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What is Omnichannel Marketing?

Streamline your omnichannel marketing with Lob for seamless experiences. See boosts in conversions (40%), website visits (68%), and leads (53%).
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As businesses seek a more seamless customer experience, the importance of omnichannel marketing is becoming more apparent. As Rytis Lauris, CEO of Omnisend, said, "Omnichannel marketing helps brands create the messages that customers want to see, when they want to see them, and on the channels they prefer the most."

When you get this strategy right, you'll experience higher conversion rates and an optimal ROI.

Whether you primarily focus on email marketing, digital advertisements, SEO marketing, direct mail marketing, or some other channel, the combination of these channels yields the highest engagement rates. For example, on average, companies with omnichannel customer engagement strategies retain 89% of their customers, compared to a 33% customer retention rate for companies with weak omnichannel strategies. 

Tweaking your current approach to prioritize omnichannel marketing could make all the difference. Here's why and how to get started.  

Understanding omnichannel marketing

The definition of omnichannel marketing

Data from the Harvard Business Review shows that around 73% of customers prefer shopping through multiple channels. The study of 46,000 shoppers proves that omnichannel retailing works — but how do you reach those customers?

The definition of omnichannel marketing is a marketing strategy that creates positive, consistent customer experiences across connected marketing channels. The key is to implement a marketing strategy that includes channels that are not siloed — you want them to influence one another to achieve optimal success. 

A classic example is digital vs. direct mail marketing. Many business owners view these two channels as one or the other, focusing on which of the two is a more optimal choice. However, omnichannel marketing is less about which is better and more about how they amplify one another. With this strategy, marketers can boost conversion rates by 40%, increase website visits by 68%, and increase leads by 53%. 

Key benefits of implementing omnichannel marketing

When you're trying to reach customers and prospects, it's important to be in the right place at the right time.  Omnichannel marketing allows you to do just that by using multiple channels to stay connected with your audience. Here are some key benefits of implementing an omnichannel marketing strategy:

  • Consistent customer experience: Omnichannel marketing ensures that customers have a consistent experience across all channels, which can increase brand loyalty and trust.
  • Improved targeting and personalization: By using multiple channels, you can gather more data about your customers and target them with personalized messaging based on their preferences and behavior. This leads to higher conversion rates and ROI.
  • Increased engagement: When customers are engaged on different channels, they are more likely to interact with your brand and make purchases.

How omnichannel marketing improves customer experience

Omnichannel marketing is all about providing a seamless, integrated experience for your customers across all channels. This not only makes it easier for them to engage with your brand, but also creates a positive impression and builds trust.

Quite simply, omnichannel marketing improves customer experience by putting it at the center of every interaction. Rather than bombarding their phones, browsers, or inboxes with unwanted messaging, omnichannel marketing allows your brand to be targeted and tailored in its approach. Reach out to customers how and when they want and build a two-way relationship — rather than a one-way transaction.

What is the purpose of omnichannel marketing, and does it work?

Regardless of your omnichannel marketing platforms, the ultimate goal is to promote your brand using strategic, unified messaging. 

One of the primary purposes of omnichannel marketing is to meet consumers where they are, with the right message, at the right time. For some, that means focusing on omnichannel email marketing and omnichannel direct mail. For others, omnichannel social media is imperative to their success. The channels you integrate will depend on your goals and your customers.

A prime example of this strategy is the success ThirdLove found thanks to automated direct mail-based lifecycle campaigns. Users that had unsubscribed from email communication were targeted using direct mail. They have revolutionized their omnichannel marketing strategy by adding this channel to the company's arsenal. 

This case study is just one of many showcasing the power of combining the digital and physical realms. Customers you risk losing can be retained by altering your marketing channels. You can also win new business by embracing new marketing channels. 

When creating your omnichannel marketing strategy, remain mindful of the following elements:

  • A consistent brand tone and overall vision
  • Personalized messaging based on specific interests or behaviors
  • Content that is driven by past interactions and the customer's current buying journey

Recommended resource: The Modern Marketer's Guide to Omnichannel Marketing

What is omnichannel for digital marketing?

If you're wondering, what is omnichannel digital marketing, the answer is fairly straightforward. It involves the methods you use digitally to promote your brand. The vast options range from websites to content marketing, email to digital advertising. 

As you adopt omnichannel marketing, it becomes apparent that a cross-channel strategy is crucial to your success. If each channel operates in a vacuum, you will miss opportunities to improve the customer experience, drive sales, and more, all of which influence your ROI and bottom line. 

To create the perfect digital marketing omnichannel experience, list the channels you'd like to try. For example, would you like to incorporate an omnichannel content strategy with a core focus on omnichannel content management? Are you more interested in the power of social media omnichannel tools and how they can be implemented into your omnichannel direct mail strategy?

As you view these channels as an overall omnichannel digital marketing strategy, pinpointing how they connect, you'll enjoy significant cost savings, greater consumer insights, the benefits of personalization, and much more. 

