The Difference Between Multichannel & Omnichannel Retail

Omnichannel and multichannel can be a little confusing if you are new to the online retail business. They are both used in relation to marketing and retail. While they may be similar in engaging different channels, they are different in their method of implementation. Let’s begin with defining each of these terms.

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Multichannel

Multichannel consists of using various channels to interact with your prospects. These include, social media, mobile, website, direct mail, print ads, landing pages, and physical shop.

Each of these channels operates independently from the other channels with separate strategies. This is as opposed to single-channel marketing which focuses on one platform to engage with your target audience.

Multichannel brands can expand reach to a multitude of channels and interact with prospects that may not use the single platform that single channel marketing targets.

Omnichannel

Omnichannel uses various channels, but each channel works in harmony with an overall strategy that focuses on the entire buyer journey. The messages are unified and applied across the board.

It provides a streamlined and consistent experience to customers as they transition from one channel to the other. The omnichannel approach is ubiquitous because it reflects and is present in every aspect of the customer journey and every point of sale. It also delivers an overall personalised experience.

Difference between omnichannel and multichannel

Integration

Multichannel uses different channels in isolation, while omnichannel uses all channels that are interactively connected. All touchpoints in omnichannel are in harmony. Multichannel does not communicate between any of its channels.

Consistency

Multichannel has different messages on different channels. While omnichannel communicates one message across all channels — the same aesthetics, the same customer interaction. Omnichannel gives better options and better access to information.

Focus

The customer is at the centre for omnichannel but the quality experience is not lost even if the customer transitions to a different touchpoint. Omnichannel gives a personalised service to achieve a great user experience for shoppers. Multichannel focuses on the product — lacking personalisation. Messages are product-focused with the goal to sell without factoring in the customer’s unique need.

Seamless experience

Multichannel offers limited accessibility. Customers can use one channel at a time. Omnichannel is seamless by giving easy access to all channels.

To further explain the difference between these terms, let’s illustrate with the following examples.

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Omnichannel experience

1. A customer sees a belt that catches his fancy on his timeline. He visits the Facebook store of the business. But before he buys, he wants to see what the belt looks like.
2. The shoppable picture indicates that the belt is available.
3. He notes down the address and drives to the physical store.
4. When he arrives, he shows the shop attendant the picture and product description.
5. The attendant locates the item, the customer sees and verifies the quality of the product.
6. Thanks the shop attendant and goes back to the Facebook shop to order and pay for the item.
7. It gets delivered to him.

Multichannel experience

1. The customer sees a belt that catches his fancy on his timeline. He visits the Instagram store of the business. But before buying, he wants to try out the belt and see what it looks like physically.
2. The shoppable picture says the product is available.
3. The customer assumes he would find it in the store. He notes the business address and drives down to the store.
4. On arrival, the shop attendant sees the picture of the product and its description.
5. The shop attendant seems to not know about the product but goes in search of it anyway.
6. He returns to say the product isn’t available in-store. It is only available on their online channels.
7. Customer leaves disappointed.

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Choosing between omnichannel and multichannel

While it may seem that the only reasonable solution to supporting your business growth is to adopt the omnichannel method, businesses need to critically examine if they can adapt and sustain such a method.

It requires a lot of resources to adopt the omnichannel model. True, the omnichannel option is ideal but in reality not every business is ready for it. Some businesses will fare better starting with a multichannel approach. Gradually, they can begin to transform their multichannel execution into something close to what the omnichannel option offers.

To be ready to convert to an omnichannel retail brand, your business needs an overhaul. It includes investing in IT and other tech infrastructure alongside a laid down strategy to integrate and execute.

Whatever the case may be, businesses need to find ways to be flexible by adapting and integrating new channels. A single-channel retail method won’t suffice if you are looking to expand your reach.