Cross-channel vs. Omnichannel Strategies: 8 Key Differences

Over the last decade, technological advances have transformed how consumers browse, engage and buy. The number of communication and shopping channels has increased and diversified, personalisation is an integral part of the retail experience – and customer expectations have evolved.

Now, more than ever, customers want to find and buy products easily and get their questions answered quickly. They use different channels and multiple devices simultaneously to interact with businesses – the smartphone being a constant in the equation, never far from hand.

As a marketer or business owner, there are various marketing strategies to consider to reach your target audience(s), including multi-channel, cross-channel and omnichannel. Which one should you opt for? We explain what each one involves and highlight the key differences between cross-channel vs. omnichannel.

Multi-channel marketing

Multi-channel marketing came about after the introduction of the internet and is still used today by many companies due to its cost-effectiveness and ease of implementation. It involves using multiple channels that work independently of each other to give consumers a choice of how they interact with a business. It's unlike single-channel marketing since more than one channel is utilised.

Example:

Perfecto Pizza is a small takeaway business with physical premises, a website and a phone line. Customers can learn about Perfecto Pizza and view the menu online via their computer. They can order a pizza through the website by calling the phone number or driving to the takeaway shop in person. Each channel is standalone and not connected to the others.

Benefits and challenges:

• Can include any number and combination of marketing and communications channels, e.g., a website, physical store, email, direct mail, phone, instant messaging, SMS and social media.

• Needs efficient management to ensure messaging and branding are consistent across channels.

• Can be difficult to evaluate marketing effectiveness since channel analytics are also separate.

Cross-channel marketing

Cross-channel marketing involves using multiple channels but in a more connected way so that they complement each other. There's some overlap where customers cross over from one channel to another during their experience interacting with the business.

Example:

Jaded is a clothing store with brick-and-mortar premises as well as a website. A customer buys a pair of jeans in-store, and when they arrive home, they receive an email survey about their experience. If completed, the customer gets a 20% discount coupon, redeemable on their next purchase. The customer decides to place an order online and uses the discount.

In this scenario, the customer uses the physical store, the website and email. The channels are connected in that the email is triggered automatically upon the customer making a purchase and submitting their email address in-store. When the discount is used online, the coupon expires and will no longer work in-store.

Benefits and challenges:

• Different channels are used but are partly integrated so customers can shift between them during their journey.

• Allows for customer interactions to be recorded, leading to better data insights.

• Data and analytics are still siloed as the channels aren't completely connected.

• Needs careful management to ensure branding consistency across channels.

Omnichannel marketing

Omnichannel marketing involves interconnected channels that work seamlessly to provide customers with a cohesive and comprehensive experience. This concept puts the customer at the core of all operations and aims to break the barrier between offline and digital channels throughout the customer journey for maximum interaction and engagement.

Example:

A customer buys new eyeshadow products online at Go Glow, a cosmetic company. They create an account and use AR technology to virtually try on the makeup before purchasing, using their mobile device. The interaction is recorded within the customer's profile so the company can use the data to recommend other products they may like.

The customer is then sent a text alert with a special offer. When logging back into the account, they are presented with a personalised dashboard of recommendations that coordinate with the previous purchase history. The customer switches channels and texts customer service with questions on one of the products. The agent can access the customer's profile, order history and marketing campaign. They not only answer the question but also cross-sell a foundation product based on the customer's age and skin tone.

Benefits and challenges:

• Customers can touch several channels, and they'll all work seamlessly together to provide a positive experience.

• Helps customer service agents be proactive rather than reactive.

• The customer is empowered and can use the channels they prefer and get the same brand messaging and experience no matter which they use.

• Omnichannel is costly and complex to set up initially, but you should see a good return on investment over time.

What is the difference between cross-channel and omnichannel?

The main difference between cross-channel and omnichannel marketing is that the latter is thoroughly interconnected to deliver a superior experience. Everything is cohesive and centralised, including messaging, branding, data and analytics. Let's break down some other clear points of difference.

Key differences between an omnichannel and cross-channel strategy

1. Focus

Cross-channel marketing focuses heavily on utilising channels for promotional messaging from the business to the consumer. In contrast, omnichannel marketing centres around what customers need and want to create a frictionless end-to-end customer journey. It seamlessly integrates physical and digital touchpoints so customers can hop from channel to channel and receive the same consistent experience.

