Omnichannel refers to a seamless, integrated approach to sales, support, and service across multiple channels, including online, in-store, and mobile. Omnichannel ensures a cohesive and personalized experience for customers, regardless of how or where they interact with a brand.
Long gone are the days when customers only had one or two options for interacting with a company. Today’s customers move freely through digital and analog channels, using telephones, web chat, social media, etc. to make purchases, find solutions, initiate returns, and more. To address this fundamental shift in the customer journey, businesses are reevaluating how they deliver customer service. A fully integrated approach has the potential to create an interconnected experience—providing customers with seamless service, regardless of whether they are using email, social media, telephone, or even in-person channels. This is known as omnichannel.
The concept of omnichannel emerged gradually as technology began to reshape consumer behavior in the early years of the 21st century. With customers expecting to interact with brands across multiple platforms without any friction or inconsistencies, the term omnichannel was coined to describe this new opportunity. Omnichannel integrates available customer service channels to provide continuity and connectivity across the entire customer journey. This allows customers to move freely between channels without experiencing interruptions or having to repeat context from previous interactions.
Although omnichannel is often described as a solution in retail and other forms of B2C commerce, it is just as capable of meeting the needs of B2B customers. B2B omnichannel focuses on creating a seamless experience for businesses purchasing goods or services, incorporating platforms like online marketplaces and digital catalogs. The goal is to provide a unified and efficient purchasing process that meets the complex needs and buying cycles of business clients. This often involves personalized pricing, bulk orders, and longer-term contracts.
Omnichannel commerce represents the integration of all available shopping channels into one cohesive shopping experience. This approach allows customers to engage with a brand through multiple avenues (in-store, online via a website or mobile app, through social media, or over the phone) and enjoy a seamless transition between them.
Omnichannel commerce makes the purchasing process as convenient and efficient as possible for the customer, regardless of their preferred shopping method. It helps in reducing friction during the buying process, thereby increasing customer satisfaction and loyalty. For businesses, it means capturing customer interactions across all channels to better understand and serve their needs, leading to increased sales and customer retention.
Omnichannel marketing extends the principle of a seamless customer experience to the realm of marketing. It involves using insights from various channels to deliver personalized and consistent marketing messages to customers, wherever they may be. Unlike traditional marketing strategies that may treat each channel as a separate entity, omnichannel marketing recognizes the interconnectedness of all channels and ensures that a brand's message is coherent and aligned across them.
Omnichannel marketing exists to build a relationship with the customer that feels both personal and relevant, enhancing engagement and encouraging loyalty. By leveraging data from across channels, businesses can create targeted marketing campaigns that resonate with the customer's specific needs and preferences, leading to more effective marketing efforts.
Omnichannel personalization is about tailoring the customer experience to the individual's preferences, behaviors, and history with the brand across all channels. This strategy relies on the collection and analysis of data from various touchpoints to create a detailed customer profile. Personalization can manifest in many forms, such as personalized product recommendations on a website, customized email marketing campaigns, or targeted offers through a mobile app.
The purpose of omnichannel personalization is to make the customer feel understood and valued by the brand, thereby enhancing the customer experience and increasing engagement and loyalty. For businesses, it offers the opportunity to differentiate themselves in a crowded market and drive increased sales by delivering exactly what the customer needs, when they need it, in the most convenient way possible.
An effective approach to omnichannel involves understanding the customer journey across all platforms and designing interactions that are consistent and personalized at each stage. To do this, organizations plan their approach strategically, first identifying relevant value drivers and then building a set of processes that allow them to prioritize business objectives and client needs. In most cases, an omnichannel strategy will fall into at least one of the following categories:
- Personalization is centered on creating personalized, consistent customer experiences that focus on building engagement across all available channels.
- Commerce omnichannel strategies are applied to ensuring consistency in digital and in-person shopping experiences.
- Ecosystem takes a back-stage approach, providing platforms that are uniquely tailored to client cross-channel needs.
