Omnichannel vs. Multichannel: Which Strategy Delivers Superior Customer Experience?

76% of customers expect to receive consistent and streamlined interaction from all departments within an organization, but only 54% of companies can meet this expectation.?

This gap informs us about the necessity of an integrated marketing approach such as Omnichannel to fully satisfy customer needs.

Extensive efforts are being directed at enhancing the Customer Experience by businesses as the nature of customer engagement continues to change.?

Two more dominant strategies are Omnichannel and Multichannel. While each of the strategies seeks to enhance customer engagement, they are quite different. Therefore, there is no strategy for enhancing the customer experience, which would not involve an understanding of the differences between the two.

What is a Multichannel Strategy?

95% of brands market through Multichannel, and only 27% of brands admit that they could provide an integrated experience over all the channels.

Multichannel strategy leverages several channels to reach as well as engage a customer. These channels can be physical locations, websites, social nets, or call centers. There are more than one or more ways to communicate and purchase which in this case are termed as the swallow points. But in a Multichannel set-up, these channels are frequently segregated. This means that an intervention in one channel does not propagate nor is it propagated in another.

What is Omnichannel Strategy?

Companies with Omnichannel engagement strategies experience an 89% customer retention rate on average, in comparison to 33% of customers retained by brands without Multichannel strategies.

When examining customer engagement in terms of the underlying concept, the Omnichannel engagement strategy aims at the unification of all customer touchpoints. With this strategy, customers can expect a consistent experience regardless of the channel. All have an impact: using a mobile app, visiting in-store, or on social media. This is meant to ensure that a round and complete experience for the user is provided to ensure seamless channel switching with the provision of the necessary context.

Customer Experience

73% of customers use multiple channels during their shopping journey. However, only 7% of customers are very satisfied with the consistency and connectedness that exists among these channels.?

The key factor differentiating between Omnichannel and Multichannel strategies is the technology used and its effect on customer experience. In the context of multichannel, the experience is not only unfriendly but also appears disjointed. One is targeted online, but when they walk into the store, they may be offered something entirely different or a shopper may explain their problem through emails and later get assistance over the phone, but they have to repeat the problem. The partial experience may prove to be undesirable and lower one’s satisfaction with the product.

The Role of Data in Omnichannel vs. Multichannel

Customers that have an efficient integration of an Omnichannel strategy can get up to a 30% higher lifetime value from a customer.?

This is because such companies leverage a more efficient personalization technique which is achieved because of an integration of data from different channels.

Data is an important asset whether it is in Omnichannel strategy or Multichannel strategy. The challenge however comes in how data is applied. In Multichannel data, the scope is mainly of one medium at a time, meaning data is collected and then analyzed per individual channel. This causes disconnection and missed areas of personalization opportunities. For example, what the customer browses on the internet will not be carried into the store, and they will miss the opportunity to have what would have been suggested to them.

Impact on Customer Loyalty

It has been noted that such customers, who engage with Multichannel in addition to physical stores, tend to account for 30% more spending on products.

Customer loyalty is one of the areas in which Omnichannel strategies triumph over other Multichannel strategies. In a multi-channel environment, fragmentation may cause customers to feel disconnected, and so their loyalty tends to drop as well. Because customers expect to receive certain consistency from their brands. They could or could not receive a similar message at different times or even from the same brand, different levels of service, and a complete absence of personalized services, which leads to the erosion of brand equity.

Efficiency and Operational Impact

Companies with well-developed Omnichannel strategies are expected to retain 91% more of the customers they manage annually than others with less well-developed Omnichannel strategies

For operational reasons, Omnichannel may impose more complex systems and processes. Companies are required to spend on technology systems that can link data and communication for all channels. This might be resource drainage however, the reward is high as it relates to the improved customer experience strategy. When the multi-channel strategies were working in sequence, the companies were able to cut down all the processes that were performing the same function and assimilating the needs of the customers much better.

How Intellicon’s Omnichannel Customer Experience Strategy Delivers Superior Customer Service

Intellicon underscores its strength as an all-in-one Omnichannel Contact Center and Help Desk Software aimed at improving customer service departments. With Intellicon’s unified architecture, it is possible to retain the loyalty of the customers by delivering continuously great and consistent experiences. Customers place calls to the support team, send emails, use chats, or visit pages on social media that seek to present the same support without creating a vacuum in the customers’ information. This way of collecting and analyzing customers’ feelings not only improves the response and resolution time bars but also makes sure that the customer is cared for and understood in every process hence improving customer satisfaction and retention.?

Conclusion

When it comes to the discussion between Omnichannel and Multichannel, which on the surface looks similar, the choice depends heavily on both achievable business objectives and resources available. On the other hand, it is better to stick with an Omnichannel approach for customers or clients who want to ensure the best experience for the customers. All these goals can potentially be well surpassed with an Omnichannel strategy. Therefore, market trends do not change that fast, and the Omnichannel strategy is likely to be the competitive edge and success for businesses in the future.