Consumer expectations have changed drastically in recent years. Nowadays, it is no longer enough to simply have a functioning e-commerce site or a physical shop presence. Customers expect to have a seamless, consistent and personalised experience across multiple channels - be it online, mobile or in a brick-and-mortar shop. This expectation means that omnichannel strategies are becoming increasingly important in order to remain competitive.
Omnichannel doesn't just mean having a presence on multiple platforms, however. It is about linking these platforms in such a way that customers experience the same quality and continuity across all channels. This includes online shops, physical shops, mobile apps, social media and even traditional channels such as email and telephone. Success depends on how well these channels are integrated with each other so that they work together smoothly and information flows seamlessly between them.
1. Changes in shopper behaviour
The behaviour of customers has changed considerably in recent years. Today, they not only expect convenient shopping options via different channels, but also the ability to switch back and forth between these channels without losing the thread.
Multichannel vs. omnichannel: What's the difference
It's important to understand the difference between multichannel and omnichannel. While multichannel means that a company has multiple sales channels (e.g. a website, a shop and social media), these channels are often not connected. Customers experience a separate and often disconnected experience in each channel.
Omnichannel, on the other hand, integrates these channels together so that the customer experience is consistent across all platforms. For example, customers could research a product online, then pick it up in shop and give feedback via the mobile app. These channels are not isolated, but work together to provide a comprehensive, connected customer experience.
How shopper behaviour has changed
A key factor in the emergence of omnichannel is the change in shopper behaviour. People research products online before buying them in-store. They expect a company to recognise their previous interactions, no matter which channel they use. For example, a customer could add a jacket to their shopping basket on a fashion company's website and continue later in the mobile app without having to start from the beginning.
Another example is the click-and-collect service. Customers order online and collect the goods in shop. Or they buy products online and return them to the shop. These cross-channel interactions are now widespread and a must for companies that want to be successful in e-commerce.
Mobile as a central part of the omnichannel experience
Mobile devices are playing an increasingly important role in the omnichannel shopping experience. Statistics show that a significant proportion of customers use mobile devices to search for products and make purchases. However, the mobile channel is also often used as a bridge between online and offline. For example, many customers research products on their mobile phones while they are in a shop to compare prices or read reviews. It is therefore crucial for companies that mobile experiences are seamlessly integrated into the overall omnichannel strategy.
2. Benefits of an omnichannel strategy
A well-implemented omnichannel strategy offers a number of benefits - both for companies and their customers. The biggest advantages are:
Seamless customer experience
A seamless experience means that customers can interact across different channels without having to enter information twice or adapt again and again. By integrating CRM systems, single sign-on (SSO) solutions and connected customer accounts, data is synchronised across all touchpoints.
Example:
Argos, a leading UK retailer, successfully combines online and offline channels through its click-and-collect service. Customers can conveniently order products online and collect or return them to a shop of their choice. The service provides real-time stock information via the website and app, so customers always know what items are available. This integration enables a flexible shopping experience that is perfectly tailored to the needs of modern consumers.
Result:
The Argos click-and-collect service accounted for around 31% of total sales and demonstrates the benefits of a successful omnichannel strategy.
Source: The Guardian - Argos Click-and-Collect Sales
Higher customer retention and loyalty
Consistent and positive experiences across all channels drive customer loyalty. When customers experience the same high quality and seamless interaction time and time again, trust is strengthened, leading to long-term loyalty.
Example:
Nike has successfully implemented an omnichannel strategy supported by the NikePlus membership programme. Members receive personalised recommendations, exclusive offers and rewards tailored to their purchases and interactions - whether they shop in the app, online or in a physical shop. By synchronising all channels, Nike provides a consistent and high-quality experience that builds customer trust and loyalty.
Result:
Members of the NikePlus programme spend on average 3x more than non-members and contribute significantly to long-term customer loyalty.
Source: Nike Investor Relations
Personalisation through better use of data
An omnichannel strategy makes it possible to integrate and better understand customer data from different channels. Companies can make tailored recommendations and offers based on purchase history, browsing behaviour or interactions with marketing campaigns.
Example:
Netflix collects and analyses extensive data on the viewing behaviour of its users, including content viewed, ratings and search queries. This information is used to create personalised recommendations tailored to the individual preferences of each user. By implementing an advanced recommendation system that uses machine learning and algorithms, Netflix can suggest content that is highly likely to match the user's tastes.
