Omnichannel vs Multichannel marketing is a comparison that needs to be clear for every brand and business owner. Furthermore, even the root terms “omnichannel” and “multichannel” should be in every brand owner’s vocabulary.
As the landscape of commerce continues to develop, we see new terms and concepts that define a new strategy in commerce.
Two of the most common buzzwords in commerce are “Multichannel” and “Omnichannel”. These words can be attached to some aspects of commerce to create terms such as multichannel marketing, omnichannel sales, multichannel strategies, omnichannel marketing strategies, etc., or they can be attached to commerce itself.
Many people, like we used to be, might be confused when they come across the terms “multichannel” and “omnichannel”.
Therefore, in this article, we will examine both of these commerce models closely. Moreover, we will specifically focus on explaining the difference between omnichannel and multichannel marketing. We will see what the two are, what they mean, and which of these strategies is better for your business.
A business that sells products and services only through a physical outlet has a single-channel business model.
On the other hand, a business that sells products and services through stores, websites, social media, mobile devices, etc., is said to have a multichannel commerce business model that carries out multichannel operations.
Having more than one channel, or a multichannel retail model, is immensely beneficial for your business. For example, using 3 channels for a marketing campaign can yield a 287% purchase rate compared to a single-channel marketing campaign.
Multichannel refers to a business that uses multiple ways to communicate and engage with potential customers, which include:
The critical point to note here is that each channel in a multichannel commerce model operates independently from other channels. This means that data such as customer purchases, search history, concerns, etc., is not shared across all channels. As a result, each time the customer goes through a different channel, they will need to start the purchasing process from the beginning.
For example, if a customer buys a product online through a website, they will need to wait for the product to be delivered from the same channel (i.e., the website). As a result, this customer will not be able to get their product from another channel, such as going to the physical location to pick it up.
A multichannel approach focuses on increasing sales through different channels, and the main focus is not to improve the customer experience. Therefore, the product or service is placed at the center of the business model to maximize sales. Furthermore, since 2020, multichannel e-commerce retail sales have seen a steady increase as the years have progressed.
One area where multichannel can be used is marketing. Marketing is a great area to use many channels because multichannel marketing allows businesses to reach more people, usually in the same amount of time as single-channel marketing.
A multichannel marketing approach effectively reaches more people because it uses various channels, such as the Internet, TV, printed media, etc. Furthermore, multichannel marketing focuses on selling the product as a priority.
This is how multichannel marketing works.
Almost all of the most popular brands today use an omnichannel approach. Whereas a multichannel approach is usually used by startups or smaller retailers that are starting to gain traction.
Let’s take a look at an example of a fictional grocery store.
An independent grocery store is doing well sales-wise, the owners then decide to build a website to reach more people. By adding this extra marketing touchpoint (website), this business has now transitioned to a multichannel business.
The owners of this grocery store then decide to open more branches of their grocery store, set up a social media account, and convert their website to an e-commerce store. As a result, the owners can now market their business through social media, their website, and through their chain of stores.
Furthermore, consumers now have multiple touchpoints to trade with the business owner instead of just a single store that was there at the beginning.
Like multichannel commerce, omnichannel commerce involves engaging, communicating, and interacting with customers. These activities, such as omnichannel marketing (done through omnichannel marketing platforms), are done through multiple channels or touchpoints that can be both physical and online. Furthermore, these channels include:
In an omnichannel approach to commerce, all the channels or touch points are interconnected. This provides a smooth omnichannel experience during the customer journey. According to a report, about 87% of customers want the same experience across all different shopping channels within a particular brand.
One of the main benefits of omnichannel commerce is that each channel can integrate and “communicate” with other channels. As a result, customers can effortlessly switch between channels during any stage of their purchasing journey.
In omnichannel commerce, a business can branch out its marketing efforts across different channels, which results in more customer interactions. Omnichannel marketing focuses on reaching customers through several integrated channels, and this approach is more effective than using single-channel marketing.
Omnichannel commerce is sometimes referred to as omni-commerce. This article explains omni-commerce in detail: Omni-Commerce Ultimate Guide: Almost Everything You Need To Know.
