written by | April 25, 2022

What is Omnichannel in Retail?

An omnichannel retail strategy is an inter-channel organisational tactic for marketing, selling, and customer relations that delivers a seamless and integrated consumer experience regardless of how, when, or where a consumer contacts your company. All omnichannel strategies employ various channels. Not all multichannel operations are omnichannel; the keyword here is 'cross-channel'.

Cross-channel marketing requires combining and exchanging information throughout all channels to provide a consistent customer experience. Customers anticipate a more comfortable place and use a variety of channels, gadgets, and venues to get it. As a result, attracting increasingly demanding clientele requires more than a single-channel strategy. Retailers have been under strain to reshape their retail management activities and marketing strategies to avoid falling behind in the battle for sales growth.

Did you know?

Omnichannel shoppers have a 30% higher lifetime value than those who shop using only one channel. Companies with a robust omnichannel customer engagement see a 9.5% increase in annual revenue, compared to 3.4% for weak omnichannel companies.

Let's Take a Closer Look at the Terms

  • Single-channel retail: You only have one distribution platform for your goods. A physical store, a shopping site, an online platform like Amazon, or even Instagram is used as a sales channel nowadays.
  • Multichannel retail: Multichannel commerce is when you offer your products through various platforms. While this can relate to various internet channels, it most commonly applies to both offline and online channels. Your clients know where to locate you offline because you have a solid internet presence. You communicate with your consumers through social media and email. Multichannel is a terrific place to start when it comes to increasing consumer engagement with your company.
  • Omnichannel Retail: Like multichannel retail, omnichannel retail occurs across several channels. Without multichannel, there could be no omnichannel. The main distinction is that an omnichannel retail approach combines all channels for a completely integrated customer experience and a smooth transition between platforms. Customer data and insights from your many channels are combined to create a single customer profile. You give the customers consistently what they want, when they want it, on any device, wherever in the physical and digital worlds. 

Multichannel emerged as a new retailing strategy that might start taking advantage of the digital era to please clients through whatever platforms they preferred. This marketing strategy immediately became dominant in the retail industry and has continued to grow.

Also Read: E-Commerce Definition - What Is E-Commerce?

What Does It Mean to Be Multichannel in Retail?

Because omnichannel is a jargon bandied around a lot lately, let's begin by clarifying what it is (and isn't). Traditional retail refers to how stores functioned before the internet and smartphone apps irrevocably transformed how people buy things. A typical retailer may have a physical store, an online store, and online accounts, but they fail to integrate the customer experience. Consumers lack inventory transparency, are unable to study products efficiently, and cannot communicate with the retailer other than in-store, by email, message directly, or telephone.

Let's look at the real advantages of implementing an omnichannel retail approach for your company.

What Are The Benefits Of Having An Omnichannel Strategy?

  • Obtain a competitive edge

Even if your brand isn't, your consumers are already omnichannel. 4 out of 5 clients who buy in a physical store use the internet to compare products and deals before or during their purchase. Customers who make a purchase online, on the other hand, go to a physical store to try on the item and see how it fits. A whopping 73 % of buyers use multiple channels and devices during a single purchasing trip.

Being available on all of your consumers' preferred channels offers you a competitive edge and guarantees that you don't miss out on a transaction because a consumer noticed a competitor offering on a channel where your company isn't.

  • Greater consumer retention means a superior consumer experience.

What do your clients anticipate from you? 9 out of 10 worldwide clients desire omnichannel support and anticipate businesses to remember their previous decisions irrespective of the channel of communication. They also want an experience that is convenient and consistent across all media. And providing excellent customer service is becoming increasingly vital. In the last three years, the amount of clients who have severed their connection with a beloved brand due to a single unpleasant encounter has increased to 33%. 'Wasn't tailored enough' and 'wasn't handy' were the most commonly reported causes for the encounter being 'poor.' It's important to remember that retaining existing clients is far more valuable than obtaining new ones. Every 5% increase in client retention equals a fivefold increase in profit. Removing barriers across a company's many platforms allows customers to define their own 'excellent experience' by using the platforms that are most comfortable and accessible to them.

  • Revenue and involvement will rise.

Developing your advertising & distribution approach multichannel may take some time and work at first, but it will pay off in the long run. A customer's value increases as they use multiple platforms. Consumers spend a lot of money with both internet and offline stores with each additional channel used. 

According to a Harvard Business Review survey of 46,000 customers: When compared to single-channel buyers, omnichannel accounts for a variety of 4% more on every purchasing event offline and 10% more on the internet. The rewarding aspect is that each extra channel you add results in increased expenditure. For example, if a consumer uses four or more channels, their in-store spending increases by 9%.

On the other hand, omnichannel marketing efforts that use three or more channels surpass single and two platform initiatives by up to 250 % in terms of membership. This implies that simply introducing one more channel to your plan can significantly boost earnings.