Result:
About 80% of content viewed on Netflix comes from personalised recommendations, highlighting the effectiveness of this strategy in terms of increasing user engagement and satisfaction.
Source: Stratoflow - How the Netflix algorithm works
Increasing conversion rates
Customers who have a seamless experience between channels are more likely to complete the purchase. An omnichannel experience gives them the freedom to switch channels and still continue the same, convenient purchase process.
Example:
Disney has created a seamless omnichannel experience with the introduction of MagicBands and the My Disney Experience app. These technologies allow guests to plan their visits, make reservations and make payments, making the entire process smoother and more enjoyable.
Result:
By implementing these technologies, Disney was able to increase capacity by up to 3,000 additional visitors per day during the holidays due to more efficient visitor management and improved customer experiences.
Source: Harvard Business School - Disney's Magical Big Data Transformation
Reducing Abandonment
Omnichannel strategies reduce abandonment by removing barriers in the customer journey. If customers encounter a problem on one channel, they can simply switch to another channel and continue the purchase without interruption.
Example:
Thalia, one of the leading bookstore chains in the German-speaking world, has implemented a comprehensive omnichannel strategy that seamlessly connects brick-and-mortar retail, the online shop and the Thalia app. Customers can order books online and collect or return them in-store. In addition, Thalia offers real-time stock information and the option to reserve products online and collect them from the shop of their choice within 120 minutes. This integration allows customers to switch flexibly between channels and continue the purchasing process without interruption.
Results:
Thalia was able to increase sales to 1.9 billion euros in the 2023/24 financial year as a result of this omnichannel strategy, which corresponds to an increase of eight per cent compared to the previous year. This underlines the effectiveness of the strategy in terms of reducing shopping cancellations and increasing customer satisfaction.
Source: Thalia company page - Press releases
Increasing efficiency through channel integration
By integrating online and offline channels, companies can create more efficient processes. Inventory information can be updated in real time, and companies can optimise their logistics and warehousing by better understanding where stock is needed.
Example:
Zara, a leading global fashion chain, has implemented an omnichannel strategy that allows customers to order products online and pick them up or return them in-store. By updating inventory information in real time across all channels, Zara can optimise stock levels and make logistics more efficient. This integration enables the company to respond more quickly to changes in demand and increase customer satisfaction.
Result:
Through the omnichannel strategy, Zara was able to reduce delivery times by 50% and significantly increase stock turnover.
Source: Inditex - Annual Report 2023
Better coordination of marketing campaigns
Businesses can use omnichannel campaigns to make their marketing efforts more targeted and personalised. Customer data from different channels is collected in a centralised system, allowing companies to segment more precisely and run targeted campaigns.
Example:
Adidas has implemented a comprehensive omnichannel strategy that allows the company to collect customer data from different channels and consolidate it in a centralised system. This integration allows Adidas to create precise customer segments and develop targeted marketing campaigns that are tailored to individual customer preferences and behaviour. One example of this is the use of real-time data to provide personalised offers and recommendations across the Adidas app, online shop and physical stores.
Result:
Through this omnichannel strategy, Adidas was able to significantly increase customer loyalty and boost conversion rates by 25%.
Source: Omnichannel Retail Strategy: A Nike and Adidas Case Study
3. Challenges of implementing an omnichannel strategy
Despite the many benefits, implementing an omnichannel strategy also comes with some challenges. Companies that want to successfully implement this strategy have to overcome several hurdles.
Technological hurdles
One of the biggest challenges in implementing an omnichannel strategy is integrating the various systems that operate the channels. Many companies use separate systems for online shops, physical shops, CRM (customer relationship management) and marketing activities. However, these systems need to communicate with each other to provide a seamless experience. Ensuring real-time synchronisation and data exchange between these systems often requires significant investment in new technologies and IT infrastructures.
Overcoming data silos
In many companies, data from different channels is collected and analysed separately, making it difficult to get a complete picture of the customer
. To implement a successful omnichannel strategy, companies must ensure that all customer data from the various channels is brought together. This is the only way to create personalised experiences based on individual preferences and behaviours.
Cultural change within the company
The introduction of an omnichannel strategy requires not only technological adjustments, but also a cultural change within the company. All departments - from marketing and sales to IT and customer service - must work closely together to ensure a seamless customer experience. Internal structures and processes often need to be adapted so that all employees work towards a common goal.
