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 How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung

nachricht Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT

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: Traffic jam in empty space

New success for Konstanz physicists in studying the quantum vacuum

An important step towards a completely new experimental access to quantum physics has been made at University of Konstanz. The team of scientists headed by...

Im Focus: How gut bacteria can make us ill

HZI researchers decipher infection mechanisms of Yersinia and immune responses of the host

Yersiniae cause severe intestinal infections. Studies using Yersinia pseudotuberculosis as a model organism aim to elucidate the infection mechanisms of these...

Im Focus: Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.

While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...

Im Focus: Studying fundamental particles in materials

Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales

Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...

Im Focus: Designing Architecture with Solar Building Envelopes

Among the general public, solar thermal energy is currently associated with dark blue, rectangular collectors on building roofs. Technologies are needed for aesthetically high quality architecture which offer the architect more room for manoeuvre when it comes to low- and plus-energy buildings. With the “ArKol” project, researchers at Fraunhofer ISE together with partners are currently developing two façade collectors for solar thermal energy generation, which permit a high degree of design flexibility: a strip collector for opaque façade sections and a solar thermal blind for transparent sections. The current state of the two developments will be presented at the BAU 2017 trade fair.

As part of the “ArKol – development of architecturally highly integrated façade collectors with heat pipes” project, Fraunhofer ISE together with its partners...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Sustainable Water use in Agriculture in Eastern Europe and Central Asia

19.01.2017 | Event News

12V, 48V, high-voltage – trends in E/E automotive architecture

10.01.2017 | Event News

2nd Conference on Non-Textual Information on 10 and 11 May 2017 in Hannover

09.01.2017 | Event News

 
Latest News

Helmholtz International Fellow Award for Sarah Amalia Teichmann

20.01.2017 | Awards Funding

An innovative high-performance material: biofibers made from green lacewing silk

20.01.2017 | Materials Sciences

Ion treatments for cardiac arrhythmia — Non-invasive alternative to catheter-based surgery

20.01.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>