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The importance of omnichannel KPIs

by | Mar 2024

Due to the rapid advance of digitalization, the topic of omnichannel is also becoming increasingly important. It is increasingly relying on new technologies to guarantee your customers a new and consistent sales experience across all channels. However, it is just as important to pay attention to the right omnichannel KPIs or key performance indicators in order to make success transparent and measurable in a targeted manner.

What is meant by omnichannel?

Omnichannel management is a sensible further development of the multichannel concept. Although multichannel customers already have access to many different channels to obtain a service and advice (branch, website, e-mail, etc.), these channels all operate independently of each other and do not exchange information and previous communication with the customer.

So when a potential buyer seeks advice online, employees in the stores are not aware of it. They don’t have access to this information and your customers have to explain their questions and problems all over again on site. This can quickly lead to a frustrating experience, which is then often equated with poor service.

This is precisely where a standardized omnichannel customer journey and communication should help. This is because customers are the absolute focus and the various channels take second place to their interests. Although this also benefits you considerably as a company, it is not always so easy to make this success visible. Suitable omnichannel KPIs are therefore required.

Define the most important omnichannel KPIs

The customer journey generally comprises five important steps or phases that you can use to define the right KPIs for your own omnichannel strategy. In order to find the right KPIs, the customer journey must first be understood.

1. attention (awareness)

In the first phase, the potential consumer often asks himself what problem needs to be solved or what need needs to be satisfied. Today, thanks to modern technology, he often does this with the help of a search engine, which can provide the first clues. But suitable advertising can also provide the right impetus and generate attention.

In today’s world, however, it is becoming increasingly difficult to successfully master this important first step. The constant overstimulation in the media and social networks makes it difficult to create the necessary awareness for products or services. This is why professional marketing, whether on the Internet or at the point of sale, is more important today than ever before.

2. consideration

Once the problem or need has been defined, a targeted search for a solution follows in the consideration phase. This often leads to in-depth research and the first active contact with a provider. He should of course be able to find a suitable solution.

From the second phase onwards, uniform omnichannel communication can play a decisive role in the subsequent customer journey. This is because a potential customer may approach the provider and seek advice online or offline for the first time. All the advantages and disadvantages are then weighed up before a decision is made.

3. decision

At this stage, a potential customer may have already decided on the solution, but they still need to be persuaded to make the final purchase. Test or sample articles and convincing advice can be excellent tools.

A targeted sales promotion can not only help you to generate a lot of attention. It also supports interested buyers in their purchasing decisions, for example through sampling and tasting or professional advice.

4. customer service (service)

The service phase deals with customer service during and after the sale. Among other things, the focus here is on sales processing or the possible shipment of the goods. The aim should be to convey a positive image at the conclusion of the contract in order to properly initiate the important loyalty phase.

In online business, a robust and easy-to-use platform or website is of course very important. In brick-and-mortar retail, the training and experience of employees often determine how the next phase will proceed.

5. loyalty (promotion)

The final step is to ensure that the product or service meets expectations. Loyalty can also be further promoted with promotions or product-specific extensions. Customers should ultimately also act as promoters and make recommendations.

If this is successful, both customer satisfaction and long-term customer loyalty are guaranteed. In addition, your own customers help to generate and increase interest among potential buyers. As a company, you benefit twice over from a high level of loyalty.

Development of a suitable omnichannel KPI model

The customer journey can now be used to transfer the phases, channels and KPIs into a meaningful KPI model that can help you to visualize and optimize your success.

However, it is also important to take a holistic view in order to recognize the cross-channel effects. In particular, common e-commerce KPIs such as click rate or visit duration are also relevant for on-site purchasing decisions in an omnichannel strategy.

This is also referred to as the ROPO effect, where customers research online and end up making purchases in bricks-and-mortar stores. Standardized omnichannel management can of course reinforce this effect even further.

Conclusion

A holistic omnichannel strategy can help you create an exceptional customer experience. On the other hand, it can also be more difficult to implement, especially because many cross-channel effects are difficult to see. This is exactly where the right omnichannel KPIs help to make all successes transparent and clearly measurable.

This allows you to identify important dependencies and interconnection effects between all channels and optimize your customer journey. With a uniform concept, your marketing will be even more successful. As a result, not only is customer satisfaction increased, but sales, whether online or offline, are also boosted.