Omnichannel vs Multichannel eCommerce: Which is Better?

89%.

That’s the percentage of customers companies retain using omnichannel engagement strategies.

In comparison, 50% of multichannel marketers say they usually or always hit their financial goals.

The burning question is, should you adopt an omnichannel or a multichannel approach?

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Let’s look at each approach in depth to help you decide.

Shall we?

What Is Omnichannel?

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Omnichannel is an eCommerce sales approach that provides a blended shopping experience for customers across different channels. It allows sellers to trade on multiple channels while integrating them as one.

Customers often have channels they prefer to use when interacting with a brand. They may research a product online and purchase it in-store. They might then sign up to receive product updates via email.

Irrespective of which channel a customer uses, omnichannel marketing ensures that the purchase experience is consistent. This involves;

Providing customers with the same products and pricing across all channels
Sharing customer data with teams (e.g., customer support/sales teams)

How Does Omnichannel Retail Work?

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Here’s the perfect example:

John purchases a laptop from a company. He’s a returning customer, and all information about his previous purchases is available in the customer relationship management (CRM) tool.

A salesperson interacting with him can reference the information available to make upsell or cross-sell recommendations to increase John’s AOV. Suppose John calls the company’s contact center to complain about the purchase. In that case, a customer service rep can quickly access his information and resolve the problem on his preferred channel – phone or email.

An omnichannel approach allows John to complete his purchase online and pick it up in person from the nearest physical store.

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Omnichannel retail involves identifying customer touchpoints and opportunities to deliver a more convenient and personalized experience.

What is Multichannel?

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Multichannel is a marketing strategy or sales approach that involves selling products on two or more channels – digital, physical, or both. It allows businesses to reach more customers using the same or different product catalog. Minor details like product titles and images can be tailored per channel.

Adopting a multichannel approach increases exposure for brands by giving customers more options. A multichannel system is also cheaper and less complicated. It requires proper structures and strategies to be effective.

How Multichannel Retail Works.

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Meet Jane, a tech-savvy shopper who’s been eyeing a new smartphone for a while now. As she begins her search, she comes across a company’s website selling the same smartphone. She reads the specs and customer reviews but still has a few questions.

She decides to reach out to the company through the live chat feature – on their website. A customer service rep promptly answers her questions and offers a discount code.

Jane doesn’t buy but is impressed by the customer service and decides to follow the company on social media. Two weeks later, she sees a sponsored post on her Facebook feed about the phone. She clicks on the ad and is taken to a landing page that provides more information about the phone. She’s still weighing options, so she doesn’t buy it.

Later, Jane is walking around the road when she sees the company’s store. She decides to see the phone for herself and speaks to a sales representative who demonstrates the features and capabilities of the phone in person. She is impressed and purchases it on the spot.

Jane interacted with their website, social media, and physical store. Each channel provided a unique experience that helped her make informed decisions about her purchase.

In contrast, an omnichannel strategy would provide a seamless and consistent experience on all channels. In Jane’s case, this implies her interactions with the company would be integrated and personalized to her preferences and behaviors, regardless of the medium she used.

For example, the company could use her chat history to inform the sales representative, or she could make her purchase online and pick it up in-store.

Omnichannel vs Multichannel: Differences?

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Omnichannel and Multichannel involve multiple channels to reach/engage with customers. However, there are five significant differences between both approaches:

Customer focus

Omnichannel is more customer-focused than Multichannel. Omnichannel seeks to provide customers with a seamless and consistent experience across all channels, whereas multichannel focuses on using different channels to reach customers – without necessarily integrating them.

A multichannel approach involves media like;

Websites
SEO
Billboards
Phone calls
Social media
Email
Radio ads
TV

An omnichannel approach will utilize half of these channels, but all would be synchronized to enable customers to transition smoothly from one channel to another.

Integration

Omnichannel integrates all channels used, while multichannel doesn’t fully integrate them. Consider a customer who wants to buy a pair of shoes. In an omnichannel approach, he starts by browsing the company’s website to find a store nearby.

Upon arrival, he scans the QR code on a shoe display – using his mobile phone – to learn more about the product. He decides to buy but has two options;

Complete the purchase in-store
Order online and have the pair of shoes shipped to his home.