Similar to multichannel, omnichannel can also be used to market products and services. As with other omnichannel operations, omnichannel marketing involves using several unified and interconnected channels to reach more people.
The omnichannel marketing approach is effective because, unlike other forms of marketing, different channels target the consumer. Furthermore, each channel continues the marketing strategy instead of starting from the beginning.
A complete omnichannel marketing strategy is most likely to yield a higher percentage of positive results, as omnichannel marketing requires all the participating channels to constantly communicate with each other.
Let’s look at an example to see how successful omnichannel commerce integrates various channels to provide a seamless and better customer experience.
Suppose a customer wants to buy groceries from a grocery store’s website. However, this customer prefers to pick up his groceries from the physical store (channel 2) because it is on his way home from his workplace. So, the customer visits a website (channel 1) and places a few items in the cart. However, the customer realizes that he needs to leave his workplace immediately to catch the train back home, and he does not have enough time to check out on the website.
In this case, the customer can leave without checking out on the website because he can check out on the train using his mobile device (channel 3).
Since the Grocery store uses an omnichannel commerce model, the customer can easily complete his payment using his mobile device `(channel 3). As a result, when he arrives at the physical location of the grocery store (channel 2), his order will be ready and waiting for him. He will then take his groceries and go home. customer journey
In the above example, the grocery store’s website (channel 1), physical location (channel 2), and mobile website (channel 3) are all connected, and this allows all the channels to keep track of the customer’s actions. As a result, the customer could complete the transaction without having to start the process from the beginning each time he switched channels.
Omnichannel strategies focus on seamless customer experiences across every channel, but this is not possible in multichannel commerce because all channels are independent of each other. Therefore, each channel will not have access to the customer’s actions and decisions made on other channels.
In this section, let’s look at some real-life case studies of companies that adopted an effective omnichannel approach.
Brands like Amazon rely on a robust omnichannel strategy to keep their customers’ experience at the center of their operations. By providing customers with a unified experience that makes them feel valued, Amazon can gain their loyalty. Furthermore, research shows that 73% of customers stay loyal to a brand if they feel valued, even if prices increase.
To make their omnichannel strategy work, Amazon needs customer data and lots of it. To get this data Amazon uses Amazon Prime to encourage customers to sign up for an account in exchange for benefits such as free shipping.
Getting Amazon Prime memberships is a top priority for Amazon because it gives them access to a customer’s data such as contact information, buying trends, purchase history, etc. Moreover, unification of this data is fundamental to the success of Amazon’s omnichannel strategy.
Once Amazon has a customer’s data, it can use this data to communicate and engage with its customers through other channels such as email, text messages, etc.
Another brand that has adopted an omnichannel strategy is Starbucks.
Starbucks uses a combination of offline and online channels to communicate and engage with its customer base.
One of the most prominent omnichannel elements in their business model is the mobile ordering and payment system integrated into their mobile app. This allows customers to conveniently order and pay for their drinks in advance, reducing wait times and streamlining the in-store experience.
This a perfect example of how an online channel (mobile app) and offline channel (physical store) work together to create a seamless omnichannel experience.
Apple’s business model is also based on an omnichannel strategy that is simple, streamlined, and focused on providing customers with a smooth shopping experience.
To provide customers with a smooth shopping experience Apple utilizes offline channels (the iconic Apple stores, launch events) and online channels ( Apple TV, App Store, website).
For example, at a product launch event, consumers can view the event live on Apple TV, YouTube, or Apple’s website. Moreover, at any point during the event, consumers can place an online order for the product and then collect their product at the physical store or have it home-delivered.
The similarities between these two marketing models include things such as both being a way to increase traffic to your business. However, as you may have now learned, the main difference between omnichannel and multichannel marketing strategies is the interconnection of channels across the customer journey.
In multichannel marketing, all the channels (touchpoints) are independent of the rest. Therefore, if a customer switches between channels or touchpoints they will need to be targeted back from square one.
In omnichannel marketing, all the channels are linked to each other. As a result, all channels communicate a customer’s “marketing” journey. Therefore, whenever a customer decides to switch channels, the omnichannel business owner will be able to target the customer from wherever they left off, and the customer will not be targeted from the beginning. Resulting in improved customer targeting.
