Techblog
Multi-channel vs omni-channel marketing: what, why and how for SMEs?
With the advent of digital marketing, the channels through which a customer interacts with a brand have increased. So how does a retailer interpret and apply different approaches, such as multi-channel and omni-channel marketing?
Multi-channel marketing
What it is: The ability to interact with potential customers on various platforms. In this sense, a channel might be a print ad, a brick-and-mortar store, a website, catalogues or even word of mouth. Messaging may not necessarily be consistent throughout each of these channels.
Although multi-channel marketing is not a new concept, the difference now is with the number of channels on offer. In the pre-digital era, it was only possible to engage customers exclusively via bricks-and-mortar stores and offline channels like advertising on print, TV or radio. The number of channels are set to increase, particularly with the development of more ‘smart’ devices, such as watches, cars and tablets.
Multi-channel marketing doesn’t take into consideration how a customer will engage through its varied and multiple channels. These are seen as individual avenues through which to engage customers, rather than parts of a whole.
Omni-channel marketing
What it is: The simultaneous use of multiple channels of engagement to drive a common action by the customer. A customer’s engagement data or habits from one channel is used to help shape how other channels engage the same customer, to create a holistic experience.
While multi-channel and cross-channel approaches are from an operational viewpoint, omni-channel marketing targets the customer from the centre of the purchasing process. Think of a customer who shops online through a mobile app while outside of their house. A follow up email gets sent to them later, reminding them they still have items in their cart that are pending purchase. Along with that email is an in-store promotion inviting them down to the nearest store, which is coincidentally just around the corner.
Omni-channel marketing integrates all channels and devices as ‘touch points’ and aims to provide consumers with a seamless shopping experience across each of these channels. What makes omni-channel marketing unique is that it takes shape based on the consumers behaviour. Businesses can use clicks, interactions and data insights to mold a shopping experience that is personalised to each customer.
What’s the way forward for SMEs?
Research shows that companies with well-defined omni-channel customer experience management programs achieve a 91 per cent higher year-on-year increase in customer retention rates on average, compared to organisations without omni-channel programmes.
Additionally, these organisations gain a 3.4 per cent average increase in customer lifetime value (a projection of the net profit that can be gained from the entire future relationship with a customer), while those without omni-channel programmes actually diminish customer lifetime value by 0.7 per cent year-on-year.
More importantly, however, the ultimate goal is to create a superior experience for customers and keep them coming back. It would be helpful for SMEs to assess their resources and identify which approach they can afford for the moment, with omni-channel marketing being the ideal at the end of the day.
Omni-channel marketing is viewed as the most evolved strategy yet. According to Chong Lee Fong, Director of Product Marketing for Emerging Businesses at Singtel, “It is critical to be ‘omni’ in all ways, because this is how customers are shopping today. Businesses need to interpret how to serve and facilitate customers in the shopping experience and complete the transactions intuitively and conveniently.” Read more about how innovative retailers are using omni-channel marketing and where it is headed.