How to create a successful cross-channel customer experience

In the first half of 2020, the omnichannel approach experienced a new global boom. On March 16, 2020, the German government decided on the first lockdown in Germany. Almost all stores had to close and consumption shifted even more from bricks-and-mortar retail to the digital world. Of course, this not only affected the German retail sector, but also many other countries and retailers around the world. This forced companies with a retail business model around the globe to find new ways to reach their customers. This is precisely one of the great strengths of the omnichannel approach.

Omnichannel is not a new phenomenon. The topic first gained significant relevance in 2014 and 2015. At that time, however, the approach did not gain widespread acceptance.

Omnichannel management involves planning, managing and controlling all available sales channels and points of contact with customers. The aim is to orchestrate and optimize the customer experience across all sales channels and touchpoints. Companies thus offer their customers a consistent experience - regardless of where they interact with the brand.

Consumers can switch between channels at any time: stationary retail, online store, hotline, social media, smartphone, app, catalog... They experience a seamless and very convenient customer journey. The individual contact points result from direct or indirect contacts and points of contact with the company.

The omnichannel approach is an extension of the multichannel model. The latter operates the individual channels separately and pursues channel-specific goals. Omnichannel management, on the other hand, integrates the channels to create a uniform, personalized and cross-channel customer experience. The focus is neither on the channel nor on the company itself - but on the customer.

This has far-reaching effects on the customer journey. It can no longer be understood as a linear process, but is much more complex. Customers can start their journey at a wide variety of touchpoints - and ideally, they will still be picked up at the right time.

This is possible because an omnichannel approach provides all employees in the company with the relevant customer information. Ideally, all interactions are coordinated and build on each other.

The customer journey can begin with a visit to the website, for example. The user takes a look at the product range, creates a wish list, for example, and then continues shopping in the store. Companies score particularly well if they can immediately show users whether and where the product is available. The basis for this is centralized management of stock and availability information that can be accessed and used in real time from various sales channels such as websites, brick-and-mortar stores and marketplaces.

This task is often combined with the management and processing of incoming orders in a specialized order management system (OMS). Although the introduction of an OMS, with the associated technical and organizational restructuring, is costly for companies in the first step, it provides great added value for customers.

Important: the customer journey does not end with the purchase of the product in the store or online store. Service quality and exchange options are also crucial for a consistent, cross-channel customer experience. Shoppers should be able to easily complain about goods purchased online or ask questions about them.

It is also important for employees to be able to access the most relevant customer information both in-store and over the phone. In this way, the company ensures that customers feel understood and taken care of.

The strict separation of the offline and online worlds is no longer up to date. A cross-channel customer experience will only work as a hybrid in 2023. The figures also prove this.

According to the "Shopper Story" study, 75% of respondents in Germany prefer a hybrid shopping experience. The figures from the online platform Statista are also impressive, according to which more people bought their Christmas presents online than offline for the first time in 2022.

At the same time, bricks-and-mortar retail continues to score with its strengths. People appreciate personal advice, like being able to touch and try out products and the immediate availability of goods. Online retail, on the other hand, is particularly convincing with its wide range of products, greater price transparency and the ability to store around the clock without being tied to traditional store opening hours.

More and more people today want a shopping experience in which the online and offline worlds are seamlessly linked. Studies show that retailers will increase their sales by 86% in the next two years through omnichannel approaches. It is therefore imperative that companies create a cross-channel customer experience in 2023. With an omnichannel approach, retailers can reach and serve their customers on multiple channels simultaneously.

In this way, customers can decide for themselves whether they want to shop and obtain information in-store or online - without the shopping experience being interrupted when switching channels.

Omnichannel services offer the option of selecting products online and picking them up in-store, for example. According to the German Retail Association (HDE), retailers in Germany generated sales of 4.6 billion euros via click & collect in 2020. This corresponds to a 6.4% share of total online sales in 2020.

Another advantage: customers can already see on the website or in an app whether the product is in stock in the store. This prevents negative experiences on site. An additional chat function allows prospective customers to ask questions and get advice. Retailers also have the option of sending their customers personalized advertising that is tailored to their previous purchases and interests.

In general, retailers benefit from the omnichannel approach as it offers consumers more flexibility and convenience. At the same time, companies learn to better understand their customers and respond to their needs. These insights help them to make their marketing measures much more effective.

An omnichannel strategy not only has a positive effect on long-term customer relationships, but also increases sales, as customers can buy products and services via multiple channels.

