What is cross-channel? Introducing mechanisms and benefits for delivering a better customer experience

What kind of route did prospective customers take after checking the product page of your company’s EC site? What actions do people take after viewing a product page?

The point of contact with a company until a customer purchases a product has become more diverse than ever before. Even in actual purchasing behavior, purchasers freely go back and forth between online and offline, such as “purchasing a product that they saw online at a physical store” or “purchasing online after checking the quality at a physical store”.

Companies are also required to understand the psychology of prospective customers based on data obtained from all points of contact and to work to meet their needs.

In this article, we will introduce cross-channel, which links all channels and provides a better customer experience.

Table of Contents

What is cross-channel?

Explain how it works while comparing single-channel, multi-channel, and omni-channel.

What is a “channel”?

First, let’s talk about “channels”.

Channels are where interactions with customers occur.

Typical channels include:

• Sales channel　　　
  • Real store
  • EC site
  • TV shopping
• advertising channel
  • TVCM
  • Newspaper/Magazine Ads
  • insert leaflet
  • direct mail
  • Web advertising
  • SNS advertisement
• communication channel
  • SNS
  • Word of mouth site
  • e-mail magazine
  • webinar

Channels that change the customer’s mindset and behavior are called touchpoints. For example, if you see a newspaper insert and go to the supermarket to buy a bargain, the insert will be the touch point. Web ads and SNS are the touchpoints when you want to click on a product that you have seen on a web ad, or if you want to get a coupon introduced on SNS.

single channel

In the past, there was only one sales channel that connected companies and customers, such as brick-and-mortar stores, catalog shopping, and TV shopping. This state is called single channel. His touchpoints were limited in the single channel, and it was a straight line relationship like attracting customers to a physical store with a leaflet insert.

However, as more and more people became able to connect to the Internet due to the spread of smartphones, the number of touchpoints increased rapidly. In order to make use of all touchpoints, companies also began to have multiple sales channels, such as physical stores and e-commerce sites, e-commerce sites and catalog editions. This state is multichannel.

Customers make purchases through various touchpoints such as web advertisements, TV commercials, and direct mail. Sales channels have also changed so that you can choose from multiple options such as physical stores and EC sites. While convenience for customers has increased, various issues have arisen due to the operation of each channel, such as the inability to use points earned at physical stores on EC sites.

Among them, the biggest challenge for companies was inventory management. If inventory management was operated for each sales channel, there would be a situation where “the physical store has inventory, but the EC site does not”, leading to opportunity loss.

From the rise of cross-channel to omni-channel

Cross-channel appeared to address the two challenges of customer management and inventory management. Cross-channel centralized customer and inventory management has significantly improved the customer experience.

Customers can check the inventory of the nearest store on their smartphones, etc., and can receive the products purchased on the EC site at the store. Purchase history and points are also integrated, and stores can now integrate campaigns across channels.

On the other hand, even if there is cooperation between stores, there is no system cooperation, prices are not unified between physical stores and EC sites, and services that can be received are different. I was.

Omni-channel is a form that solves cross-channel issues and evolves further. The biggest feature of omni-channel is that the same buying experience can be provided on any channel. With omni-channel, customers who have visited through various touch points can buy what they want at any time, in any place, and in any way, without being conscious of the classification of e-commerce sites, physical stores, etc. Since 2015, major retail manufacturers have started to introduce the system in earnest in order to provide a better customer experience. At present, manufacturers, service industries, financial industries, etc. are also exploring the introduction.

The purpose of introducing cross-channel is to increase touch points with customers and provide multiple channels for each person.

It is now required to update from the conventional business model of “customer service centered on products” to “customer service that provides what each person wants”.

In order to meet the needs of each person and build deep relationships, a single channel of “only physical stores” or “only EC sites” will not work. It is necessary to know the needs and interests of customers through various touch points by utilizing various channels.

Through centralized management of information , all customer actions such as “visiting websites” and “opening emails” are converted into data and accumulated. Based on the data, it is possible to send product information and campaign information tailored to each customer through the customer’s preferred channel.

In order to deliver a better customer experience, multi-channel rather than single-channel, and the next step is to build a cross-channel system that integrates all information, including inventory management, between channels. In some cases, it evolves into omnichannel.

Through the introduction of cross-channel, the following three benefits can be obtained.