When it comes to multichannel vs. omnichannel, both multichannel and omnichannel strategies may seem similar at first glance, but there is a slight difference. Omnichannel focuses on a unified experience for customers, while multichannel focuses on selling the product.
In this section, we will examine how to transition from a single-channel marketing strategy to an omnichannel or multichannel strategy.
Whether you already have a business or are planning to start one, you can always transition to omnichannel or multichannel marketing strategies to upgrade it. Furthermore, if you are planning to start a business, you will need to raise funds to do so. Here are a few tips on how to raise start-up funds for your business.
You will simply need to advertise and promote your products through different platforms and avenues to convert from single-channel marketing to multichannel or omnichannel marketing.
For example, one way to immediately add a new channel would be to install a product locator widget on your website using a product locator application, such as WP Maps. Furthermore, this product locator will act as a marketing channel through which customers can interact with your business.
A product locator widget neatly and organizedly displays all your products on your website and shows which products are available in which stores. As a result, your customers will immediately identify what products or services you are offering and in which store they are available. Moreover, properly displaying your products and showing where they can be acquired leads to more sales.
By adding a product locator widget on your website, you will be able to communicate and engage with your customers in an entirely new way that is better than just having a website.
Another way to add a marketing channel would be to install a store locator widget. A store locator widget is used to provide accurate store information to your customer such as location, address, timings, directions, etc. so that your customer can easily and quickly reach your store to complete an in-store purchase after browsing your website.
A product locator and store locator widget are two excellent marketing tools that work hand-in-hand in bringing more customers to your brick-and-mortar stores from your website. In addition, they also create new touchpoints or channels that engage with your customers.
So, how can you install a product locator and store locator widget on your website?
Well, there are a lot of plugins and applications that can install one or the other for you on your website. However, a specific application called WP Maps can install both of these widgets on your website from the same place.
Overall, there are many other ways to add new channels to your business but we simply can’t cover all of them in this article.
When delving into the technical aspects of omnichannel and multichannel commerce, key differences emerge, particularly in data integration and channel synchronization.
Omnichannel and multichannel commerce strategies differ in their approach to data integration, channel synchronization, and technological tools.
In omnichannel commerce, the focus is on creating a unified view of customer data across all channels. This involves implementing a central CRM system or database to store and manage customer information from various touchpoints, facilitating seamless tracking of customer journeys and personalized experiences.
On the other hand, multichannel commerce also integrates data from multiple channels but may prioritize individual channel silos, leading to challenges in consolidating and analyzing customer data holistically.
Efficient channel synchronization is crucial for providing consistent and seamless customer experiences.
Omnichannel commerce aims to synchronize inventory data, pricing information, product catalogs, promotions, and customer interactions across channels in real-time. This ensures that customer actions across different touchpoints are reflected accurately, contributing to a seamless shopping experience.
In contrast, multichannel commerce may focus more on channel-specific optimizations, which can lead to delays or discrepancies in data synchronization across channels.
Technological tools and solutions play a pivotal role in enabling effective commerce strategies.
Omnichannel commerce relies on advanced data integration platforms, robust CRM and CDP systems, and AI-driven tools for predictive analytics. Integration APIs facilitate seamless data flow between systems, ensuring real-time synchronization and personalized experiences.
Meanwhile, multichannel commerce utilizes tools such as POS systems, inventory management software, and e-commerce platforms with multichannel capabilities, although these may offer limited cross-channel insights compared to omnichannel solutions.
Businesses must carefully consider their goals and customer engagement objectives to choose the right strategy and tools for their commerce initiatives.
So, will it be multichannel or omnichannel for my business?
That’s an excellent question!
It’s a question that all business owners should ask themselves. However, there is also no correct answer. It all depends on what you can and cannot do. For example, in some cases, multichannel retail will be better for you than omnichannel retail. A similar case can be made for omnichannel and multichannel marketing.
Adopting any of these models is a step in the right direction and can be very beneficial for your business. In addition, both of these commerce models can help grow your business. Check out this article for more tips on how to grow your retail business.
