Retailers are focused on developing omnichannel strategies to compete with online retailers but are they effective? Are omnichannel shoppers more valuable to retailers? The answer to the question is a definitive yes.
Emma Sopadjieva, Utpal M. Dholakia, and Beth Benjamin collaborated with a major US retailer, which operates hundreds of retail stores across the country. They studied the shopping behavior of over 46,000 customers who made a purchase during the 14-month period from June 2015 to August 2016.
The trio shared their findings and insights with Harvard Business Review:
- 7% were online-only shoppers, 20% were store-only shoppers, the remaining 73% used multiple channels during their shopping journey.
- Omnichannel shoppers spent an average of 4% more on every shopping occasion in the store and 10% more online than single-channel customers.
- With every additional channel consumers used, the shoppers spent more money in the store. For example, customers who used 4+ channels spent 9% more in the store, on average, when compared to those who used just one channel.
- Consumers who conducted online research on the retailer’s own site or sites of other retailers led to 13% greater in-store spending among omnichannel shoppers.
- Omnichannel consumers are more loyal. Within six months after an omnichannel shopping experience, these customers had logged 23% more repeat shopping trips to the retailer’s stores and were more likely to recommend the brand to family and friends than those who used a single channel.
Read the full article at Harvard Business Review.