Sunday, February 01, 2015

Omni-Channel Marketing

There are more devices connected to the internet today than the world population. In fact, the recent GSMA report confirmed the number of mobile connections had passed the 7 billion mark by April 2014 and expected to go beyond 7.5 billion by the end of 2014.

The rapid growth in the digital media and marketing has ensured that marketers are faced with more choices than ever on how to reach customers. While the traditional retail, print, radio and TV advertising techniques are still prevalent, we often hear people using multiple devices and methods even for a single transaction. This has been possible due to the prevalence of digital marketing. Today, from cell-phone to tablets to desktops to social media to an in-store visit, we are entering an Omni-channel world, where consumers seek an Omni-channel experience. This certainly adds challenge to the marketer who would no longer focus on just one channel of marketing but ensure that his or her brand is always carried with the customer.
Here’s a chart from Telco 2.0 Research, illustrating the frequency of multi-device paths to purchase:
 
It is important to understand that Omni-channel marketing in its real essence ensures that the marketing is integrated and real-time across channels. In other words, customer disparate data sets would not exist at any instance across channels say between online and mobile content.  If such data sets existed, there are potentially two types of risks: One wasting marketing dollars by targeting those customers who are not interested in a product or service as indicated by one data set and the other which is even worse is not marketing to the consumers who are really interested in that product or service. Often the data across different channels is integrated by unique information identifying a particular customer say his or her email id or mobile phone which could be used across various channels.
Helps Targeted promotions
A significant advantage of Omni-channel marketing is that it is able to gather valuable information about customers by integrating and aggregating customer behavior across various channels such as internet, mobile, social media especially Facebook and Twitter etc. This helps the marketers to customize their promotions for different customers. It helps to provide a 360 degree view of the customer. Thus, Omni-channel would aid the Big-data initiative of the marketing analytics.
According to a report from MIT University, more than 80% of store shoppers check price online. This clearly shows the rapid evolution of Omni-channel. Customers are going from screen to mobile to store and from store to mobile and other channels. This process is continuous and reiterates an important point that customers today need to be engaged across different marketing channels.
Macy's has embraced Omni-channel marketing and the related short video briefly describes the concept.
 
2015 predictions
With the increasing prevalence of 4G technology, video advertising is predicted to be a growth area where mobile will become the platform of choice in 2015. Apple Watch is rumored to be launching in March 2015. Its function in Omni-channel marketing is presently not clear but analysts predict it could be a stepping stone.
By the end of 2015, it is predicted that the practice of dividing marketing by platform would be over and Omni-channel marketing would be the default standard.
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