Are you buying online or offline? Or both, even within a single transaction? In today's market, it's increasingly common for customers to communicate with sellers in multiple ways when making purchasing decisions. Adding products to an online shopping cart using a smartphone and completing the transaction on a laptop , ordering a product online and picking it up in a brick-and-mortar store, apps that let you get discounts during your visit to the supermarket… these are just a few of the many examples showing how omnichannel marketing works. Learn what it is and why it works.
Just a while ago, rumors were circulating about the end of brick-and-mortar stores and the shift of all sales to the virtual space. But can anyone imagine, for example, buying a car without visiting a showroom and experiencing its appearance and handling in person? This is precisely why the purchasing balance isn't tilting toward either online or offline. Something entirely different is happening in the market: the virtual and real worlds are merging. Customers are using multiple channels to communicate with brands, step by step, through all stages of the marketing funnel and making a purchase. This is why omnichannel marketing is a strategy being adopted by a growing number of leading corporations . This is especially true because brands are most easily "experienced" in the real world.
What is omnichannel marketing? Definition and basics
Many people associate omnichannel with multichannel marketing. Indeed, both approaches prioritize providing customers with access to a wide variety of communication channels. However, there's a key difference: omnichannel marketing refers to a network of interconnected online and offline marketing channels. The foundation of this approach is a coherent omnichannel strategy —one that leverages tools from both realms in a cohesive manner. These strategies complement each other and lead to a single, simple goal: increasing overall sales. This means that companies that utilize omnichannel marketing accompany each customer throughout their purchasing decision-making process, "tracking" their actions—online and offline.
Advantages of omnichannel marketing – why is it worth implementing?
The fundamental point to remember when implementing an omnichannel strategy is that it increases the number of "touchpoints" with your brand. This is crucial because, in most cases, a customer doesn't make a decision to purchase a specific product after a quick glance at the offer—even if they think they will. It used to be said that it takes about 3-5 so-called "touchpoints" to convince a consumer enough to make a purchase decision. However, today, it's increasingly common to talk about 9-11 touchpoints.
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It's no wonder. The modern market is much more competitive than the one we faced even a dozen, let alone several decades ago. There's also the issue of the internet, which has completely transformed the world of marketing. That's why a brand that wants to effectively increase its sales—generally speaking—must follow its customers and be where they are . And today, consumers exist both in real life and online. Therefore, it's worth reminding others about yourself here, too, in many ways.
The more diverse forms of communication are used, the better the results of an omnichannel strategy can be.
Omnichannel vs. Multichannel – Key Differences Explained
While, as we mentioned earlier, there are significant similarities between these two marketing strategies, there are also significant differences.
Omnichannel and multichannel marketing share common elements , including the use of various customer reach strategies – from Google ads, social media campaigns, email marketing, ambient campaigns, to standard brick-and-mortar sales and related promotional methods. However, there is a significant difference:
- In multichannel strategies, all sales channels are managed independently, and the results of each tool are captured in separate statistics. In terms of customer experience, this means that if, for example, they receive a 50% discount on a product via email, they can usually only redeem it in the brand's online store. This option is not available in brick-and-mortar stores. Communication is also less integrated, with online and offline sales appearing very clearly separated.
- In an omnichannel strategy, all sales and communication channels converge at one central point: the customer. The goal is to convince them to purchase the product—no matter the method. This eliminates situations where, for example, online marketing staff compete for results with brick-and-mortar salespeople. What matters is the overall result, achieved through "teamwork," not a so-called "silo" management approach. In practice, this means that In omnichannel marketing, the company follows a potential customer, becoming their companion wherever they decide to go.
We can therefore say that omnichannel campaigns are implemented in a more coherent manner, which also translates into their higher effectiveness and, importantly, good customer reception.
Creating an omnichannel strategy – a step-by-step process
Omnichannel marketing is a solution that's needed in almost every industry these days—especially if your business expands beyond the online world. However, even e-commerce companies can try to reach customers offline. A good example is offering the option of picking up products ordered online at partner retail locations. This is how one of the most renowned international perfumeries expanded its sales channels. Although it primarily distributes cosmetics and perfumes online, it decided to open brick-and-mortar locations in shopping malls. This resulted in more customer contact points, which translated into an overall increase in sales.
The question is, however, how to build an omnichannel strategy that delivers the desired results and ROI. The answer is: just like any other marketing strategy. So, here are the issues to consider.
