Multi-channels and Omni-channels are two similar concepts that are actively used for trading in the modern world of overlapping channels of interaction between companies and customers. The multi-channel model allows consumers to choose the channel through which they can purchase the company’s products (Thaichon et al. 1). The company selects several different channels (for example, physical stores, social media and website) to communicate with various groups of audience. Thus, different channels are designed for diverse target audiences depending on their needs and purchasing behavior. Omni-channels strategy, in turn, allows companies to use different channels to provide a seamless customer experience (Thaichon et al. 2). Customers can purchase products regardless of the channel using the same features.
The main difference between multi-channels and omni-channels is how they work. Multi-channel means that the company operates on separate channels to target a diverse audience. These channels are independent of each other and do not overlap, and customers choosing different channels also get a different customer experience. Omni-channels strategy assumes that the channels used to communicate with customers complement each other and provide the same shopping experience. In contrast to the multi-channel model, this approach allows the company to use different channels for better communication with the target audience. In the Omni-channels model, channels intersect and complement each other, providing a deeper and more diverse customer experience. On the whole, the difference between the two concepts lies in the focus and goals that the company needs. For example, the multi-channel model prioritizes a service or product because it targets different groups without concern for improving the customer experience. Omni-channel strategy focuses on customers trying to enhance their experience of interacting with the company and product.
The main advantage of a multi-channel strategy is the ability to reach a wider audience or enter more diverse markets. Since this model involves the use of various independent platforms, a company can use different channels to target diverse audiences. However, within the framework of this strategy, the company is limited by the capabilities of the channel that it utilizes for communication, which is a disadvantage. Thus, multi-channels do not allow organizations to customize the customer experience depending on the needs of the audience, as it depends on the specific platform. The advantage of the omnichannel model is the ability to create a more personalized and deep customer experience depending on the needs of the target audience. This approach allows a company to use overlapping tools to mitigate the weaknesses of platforms used while gaining the benefits of multiple channel features. However, the disadvantage of this strategy is the need to focus on one market or audience, which requires constant research of customer needs. The Omni-channels approach does not allow targeting different audiences, as it highlights the need to improve the customer experience.
Each of the strategies works better at different stages of a company’s life. The multi-channel approach allows the company to reach a large audience and make people aware of the business. The Omni-channels model helps an organization with an existing audience to improve the customer experience by increasing their loyalty. Examples of companies that use a multi-channel approach are Toggl Hire, Demodesk, Copper, and MultiCampaign. It is noteworthy that these companies are developing and not widely known, so they mainly use social media, their own websites and search engines to expand audience coverage and better brand awareness. Such large companies as Starbucks, Disney, and Under Armor use an Omnichannel strategy. These companies integrate social media, email, mobile apps, physical stores, websites, search engines and more to enhance the customer experience and build customer loyalty.
Work Cited
Thaichon, Park, et al. “Moving from Multi-Channel to Omni-Channel Retailing: Special Issue Introduction.” Journal of Retailing and Consumer Services, vol. 65, 2020, pp. 1-3.