Here, we will discuss the Omnichannel business model, definition along with Omnichannel examples, challenges, opportunities and ideal roadmap step-by-step. Let’s begin!
The Omnichannel business model has revolutionized the entire business scenario with its massive number of benefits. For some of you who are unsure about Omnichannel? Here is a quick definition of Omnichannel business model.
Well! Omni-channel marketing or business means that your respected brand is accessible on various online and offline sales platforms and all of them are interconnected. Online platforms include social media, website, email, SMS, app, WhatsApp and offline channels encompass physical stores, event shows, etc.
In nutshell, Omnichannel business model bridges the gap between your products and their respective customers. Allowing your customers connect with your brand through multiple platforms helps you generate maximum revenue for your business.
So, let’s begin the journey by knowing a little bit about retail industry, which is drastically benefited by Omnichannel.
Table of Contents
- 1 Retail Industry at a Glance & the Top Reasons for Its Rapid Growth
- 2 OmniChannel – The Game Changer
- 3 Challenges of Omnichannel Business Model
- 4 Opportunities to Excel in OmniCommerce
- 5 What about the future of a new Business??
- 6 The Ideal Roadmap of OmniChannel Business Model
- 7 Examples of OmniChannel Business Model
Retail Industry at a Glance & the Top Reasons for Its Rapid Growth
- Its broad segments include low margin-high volume business (e.g., food, grocery) and high margin-low volume business (e.g., apparel, footwear, lifestyle retailing, etc.).
- Collective efforts of financial institutions with retailers are accelerating the purchasing power of consumers.
- Transition from traditional retail to organized retail – It is taking place owing to change in consumer expectations, higher disposable income, preference for luxury items, etc.
- Liberalization in Foreign Direct Investment (FDI) policies has taken the retail industry to new heights.
Moving forward, here is why Omnichannel business model has changed the game entirely.
OmniChannel – The Game Changer
- Multiple Platforms: It lets you connect with customers on every platform for brand awareness, reach & lead generation (Brick and Mortar Stores, Website, Mobile App, Social Media, SMS, etc.). Customers can also research about your products on the go as well as in the store.
- Coordination between Departments: Integration of customer service, sales, merchandising, and inventory improvises the sales funnel as well as customer experience.
- The Magic of Customer Behavior Analysis: Apt management of various sales channels helps you understand the market trend, customer’s behavior and demographics. On the basis of customer behavior, you can roll-out offers (e.g., deals, coupons, discount, etc.).
- Customer’s Trust: The daunting task of winning your customer’s trust becomes easier in Omni channel marketing if you showcase your products aptly on various sales channels.
- Self-Service Option: Self-service option available in Omni commerce model makes your customers feel more independent. It is extremely helpful to review their valuable feedback to elevate the level of your services.
It’s a known fact that every good thing has its negative sides too. So, let’s understand the challenges of Omnichannel business model.
Challenges of Omnichannel Business Model
- Data Analysis and Management: Tracking and managing data related to customers and inventory on various platforms and their integration can be a daunting task. It may be time consuming and expensive too.
- Synchronization: Business strategies are subjected to change according to the market trend. Thus, updating strategies in the entire Omni-channel business model within less time can be a tough nut to crack.
- Management and Training: Omnichannel business model requires the continuous assistance of skilled staff. Hence, the cost of management, resources and training can be a major challenge.
- Communication Hassles: Lack of communication between various departments can be a major challenge in this model. (e.g., communication between inventory and any other department, etc.)
- User Identification: Extracting the genuine data from a massive database can be a challenging task too.
Finally, it’s the time to know the right strategies, roadmap and examples of Omnicommerce business model.
Opportunities to Excel in OmniCommerce
- Redefine Your Brand: With a bit of technological implementations, Omni-channel business model revamps your brand identity.
- Better User Experience: It gives you an opportunity to elevate the level of user experience.
- Organic & Paid Advertising: An option to increase brand awareness and reach (e.g., store visit campaigns, social media & website traffic campaigns, etc.).
- Drive More Sales & Remarketing: Seamless integration of technology is extremely helpful to generate more business leads and increase sales.
- Real Time Inventory Management: It makes inventory management easy, so it is easy to clear up inventory in this business model.
What about the future of a new Business??
The fusion of apt business strategies (e.g., customer advocacy, finding and targeting audience, product quality, etc.), management and cutting-edge technology is a key to success.
The Ideal Roadmap of OmniChannel Business Model
Branding & Targeting: Apt strategies for branding and customer targeting (e.g., online/offline advertising, etc.).
Compelling Content: Develop clear and compelling content.
Responsive Websites: Develop responsive website for hassle-free accessibility on various devices.
User Experience: Enhance the user experience on various digital channels. (e.g., Response time, simplicity, architecture, etc.)
Competition Analysis: Analyze the success and failures of your competitors and act accordingly. (e.g., competitor’s channels, deals, etc.)
Develop High Quality Products: The development of high quality products is the key to success in every business.
Reliable Service: Promptness and reliability in service makes any business stand out from the crowd.
Technology Integration: Data synchronization between various departments.
Data Analysis & Re-marketing: Perform extensive data analysis and re-engage with customers, if needed.
Examples of OmniChannel Business Model
Starbucks Coffeehouse, One of the best Omnichannel Retailers: Being a user you can order coffee right from the computer at home. Later, you can track the order details even if you are on the go. The moment you reach the coffeehouse, you can produce your order ID and avoid those long queues.
Bata Shoe Company for Omnichannel Retail: In the event that their sales executives are unable to find your preferred shoe in their store’s inventory, they can quickly locate the store where it is available. This is how they can retain customers by educating them about the availability of their desired product and guide them accordingly.
HDFC Bank for OmniChannel Banking: It is one of the best examples of Omnichannel banking. HDFC lets you manage your online banking from their website as well as their mobile app. That’s not all! Let’s imagine that you have forgotten the password of your ATM. In this case, you can send HDFC an SMS followed by a code to retrieve a secret code needed to change your password at the ATM. This is how you can resolve your banking issues. Hence, everything is interconnected, secured and simplified.
Fedex for Omnichannel Logistics: If you are looking for Omnichannel example in logistics industry, Fedex can set the right scenario here. Well! this logistics company lets its customers track their consignments through mobile app, SMS and website. Being a customer, you can get constant updates regarding your consignments via email, SMS and app notifications. Moreover, you can also connect with the organization via various social media platforms to address your issues. This integration brings clarity in the entire process, which is a win-win situation for everyone.
If you are an entrepreneur, empowering your business with Omnichannel business strategies will certainly help you stand sturdy in the competition. Broaden your horizons for more.