The term “omnichannel” is a combination of “omni,” meaning “all,” and the English word “channel.” It refers to an approach in which a company not only offers its channels in parallel but also connects them with one another.
A simple example:
The customer doesn’t have to start from scratch or provide the same details multiple times. This is precisely the essence of an omnichannel customer experience: switching between channels is as easy as possible and involves no loss of information.
Omnichannel is a cross-channel business model.
All relevant touchpoints are linked together to create a seamless customer journey.
Typical channels include online stores, physical stores, apps, social media, email, and customer service.
It’s not the number of channels that matters—it’s how they’re integrated. Data and information must be available wherever they’re needed for the next interaction.
This includes, among other things:
This ensures that customers receive information and services that are as consistent as possible across all channels.
An omnichannel strategy defines how a company connects its channels, data, processes, and technologies.
It doesn’t start with the question of which new channels to introduce. The focus is on the customer experience the company wants to deliver.
A viable strategy should take five areas into account:
The omnichannel approach connects the visible touchpoints with the processes and systems behind the scenes. To achieve this, a company needs a shared database or, at the very least, a reliable exchange of data between the relevant applications.
Typical components include:
When a customer comes on board via a new channel, that channel must be able to access the relevant information. For example, a service representative should be able to see that the customer previously used a chatbot, placed an order, and has already received an email.
This means that switching channels is not left up to the customer. The company takes responsibility for maintaining the context.
A meaningful omnichannel goal does more than just describe a technical state. It links the customer experience to a measurable business outcome.
Here’s an example:
Within twelve months, the percentage of customers who successfully complete their customer journey—which began online—in-store should increase by 15 percent.
This can lead to specific actions:
Other possible goals include a lower abandonment rate, shorter service times, more repeat purchases, or higher customer satisfaction.
In retail, omnichannel connects brick-and-mortar stores with digital sales and service channels. Customers should be able to search for, compare, purchase, receive, and return products without being tied to a single channel.
Typical omnichannel services include:
For these services to function reliably, inventory, prices, customer data, and orders must be as up-to-date as possible and available across all channels.
In a multichannel approach, a company offers multiple channels. However, these channels can operate largely independently of one another.
For example, a retailer might have an online store, several physical stores, and an app. However, customer data, prices, and loyalty programs differ depending on the channel. A shopping cart saved in the online store is not visible in the app.
With omnichannel, these channels are interconnected. The customer can switch between them without losing the context.
In short:
Cross-channel goes a step further than multichannel. Individual channels are interconnected and can be combined within a single transaction.
One example is “click-and-collect”: The purchase begins online and ends with pickup at the store.
With omnichannel, integration isn’t limited to selected processes. As many important channels, pieces of information, and processes as possible form a cohesive system.
The distinction can therefore be simplified as follows:
Implementing an omnichannel strategy can offer several benefits to businesses and customers:
The biggest advantage lies in reducing friction. Customers do not have to adapt to a company’s internal responsibilities or system limitations.
Omnichannel is not merely a marketing project. Implementing it can be complex, expensive, and time-consuming. Among the biggest drawbacks and challenges are:
Poorly implemented integration can also cause problems. Incorrect inventory displays or conflicting information disappoint customers more than a clearly defined single channel.
Companies should therefore avoid introducing as many features as possible all at once. A more sensible approach is a step-by-step expansion based on the most important customer needs.
A successful omnichannel strategy doesn’t end with the website, the app, or the brick-and-mortar store.
To ensure customers have a consistent experience across all channels, the underlying data and processes must be interconnected.
ERP systems (such as those from SAP) play a central role in this. Among other things, they manage
Only when this information is available across all channels can companies accurately display availability, reliably process orders, and enable a seamless transition between channels.
In the SAP environment, SAP S/4HANA often serves as the central backend system. Many business processes relevant to omnichannel operations converge there.
Solutions such as SAP Commerce Cloud and the SAP Integration Suite enable sales channels—such as websites, email, or apps—to be connected to order processing, inventory management, and logistics.
A typical example:
For this process to work, the commerce platform, ERP, warehouse, and logistics must all have access to the same information.
Especially in the B2C environment, omnichannel is therefore closely linked to ERP processes. Individual prices, customer-specific product assortments, delivery dates, and order statuses must be available across all channels so that customers receive a truly seamless experience.
Omnichannel integrates sales, marketing, and service channels into a seamless customer experience. Customers can switch between digital and in-person touchpoints without losing information or having to start a process over.
Success, however, does not depend solely on additional channels. What matters most are integrated data, coordinated processes, clear responsibilities, and a shared understanding of the customer journey.
Implementing omnichannel, therefore, does not start with technology, but with a simple question: What does the customer want to do next, and how can the company make that step as easy as possible?
