What is Omnichannel? Definition, Benefits, Examples & Latest Trends
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In today's digital era, where consumers wish to possess the ability to shop whenever they want, from wherever they want, and however they want, single-channel retailers have failed to cater to these consumer needs.
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This led to the emergence of Omnichannel commerce that provides customers with a seamless shopping experience irrespective of whether it's on an online marketplace, an online store, a brick and mortar store, or social media channels.
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In Omnichannel commerce, each sales channel is supported independently by different divisions of the brand. This kind of comprehensive integration has helped brands stand out in the world of constant competition, resulting in increased sales and an uninterrupted shopping experience for customers.
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What is Omnichannel Commerce?
āāOmnichannel commerce is a multichannel approach to sales that provides customers with a unified and seamless shopping experience, whether they're shopping from an online store or marketplace or in a brick-and-mortar store.
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There is integration between distribution, promotion, and communication channels on the back end. It improves customer support services by providing seamless, high-quality shopping experiences between multiple channels of contact. An omnichannel approach to retailing drives better relationships across all channels and points of sale or interaction.
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āBenefits of Omnichannel Commerce
āWith the revolutionary development in technology and the internet over the last two decades, there has been a massive change in customer buying behavior. Businesses are now expected to offer products and services via multiple retail channels, including online stores, mobile apps, brick and mortar stores, etc.
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ā1) Omnipresence:
Gone are the days of the single-channel retail business. In today's era, if a brand wants to cater to all the needs of their customers, they need to be available to them at all times and places, providing a consistent shopping experience irrespective of the time and place of their interaction.
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ā2) Integrated Data Collection and Analytics:
Omnichannel strategy enables a company to monitor and collect its customers' data across all the channels. This data helps the company to understand its customers better and to learn their needs and preferences, such as the products they have looked at, the products they have left in the cart, the deals they got attracted to, etc.
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This facilitates enhanced customization of communications and promotions made to each customer, thereby personalizing their purchase journey making them feel unique and important for the brand.
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ā3) Customer Loyalty:
The omnichannel approach focuses on the individual purchase experience across various channels and devices, enhancing customer loyalty. By emphasizing the customer instead of the platform from which they interact, companies tend to drive more sales and better retention rates. The targeted messaging builds loyalty and creates brand retention making it more likely to purchase from the same brand again.
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4) Enhanced Brand Image:
Through an omnichannel approach, businesses can provide their customers with a consistent experience across all platforms and channels and offer a personalized experience for each of them. This improves the overall customer experience and builds a positive image for the brand.
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ā5)Increase in Revenue:
āAn omnichannel approach towards e-commerce invites customers to engage with a brand across multiple touchpoints and channels. This increase in various engagements and enhanced customer experience at each stage of the consumer's purchase journey can help increase revenue.
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āHow does Omnichannel Retail work?
āOmnichannel retail allows customers to interact with a brand on different channels and place their orders. It enables a customer to check whether an item is available in-store and book it online to pick it up from the nearest store location.
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This consistent availability of information helps the brand deliver a better retail journey to customers, engaging them personally through a variety of purchasing channels providing an enhanced customer experience. This, in turn, helps the brands to build a solid and long-term relationship with their consumer base.
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Latest Trends in Omnichannel Commerce
āIn today's dynamic business environment, it's more important than ever to stay updated on the latest trends influencing omnichannel commerce. Let's take a look at the key developments and modern trends in the industry.
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According to a report by Nielsen, omnichannel shopping increased by 50% in 2020. Customers who shop "heavily or exclusively" online increased up to 133% from September 2019 to September 2020. A report by Adweek says that "62% of the Gen X population and 44% of Baby Boomers are doing more online shopping now than they were before the pandemic".
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According to a report by Customer Think, retailers who adopt a robust omnichannel strategy are likely to experience a 9.5% increase in annual revenue as compared to 3.4% for retailers who still prefer to operate with a multichannel or weak omnichannel strategy.
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The pandemic has not only changed customers buying behavior but has also restricted companies from using traditional marketing approaches, making it necessary for them to embrace the omnichannel retail strategy to provide unified shopping experiences across all channels.
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Are You Omnichannel-Ready? Today, more and more brands are shifting to online business and exploring the benefits of omnichannel retailing. Every day is a new opportunity to do more and become an ever-present brand in your customer's lives. Is your business ready to jump into the fascinating world of omnichannel commerce?
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Among the various rising Omnichannel retail solutions, Fynd Platform has emerged as one of the best omnichannel platforms. Fynd Platform being the ultimate solution for omnichannel retail business, provides a new way of retailing and offers inventory syncing from offline to online stores across channels, website development. Apart from this, you can also integrate delivery partners who will help deliver goods to your customers.
Maximize Festive Season Sales With Fynd Platform
Learn from the masters and cracks the code to festive season sales success with Fynd Platform's Festive Readiness Guide
What is the definition of Omnichannel?
Omnichannel is a strategy that allows online businesses and brands to engage with their customers across multiple channels such as in-store, online, mobile, social media, etc. It aims to provide a seamless and consistent customer experience across all sales and marketing channels.