In addition, it is important that employees are trained. They need to understand why omnichannel is important and how they can contribute to its successful implementation. This training concerns both technological processes and how to deal with customers.
Logistical challenges
A successful omnichannel strategy often requires a redesign of supply chains and warehousing systems. Companies must be able to efficiently manage orders from different channels and fulfil customer expectations for fast deliveries and easy returns. This requires investment in logistics and warehouse management to ensure that processes run smoothly.
4. Technological solutions for a successful omnichannel strategy
Technology is the key to implementing a successful omnichannel strategy. Companies that use modern tools and platforms can integrate data more efficiently, offer personalised experiences and optimise their processes.
Data integration and analysis
Modern analysis tools enable companies to link customer data from different channels and gain valuable insights into their customers' behaviour. Solutions such as Customer Data Platforms (CDP) or Data Management Platforms (DMP) help to integrate data from online shops, CRM systems, social media and physical shops. This data is crucial for creating personalised experiences and making marketing campaigns more targeted.
For example, companies can use machine learning to make predictions about purchasing behaviour and make targeted product recommendations. This makes it possible to proactively address customers and optimise the customer journey.
Automation and personalisation
Automation solutions are another important building block for a successful omnichannel strategy. By automating processes such as email marketing, order processing and customer service (e.g. through chatbots), companies can work more efficiently while offering personalised experiences.
AI-supported tools can also help to analyse customers in real time and create individually tailored offers. Tools such as marketing automation platforms (e.g. HubSpot or Salesforce) enable companies to automatically send personalised messages to the right target group at the right time, which increases customer satisfaction and conversion rates.
Flexibility through modular systems
One of the most important features of modern omnichannel technologies is their scalability and modularity. Companies should use systems that can be flexibly expanded and adapted to new requirements without having to rebuild the entire IT ecosystem.
Cloud-based solutions such as Amazon Web Services (AWS) or Microsoft Azure offer companies the opportunity to scale their IT infrastructure as required. Modular e-commerce platforms such as Magento or Shopify Plus offer companies the flexibility to react quickly to changes in the market or buyer behaviour and add new functions without the need for extensive technical adjustments.
5. How companies successfully implement an omnichannel strategy
Implementing an omnichannel strategy requires a systematic approach. Companies should take a step-by-step approach to ensure that all important elements - from stocktaking to continuous optimisation - are taken into account. The following steps provide guidance for the successful implementation of an omnichannel strategy.
Step 1: Inventory of current channels
The first step in implementing an omnichannel strategy is a thorough analysis of current channels. Companies should evaluate their existing touchpoints and find out how well they are integrated with each other. Are there any gaps or inconsistencies in the customer journey? How consistent is the brand experience across all channels? A comprehensive inventory lays the foundation for understanding which channels are working well and which need to be improved or integrated.
Step 2: Technological adjustments
Once the weak points have been identified, it is time to make the necessary technological adjustments. Companies must ensure that their e-commerce platforms, CRM systems and other IT solutions are networked with each other and can exchange data in real time. This often requires investment in modern integration solutions such as APIs (Application Programming Interfaces), data management platforms and analytics tools to consolidate data from different sources and gain a complete overview of customer behaviour.
Step 3: Employee training
A successful omnichannel strategy depends not only on technology, but also on employees. Companies must ensure that their teams are well trained and understand the relevance of omnichannel. This applies to all departments - from IT and marketing to customer service and sales. Smooth customer experiences can only be created through close collaboration and a shared understanding of goals and requirements. In addition, regular training should ensure that all employees are up to date with the latest developments.
Step 4: Test and optimise
Omnichannel is not a static concept. Companies must continuously test and adapt their strategy. Regular feedback loops with customers and detailed analyses of the data are crucial to optimise the customer journey and ensure that customer expectations are always met or exceeded. Companies should use A/B testing, surveys and other forms of data analysis to constantly improve their channels.
Conclusion
Omnichannel is not only the future of e-commerce, but also an indispensable tool for satisfying customers in an increasingly connected world. Companies that invest in an omnichannel strategy today will not only secure a competitive advantage, but also lay the foundation for long-term success.
Companies that take the right steps now to strengthen their omnichannel presence will be able to meet the increasing demands of the modern customer and remain competitive in a rapidly changing market.