Omni channel VS Multichannel: Benefits of both in Retail Business

Omni channel and multichannel are similar business models that retailers and merchandisers might want to learn in depth. Before going into the differences let’s dive into each of these definitions.

What is multichannel marketing?

It is all about using a multi-channel platform to reach your customers. To engage with your customers and build brand awareness, integrity, and customer loyalty, retailers may depend on different channels. These channels may include social media, print, billboards, email marketing, SMS marketing, paid ad campaigns, display signage, etc. It is not necessary that these channels might connect. The information and message each channel was focusing on may be completely different from each other. That means each channel is independent. Customers may need to check each channel separately to collect specific info.

What is Omni channel marketing?

Both marketing strategies involve multiple channels. Omni channel marketing strategy is a customer-centric method whereas multichannel is completely product or channel-centric. In the Omni channel, each channel is connected to the other.

All the kiosks, ecommerce stores, apps, social media, email marketing tools, brick-and-mortar stores, billing software, etc., will integrate to provide a seamless shopping experience to the customers.

When a shopper added some items to the cart and leaves the app or e-commerce site before checkout, remarketing emails and notifications will send to the customer through the emails and social media channels to get the customer back to the site and complete the purchase.  Promotional emails can send regularly to engage with the customer. Special discounts and offers to loyal customers are also a customer engagement strategy used in Omni channel marketing. In other words, Omni channel marketing enables retailers to provide a consistent, customer-centric shopping experience to their shoppers across all channels.

The dress you added to your wish list while you browsed from your laptop will again come to your mind when you saw it again on Face Book ads and it will again come to inspire you as an email with its discounted price. Now you may be reached a decision and decided to purchase it online. If you can’t wait until it reaches home through the delivery service, here again, Omni channel marketing will assist you by providing the BOPIS (Buy Online and Pick in store) method of shopping.

Difference between Multichannel and Omnichannel

Even if these strategies look similar, their impact on making your brand name is different. The ultimate goal of both strategies is selling the product. The difference is the journey to that. While the multichannel operates independently it’s not that focused on customer preference. Customization is limited in the multichannel strategy.

Omni channel strategy is more focused on a customer-centric linked operation. Attracting the customers towards the brand through various methods and forcing them to buy the product through remarketing and promotions, and after purchasing making them repeat customers is the regular flow of the Omni channel business model.

Since Multichannel marketing is a cost-efficient and straightforward method retailers tend to follow this. Whereas Omni channel requires more resources for paid ad campaigns and email marketing. In this digitally transformed world, Omni channel marketing can greatly increase brand awareness and customer engagement. One of the merits of multi-channel is you can compare each channel’s performances separately and focus on the one which gives more revenue.

While comparing both models, the Omni channel model is better than a multi-channel approach.