Omni-channel marketing in network business

Major network companies allocate a significant portion of their budgets to improve the promotion strategy of their projects in order to attract and retain the attention of potential partners as effectively as possible, both online and offline. In this article, we will uncover the basics of omnichannel marketing and explain why it is so essential for businesses.

What is Omnichannel Marketing

To develop an effective omnichannel promotion strategy for a project, an entrepreneur must have a clear understanding of the meaning of this term:

Omnichannel (or multichannel) marketing is a type of marketing that involves the interconnection and coordination of multiple communication channels.

Omnichannelity increases the convenience and flexibility of interaction between a company and its consumers, synchronizing the work of the organization's offline assets (such as physical stores, product pickup points, printed product catalogs, etc.) and its online channels (such as online stores, brand pages on social networks, mobile applications, etc.). It all comes down to allowing the company's partners and clients to transition from digital to physical interaction with the brand, with minimal effort.

For example, a potential buyer may see a product in a social network feed, read reviews from real customers there, visit the manufacturer's website, explore the range of products, and place an order. And then, go to the nearest company store to physically receive their order.

Why an omnichannel strategy is so important

In 2015-2016, Harvard Business Review conducted a study on consumer behavior and found that 3 out of 4 respondents (73%) used multiple channels to interact with a company before making a purchase. Each year, considering the growing trend of mobile applications, the number of "multichannel users" continues to increase.

Also, Harvard Business Review identified a pattern that the more channels a customer uses, the more they are attached to the brand — the average check of customers who used 4 or more channels was 9% higher than that of single-channel customers. Additionally, these customers tend to make purchases more frequently.

At the same time, a recent Fluent study showed that 47% of shoppers interacting with retailers across 10 or more channels buy their products at least once a week.

Accordingly, an effective multichannel strategy can significantly improve a company's sales statistics and revenue, and brands that provide an omnichannel experience have a significant all-around advantage over those who do not.

Examples of how e-commerce projects implement omnichannel

Now that we understand the terminology, let's look at how well-known brands implement an omnichannel strategy:

Sephora (sephora.com)

Sephora is one of the most popular cosmetics stores, which, in addition to multichannel customer interaction, stood out in terms of personalization and gamification of the user experience.

When entering the Sephora: Buy Makeup & Skincare mobile app, the customer discovers access to exclusive offers and discounts based on personal preferences. Also, in some product categories, there is a feature for trying on products before purchasing directly.

Sephora equips some of its stores with digital "beauty stations" where customers can read about the latest trends, discover beauty hacks, or choose a personalized color palette. Also, in physical product pick-up points, there are digital screens (boards) displaying photos of make-up looks shared by customers on social media.

On the Sephora website, in addition to company and product information, you can sign up for a range of free cosmetic services, from make-up to eyelash extensions. Sephora also regularly holds events or masterclasses, which are announced on its website.

Essentially, Sephora is one of the first phygital retailers. And considering the success they have achieved by blurring the lines between the physical and digital worlds, there is much to learn from this brand.

Rozetka (rozetka.com.ua)

Rozetka is one of the largest Ukrainian online stores and marketplaces where you can buy everything from sugar sticks to lawnmowers. As of 2020, their website ranked 7th in terms of traffic in the country. The company is actively refining its marketing strategy, testing new methods to attract and retain customers. And they have been successful in this, as Rozetka has become a cult brand in the Ukrainian market, providing an integrated online and offline shopping experience.

It is worth noting that they are a well-known clothing retailer, including designer clothing. Rozetka adheres to the principle of "choose online - try on at the pickup point - pay if it fits" — the customer chooses the product in the online store or app, tries it on in one of their stores, and pays for the product if it suits them. Moreover, free delivery to their brand's pickup points is available for all Rozetka products.

Ikea (ikea.com)

Another brand we want to mention is the company IKEA — one of the world's largest retail chains specializing in furniture and home goods.

By enhancing its technological capabilities, the company chose the path of experimenting with virtual reality. They started with the development of the IKEA home planner program, through which PC users could design the future layout of their home or apartment.

Today, the company is developing an AR application for mobile devices, IKEA place. The platform automatically assesses the interior of a room and suggests complementing it with suitable items from the brand's catalog. After selecting preferred items, the user can see how they will look in their room (alternative fitting option).

In addition to the platforms mentioned above, IKEA is also developing in the field of VR technologies— they have created the IKEA VR Experience virtual reality program, which allows not only to model space, but also to interact with it using controller gloves —  this new experience and wow effect increase sales and brand recognition.

As we can see, omnichannel involves synchronizing the operation of the website, mobile application, and the environment in physical stores. The more innovative you approach the integrated experience, the more customers and partners you can attract and retain. In addition, brands gain a competitive advantage when they digitize (envisage the merging of the digital environment and physical reality).