Omnichannel vs Unified Commerce: The Evolution of Retail in 2024

From browsing online to visiting a physical store, today’s consumer expects a seamless and consistent shopping experience across all touchpoints.?

This is where omnichannel and unified commerce strategies come into play.?

But what’s the difference between these two concepts? Can they work together? And, most importantly, how can they make your customers (and your marketing department) happy?

Those are the questions we’ll be exploring in this omnichannel vs. unified commerce article.

Let’s start by digging into omnichannel.

Demystifying Omnichannel: A Connected Shopping Journey

What is omnichannel??

Omnichannel refers to a retail strategy that integrates all sales channels…?

• online store
• mobile app
• physical stores
• social media

… to provide a unified customer experience.?

And it's not just about having multiple channels; it's about ensuring a smooth flow of information and interaction between them all.

This, as you might imagine, requires a plan. Here’s what that looks like…

Developing an omnichannel strategy involves:

• Mapping the customer journey: Understanding how customers interact with your brand across different channels.
• Data integration: Breaking down silos and unifying customer data across all touchpoints.
• Consistent messaging: Delivering promotions and product information across all channels in the same brand voice.
• Omnichannel experience: Creating a seamless experience where customers can easily switch between channels without disruption.?

For example…

Imagine a customer browsing for glasses online (they can barely see their screen anymore because their prescription is so old) and adding a couple of options to their cart.?

What if they could then visit a physical store to try the glasses on to make sure they like the frames, and complete the purchase at that touchpoint?

Another omnichannel example you might recognize is when you see an ad on Facebook, then you click on it, and poof! You have a personalized email with a discount code inviting you to go shopping in-store or online to save 15%.?

Two days later, you have $175 worth of essential oils and a new diffuser delivered to your door. (Don’t ask me how I know.)

When you’re a consumer, this is hard on your bank account. But when you’re an enterprise, the benefits are abundant…

Benefits of Omnichannel:

• Increased Sales: Customers are more likely to convert when they have a positive and seamless shopping experience.
• Improved Customer Satisfaction: A consistent and convenient experience leads to happier customers.
• Enhanced Brand Loyalty: Omnichannel marketing fosters stronger customer relationships.
• Data-Driven Insights: Unified customer data provides valuable insights for personalization and targeted marketing campaigns.

These benefits clearly illustrate the power of an effective omnichannel strategy. However, the tools and platforms you choose to implement in this strategy can significantly impact its success.?

Let’s explore some of the top omnichannel solutions available and how they can enhance your customer communication efforts:

• Customer Relationship Management (CRM) Systems: Consolidate customer data from all channels.
• Marketing Automation Platforms: Personalize marketing campaigns and automate communication across channels.
• E-commerce Platforms: Offer features like in-store pickup and product availability checks across channels.

Regardless of which omnichannel solutions you choose, the way you communicate with your customers will be another key consideration.?

Omnichannel Communications

Effective omnichannel communication involves leveraging the strengths of each channel:

• Email: Targeted email marketing campaigns based on customer behavior and preferences.
• Social Media: Engaging customers on social platforms with interactive content and personalized offers.
• SMS Marketing: Sending timely alerts, promotions, and order notifications.

While selecting the right omnichannel solution is crucial, it’s equally important to focus on how you communicate with your customers across these channels.?

Effective omnichannel communication ensures that your messaging is consistent and personalized, enhancing customer engagement and satisfaction.

Now, let’s take a look at some real-world examples of companies that excel in omnichannel communications.

Omnichannel Examples of Excellence

Sephora?

This beauty behemoth seamlessly blends (pun intended) online and in-store experiences.?

Customers can…?

• browse products online?
• reserve items for in-store pickup
• access their loyalty program benefits across all channels

Sephora’s Beauty Insider program offers personalized recommendations and rewards, further enhancing the omnichannel experience.?

Our narrator mutters under their breath… “In closing, it is far too easy for people to spend money at this store. Again, don’t ask me how I know. Well done, Sephora. Well done.”

