How Can Omni-Channel Transform the Way You Sell?

Jared Shaner

What is the difference Between multi-channel marketing and Omni-channel marketing?

A lot of the time, Omni-channel Marketing is confused with Multi-Channel Marketing. Before I go into how omni-channel Marketing can transform the way you sell, I wanted to clarify the difference between the two.

Multi-Channel Marketing

Multi-Channel Marketing is something that retailers have been doing for a long time. It means that retailers are marketing their products through multiple direct and indirect channels. It is the strategy of reaching your audience through a variety of communication platforms, also known as channels. Before the world turned into a technology-driven world, multi-channel marketing was any advertising in print, TV, radio ads, and even word of mouth. Today, multi-channel marketing is a combination of direct and indirect communication channels such as websites, retail stores, mail order catalogs, direct mail, email, mobile, and more. It enables customers to use those channels to buy your product.

Omni-Channel Marketing

Omni-Channel Marketing delivers a seamless and consistent experience across all channels while factoring in the different devices that consumers are using to interact with your business. It uses predictive analytics technology that allows retailers to gather more data about their supply chain to make better decisions. Different factors, trends, forecasts and interrelations of each piece of the business all get taken into account before any decisions are made. With omni-channel marketing, all aspects of retail, like merchandise, assortment planning, purchasing, allocation, replenishment, promotions and price optimization all work together.
The difference really comes down to a company’s approach to digital channels.
Stacy Schwartz, a digital marketing expert, consultant, and adjunct professor at Rutgers Business School says, “Companies that focus on maximizing the performance of each channel (physical, phone, the web, and mobile), have a multi-channel strategy. They likely structure their organization into ‘swim lanes’ focused on each channel, each with their own reporting structure and revenue goals.” The result, she says, is a competition, which sometimes ‘serves the greater good and other times generates friction and misaligned incentives.’”

Who Shops Online?

According to Big Commerce, 96% of Americans have made an online purchase at some point in their lives, and 80% have done so in the last month, alone. There are all sorts of people who shop online. These people can be separated into categories and then, be compared to one another.

  • Millennials
  • Gen X
  • Baby Boomers
  • Parents
  • Non-Parents
  • Men
  • Women

Millennials vs. Gen X vs. Baby Boomers

When looking at the different demographics, it’s clear that the younger generations, such as Millennials, will continue to shop digitally. 67% of Millennials and 56% of Gen Xers prefer to search and purchase on eCommerce sites rather than in a physical store. Only 41% of Baby Boomers and 28% of Seniors will click to purchase. Millennials and Gen Xers would also spend nearly 50% more time shopping online each week (six hours) than their older counterparts (four hours).

TIP: Because of the growth of online shopping, you want to make sure your eCommerce experiences is as optimized as possible to turn your shoppers into buyers. Your shoppers should be able to shop on your store from any device and have the same, easy experience. One way to do this is to make sure that your checkout is as easy as possible. Don’t add any extra steps that might distract them from completing the sale. Also, design your site (especially your checkout) so that it is mobile-friendly. Offering services like purchasing through PayPal gives your shoppers a fast, easy way to pay on almost any device.

Parents vs. Non-Parents

The one major difference between parent shoppers and non-parent shoppers is convenience. Convenience is important for all shoppers, however, the ease of purchase appeals to parents the most. Nearly half of parents surveyed stated that they couldn’t live without online shopping, and they spend 61% more online per year than non-parents ($1,071 vs. $664).

TIP: The reason convenience is so important to shoppers who are parents is because they have to keep everyone’s need in mind, not just their own. With repeat customers, it’s a good idea to track their purchase history and use that data to make their shopping experience easier. For example, if they purchased children’s vitamins on your store regularly but haven’t in a while, ask them if they want to restock. This is a more helpful approach, rather than pushing an unwanted sale.

Men vs. Women

A lot of people think that women shop more online than men do, but actually, American men and women shop rather similarly across all channels. Men actually reported spending 28% more online than women did over the last year.

TIP: The thing is, both men and women are creatures of habit. Think about creating a shopping list of regular items for both men and women on an opt-in basis. If you pay attention to what your customers would like to have, you can offer them trials on a new product and/or offer automatic refill programs. Offering products that are similar to what they’re already purchasing, there is a higher chance that they will purchase from you again.

Where People Spend Online

Online shoppers spend 64% of their shopping budget in store and only 35% online. This may seem surprising because it seems like everyone is shopping online. The reality is that some people begin their shopping journey online and then finish a purchase in a physical store. The majority begin a search for items on marketplaces, while some go to their tried-and-true local boutique’s website, and others look for traditional brand name stores.

TIP: For those shoppers online, consider offering an expedited shipping option. People are more often willing to pay extra for convenience and a merchant can expect to capture more purchases that would otherwise be lost to a local brick-and-mortar.

Online vs. Store

Many of the most successful retailers are omni-channel commerce businesses have not online and physical stores. Studies show that even if you prefer shopping online, you’ll spend more when you go to a physical store. Depending on your demographic, this statement may not hold true.

TIP: A great omni-channel eCommerce experience will feel the same regardless of the channel. This is key. Try to standardize your processes, rules, messaging and pricing policies throughout all channels. Even if you create something new and unique for each channel (which is encouraged), the feeling should still be the same.

Online Store vs. Large Retailer vs. Marketplace

Due to the fact that there are so many different shopping options for consumers to buy from, very few shoppers are loyal to just one, specific company. 74% of Americans have shopped at large retailers, 54% on eCommerce marketplaces, 44% at online stores and 36% at category-specific online retailers. Because of this, multi-channel marketing and omni-channel marketing are so popular with companies these days.
As we mentioned earlier, multi-channel marketing refers to selling on multiple channels – in this case, online stores, marketplaces, and social media platforms. Omni-Channel Marketing refers to selling with both a physical and digital presence, meaning in store and online. Because consumers shop wherever is the most convenient for them, omni-channel marketing is taking the reins on effective eCommerce marketing strategies.
Nearly half of all online product searches start on marketplaces, such as amazon.com. Have you ever searched a product online before going to the store to buy it? Did you ever skip the step of going to the store and just purchasing that product online? Everybody is different and everybody shops differently. 31% of Americans first turn to larger retailers, 12% to category-specific retailers, and 7% to online stores.

TIP: If you sell through online stores without using Amazon as part of your eCommerce marketing strategy, you are missing out on a large amount of searches and potential conversions.

What People Are Buying Online

  • Clothing, shoes, and accessories
  • Electronics
  • Beauty and Personal Care Items
  • Music and Movies
  • Flowers and Gifts
  • Etc.

TIP: Take advantage of dynamic product recommendations to upset and cross-sell, on-site and in marketing emails. Take the information you gather from your customers and personalize your outreach to fit their interests and needs.

Conclusion

Omni-Channel Marketing can transform the way you sell simply because consumers aren’t loyal to a single type of shopping anymore. Because of its predictive analytics technology, it’s reaching consumers better than ever before. With omni-channel marketing, all aspects of retail work together to reach out to your consumers where they already are.
As technology is growing and allowing more options to buy, the consumers will follow. You need to make sure you’re ahead of them, or at least following along with them in order to keep your customers happy. Most consumers looking for items begin their search online and eventually purchase from one of the platforms you offer. If you aren’t there, they won’t be buying from you.

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