- HoneyHat

Omnichannel vs. multichannel defined

Multichannel marketing and Omnichannel marketing use multiple channels for customer engagement and sales.

The key difference between omnichannel and multichannel marketing is that the former fully integrates each channel so that customers can move seamlessly from one to another without interrupting their experience. Multichannel marketing, on the other hand separates channels and their user experiences into distinct flows.

Shopify : Click here to launch your online business

“Channels” refers to all communication points in the customer journey, whether they are in-store, desktop, or mobile. This includes websites, social media, emails, SMS, phones, instant messaging, chats in apps, etc.

We’ll take a closer look at each of the marketing strategies.

Omnichannel marketing 101

Omnichannel strategies aim to create a single customer journey regardless of the number of touchpoints a brand has with its customers.

An ideal omnichannel environment would allow a customer to walk into a brick-and mortar store, choose a product that they like, and then go home and complete the purchase. They wouldn’t have to search for it again.

In the same way, customers can begin shopping via social media before continuing their purchase in your app. You can create a seamless transition for your customers between channels in many different ways.

Customer data, which is collected across multiple channels and used to create a consistent customer experience, is one of the pillars of omnichannel. The omnichannel shopper gets a tailored experience that makes it easy and convenient for them to return.

Omnichannel pros

A consistent and personalized customer experience
Allows customers to change channels
Better customer data means better targeted marketing strategies
Brand identity and image
Higher customer engagement
Increased sales through more satisfied customers

Omnichannel cons

Implementation can be difficult and complex
More financial investment is required and a more complex tech stack
Needs a team of dedicated resources
Highly tech-dependent. This could lead to serious problems if there are any glitches.
Privacy concerns could arise from a more comprehensive collection of customer data

Multichannel marketing 101

Most brands that you have ever dealt with use a multichannel strategy. This is the most popular strategy, as it is the easiest to implement and manage. Multichannel marketing involves creating a plan for each channel and catering to the preferences of customers on each.

Personalization and channel integration are still possible, but they will be limited. You can, for example, use customer data to customize emails and SMS messages. And you can use advertising retargeting in order to capture customer interest on different web channels.

Multichannel marketing pros

Using different channels to boost brand awareness
Separate channels allow for greater flexibility when allocating marketing budget
Easy and simple to install
The ability to create a diverse range of marketing strategy
When one channel is down, it doesn’t affect other channels

Multichannel marketing cons

Less consistency with the user experience
Syncing data across channels is a problem and you can’t get a customer-centric view
It is more difficult to manage brand consistency across siloed media
Limited ability to create an experience that is fully personalized and customized

How to choose the best strategy for your brand

What works for one business or person may not work at all for another (even if they seem very similar). Do some research before you launch your new marketing campaign. Make sure that you have a well-thought-out strategy.

Budget and resources are the first, if they’re not the most important, factors to consider. You’re better off not even trying if you can’t fully invest in ensuring that all parts and pieces of the system are integrated effectively and smoothly. Consider this: If your omnichannel experience is disjointed and error-prone, it defeats the whole purpose.

To go omnichannel, you will need IT expertise, a solid tech stack, infrastructure and strategy, as well as a creative and sound strategy.

You can choose between a headless commerce system with a powerful content management system or a traditional system driven by a Product Information Management (PIM). Start building or hiring an IT team if you do not know what they mean.

Examples of multichannel and omnichannel strategies

1. LeSportsac

LeSportsac, an American retailer, sells handbags and luggage as well as travel accessories. The company, despite its well-established brand, recognized that it needed to upgrade its online experience to match its quality in-store. It was this realization that led the company to partner with Shopify Plus. This partnership significantly improved their omnichannel retailing experience.

The switch to Shopify Plus was a response to several challenges. LeSportsac had a poor online experience due to technical issues, slow website updates and an absence of consistent branding across all digital channels. LeSportsac achieved a cleaner and more intuitive design with Shopify Plus. It also integrated features that allowed personalized customer interactions.

LeSportsac saw a 37% rise in the number of units ordered, a 20% increase in the average order value and a 7-percent growth in conversion rates.

2. Mastermind Toys

Mastermind Toys – a well-known Canadian toy retailer that has 68 stores – realized their online store was in need of a makeover. Shopify and Stream Commerce partnered to create a website that was as easy to use and inviting as their physical stores.

The newly redesigned Mastermind Toys shop was a huge success. The new store allowed customers to easily browse more than 10,000 books and toys, receive orders curbside within an hour and find the perfect gift using a tool that helps them find it. The brand was able to tie its online shopping experience with the interactive, fun atmosphere of their brick-and mortar stores.

It paid off: Mastermind Toys saw a 286% increase in online conversions, a tripled number of digital sales, and 2808% more customers served by chat.

3. Red Dress Boutique

Red Dress Boutique began as a typical ecommerce site. Red Dress Boutique, recognizing the need for expansion, began a search for an enterprise ecommerce solution. The journey culminated with the switch from Magento to Shopify Plus, a strategic decision that transformed the brand and generated $15 million in sales annually.

Shopify Plus improved the speed and appeal of the website, resulting in a 34% increase in sales in March and a 23% increase in April in comparison to the previous year. The company also reduced costs by approximately $100,000 when compared with the annual expenses of Magento.

Increase your revenue by maximizing your channels

There is no right or wrong way to market your business. It’s possible that you don’t have the resources necessary to immediately implement an omnichannel strategy, or a multichannel strategy alone may be effective.

You can only find out which one is right for you by doing some research and experimenting. You won’t know unless you try. So pay attention, learn, and optimize your strategy as you go.

Omnichannel vs. multichannel FAQ

What is the difference between multichannel and omnichannel customer service?

Omnichannel customer service links all channels to provide a seamless experience whether you call, chat, or email. Multichannel customer service means that you can reach out in many different ways, such as via phone, email or social media, but they are not necessarily linked.

What is the difference between cross-channel and multichannel?

Multichannel marketing and customer service involves the use of more than one channel, but each channel operates independently. Cross-channel means that these channels work together to create a seamless customer experience.

What is an example of a business that uses omnichannel marketing?

Apple is an excellent example of a brand that offers a consistent customer experience across its online store, physical stores, and the Apple Support app. Apple offers a consistent experience to its customers across the Apple Support App, online stores and physical stores. The same level of service is available to customers regardless of whether they are using the online store, physical stores or Apple Support app.

Does Amazon offer omnichannel sales or multichannel sales?

Amazon is omnichannel. Amazon offers a consistent shopping experience whether you are online, at a physical location, or using the mobile app.

Shopify allows you to sell online.

Get a free trial

Learn more about the benefits of a membership.

Author: Amanda Gaid

Need Help Finding B2B Service Provider?

Table of Contents