Omnichannel as a game changer for corporate success

In today's business landscape, omnichannel strategies are essential to remain competitive. By seamlessly integrating different communication channels, companies can offer their customers a consistent and enriching experience, regardless of how they choose to interact. This integration not only improves customer service, but also provides valuable insights into customer behavior and expectations.

Understanding omnichannel and its importance

“Omnichannel” ensures that customers can switch different communication channels without losing continuity in their interaction with a company. Although this capability is not directly visible, it manifests itself in services such as click-and-collect, click-and-reserve and buy-online-return-in-store, which are based on a channel-independent operating model. Companies that adopt omnichannel strategies can provide a more comprehensive customer experience, offer a personalized service and reduce cart abandonment rates.

Omnichannel in Germany: the current status 

Omnichannel services are no longer niche offerings. Studies show that around 80 percent of customers are aware of these services and 25 to 50 percent have already used them. Although customers use omnichannel services less frequently, they know that they exist. This awareness raises their expectations. As a result, the demand for such services is growing. Companies need to think carefully about what services they offer to ensure that a lack of omnichannel offerings is not seen as a mistake or lack of interest. For instance, consider a fashion retailer that allows online orders but does not offer in-store returns. In this case, customers might perceive the lack of a returns service as negative and shop with a competitor that does offer this service.  

The development from single channel to omnichannel  

The journey from single-channel to omnichannel comprises several phases: 

1. Single-Channel: A retailer sells fashion items exclusively in a physical store. Customers visit the store to try and buy clothes. All transactions and customer service only take place on site. 

   
   

2. Multichannel: A retailer with a multichannel approach, offering customers the flexibility to shop either in-store or directly through the company's website. However, online orders are managed separately from the physical store. While customers can choose between the two channels, there is no link between their online purchase and their physical shopping experience. For example, they cannot buy items in the online store and return them later in-store. 

   
   

3. Cross-Channel: The store is improving its strategy by offering click-and-collect. Customers can now order online and collect the goods in store. They can also return items purchased in-store online. The integration between online store and store works, but the control of the interaction lies largely with the retailer. Customers enjoy a certain level of convenience by switching between channels, but full integration has not yet been achieved. They can see online whether a certain item is in stock and then pick it up in the store. 

   
   

4. Omnichannel: This is where customers can shop seamlessly in the app, on the website or in-store. They can place an order online and either pick it up in store, have it delivered to their home and return it to the store later. The app provides real-time updates on the status of the order. Customers can view their purchase history, returns and loyalty points in their online account. When visiting the store, the system automatically recognizes customers and provides them with personalized offers based on their previous purchases. All channels are fully integrated, which means there is no separation between online and offline. Customers enjoy an end-to-end and consistent shopping experience, regardless of how and where they interact. 

In the past, companies managed separate systems for each channel, leading to inefficiencies and incompatibilities. A modern omnichannel approach requires the integration of all systems into a cohesive whole that enables seamless transitions and interactions across all channels. 

Customer centricity: the foundation for successful omnichannel strategies  

In an omnichannel world, customer centricity is vital. Systems must be designed to serve the customer around the clock and across all channels with real-time data and processes. This shift from internal process optimization to customer-centric operations is essential to meeting today's customer expectations.

Measuring omnichannel success: KPIs and more 

To effectively measure the success of omnichannel strategies, traditional KPIs (such as transaction gross profit or order frequency) are not enough. Instead, metrics should focus on the customer journey and customer experience, such as customer lifetime value (CLV) and customer equity models. These metrics help companies understand individual customer behavior and the impact of marketing efforts across different channels. 

The future of omnichannel 

The competitive landscape is constantly evolving and new technologies and business models are emerging. The COVID-19 pandemic has highlighted the risks of relying on physical stores and the need for diversified and connected channel strategies. Companies must constantly re-evaluate their sales channels and ensure that they meet customer needs.

To remain relevant, companies should engage with their customers to understand their preferences and expectations. This includes not only analyzing current customers, but also considering potential customers that may have been previously overlooked.

In summary, omnichannel strategies enable companies to meet the expectations of modern customers and provide seamless and personalized experiences across all channels. This approach not only improves customer satisfaction, but also provides valuable insights into customer behavior that drive strategic decisions and long-term success.

Looking for the right omnichannel strategy? We can help you! 

At Pogo-Consulting, we specialize in advising and supporting companies in the implementation of modern software solutions for optimized business processes and efficient workflows. In times of increasing digital transformation, we act as a strategic partner and reliable companion for your company. 

Make an appointment now 

Our solutions not only support you in optimizing your omnichannel operations, but also contribute to meeting customer requirements and increasing customer satisfaction. By integrating seamless, cross-channel interactions, promoting consistent customer communication and strengthening your sales strategies, together we can set your business up for sustainable growth.

References: 

Salesforce - Link 

Oracle - Link 

Annekatrin Zywietz - Link