1. Enables personalized communication
2. Implement measures across multiple channels
3. Consolidate inventory across multiple channels

1. Enables personalized communication

According to an Accenture survey, 83% of American consumers are willing to provide their personal data if a company offers them a personalized shopping experience. We can see that the demand for personalized marketing is increasing.

By having various touchpoints, it is possible to more accurately grasp customer needs and interests, and to realize communication that matches their needs and purchase intentions. It is possible to approach each person individually, such as changing the content to be sent to new customers and regular customers.

2. Measures can be implemented across multiple channels

Measures such as e-mail magazine distribution, coupon distribution, and points awarded at stores, which were completed by implementation and effect measurement for each channel, can now be implemented across channels.

For example, it is possible to distribute discount coupons from the EC site to those who visit the store, and conversely, to give benefits that can be used at the store to those who purchase on the EC site.

3. Consolidate inventory across multiple channels

When selling through multiple channels, opportunity loss is unavoidable unless inventory is centrally managed. This is because if inventory is managed for each channel, for example, an EC site may have too much inventory and stores may run out of stock. Opportunity loss can be reduced by developing a system that can check inventory in all channels in real time.

Until now, companies that mainly operate physical stores have used stores as the center for purchasing, inventory management, pricing, information dissemination, and sales promotion. In order to introduce cross-channel, it is necessary to update from conventional physical store operation aimed at efficiency to channel operation centered on customers.

However, the larger the business scale and the longer the business, the more time and cost it takes to integrate customer data and inventory data for each department.

Optimal cross-channel for “customer relationship building” for small businesses

On the other hand, for small businesses with a small business scale, the hurdles for integrated data management are not so high. Even if you are working on both mail order and physical stores, in reality, inventory management is often centralized.

In order to promote cross-channel, we centrally manage inventory by utilizing CRM (customer relationship management) for customer management. By using CRM, you can visualize “selling products” and see the appropriate inventory for your company.

Small businesses often have a close relationship with their customers, understand the preferences and needs of each customer, and have already built a relationship of listening to their voices. By using CRM to visualize customer information, it will be possible to maintain close relationships with customers even when the number of customers increases and the scale of business expands.

With the spread of smartphones, the purchasing behavior of customers has changed significantly. In the past, the provision of product information by manufacturers and sellers was a major factor in customer trends. Today, however, customers are trying to obtain user reviews and price information, and purchase products that meet their needs at the time and place they want. In other words, customers’ purchasing behavior demands a seamless environment between online and offline.

Cross-channel is a method that enables us to deliver personalized communication at the timing and channel that best suits the customer, while integrating the management of inventory and customer information .

The following two points should be emphasized here.

• Importance of personalization
• Importance of Visualizing Customer Behavior through Data

Importance of personalization

Personalized communication delivers a better customer experience.

Statistics also show whether customers are asking companies to understand their preferences and propose products that suit them. According to a 2018 report from Accenture Interactive, 91% of consumers want related product suggestions and recommendations based on their previous purchase history.

On the other hand, according to the segment’s 2017 report, 71% of consumers are dissatisfied that “brands do not understand their tastes” and “they make suggestions that do not suit their tastes.”

According to data released by Salesforce in 2020, 68% of consumers feel that they want brands to understand them, but that brands actually understand them. Only 37% of consumers feel that way. In Japan as well, statistics point to a change in consumer behavior to “seek what suits oneself.”

Consumers tend to choose products that match their own values ​​and preferences rather than price. is required.

Importance of Visualizing Customer Behavior through Data

By acquiring data from multiple touchpoints, it becomes possible to more accurately grasp the interests, concerns, and needs of each person.

For example, by checking each touchpoint, you can read the psychology of customer behavior.

• Mr. A… ① Click the URL of the coupon information in the mail magazine → ② View the target product list page → ③ Exit

  ⇒ Searching for products triggered by coupons

• Mr. B… ① Bookmark → ② Top page → ③ Search by category page + price range → ④ View product information → ⑤ Exit

  ⇒ I’m looking for something I want specifically

• Ms. C… ①Search for “gift ranking that makes people happy to give” in Google search→②Browse the product details page→③Narrow down search by price range→④Browse the gift option page→⑤Exit

  ⇒ Looking for gift items

Customer behavior is visualized with data. By understanding the psychology behind their actions, we can make proposals tailored to each individual, such as a list of products that can be used with coupons in an e-mail newsletter.