- Analysis of the initial situation
A marketing agency tasked with implementing omnichannel marketing will begin its work with a thorough analysis of the initial situation, specifically:
- in-depth knowledge of the company to be promoted – its values, goals, image, and products,
- familiarizing yourself with the brand's direct competition and its business environment,
- take a closer look at current sales results and the channels used to communicate with consumers.
- Defining target groups
Before specific elements of omnichannel marketing can be established , it's crucial to precisely define the company's customer base. It's not just about defining their characteristics in general, but also about getting to know them better. The marketing team should, among other things:
- create customer personas – that is, visualize the people who most often and most willingly reach for (or are expected to reach for) the brand's products,
- define their interests and the problems they face,
- indicate how the products offered by the brand solve these problems,
- take a closer look at the behavior of target groups – and more specifically, what sales channels they might use. The principle is simple: Omnichannel marketing elements should be selected according to what customers needFor example, if they use Facebook frequently, social media advertising should be an important consideration.
- Determining which omnichannel marketing elements should be used
There are countless tools you can use with an omnichannel marketing strategy. In this case, the sky's the limit. Therefore, it's impossible to take advantage of all the available solutions. It would be very difficult to implement, and above all... completely unnecessary. Ultimately, it's only worth being where your audience is.
- Determining various scenarios for customer contacts
It is important to assign each of the tools used to a specific stage of the sales funnel – starting from arousing consumer interest, through arousing need and interest, to closing the transaction and post-sales service.
A good omnichannel marketing strategy should anticipate customer behavior to some extent, allowing for the automation of a significant portion of customer communication. It's important to remember that while customers can easily be "linked" to various personas, each customer is a living individual whose consumer behavior is not entirely predictable. In practice, this means being prepared to guide both those who make quick decisions and follow the "bait" like a thread to a ball of yarn through the marketing funnel, as well as those who are more hesitant.
- Defining indicators that allow you to measure the effectiveness of your campaign
No marketing campaign will be effective unless it's implemented based on a specific action plan and the setting of measurable and specific goals. These goals must be carefully defined and parameters identified that will allow for the effectiveness of the implemented tools and the optimization of the campaign over time.
The foundation, of course, is metrics like ROI, or return on investment. However, there are many other parameters that suggest whether a campaign was a success or not. The ultimate determinant of omnichannel success is, of course, sales. If sales begin to increase and customer numbers expand, it's a sign that everything is working as it should.
In subsequent stages, it is, of course, necessary to monitor campaign effectiveness, set new goals, and verify previous ones. Therefore, omnichannel marketing requires continuous work and becomes a strategy that encompasses all sales-oriented activities.
Omnichannel in action – examples of practical application
How an omnichannel strategy translates into practice depends on many factors. Each company may develop a unique strategy, and each customer may choose a different communication path. Nevertheless, it's worth illustrating how it works.
A bank, for example, can utilize omnichannel marketing. Customers already commonly use online and mobile banking systems when interacting with financial services providers. But an omnichannel strategy goes a step further. For example, a customer might withdraw the last of their account funds from an ATM. The system records this and takes the "next best action" (NBA). In this case, this might mean immediately contacting the customer. For example, their banking app might display a push notification informing them that their funds are running low or asking if they need additional funds. Within a few days, the customer might also receive a call from a consultant asking if they need a loan or another solution available from the bank. This decision might also be followed by emails, text messages notifying them of new offers, and so on. Of course, the idea isn't to "flood" customers with messages—being too pushy would be counterproductive. Rather, it is about immediate, multi-channel response to current or likely future consumer needs.
Other examples can be seen in the activities of supermarket chains. Some already offer online sales of some of their products. But that's not all. Omnichannel is also supported by affiliate programs – implemented via an electronic customer card or mobile app. This allows the store to record and analyze customer shopping habits and guide them through the shopping funnel. How? For example, the system notes that a customer shops on average twice a week, on Wednesdays and Saturdays. It also records the products added to their cart and the average bill. Marketing messages are tailored to this data, delivered via text message, push notification on a phone, email, and even via discount coupons in the physical store or shopping apps.
An omnichannel strategy—understood as the integration of various sales channels—can also benefit stores that sell in brick-and-mortar stores and online. Let's take a look at a rather complex example scenario that might occur, for example, to a company selling sofas online. We'll see which omnichannel marketing elements can be used across a long-term communication journey.
- A customer needs a new sofa. So they type a specific phrase into Google, such as "green sofa."
- A Google Shopping ad appears in the search results. The customer likes the sofa's photo, so they click on it and go to the online store.
