Everyone is talking about the latest buzzword in the industry ‘omni-channel’, but does anyone know what it really means?

The concept of ‘omni-channel’ is very new and as an industry we are only just beginning to understand how to move from concept to reality. However, there are a couple of things that are clear - this new approach is a reality for both customers and retailers and requires a significant organisational shift. It is essential for technology, processes and systems to be integrated and aligned so that every channel behaves in the same way, to the point it makes it difficult to distinguish between them. Most importantly for retailers, it is critical to keep a focus on profitability.

In the early days, retailers had a single channel – their premises. A customer went to a shop and bought their goods on the spot for cash; they took them away or they were dispatched and replacement stock was ordered. But more recently we have seen a move to ‘multi-channel’, where a customer can shop with one retailer through various channels, whether it be in store, online, through a mobile, catalogue or through social media. Despite the separation of channels, customers expect a consistent retail service throughout.

With this in mind, retailers now need to move towards reflecting the customer’s perspective and must align their underlying technology and processes to offer a seamless experience. For example, say the customer puts an order in through a retailer’s website, opts to pick up from a local store and then finds the goods have not arrived or nobody knows where to find them. Here, the physical reality has undermined the possibilities opened up by the software and would perhaps result in a lost sale and reputational damage. The customer sees the experience, despite the channel, as black and white – they either have a good or poor one.

Taking practical steps, such as the implementation of new integrated systems to overcome the inherent problem of silos, is key for brand impression and profitability. Retailers need to conduct a root and branch analysis of the shopping experience and to what extent they are able to present a single face to the customer. If any of the technology, the processes or the staff remain aligned to silos or to separate business models connected to different channels, then the new model simply won’t work. They all have to serve one corporate entity – the retailer – and of course the customer.

It may be undetectable at first but eventually, customers will migrate to those retailers that behave and feel like one entity, beyond dispute. The practical managerial steps and the business analytics required to make it work can be profound; they are, however, essential.