideal for omnichannel selling:
- Local companies with internet stores: When a consumer makes an online purchase, you may give them the option of picking it up in the shop or having it delivered to their house.
- Businesses that have a loyalty program: If a company has a loyalty program, it should integrate such that points may be redeemed online and in-store.
- Companies that send out email newsletters may simply categorize clients based on their purchase history. These groups may get offers that are personalized to their purchasing habits, increasing the chances of conversion.
- Products with high-profit margins: Shipping an order to a shop and then paying an employee to pick it up or ship it back to the consumer raises fulfillment expenses, which cuts into earnings. To make sense, an omnichannel strategy requires bigger profit margins.
Retailing through Multiple Channels is best for:
- Businesses where cost is the most essential factor: If cost is the most important factor for a company, keeping with a multichannel strategy implies no integration charges.
- Companies with customized point-of-sale systems: The difficulty of integrating well-established, bespoke point-of-sale systems with other channels may be very costly, outweighing the return on investment (ROI).
- Salespeople who are commissionable: When a consumer makes a purchase at a shop, sales professionals are often paid a commission. It’s not totally fair to the salespeople for a consumer to go online and make a purchase without technology to monitor in-store encounters.
There’s no denying that many shops are going in the direction of multichannel. However, it may not be feasible for your financial situation.
Multichannel vs Retailing using several channels Costs
When it comes to multichannel and omnichannel marketing, there are several expenses to consider. With a BigCommerce account, however, you can get started for less than $30. You’ll need to store inventory after you’ve set up your eCommerce platform. You’ll also have to pay for payment processing and seller costs.
The following are some of the expenses associated with omnichannel selling:
- Software: BigCommerce is a popular omnichannel application with prices ranging from $29.95 to $299.95 per month. Marketing through email services like ConvertKit, which begins at $29 per month, might be another option.
- Seller fees and storage: Businesses pay seller fees when they sell on an eCommerce site like Amazon. Seller fees on Amazon range from 99 cents per item sold to $137.32 per unit for warehouse storage.
- Fees for payment processing: Most payment processors charge 2.9 percent + 30 cents for every transaction. Stripe and PayPal are examples of payment processors. If you conduct a large number of transactions per year—typically more than $1 million in sales—volume discounts may be available.
The cost of omnichannel selling varies depending on whose connections you use and how many transactions you do. You’ll need to decide if cost or consumer convenience is more essential, and then you’ll have a better notion of the initial and continuing expenses of omnichannel retailing.
Providers of Omnichannel Services
Omnichannel retail providers make it simple to seamlessly combine each sale and marketing channel for your company. This omnichannel experience is often delivered via software, but it may also be delivered through hardware such as point-of-sale systems. We’ve discovered that software makes the cloud experience simpler for both enterprises and customers.
BigCommerce
BigCommerce is an eCommerce platform that makes it simple to handle all parts of omnichannel selling so you can attract more consumers. For companies who like POS connections like Square and ShopKeep, BigCommerce is the way to go. Segmentation, search engine optimization (SEO), and site hosting are some of the features. A 15-day free trial is available to get you started.
Shopify
Shopify is an eCommerce platform with built-in marketing that is simple to use. Shopify allows you to create an eCommerce site, monitor and ship orders, sell in-person and on social media, and design your site. It’s a good alternative for organizations searching for an all-in-one service because of its built-in marketing. It provides a 14-day free trial.
Webgility
Webgility’s eCommerce bookkeeping, accounting, inventory sync, and shipping services are all available. For firms who utilize QuickBooks or NetSuite, it’s a fantastic solution. Pricing for multichannel begins at $249 per month.
Omnichannel vs Retailing through Multiple Channels Features
Customers see an omnichannel retail experience as having a cohesive look and feel, while a multichannel strategy just offers one sales channel. For a consumer, a multichannel retail experience might seem radically different on one channel than it does on another. Connect as many interaction channels as feasible under one roof to create a connected UX. Connecting your primary interaction points, which are your sales channels, is the simplest approach to get started. Other marketing strategies, including Loyalty Programs for Customers, Marketing through email, interactive video commercials, and Ad Campaigns for Retargeting, may be incorporated into an omnichannel experience alongside sales channels.
Marketing through email
Marketing through email should be a key part of any online marketing program. Top eCommerce platforms let you deliver the omnichannel experience by integrating your sales data with top email systems or even built-in mobile-friendly Marketing through email as you get with Square POS.
