The rapid digitization of the company also pushes new distribution channels further and further. Today, businesses don’t just rely on local retail. retail, but they increasingly use the Internet, e-mail, applications and, more recently, social media. Broadcasting across all channels allows them to reach more customers and increase their turnover. In this context, multi-channel or omnichannel strategies are increasingly being talked about.
However, the two are not synonymous, rather they describe the development of a unified, multi-channel sales strategy. In this article, we will explain all the essential differences between omnichannel and multichannel.
What does multichannel mean?
Most businesses started with multi-channel operations. New modern media have been added to retail or mail order that have opened up so many new sales channels. An online store on the Internet was usually the first step into the digital world. Email and apps were added later, while social media is extremely popular with younger consumers.
A company that promotes and sells products through multiple distribution channels is pursuing a multi-channel strategy. In this context, each of these channels operates completely independently. This means that if the customer is recommended online on the website, the seller does not know about it and does not even get access to this information. So the client should explain the situation again.
Advantages and disadvantages of multi-channel management
Multichannel can be very effective in reaching customers through multiple channels. This helps increase visibility and sales. Moreover, this strategy is easy to implement and does not require complex data management. It also simplifies training for employees who can usually focus on one channel.
The downside is of course a less optimal customer experience. Anyone who receives extensive advice on the Internet about a product that requires explanation does not want to start from scratch when shopping in a store. This can quickly lead to consumer frustration, which can hinder a positive impression of the board.
What does omnichannel mean?
This is exactly what omnichannel management is trying to address as it connects all these channels to create a seamless and seamless shopping experience. Shopping experience. Not only are there many sales channels offered, but they communicate with each other and exchange information so that the customer can enjoy a seamless experience. This is why omnichannel is practically an evolution of multichannel, as it can effectively compensate for the disadvantages.
In the above example, the customer could receive advice on the website via online chat and then proceed with this advice in the shop by the seller. Thanks to a modern CRM system, he has access to the course of the interview and can effectively conclude the consultation on the spot. The customer does not have to start from scratch, which saves time and nerves. This is exactly the definition of effective omnichannel.
Advantages and disadvantages of omnichannel management
In omnichannel, the customer is at the center and all sales channels are subordinate to him. So the seamless customer experience mentioned above is a big advantage. The company thus has a particularly modern and future-oriented impression, where the consumer can initiate a purchase or advice on the Internet or through an application, which he then concludes on the spot with a successful purchase.
However, most omnichannel strategies fail because of the bigger challenges they face. The demands for a sophisticated and modern ERP or customer relationship management system are getting higher and higher. CRM – are high. The data must also be updated and maintained. In addition, employees must be familiar with the system in order to work effectively.
Omnichannel vs. multichannel: What exactly are the differences?
Basically, both strategies differ in the way they process the available information. In the case of a multi-channel system, data reception and processing are data and actions are completely separated. When a customer buys online, it has no effect on their experience at the local store. In reality, the different channels are not dependent on each other.
This is why multi-channel marketing of the brand, product and distribution channel is at the heart of the action. In an omnichannel strategy, the consumer is of greatest importance. It adapts its communication channels to offer him the smoothest possible shopping experience. Therefore, this strategy is often considered the smartest and most modern solution.
| Multi-channel marketing | Omnichannel Marketing | |
| Who is the center of attention? | Brand/Product | Consumer |
| How to communicate? | Static messages | Flexible content |
| Channel interactivity | Act independently | Cooperate |
| Implementation | Rather simple | Quite difficult |
When to choose multichannel?
An effective multi-channel strategy is easier to develop and implement. You definitely need an effective customer relationship management system. CRM – but management is much easier. This can therefore be a good choice when resources are already very tight. A simplified workflow is also easier to learn and requires less training for employees.
In addition, channel managers can fully focus on their sales channel and need to spend less time communicating with other managers. This also gives them some flexibility because they don’t have to count on three, four or more additional channels.
When to opt for omnichannel?
At first glance, an omnichannel strategy appears to be the most modern and user-friendly option. However, it is not uncommon for execution to be a problem. Uniform and global implementation is indeed sometimes a big challenge, even for international groups with colossal budgets. On the other hand, if the implementation is successful, you are undoubtedly creating a better customer experience.
In particular, setting up and learning omni-channel marketing can take a lot of effort – so it’s important to rely on powerful software and expert advice from the start. With the right help, even small and medium businesses. Small and medium-sized businesses can implement an effective strategy that will allow them to enjoy all the benefits of omnichannel.
Conclusion
There is no clear answer to the question of which is better in the omnichannel versus multichannel race. Ultimately, the goal pursued by the respective company is also important. Multichannel is strictly separated and therefore easier to implement – here each channel can focus on the essentials independently. Omnichannel, on the other hand, ensures seamless shopping across all channels, but also requires a strong customer relationship management system. CRM-Zoho to easily process all the information.