In recent years, the intense development of the commercial environment has seen two approaches to meeting customer expectations. We are talking about omni-commerce and multichannel. Both models aim to provide customers with an attractive shopping experience but differ in their approach and the benefits they offer for a business. This article will examine these two strategies and explore what they mean for today’s industry.
Differences between omni-commerce and multichannel:
Omni-commerce, also known as omnichannel, focuses on creating a consistent and integrated shopping experience for the customer. In omni-commerce, all sales channels are centralized and closely interconnected. Customers can seamlessly switch between different channels, such as brick-and-mortar stores, online stores, social media, and mobile applications, while maintaining the consistency of information, product range, and services. Omni-commerce emphasizes providing a personalized and consistent customer experience at all stages of the shopping journey.
On the other hand, multichannel is an approach in which the company uses different sales channels, but they are separate. Each channel operates independently, leading to information dispersion and inconsistency in the assortment and customer experience. For example, a company may run brick-and-mortar stores, an online store, and telephone sales. Still, each channel operates independently and may have separate management systems, making having a consistent customer experience challenging.
What is the difference between omni-commerce and multichannel?
Degree of integration
In omni-commerce, customer information, product assortment, and transactional data are synchronized across different channels, allowing for a consistent shopping experience. However, each channel can operate independently in multichannel, leading to consistency and difficulty tracking customer activities.
The consistency of the customer experience
In omni-commerce, the priority is to ensure a consistent customer experience across all sales channels. Regardless of which channel the customer uses, he receives personalized information. On all media, there is the same assortment and high quality of service. In multichannel, the customer experience may vary depending on the selected channel.
You can read more about trends in customer behavior related to omni-commerce in the article: We all buy online – report “Omni-commerce. I’m shopping comfortably in 2023.”
Data analysis and personalization
Omni-commerce enables a more detailed analysis of customer behavior data across channels. Thanks to this, entrepreneurs can better understand the preferences and needs of customers, which leads to more effective personalization of the offer. In multichannel, data analysis may be complex due to the lack of integration, which means the possibility of personalizing and adapting the offer to individual customer needs is limited.
In omni-commerce, entrepreneurs can consistently manage the product range across all sales channels. This means that information on product availability, prices, and descriptions are synchronized, which minimizes the risk of incorrectly displaying information to the customer. It also benefits from the time it would take to update product data across all channels. In multichannel, where each channel operates independently, inventory management can be more complicated, leading to product availability and information discrepancies.
Costs and operational efficiency
Implementing omni-commerce may require more funds and resources due to integrating various systems and sales channels. However, in the long term, omni-commerce can bring benefits in terms of operational efficiency. Integrating data and sales processes allows for better use of resources, minimizing duplication and optimizing activities. In multichannel, where each channel operates independently, operating costs can be higher and operational efficiency is limited.
Benefits for business
One of the most significant benefits of omni-commerce is providing a consistent experience. Customers can easily switch between different platforms, and their data and preferences are centralized, increasing customer satisfaction and loyalty.
Using different sales channels increases brand visibility. Customers can find products and stores on other platforms, which allows you to reach more potential customers.
Omni-commerce provides access to detailed data on customer behavior and allows you to manage your product range in a more integrated way, requiring less time and effort than in the absence of integration. This makes it possible to better adjust the offer to customers’ needs on various sales channels, avoiding excess or unavailability of products, as well as choosing the most popular assortment.
Discover the possibilities of the modular OmniCommerce for RETAIL system: