Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Tracing the premium customers

09.10.2008
The most loyal customers are those who do their shopping both in stores and on the Internet. These customers also spend more money.

The days when we had to go to a physical store to buy whatever goods and services we needed are over. Within a number of business sectors it has become increasingly common to log on to an Internet store instead of taking the (often) much longer trip to the physical sales outlet.

It is, however, not always easy for a company to sell their goods and services both in a store and on the Internet.

Associate professor Peder Inge Furseth of the Institute for Innovation and Economic organisation at the BI Norwegian School of Management has headed a research project which looks at how companies are handling multiple sales channels (The Multi-channel Project).

Focusing on retail trade and tourism

Furseth has looked into the special challenges involved when a company that has run a traditional store for a long time opens an Internet business.

As part of this project, Furseth has interviewed managers in eight Norwegian companies within tourism and retail trade. He has also interviewed approximately 1000 of each of these eight companies' customers.

The results of this study have now been presented in a research report from the BI Norwegian School of Management.

The majority of the customers interviewed by Peder Inge Furseth and his research team, appears to be so-called multi-channel customers; they shop both on the Internet and in physical stores.

The customers who shop the most

The multi-channel customers, i.e. those who shops both in stores and on the Internet, are not quite like other customers. They shop more than other customer groups (i.e. those who shop either in stores or on the Internet).

"Multi-channel customers are also more loyal than other customer groups," Furseth - one of Norway's leading experts on Internet shopping – claims.

This makes multi-channel customers the most valuable customers a company can have - and the companies may not even be aware of it.

In spite of the fact that most customers use several channels, both stores and the Internet, the companies consider them either store customers or Internet customers.

Apparently, the companies have yet to discover these profitable and loyal multi-channel customers, and have only to a limited degree developed strategies for their new premium customers.

More interaction between the store and the Internet

"As we see it, the main challenge is the lack of integration between the company's sales channels," the BI researcher claims.

Furseth recommends the companies to get better acquainted with their customers. He suggests four practical initiatives:

1) Obtain information about the satisfaction and loyalty of the various customer types
2) Create seamless connection between the various sales channels (store and the Internet)
3) Better information to the customers
4) Ensure good interaction between the sales channels
The study also shows that customers who shop in a store are less satisfied than those who do their shopping on the Internet.
Reference:
Furseth, Peder Inge and Samuelsen, Elisabeth (2008): Development of a multi-channel strategy: The importance of seamlessness and interaction between distribution channels). Research Report - 05/2008, BI Norwegian School of Management

Audun Farbrot | alfa
Further information:
http://www.bi.no

Further reports about: Internet store multi-channel customers sales outlet

More articles from Business and Finance:

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Fizzy soda water could be key to clean manufacture of flat wonder material: Graphene

Whether you call it effervescent, fizzy, or sparkling, carbonated water is making a comeback as a beverage. Aside from quenching thirst, researchers at the University of Illinois at Urbana-Champaign have discovered a new use for these "bubbly" concoctions that will have major impact on the manufacturer of the world's thinnest, flattest, and one most useful materials -- graphene.

As graphene's popularity grows as an advanced "wonder" material, the speed and quality at which it can be manufactured will be paramount. With that in mind,...

Im Focus: Exotic quantum states made from light: Physicists create optical “wells” for a super-photon

Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.

Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...

Im Focus: Circular RNA linked to brain function

For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.

While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...

Im Focus: RAVAN CubeSat measures Earth's outgoing energy

An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.

The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...

Im Focus: Scientists shine new light on the “other high temperature superconductor”

A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.

Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Call for Papers – ICNFT 2018, 5th International Conference on New Forming Technology

16.08.2017 | Event News

Sustainability is the business model of tomorrow

04.08.2017 | Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

 
Latest News

What the world's tiniest 'monster truck' reveals

23.08.2017 | Life Sciences

Treating arthritis with algae

23.08.2017 | Life Sciences

Witnessing turbulent motion in the atmosphere of a distant star

23.08.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>