We will practice the cross-channel, which was confirmed in the previous chapter, by the following 4 methods: “ Sending data obtained from multiple channels to prospective customers as a personalized message .”

1. Create personas to deeply understand your target
2. Design a customer journey map
3. Leverage CRM to integrate data
4. Send your message through marketing automation

Create personas to deeply understand your target

A persona is an image of a customer who may be looking for your product. In addition to demographic data such as gender, age, occupation, and family structure, it is possible to clarify a more specific customer image by digging deeper into values ​​and issues.

Create personas and delve into what your customers want.

Design a customer journey map

After developing the personas, create the customer journey. A customer journey is a representation of the changes in persona behavior and interests along the time axis. It traces the behavior of personas toward the company’s products at each touchpoint, and likens the rise in purchasing motivation to a “customer journey.”

A customer journey map is a visualization of that customer journey.

By visualizing the customer experience, we can make a sales promotion plan.

Leverage CRM to integrate data

A central cross-channel tool is CRM (customer relationship management) software for customer management. A tool for managing and analyzing customer information in order to build long-term relationships.

Some may already be using a DMP (Data Management Platform) for advertising operations. Even in that case, we will integrate the data by linking platforms such as DMP and CRM.

If you are interested in CRM, please refer to HubSpot’s free CRM that is effective for various tasks .

Deliver your message through marketing automation

Marketing automation enables communication according to each person’s actions and interests.

Marketing automation sorts out emails according to purchase intentions based on pre-configured scenarios. For customers who continue to browse e-commerce sites with a focus on basic product information, we introduce pages that collect reviews from customers who have actually purchased the product, and videos that actually use the product. I will send you the URL.

By automatically providing the information requested by customers at the optimum timing, personalized communication becomes possible for each individual.

If you’re interested in marketing automation, check out HubSpot Marketing Automation .

Let’s take a look at the efforts of two companies as cross-channel success stories.

• Ikyu.com
• Morinaga Confectionery Angel PLUS

Ikyu.com – Maximizing profits through centralized data management and message optimization

Ikyu.com is a company that provides online services centered on reservations for luxury hotels.

The data that had been managed for each channel was consolidated with advertising, website and in-house CRM data, and all data was integrated for each customer.

We then used machine learning to optimize the message based on customer-specific data. We also optimized the keywords.

Through centralized data management and optimal customer message delivery, Ikyu.com was able to maximize the return on its marketing investment.

Morinaga & Co. Angel PLUS ~ Succeeded in cultivating prospective customers based on the data obtained from the opening of the communication site

Angel PLUS operated by Morinaga is a communication site.

The SNS I was using at first had a limit on the amount of data that could be acquired, and there was a problem that it was difficult to see the fan base. Therefore, in order to visualize the fans of our company, we tracked their behavior history on My Page on our website and communication sites, and actively communicated with them through marketing automation. We then delivered personalized messages and continued communication, both on communication sites and via email.

Morinaga & Co. conducts an annual consumer survey to measure product purchases by Angel PLUS members and non-members. As a result, we found that the purchase amount of Angel PLUS members is several times higher than that of general customers.

The key to cross-channel success is ensuring that customer data is fully integrated within the enterprise and accessible across channels and departments. However, in companies with large business scales and multiple departments, data is managed and operated by each department, and there is a problem that data utilization is hindered by walls between departments.

In order to remove the barriers between departments, representatives from each department, such as the sales department, the logistics department, and the system department, will be gathered, and people close to top management will become their leaders. It is necessary to push forward while taking.

At the same time, systematically ingesting and storing massive amounts of customer data also requires specialized knowledge. When introducing a tool such as a platform, it is important to select a vendor that can provide operational support tailored to your company.

Once upon a time, “shopping” meant going to a physical store. There were also TV shopping and catalog shopping, but they did not replace the daily purchasing behavior of all customers. However, with the spread of smartphones, purchasing behavior has changed significantly. Companies are also required to change the way they do business in line with buyers.

By building a cross-channel mechanism, companies can centrally manage customers through multiple channels. By tracking customer behavior history, you can deliver information that is of high interest to each individual and select the most effective channel to deliver your message.

Perhaps, when you hear cross-channel and omni-channel, you may have the impression that it can only be realized by large companies. However, the foundation of cross-channel and omni-channel is “building new relationships by understanding customers”. And small businesses with a small number of stores and customers have the advantage that it is easy to build such mechanisms.