Omnichannel Retailing

Omnichannel WhitepaperIn the Omnichannel universe the customer is able to use all sales channels simultaneausly.  There are essentially two layers of the Omnichannel concept as outlined below: 

  1. The customer experience layer
    • This is where retailers try to attract customers, service customers, supply customers and retain customers.  Customers experience retail offers on a wide variety of media channel platforms including the following:
      • TV
      • Radio
      • Print
      • Email
      • Social Media
      • Mobile / Text
      • Web
  2. The supply chain layer
    • This is where retailers fulfill the demands of their customers through automated tools including inventory control, pricing, shipping and fulfillment, etc.  This is the layer that keeps the customer experience positive and moving.  This includes all software and infrastructure that automates the customer experience, unified pricing and promotional messages are crucial.  Automating the supply chain layer usually is an expensive undertaking requiring a significant capital investment.   
      • The following tools can be used to maximize the results  
        • Website and eCommerce software
        • Point of Sale software
        • Email marketing software
        • Social Media analysis software tools
        • Inventory Control software
        • Big Data analysis tools
        • Electronic Data Interchange (EDI) software
        • Pricing Optimization software
        • Shipping Software, etc. 


The Omnichannel presents opportunity for retailers to compete for business on several levels.  For example a consumer experiences the Omnichannel when they receive promotional emails or social media messages from their favorite retailers.  If they act on the promotion, the customer may order the promoted item or items online and visit the physical retailer location to pick up the item.  The retailer may offer additional discounts or incentives if the consumer is willing to use their mobile device to tweet or share a picture or description of their new item via social media.

In summary, retailers must drive costs down by using business process optimization tools in the supply chain layer in order to successfully compete and meet customer demands in the advancing social mobile promotional landscape.