Strategy and brand

What is omnichannel

Also known as: omnichannel retail, omni channel

Rodrigo Fávaro, founder of ROO3
Rodrigo Fávaro Founder of ROO3
Published
The word Omnichannel in large letters on a dark background, with the address roo3.co/marketing
Short answer

Omnichannel is the strategy of integrating all of a company's channels, such as physical store, website, app, messaging, social media and customer service, so customers can move from one to another without starting over. Inventory, history, price and conversation follow the person. The difference from multichannel is integration: having several channels is not enough, they need to work as one.

Hypothetical example

A shopper sees a sneaker on a store chain's Instagram, checks on the website that it is available at the location near her office, reserves it by message and picks it up the same day. At the store, the clerk already knows the size she reserved.

Weeks later, she exchanges the sneaker at another location, with no printed receipt, because the purchase is on her profile. None of these steps required repeating her story. That is what separates omnichannel from a set of disconnected channels.

Multichannel and omnichannel

The difference is integration
MultichannelOmnichannel
ChannelsSeveral, each working aloneSeveral, working as one
InventorySeparate per channelSingle, visible from any channel
CustomerRepeats their story in each channelRecognized everywhere
Price and promotionsMay divergeConsistent, or with the difference explained
MeasurementEach channel with its own reportJourney seen end to end

Why it matters

The buying journey rarely happens in a single channel. Google's research on the messy middle showed people switching between search engines, social media, aggregators and review sites before deciding. When channels do not talk to each other, every switch is a chance for the person to give up.

In 2017, a study of 46,000 shoppers, published in Harvard Business Review by Emma Sopadjieva, Utpal Dholakia and Beth Benjamin, concluded, as its title says, that omnichannel retailing works.

What needs to be integrated

Where to start

Omnichannel does not require integrating everything at once. The first step is usually a single customer profile and a record of every contact, wherever it comes from. Then visible inventory and in store pickup. Each integration fixes a concrete point where customers currently have to start over.

Frequently asked questions

What is omnichannel?

The strategy of integrating all of a company's channels so customers move between them without starting over, with shared history, inventory and service.

What is the difference between omnichannel and multichannel?

In multichannel, a company has several channels working separately. In omnichannel, the channels are integrated and work as one for the customer.

Is omnichannel only for large retailers?

No. A small business can integrate its website, messaging and store with a CRM and a single inventory. The principle is the same, at a smaller scale.

What is the first step toward omnichannel?

Unifying customer profiles and history, so any channel knows who the person is and what they have already done.

Is omnichannel related to customer service?

Very much. One of the clearest signs of integration is customers not having to repeat their story when switching channels.

Related terms

Sources
Rodrigo Fávaro

Rodrigo Fávaro

Founder of ROO3, a marketing and technology agency in São José do Rio Preto, Brazil. Builds AI products running in production (Tobia, gerar.app, Pense Mercado) and maintains the AI Benchmark, a public ranking of AI models.

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