Key takeaways
- Harvard Business Review studied about 46,000 shoppers of a major US retailer: 73% used multiple channels, 20% were store-only and 7% online-only.
- Omnichannel shoppers spent 4% more per store visit and 10% more online, and made 23% more repeat store trips within six months.
- The more channels customers used, the more they spent. Those using 4+ channels spent 9% more in store.
- McKinsey found 71% of consumers expect personalisation and 76% get frustrated when it is missing. Connected data makes that possible.
Does it really pay to be present on every channel, or does it just spread your team thinner? One of the most cited studies on the question gives a clear answer, with an important caveat.
The 46,000-shopper study
In 2017, Emma Sopadjieva, Utpal M. Dholakia and Beth Benjamin published the results of a study in Harvard Business Review.[1] They followed about 46,000 customers of a major US retailer, with hundreds of stores, who made purchases between June 2015 and August 2016.
- 73% of customers were omnichannel shoppers. Only 20% shopped in stores alone and 7% only online.
- After controlling for other factors, omnichannel customers spent 4% more per store visit and 10% more online than single-channel customers.
- Spending rose with the number of channels: customers using four or more channels spent 9% more in store.
- Shoppers who researched online before visiting a store spent 13% more in store.
- Within six months of an omnichannel experience, these customers made 23% more repeat trips to the store and were more likely to recommend the brand.
The authors were careful to note that this is a correlation. It is possible that more loyal customers simply use more channels. But either way, your best customers are the ones moving between channels, and serving them well is not optional.
What this means for UAE businesses
The study was about retail, but the pattern applies to any business where customers research, ask questions and buy across several touchpoints:
- A clinic patient finds you on Google, asks a question on WhatsApp, calls to book and gets a reminder by SMS.
- A property buyer sees a listing on a portal, messages on WhatsApp, calls the agent and visits the show unit.
- A restaurant guest sees a post on Instagram, sends a DM about a birthday, and books by phone.
Each of those journeys crosses three or four channels. If each channel is handled by a different person with no shared history, the customer feels it immediately.
Personalisation needs connected data
McKinsey’s research on personalisation found that 71% of consumers expect companies to deliver personalised interactions, and 76% get frustrated when this does not happen.[2] It also found that faster-growing companies drive 40% more of their revenue from personalisation than slower-growing peers.
You cannot personalise a conversation if you do not know that the person messaging on Instagram is the same person who called last week about a different service. Connected channels are the foundation; personalisation is what you build on top.
Omnichannel versus multichannel
| Multichannel | Omnichannel |
|---|---|
| You are present on several channels | Those channels share one customer history |
| Each channel has its own team or inbox | One team sees every conversation |
| The customer repeats themselves when switching | The conversation continues across channels |
| Reporting is split by channel | Reporting follows the customer |
Most businesses in the UAE are multichannel already. Few are truly omnichannel.
How to become omnichannel without a big IT project
- Bring every conversation into one [unified inbox](/services/omnichannel): calls, WhatsApp, Instagram, Facebook, email and chat.
- Match customers across channels by phone number and email so each person has one profile.
- Let an AI agent answer first on every channel with the same knowledge, so answers are consistent.
- Hand over to people with the full history.
- Report on the customer journey, not just per channel.
Connect every channel into one customer history.
The takeaway
The best customers do not stay in one channel. Businesses that follow them seamlessly from DM to phone call to store visit earn more from each of them. The technology to do this is no longer reserved for large retailers.
Frequently asked questions
Sources
Every statistic in this article comes from the studies below.
- 1.A Study of 46,000 Shoppers Shows That Omnichannel Retailing Works Harvard Business Review (Sopadjieva, Dholakia & Benjamin), 2017
- 2.The value of getting personalization right, or wrong, is multiplying McKinsey & Company, 2021
Researched by
Northline AI Research
Editorial team, reviewed by Abdelfattah Alsaeed
The Northline AI research team reads the studies so UAE business owners do not have to. Every statistic links to its original source.