Omni-Channel Marketing is a new term that has been thrown around increasingly more over the past few years, and it is a strategy that most organizations regardless of industry should develop, as it makes a heck of lot of sense. However, we find that there are still many organizations that are not exactly sure what Omni-Channel Marketing is or how to properly deploy an Omni-Channel strategy. 3Sixty Insights believes that not deploying an Omni-Channel strategy is a huge mistake, and it is inadvertently hurting thousands of businesses today and leading to the fall of the many consumer-based retail giants of today. In this article, we’ll cover exactly what Omni-Channel Marketing is and some tips for developing and deploying a strategy of your own.
Setting the stage a bit, back before the internet or smartphones, things were literally simpler times for marketers. TV, radio, print, and in-store advertising were typically the only marketing mediums that needed constant attention from marketers, and the pace and frequency of marketing campaigns were drastically slower. Also, something like a remote worker was never part of the picture, which meant that all the various teams were under the same roof and most likely reported to the same department head. Finally, product designs did not change as much, and in some cases, you’d be lucky to see one design change in a year (sometimes in years). All of these factors allowed for teams that worked closer together and for campaigns that were much more cohesive from a consumer standpoint than what was being produced in today’s market.
This was the case for decades, until the late 90’s when something interesting happened and changed the marketing landscape forever… Technology began to be developed enough were things like the personal computer and the internet became convenient enough to make their way into a majority of homes. Almost overnight, a significant percentage of the population had access to the internet, and in short order, corporations began to follow with development of their own websites. At first, these websites were digital billboards for their businesses and overtime transitioned to the eCommerce hubs they are today. When businesses began to develop these new websites, they needed to bring in new people that would be familiar with the development and technology of websites, bringing the first drastic change to how teams functioned inside of businesses. Essentially, this is where IT began to play a marketing role, but without direct ties to the marketing department. As the developers themselves were technology people, they typically reported to the head of IT, and the same can be said for the backend supporting technology. At first, because there were typically only a few team members supporting a website, it was easy for teams to develop a strategy with the marketing teams, keeping some of the cohesiveness that was once in place, but it wasn’t without its issues… One challenge that typically came up was that marketing would develop new campaigns, but would have to wait for IT to update the website to match the campaigns. With some organizations, this took an extremely long time, leading to marketing campaigns being deployed without a website reflecting these campaigns. This led to a fragmented view from a consumer standpoint, resulting in frustration and lost revenue.
Overtime, departments began to address the issue of this fragmented view, but on June 29, 2007, something happened that would change the way consumers interacted with businesses forever: the launch of the iPhone. Almost overnight, with the launch of the first smartphone, consumers now had ready access to the internet and business websites anywhere and in the palm of their hands. At first, websites were not developed to be viewed on such small screens and were extremely difficult to navigate. Making things worse, most smartphone manufacturers had their own mobile browsers and application frameworks, giving their end-users slightly different views than the others. As a result, businesses needed to quickly pivot to create a new strategy for addressing these consumer devices, various browsers and application frameworks. This in itself created more fragmentation within businesses because it wasn’t one big team that addressed smartphone platforms, but several (typically, one per platform)–all of which reported to IT and not marketing. As a result, end-users would receive different user experiences depending on the platform, and some completely independent from the primary website… This became a nightmare for marketers; they not only had to coordinate with the primary website teams, but now with the various mobile platform teams, all of which did not report to marketing, which was a huge challenge for coordination of campaigns.. Then in 2009, something else happened that would put a whole new strain on marketing: the economic downturn of 2009. Suddenly, budgets and teams were cut almost overnight with an increase of demand for faster and more nimble marketing campaigns on the rise. This is frankly where team cohesiveness and technology of the times were put to the test, and where most failed… Organizations, big and small, began to have major customer experience issues leading to huge lost revenue gaps, and organizations began to crumble. Essentially, businesses were not up to the challenge due to how highly fragmented these organizations had become. As a result, they had difficulty being nimble enough to address the demands of the economy of the time. Many of the major consumer business downfalls happening today are almost directly due to their inability to change with the times, and instead, opting to focus on cost cutting vs innovation (The Fall of Big Box Retail in Calculator-Driven Economy). However, there were some that began to innovate and change with the times…
This is where Omni-Channel Marketing comes into play. Essentially at its basic level, Omni-channel Marketing is giving a consumer the same experience, whether they are sitting on a desktop, smartphone, in-store, or anywhere for that matter. This means that if they see a commercial on TV, the deal reflected in that commercial will be the same across all formats and in-store. Again, the concept of the Omni-Channel Marketing is to give customers a single user experience regardless of their interaction with your brand. This makes interacting with a brand as seamless and user-friendly as possible, removing all barriers and taking advantage of the convenience of today’s technology. Thus, if someone watching a commercial from the convenience of their couch sees something of interest, they can simply pick up their smartphones and place an order within minutes, having it shipped directly to their house within days or having the ability to pick up that item in store the same day. As a contrast, you still have the likes of Sears that haven’t fully adopted any of today’s technology, and the primary way of customer interaction is their in-store experience. Anyone that has been to a Sears over the past few years can attest that Sears hasn’t done the best with keeping up in-store appearances and closing hundreds of locations yearly as a result.
Again, all of this was to set the stage for how most organizations used to be compared to where they are today. When looking into creating an Omni-Channel strategy, the first thing to understand is that it is much easier for a small business to do so than it is for a larger organization such as Sears. The larger and older the organization, the more investments they have made in legacy technology, policies, and teams, along with more internal politics to deal with. These reasons alone make shifting to an Omni-Channel strategy like turning a cruise ship taking on water in a hurricane; it is no surprise that they haven’t, and that they continue to fail as a result. With all of that said, it is important to emphasize that the sooner one starts to develop their Omni-Channel strategy, the better.