When you link your email list to your buyer history, you may send emails to consumers who have previously bought the same or comparable goods. Using purchase history to tailor marketing efforts is an example of omnichannel thinking in action, and it results in much more sales conversions than a one-size-fits-all strategy.
Similar to omnichannel retail, Marketing through email strategies in a multichannel retail experience allow businesses to see which pages a customer visits, which links they click, and how they engage with each email. However, it’s not integrated within every channel.
Loyalty Programs for Customers
Starbucks’ loyalty program gives customers the option of receiving rewards points and reloadable cash through physical cards or a mobile app. Kohl’s Cash, for example, offers incentives redeemable for apparel and other Kohl’s products. Small companies may now use POS systems with built-in loyalty programs like Square Loyalty to take advantage of the benefits of fully integrated loyalty programs.
Small company loyalty rewards, like Starbucks’ industry-leading program, maybe monitored online, on a mobile device, and in-store to provide a comprehensive omnichannel experience. Your rewards program’s progress is measured in your backend dashboard.
Giving consumers a tangible voucher at checkout for their next in-store visit is an example of a multichannel loyalty program. They can’t use this coupon online or over the phone, and they’ll have to produce it in person when they make their next purchase.
In the Square dashboard, Square Loyalty records every aspect of loyalty program use.
Video Ads That Are Interactive
Engagement is key when it comes to omnichannel marketing and cutting-edge groups like PK4 Media brings an interactive omnichannel experience to everyday video. Its TruEngage platform supports various omnichannel marketing methods, including Video Ads that are interactively designed to engage the viewer. Their technology requires users to either engage with the brand for an average of six seconds or complete an action to skip the ad.
Many huge companies use interactive online video advertising to drive their campaigns, but they may also be adapted to match modest budgets and smaller enterprises. A freelancer may turn a smartphone video into an advertisement for less than $100.
Multichannel video advertising may also be interactive and provide a lot of tracking data. These metrics include how long a person views the video and whether or not they click on the ad’s link.
To bypass this PK4-created commercial, you must first engage with it.
Ad Campaigns for Retargeting
When a person visits your website and afterwards sees an ad for the product or website no matter where they are on the internet, this is known as a retargeting ad campaign. These advertisements may be encountered when searching on Google or on social networking sites. This is accomplished by placing cookies on a user’s computer when they visit a website.
Retargeting advertising keeps whatever prospective purchasers saw on your website at the forefront of their minds while they visit other sites. To encourage immediate engagement and conversions, some extremely successful retargeting advertisements offer buy-it-now discounts or a free gift.
For retargeting in multichannel marketing, a more manual technique is usually used. A business may submit a list of individuals who have clicked on a link in an email and use it to run a social media ad.
Service to Customers
Cross-training employees aids in providing clients with an omnichannel experience. Store clerks and anybody else who interacts with consumers should be aware of all the methods in which they may communicate with the firm. A consumer may initially connect with you via Amazon before visiting your website or shop. Knowing how to use the mobile app, as well as being able to check up goods and consumer purchasing history, is a good place to start. Service workers can support consumers at every stage of the journey since they are familiar with all sales channels and marketing interaction points.
Multichannel Service to customers doesn’t allow phone agents to view conversations customers have had through email or vice-versa. Each channel maintains its own communication, which can frustrate customers.
Order Processing
The client experience is greatly influenced by warehouse personnel. Each mailed order is an important moment of client connection and is sometimes the last physical touch you’ll have with a customer. Regardless of how elaborate or simple your shipping is, it must be neat, correct, and give the brand experience. Even if it’s only putting coupon inserts, it should be done carefully. Even on a shoestring budget, you can create a branded packaging experience in a variety of ways.
Separate delivery methods for orders received by email, phone, and internet shop are all part of multichannel fulfillment. It may increase the amount of time and money it takes to dispatch an order, especially if it makes sense to combine it. When using multichannel fulfillment, each region may or may not be aware when an order is made through a separate channel.
In the celebrity giving room during the Emmys, Elizabeth de Moraes carries a custom-made box for her Video Glam Cam Kit.