Nordstrom?

Originally a physical retail store, Nordstrom offers a variety of omnichannel features, including:

• Buy Online, Pick Up In Store (aka BOPIS)?
• curbside pickup
• stylist consultations are available both online and in-store?

In addition, Nordstrom’s mobile app allows customers to track orders, manage their accounts, and access product information while shopping in-store. Win-win for everyone!

Nike?

Nike uses a robust omnichannel strategy to cater to the tech-savvy athlete.?

• Their app allows for personalized product recommendations based on past purchases and browsing behavior.?
• Customers can also reserve items online and try them in-store before buying.

These are just a few omnichannel examples, and the landscape is constantly evolving. By studying these leaders and staying updated on industry trends, you can gain valuable insights to inform your own omnichannel and unified commerce strategy.

The Evolution: From Omnichannel to Unified Commerce

Now, having explored the benefits of a well-executed omnichannel strategy, let's delve deeper into the world of unified commerce.?

While omnichannel provides a connected customer experience, unified commerce takes it a step further by integrating all business operations onto a single platform. I mean… can you even imagine??

Just when you thought this article couldn’t get any more exciting, we have a whole new option for you to consider!

What is Unified Commerce?

Unified commerce takes omnichannel a step further by integrating all business operations – from customer relationship management (CRM) to inventory management – onto one platform.?

This creates a single source of truth for customer data, product information, and order fulfillment, allowing for a truly seamless and unified customer experience.

Just as we explored how an omnichannel strategy would look, let’s consider the same for unified commerce. (Fair is fair.)?

A unified commerce strategy focuses on:

• Centralized Platform: Implementing a unified commerce platform (UCP) that integrates all systems.
• Real-Time Data Synchronization: Ensuring all data is consistent and accessible across the platform in real-time.
• Unified Customer View: Gaining a complete understanding of each customer's behavior and preferences.

Unified commerce builds upon the strengths of omnichannel and introduces additional benefits, including:?

• Enhanced Operational Efficiency: Streamlined workflows and reduced data silos, which leads to improved efficiency.
• Hyper-Personalization: Leverage a single customer view to deliver highly personalized experiences across all channels.
• Improved Inventory Management: Real-time inventory visibility across channels minimizes stockouts and overstocking.
• Omnichannel Fulfillment: Offer flexible fulfillment options like buy online, pick up in-store (BOPIS) or ship-from-store.

Unified commerce solutions, like Unified Commerce Platforms (UCPs), offer features like:

• Product Information Management (PIM): Centrally manage product information for consistent presentation across all channels.
• Order Management System (OMS): Process and fulfill orders across all channels seamlessly.
• Customer 360 View: Provides a unified view of all customer interactions.

Here are a few examples of unified commerce to show you what we mean:

??Disney?

Disney is a master of unified commerce. The My Disney Experience app allows guests to plan their entire trip, from booking tickets to making dining reservations.?

The app integrates with MagicBands, which act as room keys, park tickets, and payment methods. This creates a frictionless experience for guests while allowing them to spend thousands of dollars for the opportunity to see a gigantic mouse.

?Starbucks?

The Starbucks mobile app allows customers to order and pay for drinks ahead of time, skipping the line. The app also integrates with their loyalty program, offering personalized rewards and promotions. Getting rewards for drinking $6 cups of coffee… what a time to be alive!

??Warby Parker?

The unified commerce strategy for Warby Parker focuses on providing a convenient and personalized eyewear shopping experience. Customers can try on virtual frames online, or receive an at-home try-on kit. Then, they can have their final glasses order shipped to their home or picked up in-store for a fitting.?

The Path Forward: Choosing the Right Approach

Now that we've explored both omnichannel and unified commerce in detail, you may be wondering which approach is right for your business. Click here to read an expanded version of this article to find out → Omnichannel vs Unified Commerce: Which is Right for You?