The poster to shows the distinction between multichannel and omnichannel. With the customers journey you are able to see what a happy customer 'omnichannel' would expect compared to a unhappy customer through 'multichannel', helping distinguish the two extremes. Below this if a brief timeline showing how it has evolved.

1. Definition
What is a multichannel
Multi-channel supply networks operate in
such a manner than enables the customer
to be connected to the product via many
different channels (Mimeographs, 2014).
“Multichannel retailing is the set of activities
involved in selling merchandise or services
to consumers through more than one
channel” (Levy & Weitz, 2009).
Examples of channels:
Internet, kiosks, ATMs, call centres, direct
marketing, radio, T.V. direct mail, home
shopping and catalogues, mobile apps, as
well as bricks-and- mortar stores (Nelsin et
al, 2006).
What is omnichannel
Omni comes from the word Omnis means
all or universal. This is similar to other
categories like, multichannel from the Latin
word Multus, meaning multiple or many
(Omnichannel, 2014).
Omni-channel can be seen as the evolution
of multi-channel, concentrating on a more
seamless approach to customer experience
through various channels e.g. buying online
then returning in store (Mimeographs,
2014).
The difference
The consensus is retailers don’t like to
classify themselves as an omnichannel
identity, even though they may be one.
They say it’s a new word for something that
has been done for years ‘evolved
multichannel’ (Vento. D, 2014).
There is not one set answer for how people
define the word, as some merely view
omnichannel as how multichannel has
evolved with the integration across
departments.
Will
Hesketh
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C3312206
Mul4channel
&
omnichannel
changes
in
the
UK
retail
industry
Advantages
The journal ‘Crafting Integrated
Multichannel Retailing Strategies’
reported despite the problems
faced, organisations that seek to
make this paradigm shift in their
approach to customer interaction will
be well placed to succeed for many
years. It will enable a retailer to:
- Access to new markets
(Retailers will be able to add non-
store channels e.g. Internet,
catalogues & mobile phones,
enabling retailers with limited stores
to increase scope).
- Customer satisfaction & loyalty
(By using a combination of
channels, retailers can better satisfy
their customers' needs by exploiting
the benefits and overcoming the
deficiencies of each channel.
Retailers will be accessible 24/7).
- Customer Information & data
(Firms will be able to track
customers shopping habits e.g.
online, loyalty cards (Zhang et al,
2010).
Challenges
1 - Data integration
Cross access of data from numerous
channels e.g. can your customer service
team find out what the customer bought
last week in-store and online.
2 - Understanding consumer behaviour
Knowing your customers preferences in
all channels e.g. providing ipads in store
so customers can access their online
‘wishlist’.
3 - Channel evaluation
Understanding the influence of your
different channels
4 - Allocation of resources across
channels
Knowing the different demands in each
channel so resources can be allocated
accordingly.
(Order versus traditional lot size, packing,
lead times, uncertainty, returns, physical
logistics)
5 - Coordination of channel strategies.
Communications between channels
enables tailored channel strategies to be
implemented.
6 – Cost
Adoption requires a heavy investment.
Retailers need to analyze:
(Technology capability, high-speed
telecommunication capacity/access,
assess operational difficulties that might
occur and price transparency and low
switching cost to competitors)
(Zhang et al, 2010)
Dimensions of omni-
channel
1. Omni Channel: Brick2Click (Integration!
between web and store e.g. if a customer!
buys something from the web gets customer!
support in store and vice versa).!
2. Omni Channel: Device2Web (Reaching
the online-store through various internet
connected touch points like mobile, kiosk,
tablet, etc.).!
Smartphone, Table and most interactive
devices sales are growing each year, resulting
in more potential customers for retailers. !
3. Omni Channel: eAve2Web (Electronic
avenues)!
(There are various market places online like
GroupOn, eBay, Amazon, Google Products,
etc) !
Customers connect through Internet Avenues
and are served directly by a central database,
providing a consistent service. E.g. E-bay,
provide a central point for all enquires and
help resolve problems with the seller. Retailers
can promote products and offers through
these new intermediaries!
Product not available &
once available can only be
collected from in-store!
Happy returning
customer! £££!
Unhappy non-returning
customer!!
Customer arrives
& ‘checks-in’
store using the
stores QR code
on app!
Scans a product and
adds to ‘wish list’!Omnichannel!
Jorney!
Retailer reminds
the customer
about their
unseen ‘wish
list’ via E-mail!
Customer
follows link to
their ‘wish list’!
Finds
product and
places order!
‘Click & collect’ delivery!
Retailers sends
SMS with collection
details!
After collection
asked for feedback
via App!
Responds posting
on Facebook &
Twitter!
Loyal customer
recommending
friends!
Can’t remember the
product he/she!
looked at online & there’s
no WIFI in store!
Receives an
iBeacon
message
about a sale
next door!
Customer purchases
elsewhere and doesn’t
get what they intended!
Multichannel!
Jorney!
Posts negative comments
online about previous
retailer!
Originally a
single channel
approach
dates back to
when retailers
were selling
from market
stalls.!
Multichannel
retailers have been
around for over 100
years e.g. delivering
on horse & cart. Pic
shows Morrison’s
first delivery car. !
The internet was
launched,
increasing
customers access,
less stock holding
& providing
companies new
market platforms. !
Amazon launched as one
of the first retailers online,
changing the world of retail
today. !
Over 100 barcodes were being used
by 1984. It was 5,000 by 1991 and
10,000 two years later. By 1995, the
figure was 20,000, Changing
retailers understanding of customers
and enabled them to market and
stock accordingly. !
Big shift in digital
retailers with
interactive stores,
apps and omni
management
(Brick2Click).
Integration between
web and store. !
Tesco pioneered
grocery home
shopping, now
one of the
largest growing
channels in
retail. !
A formation of social media
platforms were appearing enabling
companies to interact with
customers and provide after sales
support.!
The adoption in
retailers using
C&C.!
Retailers are
adopting an
omnichannel
approach, with
an holistic view
to their
customers. !
1800! 1900! 1960! 1980!
1997! 2006! 2010! 2014!
1995!
2012!