Importance of Omnichannel in Ecommerce

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The wave of modernization arises from the need to execute result-oriented strategies when running a business online. In the wake of technological progress, innovation becomes the foremost pillar to dig out the outcomes you want. However, the prime pillar to build a progressive business is to keep your clientele contended and progressive. In doing so, brands use multiple channels to market and promote their business

This is where Omnichannel comes into play. Used especially in the eCommerce industry, this unified manner of marketing reaps outbound benefits for brands and makes a multichannel approach successful. 

So, let’s find out what Omnichannel is and how it benefits an eCommerce brand in particular!

What Is Omnichannel Ecommerce?

Omni-channel retail is most commonly known as omnichannel commerce involves a multichannel approach to the market while focusing on providing a unified and seamless customer experience

Harvard Business Review states that over 73% of customers use multiple channels while shopping online. A potential buyer interacts with a retailer through social media, mobile or email.  Before making the purchase decision, this customer gathers as much information as possible about the product they are planning to buy.  

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Since multiple channels are being utilized, tracking and monitoring customer activity become somewhat challenging. Retailers are left with data that is siloed and provides little insight to managers for making smart business decisions. 

With an omnichannel operation, you can focus on the complete buyer’s journey nurturing them to proceed to checkout more efficiently and in less time. 

In many ways, omnichannel is the natural result of how customer behavior has evolved over the years. The term is often confused with multichannel and while both of these concepts are related —there’s a fundamental difference.


Picture 1. Customer have an eCommerce way of thinking

Difference Between Omnichannel and Multichannel

Both of these two marketing methods hold equal significance and leverage each other with their individual traits. But it’s important to understand how they differ from one another. 


Marketers use multiple channels like apps, websites, social media, to engage with their clients. However, while doing so they have to ensure that a customer gets the same level of experience rather than a disoriented one. Their motive is to ensure that customers do not receive a fragmented experience, no matter which platform he chooses. 


As per the Omnichannel strategy, it predicts that customers may switch to another platform or jump from one channel to another and so it plans the journey in a way that leads them towards the ultimate goal. It ensures to streamline the multichannel strategy to generate prospective leads and promises conversions. 

Benefits of Omnichannel Ecommerce

Omnichannel generate four major benefits for the eCommerce industry, which are as follow:

Increased Sales and Traffic

If you omit the Omnichannel approach out of your marketing, things will become complicated to handle. As per the study conducted on 46,000 shoppers, an omnichannel customer tends to spend more money. Moreover, customers who navigate to more than 4 channels on average spend 9% more on your brand as compared to those having a single channel.

This happens because an omnichannel strategy paints a holistic picture of the customer’s journey. Here, the right message is delivered at the right time and the overall effort doesn’t come off as too aggressive. Businesses that are looking to increase their sales without omnichannel will struggle to find success. The consumption patterns over the years have become so digitized that just being present on all channels is no longer enough to capture the consumer’s attention.

It’s necessary in the modern competitive environment to support and engage customers in their purchasing journey.

Enhanced Customer Experience 

The significance of omnichannel eCommerce is highlighted from the fact that around 9 out of 10 prospective customers prefer having an omnichannel experience. As you add more touchpoints to your service procedures, the need to create a seamless experience during the shift from one touchpoint to another becomes vital. 

When you break down the walls between each of your channels and give a uniform manner of interacting with your brands, your customers get more attracted towards your brand. Once this happens, getting customers to interact with your brand activities becomes a whole lot easier.

Omnichannel provides a level of consistency that leads to positive customer engagement that naturally leads to retention.  Increased interactions cause customer sentiment toward the brand to increase as well, the result is a positive cycle of interactions that creates upselling and cross-selling opportunities.


Picture 2. Customer prefer having an omnichannel experience

Better Data Collection 

Through multichannel marketing, streams of information about the customers are generated, which becomes complicated to analyze and monitor. Customer data is one of the foremost aspects to build a progressive business foundation; therefore, it’s essential to keep a tab on it to understand customers’ needs. 

By using cross-channel capabilities in omnichannel management, it gets easier to interact with customers and analyze the data. No matter on which platform the information is generated, you will be able to crack it up and extract useful insights to improve the outcomes of your marketing campaign.

Data collected here could provide some useful insights. For instance, you could analyze pageviews for many times a product page has been loaded on your website vs. how many times it was accessed in-store through a tablet or kiosk. Delving deeper, you can examine why a particular product is attracting attention but not converting. 

Based on this information, you can ask yourself if the price is too high or if there’s an issue with the information available on these pages. You can also make informed decisions about which merchandise needs to be stocked and how customers can be motivated to make a purchase. 

Boosted Customer Loyalty 

Omnichannel eCommerce strategy should be geared towards targeting different customer groups. You get to filter out the loyal customers and work on strengthening bonds with them. For instance, if some baby diaper-buying customers visit your website frequently, you can offer some personalized coupons and discounts to encourage them.  

Studies analyzing the relationship between coupons and customer loyalty point out that 91% of coupon redeemers revisit the retailer. You can even pitch some of your higher profit-generating products to them. When you create a strong relationship with your customers, they feel motivated to repeatedly visit your store and even recommend others. 

One of the problems the omnichannel communication fixes relates to email marketing. Businesses have relied on emails to create loyalty but in recent years, open rates on such emails have gone down significantly.  An email that is timed to wait for a particular event, for instance, the time of last delivered push notification could get in the customer’s inbox at the right time. Using algorithms, emails could be delivered at a perfect time to increase open rate and drive further engagement.


Picture 3. Omnichannel strengthens bonds with customers

How Does Omnichannel Influence the Consumer?

Providing a unified experience, omnichannel eCommerce is facilitating customers on multiple platforms. Loyalty programs, personalized emails, discounts, and many more marketing strategies become available leveraging your brand with outbound benefits. You get to captivate customers on one platform and convert them on the other.

Advanced technologies are disrupting retail both in online and brick-and-mortar settings. Retailers are integrating these technologies because customers expect the best possible experience in this day and age. It’s the duty of businesses to make sure these customers are satisfied. 

Due to the advent of social media, unsatisfied customers can often result in bad publicity. People who have a bad experience with your company won’t just vent in one-on-one conversations. Instead, they might take their rage online.  Facebook rants, angry Tweets and bad reviews could spell disaster for your business.

Moreover, through omnichannel marketing brands can follow a customer-centric nature harnessing greater benefits and enhanced loyalty. Furthermore, the potential growth of the eCommerce industry is visible through the study stating that in 2018, 39.6% of the estimated $1.357 trillion global eCommerce revenue was generated through smartphones. 

Hence, there is a need for businesses to start considering building their omnichannel strategy to leverage multi-channel marketing tactics.


Picture 4. The retention rate is higher when using multi-channel marketing

Are You Omnichannel-Ready?​

It isn’t easy to keep up with such a fast-paced world of technology. But if you’re trying to get at the top you must gear up with all the essentials needed to compete in the saturated eCommerce industry. To make your processes simpler and progressive, you need to create a dedicated omnichannel eCommerce strategy but before that ask yourself, is your business omnichannel ready yet? What improvisations does it need to streamline the process smoothly?

Create a strategy that can bring you closer to your customers and understand their needs. Every customer wants ease and flexibility. If they have dropped a certain item in a cart using an app, your web version should be able to detect that as well and show them the history of their recent activities. In this way, you get to connect them on multiple platforms. 

So, get the professional’s help and create a robust strategy to take your business to the next level of success.

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Importance of Omnichannel in Ecommerce was last modified: May 26th, 2021 by admin
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