- He browses the offer and considers a purchase. But buying furniture isn't a five-minute decision. So he closes the page and goes back to his business. Cookies are saved in his browser's memory, which can be used to run a remarketing campaign.
- As a result, when a customer visits news portals or browses Facebook, personalized ads from the online store are displayed, featuring the sofa they were viewing and similar items.
- The customer ignores these advertisements, but the fact that he visited that particular store is remembered.
- After a while, he sees a link on social media to a blog post from a store he'd previously visited, dedicated to advice on choosing a sofa. Still considering what to buy, he clicks the link. The article piqued his interest, and it also included an invitation to sign up for their newsletter, which offers a 10% discount on any purchases. He leaves his email address and is added to their lead database.
- A few days later, he receives an email showcasing the most interesting sofas in the store. The one he was interested in was available at a lower price.
- A banner with information about the reduced price is also displayed as part of remarketing ads.
- The customer is almost ready to make a purchase. He navigates to a page with a discounted sofa and adds it to his cart, but then he thinks it would be better to test the piece before buying, so he abandons his shopping cart at the last minute.
- The marketing automation system receives information about the customer's location and, as a result, sends them a personalized invitation to visit the nearest furniture store operated by the store. It also reminds them of the discount on the selected sofa, confirming that it can also be redeemed offline.
- A customer visits the store and ultimately purchases a green sofa. This information is recorded in the customer database.
- The store sends the customer an email thanking them for their purchase and informing them about an additional discount on their next purchase.
As you can see, in this scenario, before a customer decided to make a purchase, they had to encounter the brand in several, even a dozen, places. However, each such "encounter" served a single purpose, and the link between offline and online activities created a feedback loop.
This is precisely why omnichannel strategies can be so effective. However, they require truly precise planning and the use of modern technological solutions that will significantly automate communication. This will give the customer the impression of a constant, yet unobtrusive, connection with the brand. And this is also crucial. Remember: modern sales means accompanying the customer throughout the buying process, not "pressuring" them to buy . The purchase should occur when the consumer is ready. Your job is to provide them with information that gently nudges them toward conversion, but leaves the final decision in their hands.
Of course, the story described above is just one of many that could have happened when running a campaign using omnichannel marketing elements. Sales could have looked completely different if the first point of contact had been a brick-and-mortar store.
For this reason, developing omnichannel communication principles should be entrusted to experienced specialists in this field. What matters here is a very specific action plan in which the assumptions are implemented in practice, and the effects can be precisely measured.
Why is it worth investing in omnichannel marketing?
Omnichannel marketing offers numerous benefits to a company, ultimately impacting its market position and financial performance. The most important include:
- personalization of customer communication
Research shows that as many as 75% of consumers expect personalized communication. The goal is for brands to connect with each customer to build authentic relationships and tailor their offerings and communication methods to their real needs. Omnichannel marketing makes this possible by tracking the customer's purchasing journey, regardless of how they interact with the brand. As a result, consumers feel valued, and their questions and suggestions are truly on target.
- increasing the reach of communication with consumers
The more touchpoints you have with a customer, the higher the likelihood that one of the opportunities you provide will translate into a conversion. By providing your audience with multiple communication and shopping options, you also guarantee them a sense of freedom and independence, which translates into brand image.
- the possibility of automating marketing communications
The omnichannel model, although focused on building personalized messages, is amenable to the use of marketing automation tools . An efficient system that combines communication across multiple channels will operate more efficiently than a team of marketers. This means lower costs and high sales effectiveness.
- building long-term relationships
While not every customer interaction will result in a purchase, it will be an element of interaction, building engagement with your brand, and thus creating a strong emotional bond. As a result, you can count on greater brand loyalty and, therefore, long-term benefits.
Is an omnichannel marketing strategy for everyone?
As the internet slowly becomes the dominant sales and/or communication channel for almost every brand, more and more companies can benefit from the solutions offered by the omnichannel approach. This solution is primarily for companies that operate both online and offline and have an extensive customer base or are seeking to expand it. Of course, it's crucial to skillfully select the appropriate elements of this strategy from the vast array of options. Even utilizing a few tools that allow you to combine online and offline activities can lead to improved sales results and, who knows, perhaps even a complete change in business strategy. Therefore, it's worth taking a closer look at this option.
If you'd like to learn how to leverage this form of sales support in your business, our experts are here to help. It's easier than you think!
Summary
The above article covers the following topics:
- Explanation of the concept of omnichannel marketing
- Comparison of omnichannel and multichannel marketing