• Better accessibility: With an omnichannel approach, retailers can meet demand across multiple channels and reach more people.

• Faster checkout: Companies offer consumers more flexibility and convenience when shopping. The faster and less complicated the purchase process, the better.

• Stronger customer loyalty: Personalized offers and recommendations increase the average basket value and strengthen the customer relationship.

• Higher sales: Omnichannel enables companies to strengthen their online presence and thus increase their sales across channels.

• Optimized customer service: Cross-channel customer centricity and transparency offers retailers the opportunity to improve their customer service by offering personalized advice.

An omnichannel strategy is suitable for companies that want to reach their customers via more than one channel. The stationary point of sale in particular benefits from this. A cross-channel strategy has a direct impact on sales and long-term customer loyalty. Omnichannel is essential for a cross-channel customer experience in 2023 and the cornerstone for sustainable success.

Despite the obvious advantages, the retail sector is generally lagging behind when it comes to the cross-channel, fully integrated customer experience. One of the reasons for this is the traditional structures in the organizations. They strictly separate the individual functional areas and profit centers from one another, which in turn inhibits collaboration in an omnichannel context.

Secondly, the retail sector is still largely critical of digitalization. Representatives in brick-and-mortar stores, for example, fear that the online store will compete with their own business. They suspect that customers will seek advice locally but buy online - which in turn affects their individual incentives. They are also increasingly faced with customers who are better informed than they are thanks to online research.

Companies that overcome this first hurdle, want to overcome internal resistance and decide to undergo a digital transformation often underestimate its complexity. This is because establishing a successful omnichannel model requires a clear strategy and prioritization of the individual projects.

It is also important that the focus is not exclusively on the technology, but that the customer's needs take center stage. Only by knowing and understanding these needs can an omnichannel project be successful. In addition, companies are required to take their internal organizational circumstances and the specific skills of their employees into account during planning and implementation.

In addition to these requirements, diva-e has identified six factors that will determine the success of creating a cross-channel customer experience in 2023.

1. 360° view of the customer
   Companies need to understand their customers. This includes their expectations, needs and purchasing behavior. Analyzing and evaluating customer data is essential for this.

2. touchpoints & channels
   In order to enable a seamless customer journey, companies need to use the individual touchpoints and channels precisely. The findings from the data analysis are incorporated into this.

3. corporate culture
   A company's own omnichannel maturity is of great importance. A change management process may first be necessary to break down existing silo structures. There is often still a sharp division between online and offline, marketing and sales as well as customer service.

4. Structures & processes
   How is the process organization within the company structured and what impact does the omnichannel approach have on it? It is important that those responsible take the skills, roles and needs of employees into account during the transformation process. This is the only way to successfully build up new knowledge and create new roles.

5. technology setup
   A fully integrated system architecture that enables the project and the technologies used that support the goal of cross-channel customer centricity are crucial.

6. Supply Chain & Fulfillment
   Stable systems and processes that enable a cross-channel service offering in the first place are the basis for the successful implementation of an omnichannel strategy.

These six factors make it clear that a successful omnichannel project requires far more than a technical transformation in which systems are replaced. It is important that companies focus on people - both internally and externally. This means that they must take into account both the needs of customers and the roles and skills of employees. Building a functioning omnichannel structure runs through all areas of a company and requires careful planning.

As customers are the central anchor point in omnichannel management, their experience and the consideration of their individual expectations, needs and preferences are at the heart of every omnichannel process.

The first step for successful implementation is therefore always the collection, processing and use of existing customer data. This usually provides the first crucial information for targeting consumers and accompanying them along the customer journey.

It is then advisable to draw up a clear target image and a roadmap - either for a specific target group or directly for all customers. It is important to define sub-goals and milestones that are based on the SMART approach, i.e. they must be specific, measurable, achievable, realistic and scheduled.

It is particularly important to involve all stakeholders - across all departments and organizational units - in the process right from the start. The aim is to bring together the experience, knowledge and area-specific needs for the project and to set priorities. In this way, possible internal resistance can be counteracted at an early stage in the later course of the project.

This is followed by the operationalization and implementation of the measures: The channels and touchpoints are adapted for the selected target group or for all customers based on the target image. Important: The customer always remains the focus.

As soon as the target has been achieved, the analysis and development phase begins.

Through ongoing data collection and evaluation, conclusions can be drawn about the originally selected target group, and these findings should be used for the ongoing optimization of the omnichannel approach and, if necessary, for its expansion, if this has not already been done.