In a multichannel approach, he starts by browsing shoes on the company’s website, then visits the physical store to try the shoes before making a purchase. However, the online and offline experiences may not be fully integrated, so he may encounter discrepancies in pricing or inventory information between the website and the physical store.

Data management

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Omnichannel requires a robust data management system that can track customer behavior across all channels, while multichannel does not need such.

For example, a shopper visits a company’s website to research a product. Later, he visits a physical store to buy it.

In an omnichannel approach, the company would connect the two interactions to recognize that the customer already showed interest in the product online. They’ll then use this information to personalize the in-store experience by offering additional product recommendations or discounts.

With a multichannel approach, however, customers who interact through one channel will not be recognized when interacting with the company through another channel.

Consistency

Omnichannel ensures that the customer experience is consistent on all channels, whereas the experience differs with multichannel.

Imagine you are a customer looking to purchase a laptop from a well-known company. With an omnichannel approach, you can view the product on the company’s website, pay for it, and pick it up at a physical store. If you decide to return it, you can do so either by mail or at the physical store, and the return policy will be the same regardless of the channel you use.

However, you may find that the website offers a different price with multichannel, and the return policies differ.

Communication

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Omnichannel seeks to create a dialogue between the brand and the customer, while multichannel relies on one-way communication. With omnichannel, brands can engage customers by providing personalized recommendations based on their needs and preferences. They may also use chatbots or social media to initiate conversations or gather valuable information.

With a multichannel approach, brands rely on mass advertising to promote their product across multiple channels. The communication is one-way, and there’s no emphasis on establishing a relationship or engaging with customers beyond promoting the product.

Examples of Brands that have adopted a Multichannel Approach

Gymshark

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Gymshark’s multichannel marketing strategy is designed to reach and engage with customers across various touch points. Here’s a breakdown of how Gymshark creates brand experiences on each channel:

Social Media

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Gymshark leverages platforms like Instagram, YouTube, and TikTok to showcase products and promote its brand message.
The brand creates unique and funny content to highlight the features and benefits of exercise.
Gymshark uses influencer marketing to partner with fitness experts who align with their brand values.

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Commerce Platform

Gymshark’s Commerce platform, Shopify, is designed to make it easy for customers to browse and purchase products online.
The website features products in action, along with descriptions and reviews.
Gymshark offers free shipping and discounts to motivate customers to buy.

Retail

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While Gymshark is primarily an online retailer, it recently opened its first store in London.

In addition, Gymshark has partnered with major retailer Nordstrom to expand its physical presence.

These stores allow customers to see and touch products in person and interact with Gymshark pros.

Events

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Gymshark athletes host fitness runs that allow customers to engage with the brand.

Gymshark also sponsors other fitness competitions, cementing its position as a leading brand in the industry.

Coca-Cola

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Coca-Cola is another example of a famous brand that has adopted a multichannel approach. The beverage brand uses channels, such as TV, online, and print, to create awareness and desires amongst buyers.

Coca-Cola’s multichannel approach includes:

TV

Coca-Cola’s TV commercials are aired globally with a consistent brand message and visual style.

Print

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Coca-Cola’s print ads are featured in well-known magazines and newspapers worldwide. They are easily noticed through the brand’s signature red and white color scheme and often feature celebrities.

Online

The brand’s website features interactive content and product information, while its social media channels showcase user-generated content and promotions.

Mobile

Coca-Cola has a mobile app that provides customers with special offers and rewards. It features games and challenges that encourage engagement.

Examples of Companies that have Adopted an Omnichannel Approach

Starbucks

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A well-known company that has adopted an omnichannel approach is Starbucks. The coffeehouse chain’s robust strategy integrates all channels to provide a seamless and personalized customer experience.

Here is the omnichannel approach used by Starbucks:

Mobile App

Starbucks’ mobile app is the centerpiece of its omnichannel strategy. The app allows customers to order ahead, earn rewards, and receive personalized offers.

Online Ordering

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Starbucks’ website allows customers to order through Doordash or Uber Eats. Customers can select their preferred pickup location and time, customize their orders, and pay online.

In-Store Experience

Starbucks’ physical stores are designed to provide an excellent customer experience. Customers can place their orders in-store and also make payments.