Combining digital and physical channels 

One of the most common channels is email. Omnichannel emails fit into most strategies simply because they are flexible, effective, and continue to produce an impressive ROI. This approach works just about anywhere within the customer funnel. However, there will be some customers who don't respond to emails. So, it's up to your to close the loop.

Customers are becoming more aware, seeking out omnichannel experiences. One study found that over 85% of consumers prefer interacting with brands using digital and physical channels — a preference consistent across all generations. That stat is powerful, yielding immense opportunity. 

For example, when considering direct mail in omnichannel statistics, it's tough to ignore how effective this channel is. Data shows that direct mail has a 130% higher response rate than email — that figure triples when a customer has previously interacted with your brand. So, if they already receive emails from you or follow you on social media, personalized direct mail can majorly impact the customer's journey.  

How does omnichannel marketing work?

How omnichannel marketing works is not a black-and-white scenario — there are many options, some of which are more effective than others. The best approach for you will depend on your goals and your customers. 

The first step is to understand your customer. What are their pain points? What do they love? What platforms are they using? How do they interact with your brand? These are the types of questions you'll need to ask. The answers will help you identify the best channels based on customer experience variables, such as relevance, consistency, convenience, etc. 

Once you better understand your customers and their behavior, you can segment your audience to create a more personalized journey. This approach is where the power of omnichannel marketing comes into play. The last thing you want to do is send the wrong message, to the wrong audience, at the wrong time. You'll also want to invest in automation tools that allow you to optimize your marketing budget

Read more: 10 B2C Marketing Automation Tools To Try

Why is omnichannel marketing important?

Omnichannel marketing is vital for many reasons, one of which is creating a more positive customer experience. When you learn to combine several channels effectively, you can meet your customers are every stage of their journey. This approach will allow you to boost retention rates, reduce churn, drive sales, build stronger brand awareness, and more. 

You will gain access to the previous touchpoints along the customer journey by implementing an omnichannel strategy. This insight creates better synergy across your entire business, resulting in more personalized, cost-effective solutions. 

For example, a customer might visit your website after seeing an ad on Facebook or Instagram. They then browse your products, adding items to their cart. However, they don't immediately checkout. Based on your data, you can reach out to that customer via email or direct mail, providing an offer, such as a discount on their order. If a customer got a personalized postcard in the mail, they are already aware of your brand. This strategy will allow you to remain competitive in crowded markets. 

When exploring some omnichannel marketing examples, it's clear that who you are as a business will matter when deciding on the best channels. For instance, CPH, an insurance company, leveraged direct mail to increase retention rates, whereas Booking.com could drop fake booking rates by 97% using direct mail. These companies prioritized direct mail as part of their omnichannel strategy but experienced different outcomes based on their objectives and unique business models. 

Omnichannel personalization

As mentioned, one of the key benefits of implementing an omnichannel strategy is the ability to provide personalized experiences for your customers. This means utilizing data from various touchpoints to create a more tailored and relevant approach.

Personalization has become increasingly important in today's market as customers expect a more individualized experience. Though it's important not to invade privacy. According to out 2024 State of Direct Mail Consumer Insights report, consumers are concerned about how companies are using their data, especially in digital marketing.

While personalization can lead to privacy concerns, 59% of our study’s respondents were more concerned about seeing their personal information in digital advertisements than in direct mail advertisements, underscoring the importance of an omnichannel approach to personalization.

The role personalization plays in omnichannel marketing

With an omnichannel strategy, you can use customer data to personalize everything from product recommendations and promotions to messaging and user experience. This not only helps to improve conversion rates and customer retention, but it also creates a more positive and engaging experience for customers.

Through a cohesive omnichannel approach, you can ensure that your messaging is consistent across all channels while targeting each individual customer based on their preferences and behavior. This means delivering the right message to the right person at the right time.

Furthermore, personalization in omnichannel marketing goes beyond just using data to tailor messages. It also involves creating a seamless experience for customers as they move between different channels. For example, if a customer adds an item to their online cart but doesn't complete the purchase, personalized direct mail can be used to remind them of the item or offer special incentives to complete the purchase. This integration between online and offline channels not only increases the likelihood of a purchase, but it also enhances the overall customer experience.

Balancing personalization with privacy concerns

While personalization can greatly enhance the effectiveness of omnichannel marketing, it is important to address privacy concerns. With increasing data breaches and consumer awareness about their personal information being used for marketing purposes, it's crucial for companies to be transparent and ethical in their approach to personalization.

This means obtaining explicit consent from customers before collecting and using their data, as well as implementing strict security measures to protect that data. It also involves giving customers control over what data is collected and how it is used, such as the ability to opt-out of personalized advertising.

By finding a balance between personalization and privacy concerns, companies can build trust with their customers while still utilizing valuable customer data for effective omnichannel marketing.

Key metrics for tracking omnichannel success

To measure the success of an omnichannel marketing strategy, it's important to track key metrics that can provide insights into customer engagement and conversion rates. These metrics may include retention, lifetime value, and customer satisfaction scores. Additionally, tracking the effectiveness of individual marketing campaigns across various channels can help determine which channels are most successful in driving conversions.

