Omnichannel e-commerce is a holistic sales approach that aims to provide customers with a seamless shopping experience. In recent years, e-commerce has expanded rapidly. At the same time, a global retail study by Google found that 59 percent of shoppers prefer companies with mobile-friendly websites and apps that allow them to make a quick selection and a smooth purchasing process.
In such an environment, e-commerce businesses need to make the most of changing trends and offer their customers a seamless experience at every touchpoint. This is where the importance of omnichannel comes into play.
What does omnichannel eCommerce actually mean?
Omnichannel eCommerce is a comprehensive sales approach that aims to provide customers with a seamless shopping experience regardless of whether they are using a cell phone, laptop or entering a store. Meeting customer needs and expectations across different channels is extremely beneficial.
A study by Harvard Business Review shows that 73 percent of customers use multiple touchpoints or devices during their customer journey. The results also show that omnichannel shoppers like to use retail touchpoints. They use smartphone apps to find products, browse digital catalogs in-store to compare prices, can buy online and pick up in-store or buy in-store and have their purchase delivered. Every app, every digital tool and every shopping location is seen as a separate channel.
The difference between omnichannel and multichannel e-commerce
First of all, we need to explain the difference between these two strategies. Both have similar characteristics and are based on the concept that commerce and sales take place on multiple channels simultaneously.
Multichannel e-commerce
In multichannel e-commerce, a brand or retailer bases its sales on multiple channels. The idea is to make products and information available across all channels. However, each channel works on its own and independently of the others.
A multichannel strategy assumes that consumers have different shopping preferences. Some only trust branded online stores, others look for discounts on marketplaces such as Amazon or Instagram. The multichannel approach puts the product at the center in one way or another. The individual channels are not integrated. The interactions of a customer or the efforts of the marketing team are not exchanged between the channels.
Omnichannel e-commerce
In an omnichannel strategy, a brand or retailer is present on several channels simultaneously, as in the multichannel approach. However, omnichannel e-commerce offers complete integration between the channels. And what do these channels have in common? The customer. That's why we often say that omnichannel e-commerce is not about the product, but about the customer.
Practical example
A customer may start searching for products on one channel, then switch to another to compare prices and complete the purchase process on a third channel.
For this reason, it is important to provide the customer with a seamless experience as they move from one channel to another by:
- Providing answers and interesting content on each platform.
- Using the knowledge gathered in one channel for other channels the customer may visit.
While the multichannel approach means that the product is present in as many channels as possible, the omnichannel strategy goes much deeper. The omnichannel strategy analyzes every stage of a customer's shopping journey with the ultimate goal of providing the best possible customer experience.
Advantages of omnichannel e-commerce
The Marketing Automation Statistics Report 2020 found that retail campaigns that use three or more channels achieve 287 percent higher purchase rates.
Let's explain and elaborate on the benefits of the omnichannel approach.
Coherent and consistent messages
Omnichannel eCommerce allows you to deliver consistent and coherent messages to your customers about your brand or retail campaigns.
Consistent messages are important to make communication with customers more personal, especially on social media. Even if your social media account is managed by multiple people, customers want to feel that they are being messaged and hearing from asingle person.
With an omnichannel strategy, the message stays the same no matter where a customer interacts with your brand. With a consistent tone and content, your customers get used to the brand's voice and gain trust they can rely on.
Efficiency & personalization
The omnichannel approach provides a unified and centralized database that customers can access across every channel. This makes your products and offers more visible and the information readily available.
Most importantly, brands with an omnichannel strategy only need to collect customer data once. Such aholistic approach also means that companies do not have to develop and implement a separate strategy for each channel. Let's not forget that 81 percent of shoppers say that recommendations and posts from friends and family directly influence their purchasing decisions.
If you know your customers' shopping habits, you can personalize your customer experience. In 2024, customers will not only expect quality products. They also want to quickly find information about the products they need. The insights gained through an omnichannel strategy will enable brands to make personalized recommendations based on previous inquiries and purchases, for example on the best available alternatives, competitive prices and new products.