2. Approach

In cross-channel marketing, each channel operates independently, with some communication between them. In an omnichannel strategy, the channels cohesively work together under a unified strategy with customer data centralised and shared. Take McDonald's omnichannel strategy, which allows customers to order meals through the app, customise orders and then pay and collect from a restaurant, using their mobile phone to confirm the order. The app also presents daily offers and games to make the experience rewarding and satisfying.

3. Customer experience (CX)

Cross-channel marketing can sometimes lead to a disjointed or broken CX. Channels are often managed by different teams, resulting in inconsistent messaging and branding or siloed data. (Imagine a customer trying to locate their order with a support agent who can't find the correct information because sales tracking data is kept in a different system). Any adverse effect on CX can make the customer annoyed, frustrated or switch to a competitor.

On the other hand, omnichannel marketing involves a more holistic and engaging strategy. It breaks down silos, helps to align teams and prioritises customer preferences and the horizontal nature of the buyer journey as they move between channels.

4. Strategy orientation

Cross-channel marketing typically follows a channel-specific approach, which can cause fragmented customer engagement because audiences are split across several channels and devices. However, omnichannel marketing connects all channels and devices to provide a more uniform and seamless CX, which can increase brand loyalty.

5. Data integration

As suggested earlier, cross-channel methods rely on limited data sharing between channels. But, an omnichannel strategy collects and analyses data across many online and offline touchpoints to provide deep insights into consumer behavior and preferences. This helps with targeted (data-driven) marketing activity and better personalisation for increased customer satisfaction.

6. Communication consistency

In cross-channel marketing, although the channels record and communicate information, it's sometimes unsynchronised, which can lead to confusion for customers. For example, a sales agent may not have access to the latest marketing campaign sent to a customer based on their previous order history – so they can't effectively answer the customer's query. Omnichannel marketing is all about providing a consistent branding and messaging strategy and ensuring that any customer-facing teams know precisely what campaigns have been sent to individual customers.

7. Channel flexibility

Cross-channel marketing is flexible in allowing the business to select how it wants to connect with the target audience based on campaign goals. Yet, omnichannel marketing allows for the switching of channels dynamically according to customer preference (while remaining consistent in terms of branding). The latter enables brands to maintain continuous customer interactions; there's no break in the experience as someone swaps from, say, Instagram to direct messaging.

8. Metrics and measurement

Cross-channel metrics usually only focus on channel-specific performance instead of assessing the overall effectiveness of a campaign. On the other hand, omnichannel metrics map the customer’s journey to evaluate campaign success holistically. With the right metrics and analytical tools in place, you can measure overall ROI, conversion rates, customer lifetime value (CLV) and more across multiple channels and touchpoints.

What's the best strategy for your business?

There are pros and cons to both cross-channel and omnichannel marketing strategies. Cross-channel is easier and more cost-effective to implement than omnichannel – and it's possible to achieve great results by using several channels with some overlap. However, because the channels are managed separately, data is often siloed, and branding and messaging can be disjointed.

Going omnichannel requires a cohesive brand strategy, a sophisticated tech stack, buy-in from all departments, professional expertise and a greater investment. However, it's the future of marketing, sales and service functions because it aims to deliver a personalised CX at scale and strategically aligns with overarching business goals. That will lead to boosted sales, better customer engagement and increased loyalty.

McKinsey retail expert Tyler Harris says, "Omnichannel customers shop 1.7 times more than single-channel shoppers. They also spend more. The in-store customer, going forward, will be someone who is hitting all the different channels and touchpoints that a brand or retailer has. That means consistency and connectivity between all those channels will be really important."

Cross-channel vs omnichannel: the takeaways

Marketing and communications strategies are evolving in line with customer demands and expectations, and our hyperconnected world. Both cross-channel and omnichannel strategies can help your business deliver a positive shopping experience and increase sales and engagement.

Omnichannel goes a step further. It allows for more personalisation opportunities so you can offer your target audience what they want, when they need it, across all devices and touchpoints, whether on social media, an online landing page, a contact form, SMS or an app. All channels and data are interconnected to give you top-level insights and a holistic view of marketing campaigns and customer service interactions.

However, adopting an omnichannel strategy isn't possible overnight because it requires a major mindset and operational shift, not to mention technological transformation and investment. In the meantime, provided you place the customer experience at the core of your marketing efforts, cross-channel marketing can help your audience have an enjoyable and smooth customer journey.

Ready to get started with a holistic marketing and communications strategy? Discover Messente's mass texting service today.