Other important metrics to consider may include website traffic, click-through rates, and social media engagement. By regularly monitoring these metrics and adjusting strategies accordingly, companies can continuously improve their omnichannel approach and better serve their customers.

Analyzing customer journey and attribution across channels

One of the unique challenges of omnichannel marketing is accurately attributing conversions to specific channels. With customers interacting with multiple touchpoints before making a purchase, it can be difficult to determine which channels played the most significant role in conversion.

To overcome this challenge, companies can utilize analytics tools that track and analyze customer journey across various channels. This allows for better understanding of how different touchpoints contribute to the overall customer experience and helps identify areas for improvement.

Moreover, by using data-driven attribution models, companies can more accurately assign credit to each channel and optimize their marketing efforts accordingly. This not only helps in boosting ROI but also provides valuable insights into customer behavior and preferences.

Omnichannel vs. multi-channel marketing

What is the difference between multichannel and omnichannel marketing?

Multichannel and omnichannel are two different beasts. Unlike omnichannel marketing, multichannel marketing involves several disconnected channels that customers can use independently. In contrast, omnichannel marketing is an integrated, seamless experience made possible across multiple channels, devices, and touchpoints. 

A multichannel and omnichannel marketing strategy can leverage the same channels. However, omnichannel marketing's primary objective is to create a seamless customer experience. By breaking down silos, you can maximize the power of personalization. 

So, the main difference is that with omnichannel marketing, channels work cohesively, increasing transparency. Also, the customer experience remains consistent across all channels, supporting the growth of your brand and business. When your goal is to be more accessible across online and offline channels, ensuring an integrated, seamless experience, an omnichannel approach is your best option. 

Related: The Ins and Outs of Omnichannel Communication in Marketing

A‍dvantages of adopting an omnichannel approach

There are numerous benefits to adopting an omnichannel approach in your marketing strategy. Here are a few of the key advantages:

  • Improved customer experience: By providing a seamless and consistent experience across all touchpoints, customers feel more connected to your brand and are more likely to become loyal advocates.
  • Better data collection: With an integrated approach, you can gather valuable data from multiple channels, allowing for a deeper understanding of your customers' behaviors and preferences.
  • Increased trust and transparency: By respecting privacy concerns and utilizing data in a responsible manner, brands can build trust with their customers and establish themselves as ethical and reliable.
  • Higher ROI: Omnichannel marketing has been proven to generate higher returns on investment (ROI) compared to single-channel or multichannel approaches, as it allows for more targeted and personalized campaigns.
  • Enhanced brand image: Consistent messaging and branding across all channels can help strengthen your brand's identity and improve customer perception.

Future trends in omnichannel marketing

The impact of emerging technologies on omnichannel marketing

As technology continues to evolve at a rapid pace, it is crucial for marketers to keep up with the latest trends and incorporate them into their omnichannel strategies.

Artificial intelligence-powered tools can help collect and analyze data from various channels, allowing for more accurate targeting and personalization. The advantage of AI in omnichannel marketing is its ability to process large amounts of data and identify patterns and trends, leading to more effective campaigns.

The rise of chatbots has also transformed the way brands interact with their customers. These virtual assistants can provide immediate support and assistance across multiple channels, enhancing the customer experience and building brand loyalty.

Adapting to changing consumer behaviors and preferences

As consumer behaviors and preferences continue to evolve, it is essential for brands to adapt their omnichannel marketing strategies accordingly. For example, the growth of social media platforms has shifted consumers' attention towards visual content and influencer marketing. Hence, incorporating these elements into an omnichannel approach can help reach a wider audience and increase engagement.

Mobile optimization has also become crucial in today's digital landscape, with more and more people using their smartphones for online shopping. Brands must ensure that their websites and advertisements are mobile-friendly to provide a seamless experience for customers across all channels.

Offline channels like direct mail will become more important  than ever, as consumers are being bombarded with digital advertisements and search engines become dominated by AI. Integrating offline channels into an omnichannel strategy can help brands stand out and create a more personalized and memorable experience for customers.

Final thoughts about omnichannel marketing

Getting started with an effective omnichannel marketing strategy can be overwhelming, but it doesn't need to be. Whether you're interested in the possibilities associated with omnichannel and social networks or would like to prioritize more physical marketing channels, there is no better time than the present to get started. 

Companies across all industries are experiencing the benefits of automated direct mail, implementing this unique channel into their omnichannel marketing plan. Automating this process can accelerate time to value and reduce costs. 

The mail you create is connected, personalized, and measurable so that you can optimize campaigns, adjusting your strategy across time. You will see how channels support one another, putting your marketing budget to work. For direct mail, Lob will help you every step of the way. 

Lob is the only automation platform that effectively transforms direct mail into intelligent mail at scale. Over 12,000 innovative companies choose Lob to ignite the possibilities of direct mail, and you can start benefiting too. If you're ready to explore the possibilities associated with direct mail as part of a larger omnichannel strategy, contact us for more information and to schedule a demo with a Lob expert today!

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