Omnichannel – expenditure or saving?

The omnichannel strategy results in revenue growth by 14,6% and client retention rate growth by 13% yearly – mGage.com reports. Despite of well-known profits, the strategy is still more popular abroad than in Poland. Are the finances the main barrier? How much does the omnichannel mobile marketing cost?

Omnichannel in a nutshell

We may not find an official definition of omnichannel. The meaning of this word is still being clarified. Generally speaking the omnichannel is a way of communication with the client using various communication channels whereas the online and offline channels may be combined. However this is not all.

"The concept of „Omnichannel” is not the same as „Multichannel"

The idea of omnichannel is often confused with multichannel, that is simply, for example sending the same messages to all using different channels. The omnichannel communication is sending synchronised complementary messages using different channels based just on complementary marketing strategy.

Omnichannel requires cross-cutting activities

Omnichannel marketing basically does not requires more preparation than multichannel does. We must develop the same number of marketing creations in either case.

"Omnichannel marketing requires consideration of preferences of the client and personalization of the message"

However, the key to the success will be to have tools that allow to personalize the message. It is needed to follow the openings, that means collecting information about client’s behaviour and using it immadiately through e.g. sending message through other channel according to whether the client received a previous message.

All comunication addressed to mobile devices, including accesories such as smartwatches, may be considered to be the omnichannel mobile marketing.

Source: Study of Tide Software

The goal: to engage the client into an interaction with the brand 24/24

The omnichannel has been developed in response to the needs of the market. The clients are ready to interact not only in operating hours of stationary store, but as long as the Internet operates, that means 24 hours a day.

"The clients expect a consistency of the brand in each communication channel"

However, the clients expect a consistency of the cross-cutting message, means through the different channels. The art is to adjust the message to the client, taking into account the possibilities of each communication channel and reach the receiver in the right time place and in the right way. The direct communication tools available in Poland allow to have such comprehensive communication which is highly automated. This would be not a problem then.

Omnichannel - less popular in Poland

As the tools are right at your fingertips which comprehensively serve works of omnichannel of mobile marketing through e.g. email, SMS and voice connection, why then so many companies still operate on standard multichannel communication?

"The omnichannel increases clients’ retention by 13%"

"The omnichannel increases clients’ retention by 13%” The companies that succesfully use consistent multi-channel marketing strategy, that is simply omnichannel, enjoy a 14,6% yearly revenue growth and a 13% client retention rate growth – mGage.com reports. Wheather in this case do omnichannel costs overshadow mentioned profits?

Could omnichannel mobile marketing be too expensive?

Let us do some calculating instead of wondering. The following table is based on data of Tide Software that is a supplier of a tool supporting omnichannel mobile marketing. The calculations were carried out on a group of over 4000 clients, that sends on avarage 100 mln email messages, 30 mln SMS messages and 10 mln minuts of voice calls monthly. The study group includes, among others, retail chains. Tha data concerning the messages openings is an avarage for companies that send them to their subscribers.

Source: Study of Tide Software based on data of clients of Tide services

Let us consider the case of company, that sends messages to 500 000 clients.

Standard campaign

If the company sends just SMSes to all its clients the cost of campaign will be around 35000 PLN.

The advantages and disadvantages of communication via SMS:

+ message which comes up is noticed at once

+ message might be personalized

- little space for text

- high prices

- no notification if the SMS message is open

- reaches out only to mobile phones

Important: the operators report the delivery status of the SMS message, but no opening status. However there is possibility of following the clicks in the special links placed in the text of SMS message.

Omnichannel campaign

If the company implements omnichannel strategy, thus creates an interesting campaign, that would consider better clients needs and habits. The costs are different then.

Step 1. The company sends emails to its whole contact base for 2500 PLN. The avarage email open rate is 25% according to Tide Software observation. The email delivery rate that is guaranteed by email service providers (especially to mailboxes hosted by great suppliers such as onet.pl, gmail.com and so on) has an influence on this indicator.

The advantages and disadvantages of communication via email:

+ space for interesting graphics

+ tracking email openings

+ low prices

+ reaches out to various mobile and stationary devices

+ email may be personalized

- risk of falling into spam

- new email is not noticed by a client so quickly as SMS

Time and device: Email can be received on smartphones as SMS can, but also on laptops, desktops and tablets. In the morning clients usually reach for their smartphones. Then they use computers during the working hours and smartphones (again) and tablets in the evenings. Clients have usually more than one email account. It is good to send messages in the morning.

Step 2. The company sends a 20-second voice message to people who have not opened email message (75% clients). Very likely a part of those people saw emails in their mailboxes, but did not open them. The objective of the further activities is to strengthen the message.

In case of voice SMS, the only payment is for played messages (connections established). The avarage value of voice campaigns sent by various companies to their subscribers rates around 40% listenings – accordingly to Tide Software data.

The advantages and disadvantages of communication via VMS:

+ reaches out to mobile and stationary phones

+ cost of sending is lower than sending Bulk SMS or telemarketing activities

+ possibility of sending SMS with discount details (codes) to those persons who read the voice message, if these persons ask for that by tapping the proper button on their phones or answer yes on received question

+ around 8% of clients gives a feedback on missed voice calls, it is possible to record an additional message then

+ message may be personalized

- incompetent telco service suppliers can send a voice message at night, and we can read then about annoying campaigns in the newspapers

Czas i urządzenie:Time and a device: It is good to send a message after working hours. VMS reaches also stationary phones.

Step 3. The company send a standard SMS to those persons who do not open an email or do not listen a voice SMS. To make it even more attractive the company can send its client an individual discount code. Cost of sending is 15 750 PLN.

Time and a device: We look at our phones at avarage 150 times a day – accordingly to Nokia reports. Usually we take them to our hands immadiately after waking up and have them with us for the whole day, just as smartwatch.

In summary, you save money with the omnichannel mobile marketing

The omnichannel campaign allows better customize us to clients needs and their preferences for time and forms of contact. Contrary to the multichannel, does not flood the clients with the same meassage sent by various channels. According to the channel and content the forms of presentation are different, but create a coherent, synchronised communicate that strengthen brand awareness.

"Omnichannel can reduce costs of the mobile campaign by 20%"

When looking at costs of omnichannel campaign, we can observe in this case that this kind of communication can reduce costs by 20%. If it is assumed that except sending SMS messages, the company normally sends to all also emails, savings would be even greater.

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