Multichannel and Omnichannel Retailing (or ano pa gd nami)

https://www.canva.com/design/DAGQXtIArMc/c-ywykePhqwcyPIBEbB5gQ/edit?utm_content
=DAGQXtIArMc&utm_campaign=designshare&utm_medium=link2&utm_source=sharebutto
n

(DEN) Good day, everyone. We are here to discuss multichannel and omnichannel. Together
with me are Jamila Bandiola, Ayen Martinez and Aaron Pineda.

(DEN) A retail channel defines the way a retailer sells and delivers merchandise and
services to its customers.

Vid: In today's competitive retail environment, businesses must adapt to customer behaviors
and technological advancements. Multichannel and omnichannel retailing are two strategies
that help companies reach their audience across various platforms, ensuring convenience
and flexibility. Both use many channels to contact customers but there are significant
distinctions between the two approaches.

(JAM) Vid: Multichannel retailing means that retailers use different channels (such as
physical stores, websites, mobile apps, and social media) to reach and sell to their
customers. Each of these channels operates independently from the others. For example, a
brand might have a website where customers can shop online, and physical stores where
they can make in-person purchases, but these platforms don’t share information or
coordinate with each other.

This means that a customer might see a product on the retailer’s website, but if they visit the
store, the prices, promotions, or product availability might be different. Essentially, the
channels exist separately, without any effort to integrate them for a unified customer
experience.

(AARON) Benefits
● Convenience: Offering multiple shopping options allows customers to choose their
preferred method of engagement, increasing their satisfaction and likelihood to
purchase.

● Broader Market Reach: By operating across multiple channels, businesses can target
different customer segments. Some customers prefer physical stores, while others
lean toward online shopping or mobile apps.
Some customers may prefer shopping in physical stores, while others might like the
convenience of online shopping, mobile apps, or social media.
 ● Increased Revenue Streams: By utilizing diverse channels, retailers are not limited to
a single source of income. This diversification helps in stabilizing overall sales.
each channel can cater to different purchasing preferences

(AYEN) Challenges
● Operational Complexity: Managing separate systems for inventory, pricing, and
customer service across multiple channels can be complex. Each channel operates
independently, which increases the likelihood of inconsistencies in product
availability, pricing, or promotions.

● Inconsistent Customer Experience: Because the channels are not integrated,

customers might have different experiences depending on how they shop. For
example, they may find that a product is out of stock in-store but available online, or
they might receive different promotions depending on the platform they use.

● High Cost: Running and maintaining multiple independent channels requires

significant resources in terms of staff, technology, and marketing efforts, making it
more costly to manage compared to an integrated system.
Each channel requires separate systems for inventory management, pricing and
promotions etc.

(AARON) In contrast, omnichannel retailing creates a consistent experience for

customers across all channels.

Omnichannel retailing focuses on creating a seamless and unified experience across all
platforms. Whether a customer interacts with a brand via a mobile app, website, or in-store,
the experience is consistent and interconnected. For instance, a customer might browse
online and complete the purchase in-store or vice versa.

Ex. Sephora

(JAM) Benefits
● Seamless Customer Experience: Customers can move between online and offline
platforms without disruption. For example, they might start shopping on their phone,
add items to their cart, and then complete the purchase in-store. This integration
enhances convenience and overall satisfaction.

● Improved Customer Loyalty: A unified shopping experience helps build stronger

relationships with customers, as they feel more connected to the brand. The ease of
shopping across multiple channels increases customer retention and loyalty.

● Data-Driven Personalization: By integrating data from all channels, omnichannel

retailing enables businesses to gather insights about customer behavior,
 preferences, and purchase history. This data can be used to provide personalized
recommendations, targeted promotions, and customized marketing messages.
By merging data from various sources, businesses gain a complete understanding of
their customers, enabling personalized interactions, consistent messaging, and
seamless customer journeys.

(AYEN) Challenges.
● High Implementation and Operational Costs: Implementing omnichannel systems
requires significant investment in advanced technologies, such as customer
relationship management (CRM) systems, real-time inventory tracking, and data
integration platforms. These costs can be prohibitive, especially for smaller retailers.

● Consistency in Customer Experience: Ensuring that the customer receives the same
experience across all channels is challenging. Each platform (e.g., mobile app,
website, physical store) needs to be aligned in terms of product availability, pricing,
and promotions. Even slight misalignments can lead to customer dissatisfaction.

● Supply Chain and Inventory Management: Coordinating inventory between online

and offline channels can be difficult, as real-time updates are necessary to avoid
issues such as stockouts or overselling. Omnichannel requires flawless
communication between supply chain systems to ensure accurate product availability
across all platforms.

(DEN) Comparison Between Multichannel and Omnichannel:

Customer Experience: Multichannel operates independently across platforms, leading to

inconsistent experiences, while omnichannel integrates channels for a seamless, unified
customer journey.

Data and Personalization: Multichannel stores customer data separately for each channel,
limiting personalization. Omnichannel integrates data across platforms, enabling
personalized experiences and marketing.

Channel Integration: Multichannel channels are independent, whereas omnichannel

connects all platforms to ensure a consistent and seamless customer experience

(JAM) Both multichannel and omnichannel strategies offer valuable approaches for retailers.
Multichannel provides flexibility for businesses to engage with customers across different
platforms, but the lack of integration can lead to inconsistencies. Omnichannel offers a more
cohesive and seamless experience, making it a more customer-centric approach. As
technology evolves and customer expectations rise, omnichannel retailing will continue to
gain prominence in shaping the future of retail.