Omnichannel commerce defined
Omnichannel commerce is a unified e-commerce multichannel approach that creates a seamless integration between all sales channels, offering a consistent customer experience, whether shopping from a mobile device or offline.
For a brand, the strategy of omnichannel commerce is a matter of carefully aligning messaging, goals, objectives, and design across each of its channels and platforms. Think of the process as a highway planner designing a busy freeway. On-ramps and off-ramps must make sense and direct motorists — or customers in this case — to their destinations in a hassle-free manner.
Omnichannel commerce is the same concept. This marketing strategy is built on integrating multiple channels for a smooth retail experience including the business-to-customer (B2C) transaction. Omnichannel completes the multichannel and single-channel strategies and optimizes them for today’s online customers.
It's a strategy that can ill-afford detours or lane closures.
Meeting the needs of today’s shoppers
Consumers are driving commerce across increasingly more channels and platforms. Shopping behavior has shifted to an omnichannel experience, including shopping in person from brick-and-mortar stores as well as on Amazon and eBay.
In-store
Online
They're buying on desktop, mobile, and Internet of Things devices.
Tablet
Mobile
The experience extends to customers interacting with a brand on every level, whether they're hearing, seeing, or reading advertisements, walking into a store, or they're calling, emailing, or interacting on social media.
Advertising
That's a lot of touchpoints to consider when building a unified experience.
How many channels does your business need?
Every business is different. But how does multichannel and single-channel commerce differ from the omnichannel approach? Multichannel commerce refers to selling across multiple channels, but the strategy is often disparate, which is attributed to marketing efforts happening in silos that lack a defined cross-channel message. Multichannel philosophies focus on optimizing by customer touchpoint rather than by journey.
Other retailers choose to sell via a single channel only, by limiting their activities to their e-commerce storefront, or relying solely on the Amazon marketplace, for example.
Single-channel commerce may seem simpler, but does it offer a seamless experience? On the contrary, it may not only be limiting but still not even be seamless. Businesses wanting to create a richer, more consistent experience for customers and drive more conversions must explore additional channels for customers to encounter their product.
To be truly omnichannel, they also must work with their stakeholders — marketing, sales, customer support, and customer success — to break down walls while containing or eliminating fragmentation.
Benefits of omnichannel commerce
By syncing brand, product, and pricing information across all channels, (through mobile apps, websites, email marketing, online stores, social media channels, chatbot, etc.) customers will have a consistent brand experience while getting a more personalized, seamless shopping experience.
One of the key benefits of omnichannel commerce is its ability to turn casual shoppers into loyal fans, since omnichannel customers have a higher lifetime value than single-channel commerce shoppers.
An omnichannel approach also allows brands to collect and merge real-time customer data from multiple channels, from loyalty programs to point-of-sale (POS) terminals. When combining such functionalities, brands get a more complete picture of customer types, what they’re interested in, and their behaviors.
Investing in an omnichannel marketing strategy is shown to generate significant returns. According to a Harvard Business Review study of 46,000 shoppers:
10%
increased average spending
Omnichannel customers spent an average of 4% more on every shopping occasion in the store and 10% more online than single-channel customers.
23%
increased purchase frequency
Customers who had an omnichannel shopping experience logged 23% more repeat shopping trips to the retailer's stores within six months.
23%
increased in-store spending
Conducting prior online research on the retailer’s own site or sites of other retailers led to 13% greater in-store spending among omnichannel shoppers.
A new shopping behavior
Omnichannel commerce has momentum. The pandemic and its resulting health protocols prompted customers to rely on digital channels for personalized shopping and services.
Over 2 billion people purchased goods or services online in 2020, and during the same year, e-retail sales surpassed $4.2 trillion worldwide. As the pandemic subsided, 73% of customers said they will continue to shop online.
Marketers got to see a new type of behavior in customers and — if they were doing their homework — they got to understand something different about them... There will be a return to normalcy, but there will be an evolved customer that sees the world differently.
By implementing an omnichannel retail approach, marketers also can increase sales by reaching customers across different channels who weren't intending to shop, just simply engage on social media. Platforms like Facebook, Instagram, and TikTok are ideal examples of where businesses are expanding their global reach into previously untapped markets and segments.
Facebook Marketplace was once a customer-to-customer option, but it has grown to include larger businesses. Facebook's Meta branding, which includes Instagram ads, is also creating a channel metaverse that can reach billions of people each month. TikTok doesn't allow vendors to sell merchandising directly from its platform but with certain integrations, businesses can sync their inventory and direct users to their sites.
Steps for building an omnichannel strategy
Creating an effective omnichannel commerce strategy depends on the brand, of course, but some steps are universal. They include:
Know the customer
Research the target audience's interests, behaviors, and needs. Ask questions, invite feedback, and leverage social media and social listening tools. Mapping out the customer journey both in-store and through digital channels, can reveal insights into a customer’s thought processes and let organizations know what is or isn't working for them.
Pick the right channels
Know where your customers are and what they're doing. Use analytics to determine which channels are the most profitable, the most efficient, and/or the ones that acquire the newest customers. Keep an eye on touchpoints that best serve the customers.
Establish a clear purpose per channel
Designate one channel for engagement and keep the others available for updates.
Consolidate the channels
Deploy technology that follows customers throughout their buying journey, from reading reviews, seeing social ads, and window-shopping at an online marketplace to their purchase at the physical store.
Follow through thoroughly
By deploying abandoned cart programs, marketers can encourage customers to return and finish purchases, regardless of which channel they began the interaction. Also, automated follow-up messages can thank customers and sometimes offer discounts for future purchases, building customer loyalty.
Maintain the channels
Above all, don't let up. Testing can't be a one-and-done activity relegated to the last few days before launch. It should be a systematic process in your business. Test segments and determine whether you can segment in even more detail for even better targeting. A mix of qualitative and quantitative data can help make measured decisions about your most important channels.
Is omnichannel commerce for you?
Omnichannel commerce is a progression of a data-driven market strategy. As more customers moved to online shopping in the wake of the pandemic, expecting a personalized experience at every step of the way, the omnichannel approach transformed from a nice-to-have business strategy to a must-have for a successful e-commerce business.
Brands should also have a platform and partners that make it easy to aggregate all data sources and glean insights.
To learn more about omnichannel customer experiences and strategies, visit Sitecore's omnichannel and commerce resources sections where you'll find articles, links to webinars, guides, and related topics.