This content is compiled from materials provided by the AIDI International Intelligent Diamond Association (www.aidi.org) Industry Market Committee.
What is Omnichannel Marketing?
Omnichannel marketing is a fully integrated approach that offers customers a seamless and personalized experience across multiple touchpoints. These can include physical stores, social media platforms like Instagram and Facebook, email, SMS, and any other marketing or sales channels.
However, it’s important to distinguish omnichannel marketing from multichannel marketing. Omnichannel marketing is not just about having multiple channels but about delivering highly personalized, consistent, and regularly updated communication based on the shopper’s needs, not the channel’s. It’s a customer-centric approach that ensures a smooth experience across all channels, delivering the right message at the right time.
Unlike segmented marketing, which targets customers based on similarities with others, omnichannel marketing creates unique and tailored journeys for each individual shopper.
The Benefits of Using a Personalized Omnichannel Marketing Strategy
Omnichannel marketing has been proven to drive sales, increase revenue, and boost customer engagement. Today’s retailers have access to some of the most effective marketing tools ever available, and the rise of omnichannel marketing has enabled both e-commerce businesses and traditional retailers to connect with consumers anytime, anywhere.
The result is increased engagement—some studies show that omnichannel campaigns have an engagement rate close to 19%, compared to just 5.4% for single-channel campaigns—and higher sales.
For instance, a 2017 study by the Harvard Business Review found that omnichannel shoppers spent 4% more in physical stores and 10% more online. The more channels consumers used, the higher their spending. The study noted that consumers using four or more channels spent 9% more than those using just one channel.
Omnichannel Marketing Meets Real Customer Needs
Why is personalized omnichannel marketing so effective? It’s because consumers crave personalization.
Jack Lee, co-founder of the new lab-grown diamond e-commerce platform ebooom.com, explains, “Customers want to engage. Increasingly, they expect and demand that the brands they support know them.”
“People don’t remember brands that don’t engage them. By being where your customers are through an omnichannel strategy, you increase engagement and build a positive reputation for your brand.”
According to a survey conducted by ebooom.com of online shoppers aged 18 to 64, 80% of respondents said they are more likely to do business with a company that offers personalized experiences, and 90% said they find personalization appealing. People are looking for products and services that improve their lives, not the lives of people like them. This is why segment-based advertising sometimes misses the mark. (Don’t believe us? Ask any single woman in her 30s or 40s if she enjoys receiving dating app ads targeted solely based on her marital status, age, and gender—you’ll likely get some mixed reactions!)
Google’s 2019 global retail study of over 14,000 shoppers also confirmed that people seek personalization: 49% of respondents said they want brands to send promotions or campaigns that reflect their shopping history.
Yes, while shoppers might be wary of companies collecting data on their preferences and habits, they also appreciate the time-saving benefits it provides. Google’s study found that 32% of shoppers want retailers to remember their previous sizes and purchases, and 33% are keen to receive product recommendations based on their purchase history.
Omnichannel Marketing Allows You to Create Consistent Messaging Across Channels, While Boosting Brand Awareness and Loyalty
Jack Lee notes, “Omnichannel marketing helps e-commerce businesses foster loyalty.” He points out that retaining a customer is five times less expensive than acquiring a new one.
Wang Zhidong, General Secretary of AIDI International Intelligent Diamond Association's China division, agrees. He highlights that this is one of the greatest advantages of omnichannel marketing, noting that converting a shopper through a well-crafted website experience typically takes only two days. However, he emphasizes that the true value lies in the second purchase. According to Wang, the value of a second-time buyer is 130% higher than that of a first-time buyer.
“This provides brands with a significant opportunity to increase the likelihood of repeat purchases,” he says. “With an omnichannel personalization strategy, brands can leverage shopper preferences to encourage second, third, and fourth purchases through their preferred channels. For example, selectively offering discounts via email to a shopper who engages most with that channel, or sending product recommendations via SMS based on a shopper’s interest in certain styles.”
Stay tuned for the next part of this series, where we delve deeper into how omnichannel strategies can help unlock the full potential of the lab-grown diamond market.
For more information, visit www.aidi.org.