Catalyst

Omni-channel is more than just a buzzword

Shashank Sinha | Updated on January 22, 2018 Published on November 12, 2015

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The realities and compulsions of staying in touch with today’s connected consumers



In the pre-internet era, the flow of information was to a great extent unidirectional – from corporations/media houses to consumers. But with the rapid diffusion of the internet, not only did the world witness a paradigm shift, India did too. We observed a fundamental change not only in consumer behaviour but also in the way companies function and chalk out tactics to reach out to their consumers. Earlier, businesses would connect with customers in a largely one-way direction that allowed the former to control the experience. Today, with the onset of a digital world, this dynamic has changed drastically.

Research reveals that consumer journeys have become shorter but complicated. The way information is accessed and propagated has resulted in a consumer who is much more conscious and has greater expectations. Omni-channel marketing puts the consumer at the centre and gives the suitability to decide when, where and how to shop. This insight has led to a number of companies adopting an omni-channel approach, which allows brands to remain engaged with their customers across all stages.

What is it?

So what really is omni-channel? To put it simply, this platform provides consumers with a single, holistic view of the business through multiple channels that operate concurrently. The key is that all platforms need to be aware of the other, and lead to a seamless experience. The customers are the focus, and they need to be able to switch between channels quickly and efficiently, getting the same information and experience wherever they go. Unlike multi-channel marketing approaches, each channel in an omni-channel approach intuitively knows how a customer interacted with another channel, which is used to help guide and continue the customer experience. But keeping this definition in mind, brands and businesses need to ask certain pertinent questions before they delve into this line of thought: How relevant would this be to their working? Will it really help reach out to their target audience?

Before we begin to dissect these questions, we need to recognise certain fundamental realities. The road to building an audience and gaining loyalty has become quite a challenge because the average consumer today is hard-pressed for time and is distracted by a multitude of options to choose from, making it important for the company to be exposed to various channels — traditional and digital to sustain the lead. Most customers will respond to just one channel, so it’s crucial to have a diversified, multichannel approach to engage the customer at the place of their interest. Brands should think about how to keep the experience the same across platforms.

However, it is observed that pure e-commerce businesses are still sticking with the model that led to their success in the first place. Similarly, brick-and-mortar companies are exploiting the advantages that they derived from having a physical interface. Study shows that there is still a large fraction of the population that prefers to touch and feel a product before purchasing despite the way the e-commerce industry is flourishing. This is the reason why e-commerce companies should look at establishing their physical stores while brick-and-mortar retailers to growing their e-commerce channels. Brands that have recently joined the bandwagon are Flipkart, Snapdeal and Amazon. Things one must remember before taking the leap into an omnichannel strategy:

Understanding of technology

Physical retailers have experience of the supply chain capabilities but they lack understanding of the technology. Technology diffusion and improvement in telecommunication infrastructure are opening up immense possibilities in this domain

Working on a no-profit model

The norm for online retailers is offering discounts and promotions to gain traction. This heavy discounting strategy developed by e-commerce players for differentiation may not yield long-term benefits. However, a number of e-tailers which earlier concentrated solely on boosting the number of sales has replaced their model by placing a greater emphasis on profitability

Define your target audience

An omni-channel strategy can be very costly and vastly more complex than traditional e-commerce or bricks-and-mortar business models. In their strategy, retailers should identify and analyse who their target audiences are, how to reach out to them and what messages will garner the most responses

Understand their needs

Smart omni-channel marketing is about understanding your consumer’s taste, preferences and matching products according to their requirements and convenience. For example, L’Oreal Makeup Genius is a mobile app which allows consumers to upload their picture and virtually try make-up, receive suggestions and purchase products. This has helped L’Oreal to bring its offline experience online

Personalised experience

Brands that follow an integrated approach and offer customised solutions based on real-time information, interests and consumer data are bound to command greater loyalty. Consider Myntra, for example. Through its app, it educates people about new trends and even makes recommendations based on past purchases

Keep innovating

Brands need to study consumer behaviour and leverage new and emerging technology to engage with them in this fast moving environment. Audi India announced the launch of the Audi A6 Matrix priced at ₹49.50 lakh (ex-showroom Delhi), the car was launched via a WhatsApp video which Audi sent out to the press

The younger generation today has no trouble buying things online and returning them. So while businesses may not be in trouble today, looking at how people are moving to become digital natives, it is imperative to move towards a holistic approach. Omni-channel is no longer just a buzzword. Companies must prepare for omni-channel commerce not as something which is special, but as simply the way businesses are heading towards. Regardless of industry, businesses that successfully exploit new communication channels will emerge as the true winners. In today’s multi-device world, successful brands are those that blur the boundaries between offline and online channels. Hence it is rightly said- The future is connected.

Shashank Sinha is Senior General Manager - Marketing, Eureka Forbes

Published on November 12, 2015
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