Structuring your omni-channel system

The digital age has revolutionized distribution systems. Popping

up next to traditional brick-and-mortar retailers, where all
operations are offline, are fully online “pure player” retailers and
“click-and-mortar” retailers, which combine the two approaches.
We will look at how these different distribution channels operate
with each other and the impact for clients and businesses.

Multi-channel distribution
Multi-channel distribution is a system that uses various channels to sell its products. It can involve both:
• Non digital channels (physical stores, call centers, catalogs, door-to-door, etc.)
• Digital channels (computers, smartphones, tablets, interactive kiosks, connected TVs, etc.)

Advantages for clients

Multi-channel distribution offers clients the option to choose the channel they prefer.
Some prefer online channels for example to access lower costs or products that are difficult to find locally.
Some prefer this channel because it makes life simpler for them.
Others prefer the offline channel because of better quality of service, convenience, and the possibility of being
able to touch and feel the products.

Advantages for businesses

Businesses that diversify into multi-channel distribution do so for several reasons:
• New and/or diversified sources of revenue
• Increased sales volumes
• Better amortized fixed costs
• Increased brand awareness by multiplying points of contact with consumers.

Cross-channel distribution
Where multi-channel distribution offers the option of choosing one channel exclusively over another (without
access to the other channel), cross-channel distribution allows customers to switch between channels during
the buying process.

The contents of this page are the property of CrossKnowledge.

1/
Any reproduction or representation for non-private use is strictly forbidden. 3
Example of a cross-channel buying process:

1st contact via an ad on Visit store to seek more Order by phone via
Receive a loyalty card
Facebook information a call center

Impacts for clients

Given the choice of using online and offline channels, people have developed different ways of optimizing their
shopping experience. Some customers only use one channel to both research and purchase their product, while
others utilize both channels by researching in one and buying in the other.

Research online

ROPO (Research online/ Full digital

Purchase offline)

Purchase Purchase
offline online
Full store Showrooming

Research offline

Impacts for businesses

For businesses, cross-channel distribution is an opportunity to:
• Create value for clients by improving their buying experience
• Strengthen customer relationships by better meeting their expectations
• Orient clients to the most adapted and profitable channels.

The contents of this page are the property of CrossKnowledge.

2/
Any reproduction or representation for non-private use is strictly forbidden. 3
However, this strategy has its own risks:
• Cannibalization between channels in favor of less profitable channels
• Inconsistency between channels
• Loss of client information from one channel to another
• Message not consistent depending on the channel

Omni-channel distribution
Omni-channel distribution helps reduce or even eliminate these risks. This system aims to streamline the user
experience across devices and channels by:
• Implementing close client tracking and sharing information across channels
• Offering a fully integrated and powerful IT infrastructure
• Streamlining policies throughout all channels (communication, price, assortment of products, services, etc.).
Omni-channel distribution is an ideal, but there is a cost in reaching this goal. It is important to analyze the
necessary investments and potential profitability. This is a strong trend and consumers have already largely
adopted omni-channel behaviors. Businesses that adapt to these new needs will gain a competitive edge.

The contents of this page are the property of CrossKnowledge.

3/
Any reproduction or representation for non-private use is strictly forbidden. 3