Examples of omnichannel strategy include:
Customer support
A customer support omnichannel strategy proposes to create an accessible, convenient, and consistent cross-channel experience. Implementing an omnichannel strategy in customer support can lead to higher satisfaction rates, loyalty, and retention.
Marketing and sales
For marketing and sales, an omnichannel strategy involves using insights from customer interactions across all channels to drive seamless marketing and sales efforts. This approach enables businesses to deliver targeted messages that resonate with the customer's specific needs and preferences, thereby enhancing engagement. An effective omnichannel strategy in marketing and sales helps in attracting new customers while also nurturing existing relationships.
Retail
Researching products online, visiting a store to view them in person, making a purchase through a mobile app, and choosing between home delivery or in-store pickup—retail omnichannel must be capable of optimizing even the most complex purchasing journeys. Retailers leveraging an omnichannel approach can offer more flexibility, convenience, and personalized shopping experiences, which can significantly enhance customer satisfaction and loyalty. It also allows retailers to gather valuable data across channels to optimize inventory, marketing, and sales strategies.
Government
Omnichannel is not limited to the private sector; government institutions recognize the importance of omnichannel in citizen engagement and service delivery. An omnichannel approach in government services can lead to improved accessibility, increased satisfaction, and enhanced trust in public services.
Because omnichannel considers the full range of contact options a customer or client may choose to employ when interacting with a business, it is sometimes confused with multi-channel. However, multi-channel and omnichannel are distinct approaches that are worth differentiating. Here, we compare omnichannel to multi-channel, and see how each compare to the more limited single-channel approach.
Single-channel
Single-channel is the most straightforward of the three options. It involves interacting with customers through one channel only, whether it's a physical store, an online website, social media platform, etc. This approach limits the complexity of managing multiple channels but also restricts the customer's options for engagement with the brand. The main drawback is the lack of flexibility and choice for customers, who increasingly expect to interact with brands in multiple ways.
Multi-channel
Moving a step forward, the multi-channel approach offers customers several distinct channels for interacting with a brand. However, these channels operate relatively independently of one another; there is little (if any) coordination between channels, and should a customer decide to transition to another channel mid-journey, they would be starting from 'square one' in terms of their experience. While this approach provides more options for customer interaction than the single-channel strategy, its lack of cohesion and integration can result in disjointed messaging or inconsistencies in service quality across the different channels
Omnichannel
Omnichannel is the logical final step in this evolution. Building on the extensive selection of options provided through multi-channel, omnichannel further enhances customer experiences by ensuring that the overall journey remains consistent. Customers can easily move between all available channels without worrying about their progress being interrupted or reset. Omnichannel is fully coordinated, so that every channel feels as though it is simply part of a large, more seamless, whole.
Effective omnichannel solutions incorporate any and all channels a customer may wish to use. Here are several essential channels worth considering as you plan your move to omnichannel support:
Messaging platforms allow customers to communicate with agents in real-time through ongoing, asynchronous conversations. These text-based messages can span cases and topics, and are often a simple, direct way for customers to contact support agents.
Web-based forms create structured requests that a system can then route to relevant teams or locations, including contact center, back office, or middle office.
An intelligent chatbot, also called a virtual assistant, can infer customer needs through natural language interpretation. You can create automated conversations that provide real value to customers. Chatbots free up support agents to address other tasks and can provide customer self-service when agents are not available; they should seamlessly escalate conversations to live chat agents when they are unable to answer the customer's question or complete their request, passing the context along so the agent knows what information the chatbot has collected.
Live chat options, usually integrated with company websites, provide a quick and easy opportunity for customers to reach out and discuss issues with dedicated agents or virtual agents. Visitors simply type their message into an available chatbox, and the company responds. Chat is easy to implement, simple to use and offers your customers 24/7 support directly from your website.
