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What's omnichannel?

Definition of omnichannel and analysis of its evolution

At the heart of an omnichannel strategy lies the desire to offer consumers the most complete and seamless experience possible. Its implementation, in turn, depends on connecting and synchronising all the channels used.

The objective? To achieve what's known as a "unified customer experience". An ambitious gamble, you may say, given that each customer has their own unique experience.

Multi-channel, cross-channel, omni-channel... what are the differences?

Social networks, online advertising, instant messaging, e-commerce sites, marketplaces, mobile applications, physical shops... The proliferation of contact points and sales channels has given rise to new concepts, evolving in line with consumer usage and expectations. Definition and characteristics of the concepts :

First of all, multi-channel. The first consequence of the digitalisation of the sales process, this strategy is based on the multiplication of sales channels, each independent of the others.

Then there's cross-channel. An evolution of multi-channel, this strategy is the first step towards linking contact points.

Finally, omnichannel. It is the result of changing consumer expectations, for a more personalised, instantaneous and fluid experience. To achieve this, omnichannel relies on the synchronisation and synergy of contact points, optimised in relation to each other.

These concepts mark the evolution from a channel-centric approach to a customer-centric approach.

Why has omnichannel become the norm?

According to the 2020 Customer Services Observatory, the French use an average of 3.7 different channels when they want to contact a brand. Just as consumers juggle channels, brands must necessarily adapt their strategy to be where consumers are.

Plus on est omnicanal, plus le client a de la valeur

Customer lifetime value (LTV) is a key indicator of brand performance and profitability. Today, it is inextricably linked with omnichannel marketing. The reason for this? The customer-centric approach, which can increase the LTV of a brand's customers by an average of 30%.

As you can see, the longer a typical customer stays with the brand, the more business opportunities they will generate.

Is becoming omnichannel a business opportunity?

While omnichannel has an impact on LTV and creates a real business opportunity for brands, the synergy between sales channels that it generates also makes a major contribution. According to a study by Socloz, the result is an 8% increase in online sales and a 4% increase in in-store sales for brands that have implemented an omnichannel scenario.

An omnichannel customer experience thus becomes synonymous with a more personalised experience that creates value for the consumer. A guarantee of customer satisfaction and loyalty.

Omnichannel mapping

The customer at the heart of our approach

The customer is the central element of an omnichannel strategy. They become the starting point for determining which communication and sales channels to activate in order to attract, seduce and retain them.

The components of omnichannel

From multichannel to omnichannel, the whole brand strategy is evolving. By putting the consumer at the heart of its decisions, omnichannel transforms practices in terms of :

• Performance analysis
• Communication and services,
• Data collection and processing,
• Customer recognition,
• Global organisation.

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The role of the point of sale in building an omnichannel customer journey

Offering customers a unified experience between physical and digital contact points necessarily means building bridges between the point of sale and all the other channels available.

"15% of consumers start their purchasing process in a physical store and end up buying the product from another online retailer".

With omnichannel retailing, the physical shop is tending to be transformed into a more personalised point of contact that creates value for consumers. 

This is particularly true of Burberry's points of sale, which use "phygital" tools to offer a unified experience. The QR codes used in shops, for example, provide customers with the same level of information as a product sheet on the web: a fine example of omnichannel.

What steps need to be taken to build an omnichannel customer journey?

Building an omnichannel customer journey means deploying and creating synergies between several points of contact that are initially independent of each other. The key to this lies in four stages:

1. Define the role of each channel

Depending on its objectives and resources, a brand may choose to invest more in certain channels. It is therefore necessary to identify :

- The channels used by target customers: where do they go? How do they look for information? Which channels are preferred?

- The brand's objectives: does it want to multiply the number of channels? Do the channels have different objectives (awareness, sales, loyalty)?

- The brand's budget: what is its investment capacity? Is the budget the same for all channels?

It is essential to understand and analyse consumer behaviour at an early stage throughout the customer journey. In particular, it allows you to set your objectives and priorities. For example, a brand whose core target is senior citizens will probably find it more relevant to invest in more traditional channels such as email, catalogues, point of sale or even Facebook as a social network.

2. Construire une architecture omnicanale

Once the strategy has been established, all the channels need to be harmonised and optimised in relation to each other. The cornerstone of this is the optimisation of your CRM. It must centralise all customer information so that, whatever the channel used, the brand can offer an ultra-personalised experience.