As an organization begins to develop an Omni-Channel strategy, here are a few tips to consider:
Centralize your teams – Mentioned earlier, the traditional way has been fragmented teams reporting to both IT and Marketing executive leadership. As an example, websites, mobile applications, and inventory control may be managed by the CIO while Marketing campaigns and advertisements may be managed by the CMO. Instead, we recommend that any function that is related to the Omni-Channel strategy should be managed in one area, and all teams to be reporting up one executive leader.
Take an inventory – In order to change anything, it is extremely important to understand everything that would fall under the Omni-Channel Strategy. It is crucial to understand and map out everything from the website and in-store experiences to everything in between, along with supporting systems… Getting a current state of affairs is important to understand where things stand to properly put a plan in place.
Take the customer journey – Task different teams and executive leaders to take the customer journey… Have them use the website, mobile applications, and make trips to different locations to take note of inconsistencies and pain points.
Pay attention to your competition – It is important to understand what the competition is doing… There is no need to recreate the wheel when developing a strategy, and similar to the customer journey, take note of both positive and negative experiences.
Ask for customer input – Find ways of speaking to customers to understand their experiences. Try to understand areas they felt comfortable with and areas where they experienced pain or difficulty, and truly listen to your customer! Too many organizations ask for customer input, but then ignore it because there is a belief that the customer does not know what is best for the organization! Trust us when we say this: your customer is everything… If they say something is a problem, it is a problem!
Start with what will impact the end-customer the most – Too many organizations start their strategies by overhauling backend technologies and systems… The problem with this strategy is that it’s typically extremely expensive, takes the longest to develop, and when finally completed, has no real effect on the end-customer at all. Many of the greats of our generation have gone out of business with this strategy… Instead, find areas that will have the most impact to the end-customer and start from there, working on the bigger backend changes in the background.
Adopt design standardization – As your organization develops their approach, a design standardization should be the highest priority. On the surface, all customer-facing mediums (desktop and mobile websites, mobile applications, and social media profiles) should all have the exact same look and feel. Behind the scenes, supporting technology and programming languages need to be standardized as well…
Standardize technology – This goes in line with design standardization, but aligned more to the backend supporting technology. Again, a key challenge to the larger organizations is no technology standardization. We’ve seen organizations that will have 100s of applications from 100s of vendors, databases from Microsoft, IBM, Oracle, and others–all with multiple program languages. Although there are different types of middleware technologies allowing for integration of these different solutions, we recommend against this completely… Instead, standardize on application, database technologies, and programming languages. Part of the reason for such fragmented systems is that, traditionally, each of the different teams had their own purchasing power to acquire whatever technology or software they felt fit for the team’s needs. Having centralized teams should help eliminate this issue, however, we also recommend a change in purchasing power… No team should be allowed to purchase rogue technology or software. Instead, teams should be finding ways to bring on solutions that fit the greater good of the organization. Yes, this may mean that some sacrifices will be made, but the good of a smart purchase will outweigh the negative of sacrifices made.
Hold meetings – Part of bringing these teams together means that meetings and decisions should not be made in vacuums. We recommend weekly, monthly, and quarterly meetings meant to bring the individual teams together reviewing changes and progress made against primary goals… This will ensure that all departments know what everyone is working on or towards.
Test, test, and test again – Developing an Omni-Channel strategy is no small undertaking, and there will be significant changes made to people, process, technology, and other enablers across the organization as a whole. Regardless of how much planning and testing is completed before items are rolled out, things will break… Ensure that your team is always testing, retesting, and then testing things over and over. The last thing you want is for your customers to find something broken in the system. Sometimes it only takes one bad customer experience to lose a customer!
Strive for constant improvement – Once a go-forward plan is in place and the various teams begin to make progress, it doesn’t stop there…. There should always be a strategy in place to find out ways of improving the overall customer experience across people, process, technology, or other enablers. We always highly encourage testing… again, this should not be done in a vacuum, the whole team should be aware of innovation items being tested and worked on.
Fail fast – Designing an Omni-Channel strategy is a process and a huge undertaking for any organization… Unfortunately, no matter how much planning and testing is in place, there are going to be things that just do not work! Too many may try to force the issue and continuously try to force a round peg in a square hole… It’s better to recognize where something just isn’t meant to be and declare failure! No one likes to fail, but no one wants to spend untold amounts of money and time on something that will never succeed in the first place.
Analyze everything – Metrics should be put around every aspect of the Omni-Channel Experience, from front end customer facing aspects to backend supporting technology… Every aspect of the system should have Key Performance Indicators (KPI’s) attached to them and should be continuously monitored for areas of improvement or trouble. Depending on how big the organization, it might be worth the investment of putting together some type of war room monitoring system were specific teams are responsible for monitoring these KPI’s in real-time.
Again, creating an Omni-Channel Experience within a business is no small task… However, the more effort put into ensuring your customers have a seamless experience from anything such as your website or mobile application, to their in-store experience, the more likely you are to have happier (and returning) customers. Industry giants of all shapes and sizes have been struggling as of late due to their lack of customer experience and competition pressure. Remember, it only takes one bad customer experience to lose a customer to a competitor, and let’s not forget word of mouth as well. In today’s market, customer experience is everything, and if you’re not putting your best foot forward across all of your different customer experience touchpoints, you are risking business.