Let’s take a look at the pros and cons of both omnichannel and multichannel marketing models.
| Pros | Cons |
| Increase awareness for your brand through various touchpoints. | Channels are not connected with each other. |
| Simpler to implement than omnichannel commerce. | Customer data is not shared between channels. |
| Increased traffic and sales. | Customer experience is not the main goal of multichannel commerce. |
| Focus on sales of products and services. | Customers have to start from the beginning of their purchase journey when switching channels. |
| Pros | Cons |
| Raise awareness for your business through many touchpoints. | Complicated to implement. |
| Integration of all channels with each other. | Needs more resources to provide a smooth experience for the customer. |
| Focus on providing a smooth purchasing experience for customers. | |
| Increases traffic and sales. | |
| Shared customer data between touchpoints. |
Based on the pros and cons of each commerce model, we can see that multichannel marketing is much easier to implement as it does not require that many resources.
Multichannel marketing is good for businesses that want to expand their reach through different touchpoints. By listing or marketing their product through various outlets, a business has the potential to increase sales.
However, before listing your products on different channels it is a good idea to first conduct market research to determine if there is enough demand for your product to warrant additional marketing and sales channels.
In addition, even though multichannel marketing requires fewer resources to implement, you will still need a fair amount of resources to manage all your channels. Moreover, if you don’t find a way to automate processes, you may find yourself getting overwhelmed if there is a lot of demand for your products.
That is why when going for a multichannel strategy it is best to start slowly with a few channels, and then you can decide if you want to add additional channels or go for a full omnichannel strategy.
There are some downsides to multichannel marketing that are addressed by a full omnichannel approach.
Omnichannel commerce is a natural progression from the other commerce model. Therefore, it may be beneficial to start by implementing multichannel commerce into your business for the following reasons:
Once you are comfortable with multichannel marketing, you can decide whether you want to invest in a full omnichannel strategy.
Businesses shouldn’t jump directly into omnichannel marketing from a single-channel model.
Starting with omnichannel marketing will always involve an element of risk since it is challenging to implement. Moreover, you will need access to various tools and technologies to integrate all your channels.
Even if you do manage to integrate all your channels, you will also need a lot of resources to be able to manage your customer’s needs across those various channels.
Furthermore, once you have committed to a full omnichannel approach, you may find it difficult to back out of it because of all the investment you have put into it.
An omnichannel strategy should only be built on the back of a successful multichannel strategy. Furthermore, if your multichannel business is struggling to provide consistent and adequate services then your customer will face several bad experiences if you decide to upgrade to an omnichannel strategy, at least at this stage.
Customer experience is at the heart of an omnichannel strategy. Therefore, before you commit to an omnichannel strategy you must make sure are ready to handle the demands of an omnichannel approach.
Our recommendation would be to first start with multichannel marketing, even if it’s just 2 or 3 channels, and work your way from there. You can also try omnichannel marketing using a limited amount of touchpoints (2 or 3), just enough that you will be able to manage them without getting overwhelmed.
Omnichannel commerce, along with multichannel commerce, is the future of buying and selling. There may come a time when single-channel commerce may not be enough to keep up with the ever-evolving world of commerce. This will lead to more businesses shifting to omnichannel and multichannel approaches.
One area where multichannel and omnichannel approaches are sure to make an enormous impact is marketing. Both omnichannel and multichannel marketing strategies are sure to be an immense upgrade to your business. Furthermore, by knowing the differences between omnichannel and multichannel, you will be able to choose the marketing strategy that is better suited to your business model.
Hopefully, this article might have shed some light for you on the differences between these commerce models, and which of these models would be better for your business.
If you would like to explore more diverse topics related to e-commerce, please see our blog page.
Waleed Daad Khan is a results-driven Marketing Consultant with a passion for Businesses. He holds certifications From Wharton, McKinsey, Hubspot and SEMrush, and has helped businesses of all sizes improve their online visibility and reach. With 4 years of experience in the field, Waleed stays up-to-date on the latest digital marketing trends to deliver cutting-edge strategies.
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