Stock consolidation is also a key element of an omnichannel strategy. It allows the brand to better manage restocking and respond to customer expectations: 20% of people are more likely to make a purchase in shop when they have instant access to online stocks to check availability.

In addition, an omnichannel architecture ensures that the internal organisation is more structured, coherent and accessible to all brand stakeholders.

3. Collect as much data as possible

To build an omnichannel customer journey and personalise the customer experience according to their expectations, it is essential to know exactly the profile of target customers. To do this, brands need to adopt a strategy of collecting data across all channels.

• Customer data: relating to the profile and purchasing behaviour of customers, data can be collected on digital channels (social networks, website, etc.) but also at the point of sale.
• Sales data: average basket, frequency of purchase, category of products purchased, etc., sales performance can vary from one channel to another and thus guide the brand's next strategic decisions.

- Channel performance, campaign performance, feedback: feedback helps to build up a more solid understanding of the customer. Combined with the performance of marketing actions, this enables them to be optimised and any problems to be identified.

The data collected in this way must then be centralised in a single repository accessible to all the brand's departments to optimise customer relationship management and create greater value across all points of contact.

4. Equip yourself with the right tools

A seamless customer journey requires the use of solutions capable of centralising all the data linked to the brand's activity: organisation and management on the one hand, and customer relationship management on the other.

1. Enterprise Resources Planning (ERP)

These tools monitor finance, operations, the supply chain, sales, reporting, manufacturing and human resources. They act as a link between the company's various departments, ensuring better stock management, greater productivity and lower costs.

Which tools should you use? Netsuite, Sage, Zoho, Dynamics 365, Oracle and SAP are all powerful ERP solutions. However, these solutions generally represent a very high cost for companies. Netsuite, Sage, Zoho, Dynamics 365, Oracle and SAP are all powerful ERP solutions. However, these solutions generally represent a very high cost for companies.

2. Les relations de gestion de la clientèle (CRM)

Used by marketing and sales teams, the role of CRM is to centralise all customer data in order to improve sales follow-up and to refine and personalise messages according to profile. 

Which tools should you use? Salesforce, Pipedrive, Zoho, Hubspot or ActiveCampaign. These solutions are generally based on the configuration of "bricks" to serve the entire business:

• Profile and customer file
• Commercial datas per profile
• Customer contract management
• Marketing campaign management
• Customer relations management (notices, complaints, etc.)

Enter the omnichannel race

Omnichannel to build customer loyalty, the Picard example

As France's leading frozen food retailer, Picard felt a real urgency to move into the omnichannel. While e-commerce accounts for an average of 5% of sales in the sector, for Picard it will account for just 2% by 2020. This delay has been exacerbated by the COVID crisis and changing consumer habits, with consumers becoming increasingly adept at ordering online. 

Picard then decided to make "omnichannel and accessibility a central growth lever". And to launch an operation to win back customers and build loyalty:

1. Geographic deployment and winning new customers

Its arrival on Deliveroo and the introduction of a home delivery and click and collect service have enabled it to reach a new customer base. Sales volumes for home delivery and click and collect were achieved by 50% and 40% of new customers respectively. 

2. Deployment on social networks

To enhance its brand image with younger customers, the brand is launching product co-creation on Instagram and Facebook and creating an account on TikTok in November 2021. This roll-out has enabled it to reach more than 5,000 followers and 18,000 "likes" on the network.

3. Deployment of a mobile application

The aim was to encourage click and collect and therefore complement the physical point of sale. This was followed by the logistical challenge of preparing orders. To meet this challenge, orders are prepared in the regions and stocks are optimised using an estimation and tracking tool.

Omnichannel sales: the Amazon example

Described as the "giant of e-commerce", Amazon has shaken up the retail landscape, not just through its digital channels. Following its takeover of Whole Foods in 2017, the company has embarked on a series of strategic changes with the development of its physical retail outlets, as well as new products with its food and organic offerings.

This strategy is accompanied by new services such as click and collect and parcel tracking, but above all by an enhanced customer experience at the point of sale. Amazon Go stores are achieving almost 50% more sales than traditional convenience stores. The reason? No queues, so more customers, in-store presentation of the products that work best online, a fast, omnichannel shopping experience and customer recognition for a personalised experience.

Conclusion

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Now a reflex for one in two French people, consumers now use both online and offline channels. Brands therefore need to effectively mobilise all possible contact and sales channels, with one aim in mind: to deliver the most successful experience and build customer loyalty.