  • Optimise costs and improve functional efficiency

Switching to an omnichannel retail approach will help you run your business more efficiently and save money. A favourable linked interaction with a business is more persuasive to 65% of consumers than brilliant marketing. When your business integrates with consumers, the interaction will serve as your advertisement, and word-of-mouth will help you acquire new customers. According to Deloitte, omnichannel activities result in better marketing performance and lower expenses. Allowing shared data to be used across all platforms means you only have to gather and process a customer's data once, cutting data gathering and handling expenses exponentially. You may increase the effectiveness of your corporate headquarters activities by linking all of your multiple channels under a single omnichannel operation centre rather than having different strategies and initiatives for each channel.

  • Increased customer commitment and customer lifetime value

The net income assigned to the entire livelihood relationship with clients is known as customer lifetime value. Omnichannel clients not only spend more on each deal, but they also purchase more frequently and are more loyal to the firm. Consumers who have a strong emotional attachment to a business pay twice as much as those who do not.

Omnichannel clients have a five-fold better lifetime value for your company: you'll offer more without paying more to acquire them, resulting in a larger profit.

  • Improved data gathering

Merchants who follow their consumers across several platforms have a greater potential to acquire data and promptly relay that data back to the customer, resulting in a better, more pleasant atmosphere. Better consumer data allows you to learn: 

  1. How to generate relevant content that informs your marketing plans.
  2. Who your various customer sections are, which channels they prefer, and their comprehensive shopping habits to notify your customer relationship management. 
  3. The products that are receiving the most engagement with customers per stream to notify your purchasing & marketing team on product offerings, management and sharing.

Also Read: How to Apply for an e-Commerce Business Loan in India?

How to Create a Successful Omnichannel Retail Strategy 

  • Learn as much as you can about your client: Investigate your intended audience's likes, behaviours, and requirements. To discover your diverse consumer segments, use social networks and your established touchpoints. 
  • Choose the appropriate channels: Find out which networks your consumers prefer to use and what they're doing on those networks. 
  •  Connect all channels: For a seamless user experience across all touchpoints, choose versatile tech that can incorporate all of your platforms. 
  • To become an omnichannel, you must first become an omnidevice: Allow your clients to shop across many devices and channels to complete a particular buying experience. Instead of beginning over, let customers pick it up where they left off on any gadget, and make sure your information looks great on all of them.
  • Make social media connection a priority: Consumers actively purchase things directly from their favourite social networking sites. Utilise social media material and direct links to your product pages into your web store's social media activity. 
  • Customer service is available around the clock: Although it is impossible to be open 24 hours a day, it is possible to provide a 24/7 experience and client service. Create a world-class in-person, internet, and mobile customer care programme so that your consumers may contact you whenever they want. 
  • Manage your platforms: According to consumers' needs and activity, you should constantly update your approach and the performance of your channels.

This will help you develop a loyal consumer base who will return for more.


Omnichannel retail optimises many distribution channels while also bringing them together at a high degree of reliability. Consumers want omnichannel shopping experiences to be smooth. Today's merchants are recalculating their knowledge of the target client in order to react to new customer wants and behaviours.

An omnichannel approach must be complete and holistic. It is built on a solid basis, with the core elements of retail channels, advertising and marketing, logistics, and delivery and fulfilment assisting. You can handle all of your activity across all of your platforms in one location if you use the correct omnichannel marketing technology. As a marketer and businessman, you are only as limited as your imagination.
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Q: What are the main customer benefits of omnichannel retail?


Customers will be able to find your item, line of products, or services more quickly and easily if you use omnichannel retail. It gets rid of the guesswork and the necessity to figure out which platform to use to interact with your brand choice.

Q: What does omnichannel mean in the context of retail?


Retailers are concerned about their customers. From their frequent need to transition from your digital site, specialised store, and mobile app, merchants want to provide their customers with a seamless experience.

Q: What is the significance of omnichannel?


Following the COVID-19 epidemic, customer behaviour evolved dramatically, with people increasingly turning to digital buying. Thanks to omnichannel's cross-channel versatility, consumers have more alternatives and routes to make a buying decision. With nearly 75% of consumers reporting they browse and compare the prices across numerous platforms, adopting omnichannel is not just the wise choice, but it's also the only viable alternative.

Q: What are the benefits of an omnichannel approach for your business?


The extra difficulty of dealing with multichannel inventory is one of the most significant roadblocks to a successful omnichannel approach. The most significant impediment to successful omnichannel inventory management is inventory visibility. You won't be able to obtain data for accurate reporting or guarantee clients that things will be available in stock on all channels if you don't have it. Good inventory management can help you improve your distribution network and never miss a thing across sales platforms while you're growing to new channels.

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