What are the benefits of Omnichannel?
The benefits of Omnichannel include:
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1. Increased sales: Omnichannel allows businesses to engage with customers across multiple channels, providing more opportunities for customers to make a purchase wherever they are.
2. Improved customer loyalty: Omnichannel allows businesses to provide a consistent and seamless customer experience, which can lead to higher customer satisfaction and loyalty to the brand.
3. Better customer experience: Omnichannel allows businesses to provide a consistent and personalised experience to customers, regardless of the channel they are using. The brand identity is consistently maintained while increasing brand visibility across the web for maximum outreach.
4. Increased data on customers: Omnichannel allows businesses to gather more data on their customers, which can be used to improve their marketing and sales efforts.
5. Improved inventory management: Omnichannel allows businesses to better understand their inventory levels across all channels, which can help prevent stockouts and overstocking.
6. Increased operational efficiency: Omnichannel allows businesses to integrate their systems and data across all channels, which can lead to increased operational efficiency.
7. Increased competitiveness: Omnichannel approach can help businesses to stay competitive by providing a consistent and seamless experience to customers, which can attract and retain customers.
Can you give examples of Omnichannel in action?
Few examples of Omnichannel in action:
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1. A customer being able to purchase a product online and then return it in-store.
2. A customer is able to receive notifications about sales and promotions on their mobile device while shopping in-store.
3. A customer is able to start a chat with customer service on a website and continue it on a mobile app.
4. A customer is able to check the in-store availability of a product through the company's mobile app and then reserve it for pick-up.
5. A customer is able to pay for their purchase with a loyalty card or rewards points, regardless of whether they're shopping in-store or online.
6. A customer being able to track the delivery status of their purchase through the company's website or mobile app.
7. A customer being able to access their purchase history and saved preferences across all channels.
8. A customer is able to access their shopping cart and saved items across all channels.
9. A customer is able to get personalised product recommendations based on their browsing and purchase history across all channels.
10. A customer is able to access customer service through multiple channels, such as phone, email, chat, and social media.
What are the latest trends in Omnichannel?
How is omnichannel different from multichannel?
Here are a few latest trends in Omnichannel:
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1. Omnichannel personalisation: This involves using customer data to personalise the customer experience across all channels, including marketing, sales, and customer service.
2. AI-driven chatbots: Chatbots can be used to provide customers with quick and accurate responses to their questions on various channels.
3. Virtual reality (VR) and augmented reality (AR): These technologies are being used to provide customers with an immersive and interactive shopping experience across various channels.
4. Social Media Selling: this trend allows businesses to sell their products through social media channels like Instagram, Facebook, and Pinterest
5. Contactless payment and checkout: to support the current need for contactless payment and checkout, many businesses are implementing this feature in their omnichannel strategy
6. Mobile-first approach: As mobile usage increases, many businesses are focusing on a mobile-first approach to provide seamless and convenient experiences to their customers
7. Integration of IoT (Internet of Things) devices: IoT devices such as smart speakers, smartwatches, and other connected devices are increasingly being integrated into Omnichannel strategies to provide customers with a more convenient and streamlined shopping experience
8. Micro-moments: Omnichannel strategy is also focusing on the micro-moments that customers experience and provides them with relevant information, offers, and recommendations at those points.
How is omnichannel different from multichannel?
Omnichannel and multichannel are both strategies for reaching customers through multiple channels, but they differ in how they approach customer engagement.
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Multichannel refers to using multiple channels to reach customers, but each channel is typically treated as a separate entity. For example, a company might have a website, a physical store, and a phone line, but each one operates independently.
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On the other hand, Omnichannel refers to using multiple channels in a coordinated and integrated way to provide a seamless experience for the customer. The goal is to create a consistent brand experience across all channels and provide customers with a seamless experience, regardless of how they engage with the company.
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For example, a customer who begins browsing a company's website on their phone can continue that browsing session on their laptop. The company should be able to track their browsing history and preferences across all the channels. Also, the customer should be able to purchase from the website, pick up in-store, or get support from the store associate with their online purchase.
How can Omnichannel help to improve customer experience?
Omnichannel can help improve customer experience in several ways:
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1. Consistency: By creating a consistent brand experience across all channels, customers have a better understanding of what to expect from a company and are less likely to be confused or frustrated by inconsistent messaging or branding.
2. Seamlessness: Omnichannel creates a seamless experience for customers, allowing them to move seamlessly between channels without losing their place or having to start over. For example, a customer can start browsing a company's website on their phone and continue on their laptop without losing their place.
3. personalisation: Omnichannel allows companies to gather data from multiple channels and use that information to create a more personalised experience for customers. For example, a customer who frequently purchases a certain type of product on the company's website can receive recommendations for similar products when they visit the company's physical store.
4. Convenience: Omnichannel enables customers to interact with a company in the most convenient way. Customers can engage with a company through their preferred channel, whether through a website, mobile app, social media, or in-store.
5. Increased Engagement: Omnichannel can help increase customer engagement by allowing companies to reach customers through multiple touchpoints, increasing the likelihood of customers interacting with the brand and being exposed to marketing messages.