In this era of instant messages, social media, and automated chat, email may seem obsolete. But the reality is that email is a convenient, asynchronous channel that is still widely used by customers across every industry. However, manual email processing demands time and focus from potentially overburdened agents. Businesses can reduce time spent on both inbound and outbound emails. Automated inbound email processing can create and update customer cases. Agents can update customers about the progress of their cases through templated outbound emails.
Much like email, telephone contact is a customer-service channel that may seem outdated but is still very much in use. Due in part to the convenience and familiarity of using a telephone, in addition to the expectation of being able to speak with a living human being on the other end, many customers prefer to call a business directly when they need support. In an effective omnichannel approach, modern voice experiences combine AI-driven natural language capabilities to expand self-service and drive personalized conversations.
Social media gives customers an extremely accessible route to communicating with businesses. As customers reach out for service or support, agents can record the conversation history in any cases that are created as a result.
No other channel can match the personalness and ease of communication available through face-to-face, in-person service. In fact, many customers will forego digital channels and instead travel to specific locations just to be able to meet with authorized business representatives. But in-person communication can make an omnichannel approach difficult.
Digital queue management can help bring in-person customers into omnichannel, with improved response times, increased productivity, and relevant customer and purchase information available to on-site staff.
An optimal omnichannel experience is built upon several foundational pillars working together to create a holistic experience that meets and exceeds customer expectations. For businesses investing in omnichannel solutions, best practice is to prioritize the following elements:
Consistency is the cornerstone of a strong omnichannel strategy, ensuring that customers receive the same level of service, messaging, and brand experience across all channels. Whether a customer interacts with a brand through a mobile app, in a physical store, or through any other means, the quality, tone, and offerings must be uniform. Consistency helps in building trust and loyalty, as customers can rely on a predictable and reliable experience every time they engage with the brand.
Convenience means making every interaction as effortless as possible for the customer. An optimal omnichannel experience is effortless, removing barriers and friction across the entire buying process. This includes providing options for how customers can make purchases, access information—online purchasing with in-store pick-up, 24/7 customer support across platforms, and streamlined returns processes may all play significant roles.
Understanding the context of each customer interaction involves recognizing the customer's current situation, history with the brand, and potential needs based on their interaction across channels. Contextual awareness allows businesses to offer personalized and relevant experiences, making customers feel understood and valued. Leveraging data analytics to gain insights into customer behavior and preferences is key to providing a context-rich experience.
Connectedness refers to the integration and synchronization of all customer touchpoints and channels. It ensures that customer data and interactions are shared across the organization, allowing for a unified view of the customer journey. This interconnectedness enables businesses to deliver a cohesive experience, where actions taken on one channel automatically inform and enhance interactions on another. For example, customer service representatives can access a customer's purchase history and previous inquiries to provide more effective support, regardless of the communication channel.
Chronology refers to interactions as they play out across days, months, and years. Emphasizing the importance of understanding and designing for the full customer journey across time and touchpoints, this involves mapping out the customer's path in its entirety. From initial awareness, through purchase, and into post-purchase support, a focus on the chronology ensures that each stage is optimized for a seamless transition. Recognizing this sequence of interactions allows businesses to anticipate customer needs and deliver timely, relevant content and support.
As previously stated, omnichannel exists to bring customer and business objectives together, resulting in an approach that enhances customer satisfaction while setting the stage for improved returns. More specifically, companies that invest in the right omnichannel solution can expect to encounter the following benefits:
Customers enjoy the freedom to interact with a business in the way that is most convenient for them. Omnichannel service essentially removes the boundaries and barriers between channels—mobile, desktop, web, in-person, social media, and more, become a single, unified experience. This consistent and hassle-free approach to customer service improves customer satisfaction and promotes a better ongoing customer relationship.