Analytics
A strong omnichannel strategy is built on an understanding of how and where consumer interaction points turn into sales. More than simply basic sales data is required from your data. It’s critical to have a comprehensive picture that records the many paths, or engagement funnels, that clients follow to finalize a transaction. Google Analytics and your sales system are the greatest methods for a small company to collect this information.
Use audience segmentation in Google Analytics for deep channel insights. New vs. returning visitors, mobile vs. desktop, and source channel segments are all basic audience categories that should be tracked by everyone.
Your reporting system, like everything else omnichannel, has to keep track of all of your omnichannel sales and other interaction points in one place. A system that tracks interaction from marketing email campaigns, mobile applications, and social platforms, such as those available in BigCommerce, is an additional bonus.
Although you can see information for each channel in multichannel analytics, you can’t tell whether a user begins their research in one channel and then makes a purchase in another. Instead of seamless connectivity, laborious cross-referencing would be required to observe conversions across all channels.
Successful Omnichannel & Retailing through Multiple Channels Strategies
Creating an effective omnichannel retail experience for your customers can take time and skills to implement. With the right strategy, a small business may see their profits and customer satisfaction increase with Retailing using several channels.
These businesses have excelled in implementing omnichannel retailing techniques.
Sephora
Knowing your customer’s birthday enables you to send them a birthday email with a special discount or coupon code. Sephora excels at this, allowing shoppers to choose from a variety of birthday presents. The majority of these birthday coupons state that they must be used during the month of the recipient’s birthday.
Because the client may take this email to a shop or redeem it online, Sephora adopts an omnichannel strategy.
Wynn
You’ll get a welcome email from Wynn Las Vegas a few weeks before your arrival, outlining what to expect during your stay and the hotel’s check-in and check-out regulations. They also make you an offer for a suite upgrade at a lower price.
M.A.C. Cosmetics
View your M.A.C. Cosmetics purchase history on the internet, whether you made a purchase online or in-store. If you’re at the shop, M.A.C. artists will be able to see your chosen foundation shade in seconds. You may repurchase the same goods with a single click at home.
While the majority are available online, if you buy M.A.C. Cosmetics from an approved shop like Ulta or an airport kiosk, you won’t be able to see your purchases.
Fresh
Fresh has retail locations, but its internet sales platform is entirely independent. Any concerns that emerge as a result of an online purchase must be handled online. Similarly, any difficulties with in-store purchases must be remedied in-store.
Fresh has a multichannel retail strategy that includes an online shop as well as physical stores.
Warby Parker
Warby Parker is an online store that sells prescription and nonprescription glasses and sunglasses. They offer an online shop as well as a number of local locations where you may buy their products. They employ a multichannel strategy since it does not integrate.
Warby Parker will mail your item to your house if you buy online; you will not be able to pick it up in-store.
Pros & Cons of Retailing using several channels
There are several advantages and disadvantages of omnichannel retailing to consider. Omnichannel selling is a terrific option if you want to increase sales and provide a better client experience. If pricing is the most important issue for your company, you may want to explore offering your clients a single-channel shopping experience.
Pros of Retailing using several channels
- Better customer experience: Customers who make an online purchase and then return the item in-store enjoy the flexibility that omnichannel companies provide. They can also utilize discounts and keep track of loyalty programs across many platforms.
- Improved analytics: Businesses may make choices based on the data provided when purchase activity is observed and integrated across all platforms.
- More sales opportunities: Businesses may offer items to consumers who are more inclined to buy based on previous purchases. Impulse purchases are more common when a client buys online, according to online shopping data.
Cons of Retailing using several channels
- Cost prohibitive: Costs may be prohibitively costly for small enterprises or those with little profit margins.
- Complex: When a customer makes a purchase at your shop, you want your inventory to reflect the transaction. If you’re not tech-savvy, you may need to seek assistance.
- Logistically challenging: With so many outlets, deciding where to transport a product economically may be difficult. The weight and dimensions of each product affect the cost of shipping from a warehouse, a retailer, or a drop shipped provider.
Conclusion
Omnichannel vs Retailing through Multiple Channels is very similar in that it allows you to make purchases and interact with a company in multiple ways. Retailing through Multiple Channels doesn’t integrate with each channel. However, an omnichannel experience does—track everything under one roof, cross-train staff, dissolve data barriers, and retrieve detailed analytics with each channel. This customer-focused approach isn’t reserved for enormous companies either. As long as a product has healthy profit margins, it has room for an omnichannel retail UX.
