Omni-channel

Omni-Channel Retailing is the evolution of multi-channel retailing, but is concentrated more on a seamless approach to the consumer experience through all available shopping channels, i.e. mobile internet devices, computers, brick-and-mortar, television, radio, direct mail, catalog and so on. Retailers are meeting the new customer demands by deploying specialized supply chain strategy software. To use all channels simultaneously, retailers using an omni-channel approach will track customers across all channels, not just one or two. In the brick-and-mortar channel, digitally-savvy consumers are entering stores already well-informed about a product’s features and prices and expect store employees to know more than they do. Using omni-channel retailing while working with the “Connected Consumer”, all shopping channels work from the same database of products, prices, promotions, etc. Instead of perceiving a variety of touch-points as part of the same brand, omni-channel retailers let consumers experience the brand, not a channel within a brand. Merchandise and promotions are not channel specific, but rather consistent across all retail channels. The brick-and-mortar stores become an extension of the supply chain in which purchases may be made in the store, but are researched through other “channels” of communication. With omni-channel retailing, marketing is made more efficient with offers that are relative to a specific consumer determined by purchase patterns, social network affinities, website visits, loyalty programs, and other data mining techniques. In Harvard Business Review there are several articles on the omnichannel concept. The first article in Harvard Business Review on the subject is written by D. Rigby (2011). However, the author does not make a contribution by looking at what the differences are between the “omnichannel” and “multichannel” concepts. These concepts are very similar and at the moment the difference needs to be clarified. One thing that can be pointed out is that ‘multi’ means ‘many’, and ‘omni’ means ‘all’. Some practitioners therefore argue that the omnichannel concept refers to the application of the same business strategy for all channels, while a multichannel concept refers to the application of different strategies for many different channels.