No matter where the conversation starts—whether the customer walks into a store or branch, phones the contact center, sends an SMS message, or uses some other channel—conversations can continue across communication channels with complete visibility for agents. Conversations can be continued across communication channels with complete visibility for customer service agents. This means when customers seek service, agents can see prior conversations and review purchase history, no matter which channel the customer has used in the past. This allows agents to provide a more relevant and convenient service to the customer.
Separate channels can mean separate information silos, as multiple agents across different departments fail to effectively share data relevant to the customer’s success. This can lead to multiple agents working on a single issue without coordinating their efforts to ensure that the same work is not being done redundantly. Omnichannel lowers operational costs by bringing every involved agent together, ensuring that tasks are performed efficiently, quickly, and in support of one another.
In omnichannel, seamlessness is achieved by integrating various channels so that the transition from one to another is both fluid and intuitive. Customers can start their journey on one channel and move to another without any disruption. For example, a customer can begin researching a product on a mobile app, continue on a desktop website, and complete their purchase in-store. This seamless experience not only enhances customer satisfaction but also builds a strong brand image that values customer convenience and flexibility.
With a unified view of the customer's history across all channels, customer service agents can quickly understand the problem without needing the customer to repeat information. This immediate access to comprehensive customer data enables agents to provide faster and more accurate solutions. At the same time, the ability to switch between channels effortlessly means that customers can receive help through the most efficient channel for their specific issue, further reducing the mean time to resolution (MTTR).
Taken all together, the advantages offered by implementing an omnichannel strategy typically lead to increased revenue. A seamless and personalized customer experience fosters loyalty and satisfaction, which translates into repeat business and positive word-of-mouth. Additionally, the ability to gather and analyze customer data across all channels provides valuable insights that may be applied towards optimizing sales strategies, focusing marketing efforts, and creating targeted promotions to drive purchases. Add to this the reduced operational costs associated with omnichannel, and you have the potential for an extremely impressive return on your investment.
One of the keys to successful customer experience is reducing customer effort. At the heart of every successful customer experience is comfort; as they interact with your business, you customers want to be able to do so using their own preferred communication channels and devices. Forcing customers to conform to predetermined support and communication channels pulls them out of their comfort zones, creating anxiety, frustration, and a poor overall experience. And, because a customer’s preferred channels may shift depending on time, location, and degree of urgency, focusing on the right channels for the right customers can become extremely difficult.
Omnichannel customer service effectively eliminates these issues. By integrating across all possible touchpoints, you make it possible for your customers to enjoy a seamless, optimized, comfortable experience, no matter how they prefer to communicate. And because all relevant customer history and product information is maintained in a single location, customers can work with and transition between multiple support agents without having to constantly re-explain their situation.
Fulfilling requests without demanding high customer effort—this is the primary business challenge addressed by an omnichannel approach to customer service.
At its heart, an effective omnichannel strategy begins with a deep understanding of customer preferences. Implementing technology that supports the fluid movement between channels makes it possible to track customer interactions and the data these interactions produce, allowing businesses to offer a personalized and cohesive experience that meets their preferences no matter how or where the buyer chooses to engage.
To execute an omnichannel approach, businesses must allocate the necessary resources to synchronize their efforts across all channels. This involves assembling a dedicated team capable of ensuring consistent messaging, service, and customer support, irrespective of which combination of channels a user may choose to access. Coordination among team members is crucial for maintaining the continuity and quality of the customer experience, highlighting the importance of a unified strategy that aligns with the company’s overarching goals and customer expectations.
Practical applications of omnichannel strategies reveal the depth of their impact on customer engagement and satisfaction. For instance, when a customer makes a purchase in a physical store, the sales staff can utilize customer service management (CSM) tools to access the customer’s purchase history. This information enables personalized service, including tailored cross-sell or upsell recommendations that enhance the average order value (AOV). Similarly, if a customer encounters an issue with their purchase, customer service representatives can quickly review customer expectations, needs, and pain points to offer a resolution that is both efficient and tailored to the customer’s preferred communication method.