Such a flood of information, which ultimately leads to a better customer experience, can be difficult to manage without a dedicated tool such as a Composable Digital Experience Platform (DXP). The Composable DXP is a unique hub that connects all the services needed to build a memorable customer experience. This includes mobile applications, social media, e-commerce websites, traditional marketing efforts and data analytics.
In an age of information overload and content overload, personalized messages always pique consumer interest because they speak directly to a specific customer, not all at once.
Better overview of the customer journey
Brands and retailers that are able to track their customers across different but integrated channels can learn their preferences and provide better customer service. For example, the omnichannel approach allows companies to create more insightful offers that encourage customers to put down their smartphone for a moment and visit a brick-and-mortar store, where the opportunity for impulse purchases is greater.
The challenges
To give you a better understanding of the omnichannel approach, we also need to look at the challenges you need to overcome to successfully implement this retail strategy.
Data synchronization
The transition to the omnichannel model leads to a huge data transition. One of the biggest challenges is to seamlessly synchronize all data across all channels without losing information.
One way for brands to improve their customer experience is to use a dedicated content management system (CMS) for e-commerce and retail. Content teams can manage all assets from a single repository, while developers can easily navigate between product inventory management (PIM) systems and e-commerce APIs.
First change to the infrastructure
Implementing an omnichannel strategy means that companies need to change their organizational structure. In a traditional e-commerce layout, companies are likely to have a marketing department and a separate online marketing department. Mobile support is also provided by the development department rather than the customer support team. Maintaining such an organization is difficult if you want to take the omnichannel approach. These departments often work separately, and at best, these channels work "alone" in multichannel mode. Instead, you can set up a branding team that takes care of all offline and online branding and campaigns. The branding team should work hand in hand with a sales team that is responsible for the customer journey and coordination between the different channels.
How an API-first headless architecture helps you leverage omnichannel
Headless architecture is an architecture where the frontend (presentation layer) is separated from the backend (e-commerce functionality). Headless commerce enables a modular approach to website architecture, where developers use the best possible tools to create a custom architecture that is "supported" by a powerful backend that grows over time.
But how does your omnichannel conversion benefit from headless architecture? At this point, it should be pretty clear how the omnichannel experience works - the customer can select a product via an app, find a store to try it out, and then buy it online with an additional discount. The headless architecture supports the omnichannel approach as the backend functionality remains consistent regardless of channel. This allows front-end developers to test and introduce new channels by using the existing data from the headless commerce platform and present it in a new light by using a previously unexplored channel.
The reverse is also true: if an existing channel becomes obsolete, it can simply be removed without affecting the working channels. This gives companies more flexibility and the opportunity to experiment with innovative channels. On the other hand, teams can use the existing backend data to create a powerful user experience in every channel they manage.
Smartstore: The modular platform for seamless omnichannel experiences
Headless ArchitecturSmartstoreoffers a comprehensive customer centricity solution by seamlessly connecting to an ERP system. This integration enables the efficient handling of all customer-related processes. From order management and warehouse management to personalized customer communication, all data flows together centrally.
Another advantage of Smartstore is the modular structure of the software. This modularity makes it a central application in omnichannel e-commerce. With individually customizable modules, companies can adapt their platform precisely to their needs in order to ensure an optimal customer approach. The flexibility makes it possible to react quickly to market changes and easily integrate new sales channels. This increases customer satisfaction and promotes long-term customer relationships. Smartstore is therefore a key component for successful omnichannel e-commerce.
Conclusion
Omnichannel e-commerce offers enormous potential for improving the customer experience, customer loyalty and sales across different channels. In today's digital reality, consumers are effortlessly combining more and more channels, and it's in your interest to enable smooth transitions for your customers. If you want to provide a seamless and personalized shopping experience, you need to make sure that the synchronization between your retail channels works smoothly as well.