The Benefits of Omnichannel Marketing in 2021:Posted on March 3rd, 2021 by Cameron Schulz
Much like the omnichannel strategy itself forms a series of chain reactions—moving consumers from one channel to the next based on their previous interactions—the benefits of omnichannel marketing follow a similar domino effect. Each domino is a benefit in itself, but the greatest benefit is the final domino that falls into place as a result of the force from all the previous dominos that have fallen.
5 Benefits of Omnichannel Marketing
The First Domino – Data:
Recent insight from Forbes suggests that data is most valuable when it’s analyzed collectively rather than in siloed situations.
“When the full spectrum of customer data is united to individual profiles, companies can deliver targeted messages and promotions when and where each customer prefers, delivering the greatest impact, regardless of industry.”
In an omnichannel marketing strategy marketing channels are integrated to breakdown down the siloes that prevent data sharing and interdepartmental communications. Once those siloes are removed data can be collected across all channels that consumers interact with, whether digital or human, marketing, sales, or customer service. The process of creating avenues for sharing and communicating is the initial force that causes the first domino—data—to fall into place.
The Second Domino – Personalization:
Perhaps one of the greatest functions of data is to provide context for personalization of the buying experience. Therefore, as the data domino falls it triggers the benefits of personalization. Personalization is a quantifiable benefit that significantly impacts organizations’ bottom line. According to Adobe’s Personalization Survey of Consumers and Marketers nearly half (49%) of marketers surveyed reported improvements in their revenue with personalization, and 43% reported improvements in their retention numbers.
Omnichannel marketing is a consumer first strategy that aims to create hyper-personalized buying experiences. That valuable data collected, along with Artificial Intelligence (AI) and other tools, is used to analyze consumer behavior and insert elements that are personalized to each new and unique consumer wherever they are in their journey on whichever channels they choose to engage with.
The Third Domino – Customer Satisfaction:
Personalization is key to every step of a buyer’s journey and, once they’ve made a purchase, their customer cycle, which means the next domino to fall is customer satisfaction. Higher customer satisfaction can translate into improved brand reputation, referrals, retention, upsell, cross-sell, and so much more. Research from Salesforce shows that 91% of customers report that they’re more likely to make additional purchases with a company after having great service experiences.
Salesforce also asserts that “great service experiences are personalized, seamless, and quick.” Sound familiar? That’s the omnichannel strategy—personalized, seamless, and streamlined. The strategy is designed to be carried through to your customer service reps to further eliminate gaps and ensure that those reps are armed with the same information that your sales reps are. This extension of the strategy allows the organization to continue the valuable experience and expand on or maintain valuable customer relationships
The Fourth Domino – Retention:
The customer satisfaction domino delivers a direct hit to the customer retention domino, after all that is the goal of maintaining customer relationships. According to HubSpot, increasing retention by just 5% can increase revenue by 5-25% and retaining customers is 5-25 times less expensive than acquiring a new one.
It’s well-established that omnichannel accounts for the personalization necessary to deliver the great customer service experiences that have been proven to keep customers satisfied so that they will become return or renewing customers. Covering both bases with omnichannel ensures that you’re in the 43% of marketers that experienced increased customer retention (shared in domino #2) and you can capitalize on its cost effectiveness.
The Final Domino – Revenue:
If there isn’t a monetary benefit to a strategy, most marketers will look the other way. Luckily, with personalization, customer satisfaction, and retention, there’s plenty of force to knock over the final domino: increased revenue. We know that the domino benefits of an omnichannel strategy impact the bottom line in numerous ways. It produces excellent personalization, which McKinsey & Company reports can produce between 5 and 15 percent increases in revenue, and it reduces costs through increased retention.
However, the strategy of omnichannel marketing in general is also a critical benefit to revenue. According to another recent study, campaigns that engage customers across three or more interconnected channels achieve 287% higher purchase rates than campaigns that only engage consumers through a single channel. That’s an improvement that no organization can pass up.
Line up the pieces, and then let them fall into place
“In today's hyper-competitive economy, market share goes to those who develop and maintain warm, intelligent relationships with their customers.” - Forbes
The domino benefits of omnichannel are also pieces to an intricate puzzle. The omnichannel method is all about utilizing data to strategically line up your channels so that you can create an exceptional experience for your prospective consumers and your valued customers. An experience is the only way to produce those 'warm, intelligent relationships' that will set you apart from your competition. If you do the research and take the time to line the pieces up right, every domino will begin to fall into place and those imperative relationships will flourish.
Not sure where to start? Check out our New eBook, The Basics of Omnichannel Marketing