Omni-channel focuses on the further development of multi-channel and cross-channel distribution channels in online retail: all sales channels can be used simultaneously. To ensure that the Latin term “omni” (everything, all, every) has a commercial meaning, the product range, marketing, and the channels themselves can be configured centrally.

Multi-channel and cross-channel already represent the cross-channel sales concept. The further development of omni-channel pursues the approach of considering all company and product information as well as possible incentives for a purchase decision as a whole. All information is made available to the customer via digital and traditional sales channels. The omni concept requires a kind of convergence of all digital and physical touchpoints – whether stationary retail (PoS), catalog, e-commerce, or call centers. Today’s customers want to use everything at the same time, but also want to access the same product range and the associated information.

Omni-channel: a hybrid solution

Omni-channel is a hybrid solution that combines components from multi-channel and cross-channel. On the one hand, customers use different sales channels, while on the other hand, all touchpoints mentioned are controlled centrally from a single point. This is usually the web shop.

Important: With omni-channel, the when and, above all, the where no longer play a role. The technical and mobile possibilities offered by the Internet, smartphones, and tablets ensure that companies are able to offer their entire product range across all channels. As a rule, customers are only subconsciously aware of the different channels, partly because there is no channel restriction during the checkout process. This means that customers can order online and pick up the inventory in the store (in-store pick-up).

Omni-channel in practice

A local retailer offers a suitable app in addition to its online shop, which customers can use to log into the retailer’s ecosystem. Registered customers are then located via the mobile app and receive personalized advertising and offers, for example. This also works via the web shop, email, or text message. The provider usually tries to inform customers in advance about limited discount campaigns (coupon codes) and other customer-specific benefits. Such tailored campaigns often trigger immediate purchases by customers.

We are already familiar with mobile targeting from Google Search and the online retailer Amazon. If users are logged in to these services, they receive results tailored specifically to them based on their most recent search results or purchases; non-registered users, on the other hand, are shown results that are less personalized.

Due to its close integration with marketing strategies, some experts do not see omni-channel as a sales strategy, but rather a response to consumer behavior. The reason: a centralized customer database records all purchasing behavior, including product selection and the channels used, in a personalized manner. After evaluating the collected data, new advertising campaigns can be planned in a targeted manner.

In summary

From a technical point of view, there are hardly any differences between multi-channel, cross-channel, and omni-channel. In contrast to multi-cross strategies, omni-channel allows customers to access the entire range at any time, regardless of which sales channel they choose. In addition, marketing campaigns are also designed to be cross-channel and can be extended via smart applications (smartphones, tablets) for greater reach.

For further information, please read the articles: Product range breadth and depth and Integration of the stationary trade into the e-commerce value chain.

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