From multi-channel to omni-channel strategy
Have you ever heard of multi-channel and omni-channel retail? If you have, you have probably wondered what is the difference between the two? Indeed, the question seems legitimate since both terms evoke the fact that there are several channels. But the terms are quite different. Here is a guide to help you understand the difference.
What does multi- channel strategy mean?
Multi-channel means a multitude of channels as the name suggests. These channels can be online or offline channels. For example: e-commerce websites, physical stores, emails, word of mouth…
Companies that decide to implement a multi-channel retail strategy choose to be present on the channels with which their potential consumers are most likely to be in contact. Moreover, their objective is to create a different strategy on each of these channels in order to get the most out of them. Indeed, these companies must think about the right message to pass, at the right time and ensure to address the right target for each channel.
The rise of this strategy was pushed by the digitalization of the economy. Indeed, as soon as companies realized that some people were consuming on the Internet, the need to create an online store then raised. Indeed, it was a question of having a physical store for the consumers who preferred to consume in brick-and-mortar shops and having an e-commerce website for the online consumers.
For example, for a company selling shoes, having a physical store in the city center and an e-commerce site with no interaction between the two is a multi-channel strategy.
To summarize, the multi-channel strategy starts with the company and goes to the different channels with which potential customers interact.
However, today, it seems that consumers are no longer segmented into online consumers and offline consumers. Indeed, a consumer can consume online and then consume in physical stores. Moreover, a consumer can start his research on the web and then buy in the physical store of the firm or vice versa. Therefore, it is necessary to have some kind of continuity between the different channels with which the customer interacts because continuity between channels will keep a coherent brand image and deliver a similar message for each channels. So, an omni-channel strategy may be more adapted to the digitalization of our economy.
What is an omni-channel strategy?
First of all, “omni” means “all” in Latin. So “omni-channel” means “all channels”. The term “omni-channel” therefore refers to an approach that uses multiple sales channels in a seamless way for a more complete experience.
Omni-channel strategy is sometimes defined as an approach that is multi-channel in origin as it operates across multiple channels but creates a more complete synergy around all its communication and sales channels. Indeed, omni-channel strategy is a strategy of distribution on various platforms, physical stores offering consumers a unique and seamless experience on all channels. We know that in 2021, 90% of consumers move from one channel and one device to another throughout the day. Therefore, it is very important that all channels are interconnected to create the most complete customer experience possible.
Today, it seems that this approach is trendy. Indeed, we can see that social networks are developing their own market places and the omni-channel strategy proposes a customer journey with a synergy between all channels (offline and online). So we notice that the trend is to link all the channels together in order to offer more and more possibilities in terms of customer experience to consumers.
A concrete example of the omni-channel concept could be the following: When we are in the metro, we can take advantage of this time and use it to do our shopping. We can order from our supermarket’s application and choose to pick up our groceries in click-and-collect. So we have mixed the online and the offline: it is the omni-channel retail.
Conclusion
Recent examples show that consumer needs have evolved, and in a competitive world, it is necessary to adapt and compete.
For decades, companies have been implementing multi-channel strategies. That is to say, when companies with physical stores created their online stores, it was a multi-channel strategy even if it was done consciously or not.
Then, with the arrival of social networks, consumers more and more demanding regarding their customer experience, the omni-channel strategy quickly made its place. Indeed, it is no longer about creating an online store for physical stores, it is also about promoting the activities done in physical on the online channel.
The omni-channel strategy has been revolutionary in having all channels intelligently interconnected around the customer in order to offer the most complete customer experience possible. Moreover, today with the democratization of artificial intelligence these links are made more and more easily between channels which makes the implementation of the omni-channel strategy increasingly easy.
About this article
This article has been written by a student on the Grenoble Ecole de Management’s Advanced Masters in Digital Strategy Management. As part of a content creation assignment, students are given the task of writing articles based on their digital interests and disseminate the articles online. Articles are marked but we make minimal changes to the content. Thanks for reading! James Barisic, Programme Director, MS DSM.
