What is Multichannel Marketing? Pros and Cons of Multichannel Marketing

Multichannel marketing is a practice through which a business interacts with its customers via various channels. The main purpose of this approach is to increase the sale of services and products. For this, 2 types of mediums, including direct and indirect, come into use. Indeed, it is an effective strategy for sales since it helps leverage several channels to connect with buyers. However, it involves a few challenges as well. An observation of its pros and cons is undoubtedly important for using the multichannel approach without undergoing any unwanted impact.

What is Multichannel Marketing?

In clear terms, multichannel marketing is an approach a company uses to interact with its customers through different mediums to sell its products/services. These interactions take place through direct as well as indirect channels or means of communication. This practice provides multiple options for a business to connect with its target audience. Moreover, it can aim at conversions through various mediums. 

As part of multichannel marketing, direct channels can include catalogs to actively communicate with customers. They can further comprise physically located stores and direct mail. Considering indirect channels, content or information is sent across through social media platforms, websites, etc. For this, inbound marketing is used.

Why is Multichannel Marketing Important?

Multichannel marketing is an important approach for businesses as it makes them aware of where their customers are. Note that multichannel prospects tend to spend more than single-channel leads. Thus, this approach holds more importance for a business to identify, target, and convert them. 

Is Multichannel Marketing the Same as Cross-Channel Marketing?

Though multichannel and cross-channel marketing share certain commonalities, they are different. Both involve the use of communication mediums. However, the difference lies in the mediums being connected, in the case of cross-channel marketing. Contrary to this, in the multichannel approach, the mediums remain disconnected.

As part of the cross-channel strategy, it is possible to record the interactions of customers. The channels it includes can communicate this information between them. Thus, during their journeys with businesses, customers can move between these connected communication mediums. 

5 Main Pros of Multichannel Marketing

The best pros of multichannel marketing include improved customer journeys, a diversified audience reach, numerous conversion avenues, etc. There are 5 key benefits of this model that help businesses and brands to reach closer to their sales/marketing goals. Irrespective of its size and industry, a business can receive its advantages.

1. Simplify Buyers’ Journeys

Using the model of multichannel marketing, businesses can simplify the journeys of their buyers. Besides, to increase sales, it is only vital to remove any complexities from these. 

When a customer sees a marketing message, the point of duration from that moment until the purchase is made is important. In case this duration is long, it indicates that the buyer is taking more time to confirm an order. There is a high chance that he/she may opt out of confirming it. 

However, with the beneficial multichannel strategy, businesses can reach out to consumers on their preferred shopping channels. They can share relevant and direct links to every consumer. Thus, their journeys are simplified and altered. They can directly and quickly be sent to the sales team from the marketing department.

2. Expanding Audience Reach

In multichannel marketing, a number of mediums feature a brand's ads. As it reaches more people, it expands the audience reach of that brand. Moreover, it offers the greater advantage of reaching prospects where they are. By meeting their interest, this approach aims to increase its customers. 

3. Create Many Avenues for Conversions

Multichannel marketing benefits include increasing conversions by providing many avenues to people. Usually, after the initial marketing touchpoint with a business, individuals rarely buy services/products or even request demos. The multichannel approach creates different avenues to help them convert. 

• For example, via word of mouth, a web user may hear about a brand's products. 

• Then, to explore these products more, he/she may search for them on Google.

• After some time, seeing an ad on Facebook or Instagram can help them convert.

4. Helps Customize Marketing Campaigns

Using strategies such as multichannel marketing, one can receive the advantage of customized campaigns. Thus, they can be aligned with particular business objectives. This strategy involves running campaigns across different channels. As they run, one can record observations and study customers' behavior. By utilizing this data, campaigns can be optimized.

• One can optimize campaigns to achieve business-specific goals.

• These can include increasing sales, improving conversions, creating brand awareness, etc.

5. Use Channels' Benefits to Convert Leads into Customers 

One of the benefits of multichannel marketing is that it helps convert leads into buyers by leveraging the advantages of several channels. Note that these mediums can work differently while a campaign runs. 

For instance, when an online sales campaign is launched, a business can send emails to customers. They can comprise the specific products to sell. Then the buyers can be sent discount codes via SMS soon after the emails are opened.

The pros of multichannel marketing extend to retargeting practices as well. To retarget a lead who looked at the email but made no purchase can be connected with through other mediums. For example, a brand can use Messenger to follow up with him/her. Or, it can send another email, ensuring a discount or shipping for free.

What are the Cons of Multichannel Marketing?

High costs are among the main cons of multichannel marketing. But, going beyond, this approach needs marketers to majorly research their customers. Other disadvantages include rising competition across marketing channels and expertise in advanced analytics to track campaigns.

1. Demands In-Detail Customer Research

Although multichannel marketing has the power to convert prospects into customers, it demands businesses conduct extensive customer research. Varying from one business to another, it can be daunting to do so. Moreover, it can require professional research expertise and understanding for the best results. 

2. Increases Marketing Expenditure

Since multichannel marketing makes use of more than one channel, it requires more time and money. To skip this disadvantage, a brand can find out whether a marketing medium is within its budget. Accordingly, it can prevent its expenditure from rising beyond its spending capacity. 

• Such a brand can reduce multichannel marketing costs through strategies like content marketing. 

• This specific strategy is a budget-friendly move to market products and services.

• It involves creating and sharing information, featuring relevant features of these offerings.

• To share blogs, infographics, articles, etc., brands can prefer a number of platforms.

• Besides, this approach can attract, engage, and convert users without incurring high costs.

3. Needs Advanced Analytics Tools

One of the cons of multichannel marketing is that it requires marketers to be well-equipped with advanced analytics. It is effective to practice this strategy with in-depth knowledge of relevant tools. They can help track which campaigns work and which don't. However, without tracking them, it is difficult to know the impact of campaigns or the areas to improve. 

Tip: To deal with this challenge and easily track campaigns, call tracking software can be used. 

4. Fierce Competition across Sales Channels 

A disadvantage of multichannel marketing is that it invites high competition. This is due to sales channels that increase competition, making it challenging to attract prospective customers. 

Across Google Shopping or other websites for price comparison, cheap costs are still the most relevant aspect for many. Though some buyers prefer comparing a range of features, the lowest charges can still encourage them to make purchases. 

In Essence

Multichannel marketing is a useful approach for interaction with buyers to increase sales. Though it is effective and yields results, it demands time, cost, and specific expertise. An in-depth look at its pros and cons is, therefore, important. It can help marketers rightly leverage this practice and steer through its cons.