Omnichannel strategies extend to digital platforms, allowing customers to check inventory, compare prices, and read reviews across devices before making a purchase either online or in-store. This flexibility enhances the shopping experience by providing options and education, effectively eliminating much of the friction associated with shopping.
The transition from single channel strategy and multichannel strategy to omnichannel can take a lot of time and resources. But the end result is worth it.
There are a few recommended steps:
Understand the customer: Take time to research the target audience, including their interests, behavior, and needs. Gather customer feedback and use social media to gauge more specific needs.
- Choose the right channels: Identify where customers spend most of their time and what they are doing there.
- Outline the purpose of channels: One channel could be for communication, one could be for updates, another could be for information, etc.
- Connect the channels: This step needs to be carefully implemented while utilizing the right technology. Follow customers through every step of their journey and each touchpoint—do journey mapping to understand how customers move through the relevant purchase or support journeys.
- Maintain each channel: Omnichannel strategies require constant efforts—test and improve the strategy along each channel and always ensure that customers are having an enjoyable experience each step of the way.
The future of omnichannel is being shaped by several key trends, with automated customer service at the forefront. Artificial Intelligence is revolutionizing how customer interactions are initiated and managed, streamlining the collection of initial customer information. But even if automated customer service is in the future of omnichannel, it doesn’t necessarily mean that customer service agents are no longer needed. AI can record and gather initial customer information through an initial touchpoint that can be forwarded to an agent. This allows agents to move forward with a solution without the need to gather initial information or requiring customers to repeat information through each touchpoint.
Another interesting observation is that organizations are becoming more selective about the channels they include in ‘omnichannel.’ They have found that adding every possible channel makes it difficult to manage a true, well-implemented omnichannel experience. The result is that, as we move forward and omnichannel becomes the rule rather than the exception, some channels might be shut down.
Even as some channels become obsolete, those who operate offline might see improved support. The seamless integration of online and offline channels will allow for a harmonious blend of digital and physical experiences, where customers can enjoy the convenience of online shopping with the tangibility of in-store interactions. For example, customers will have more power to research products online, test them out in-store, and choose the most convenient purchase method. This flexibility will cater to varied consumer preferences and enhance the shopping experience.
Lastly, as businesses increasingly prioritize sustainability, this focus is also influencing omnichannel strategies. Companies are leveraging omnichannel platforms to promote sustainable practices, such as reducing paper usage through digital receipts and encouraging online transactions that minimize the carbon footprint associated with physical store visits. By integrating sustainability into their omnichannel approach, businesses will make greater strides in not only environmental conservation but also in how they appeal to eco-conscious consumers who value green practices.
Omnichannel customer service and support simplifies the entire customer communication process. Customer interactions can originate anywhere and move across multiple channels, while still maintaining a continuous conversation. At the same time, customer information is stored in a single location, easily retrievable by authorized agents throughout all relevant teams and departments. ServiceNow brings these advantages to you, with Customer Service Management (CSM).
CSM integrates seamlessly across all available channels, ensuring that customer conversations flow effortlessly from one medium to another without losing context or continuity. This is made possible through dedicated, unified service portals and the flexibility to incorporate service channels. Customers are afforded the convenience to initiate chats with virtual or live agents, peruse knowledge base articles, submit cases, and communicate through their preferred channels—all within a cohesive environment. CSM makes this all possible, then it takes things further.
Intelligent Virtual Agents equipped with natural language understanding streamline the resolution process and optimize customer service operations. These and other features (such as automated email case creation and integration with modern voice experience providers), significantly reduce manual processing and elevate the quality of customer interactions. CSM likewise extends its omnichannel support to the physical world through digital queue management, enriching walk-up service experiences by ensuring faster, more timely responses.
No matter how or when your customers make contact, you need to be there for them. ServiceNow gives you the tools and resources to help ensure success—for your business and the people who keep you in business. Demo CSM today, and support your customer base at every touchpoint.