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Multichannel marketing

How can multichannel marketing support strategic choice or positioning?

AccessibleStrategicOrganisation2 min read
Contents

In business, channels are the different routes through which a product reaches an end-consumer.

A channel is a route through which customers discover, buy, receive or obtain support for an offer. Multichannel marketing coordinates several routes—such as stores, partners, websites, phone and mobile—so customers can use the options that suit them and the company can serve them sustainably.

When to use it

  • To evaluate and combine routes to market.
  • To reinforce segmentation and customer-journey choices.
  • To prevent channel conflict over price, ownership, territory, service or data.

Origins

Selling through several routes long predates the label. Sears, for example, issued a direct-selling catalogue in the United States in 1894. As supply chains professionalised, firms had to balance direct sales with retailers, brokers, importers, licensees and other intermediaries.

The internet’s expansion in the 1990s multiplied customer touchpoints and made coordination more visible. During the 1990s many established brands faced a particular dilemma: sell directly online and risk alienating retailers, or protect the existing channel and concede digital demand. Multichannel marketing emerged as a discipline for managing the portfolio and its conflicts.

What it is

Multichannel marketing lets customers and the firm interact across more than one channel. Each route can carry communication, transaction, fulfilment, service and feedback.

Channels may be direct or indirect. A physical product can be sold by the manufacturer or through a retailer; a digital product can be accessed across devices and platforms. Customers often cross channels during one journey—for example, researching online, viewing in store, buying through an app and seeking support by phone.

Multichannel means offering several coordinated routes. Omnichannel is often used for a more integrated ambition in which identity, context, inventory and service travel with the customer. The label matters less than whether the journey works.

How to use it

  • Define channel roles: Decide which customers and journey stages each channel serves, what it should accomplish and how success will be measured. Do not add a channel merely because competitors have one.
  • Keep the promise coherent: Core facts, eligibility, terms and brand commitments should agree across channels. Presentation can adapt to the medium, but customers should not receive contradictory claims.
  • Design experience and recovery: Ensure that hand-offs, returns, accessibility and after-sales care work across boundaries. State when prices, assortments or service levels legitimately differ and why.
  • Create a governed customer view: Connect interactions only with lawful purpose, appropriate consent, minimisation, security and retention. A “single view” does not justify collecting every possible datum or exposing it to every employee or partner.
  • Manage partner economics: Agree lead ownership, margins, service obligations, territory, attribution and conflict resolution. Measure total incremental value and customer outcomes rather than allowing channels to compete for credit.
  • Test resilience: Avoid dependence on one platform or intermediary. Plan for outages, policy changes, partner failure and customers who cannot or do not want to use digital channels.

Top practical tip

Map the journey across channels and assign ownership to every hand-off. When partners sell on your behalf, design the proposition for both the end customer and the channel agent.

Top pitfall

Presence everywhere is not integration. Adding touchpoints without coherent data, service, economics and accessibility creates friction and cost.

Further reading

  • Neslin, S.A. et al. (two thousand and six). “Challenges and Opportunities in Multichannel Customer Management.” Journal of Service Research.
  • Lemon, K.N. and Verhoef, P.C. (twenty sixteen). “Understanding Customer Experience Throughout the Customer Journey.” Journal of Marketing.