Omni-channel service: Does it ensure customer retention?
By Aditya Abeysinghe
Businesses today are mostly changing their processes to a digitized approach. With using digital processes, businesses could offer products or services to customers who are distant, to customers who use digital stores to buy products and to customers who are unaware of businesses. Different channels are used by businesses to reach customers when using digital approaches. Omni-channel approach is such a method which links different channels to link with customers.
Benefits of omni-channel services
One of the benefits of omni-channel services is that the customer has many options to purchase products. With omni-channel services, customer can purchase products using self-services or online purchases which reduces customer’s time to purchase products. While ensuring customer satisfaction it enables the seller to reach more customers and increase sales. Sellers could benefit from omni-channel when the cost for maintaining physical stores is decreased while increasing the customer base using digital stores which enables them to easily centralize sales and stores.
Another benefit of omni-channel services is that it increases brand recognition of a provider of a service. Many leading businesses provide services via several channels such that customers can obtain a service at their convenience. An example is a service provider that allows customers to check their outstanding amount to be paid via text, email, or via a call to a hotline. This improves customer loyalty to a provider of a service which in turn enables the provider’s brand name to be advertised with minimal cost for marketing.
Omni-channel services also could ease a seller when a new channel for a product or service should be added. Existing channels could be used to market new channels to customers and reduce time and efforts for publicizing products or services. This enables a seller to easily promote their new products and services while maintaining existing channels. With easy expandability of existing channels, a seller could ensure customers are retained.
Data analysis of customer data is easy for businesses when omni-channel services are used. Instead of analyzing data from multiple channels and then drawing insights from them and then merging insights to derive decisions, the captured customer behavior from all channels can be analyzed and decisions could be taken with less errors and with less time. Businesses could also increase profits from focusing more on channels frequently used by omni-channel service method.
Omni-channel service drivers
Businesses that offer their services or products digitally are often preferred higher by customers. Most businesses that offer digital services provide customers with inventories of products they can purchase with cost, units available, shipping cost, etc. Customers can view which products they can buy before visiting a store or place orders online when stores are closed. Omni-channel services also offer customers a flow of merged processes from viewing products to purchase to product delivery.
Another driver which affects omni-channel services is digital operational facilities provided by businesses. When multiple channels are joined a business should provide customers with a cohesive digital process so that the customer is not stuck when switching channels. Customers who start and then use another channel should be able to complete their expectation without any issues.
Challenges
Omni-channel services are often costly to operate as teams with knowledge on assisting customers are required. They are also costly because teams with knowledge on analytics of diverse processes, knowledge on maintaining channels and knowledge on designing and integrating multiple channels are required. Another drawback is that joined nature of channels could make troubleshooting difficult when issues arise. Therefore, costs for viewing any faults in each channel needs to be considered.
Multichannel services
Multichannel services also use several channels to provide services to customers. For example, a website, a mobile application, and a social media page for a seller is a multichannel service. However, in a multichannel service these services are not linked to each other. This makes it distant in digital services in contrast to omni-channel services where all channels are linked. Most businesses opt for a multichannel method due to costs and maintenance issues with omni-channel method.
Image Courtesy: https://www.connectpost.com/
