Featured Research

from universities, journals, and other organizations

Tracing The Premium Customers

Date:
October 9, 2008
Source:
BI Norwegian School of Management
Summary:
The most loyal customers are those who do their shopping both in stores and on the Internet. These customers also spend more money.

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.


Story Source:

The above story is based on materials provided by BI Norwegian School of Management. Note: Materials may be edited for content and length.


Cite This Page:

BI Norwegian School of Management. "Tracing The Premium Customers." ScienceDaily. ScienceDaily, 9 October 2008. <www.sciencedaily.com/releases/2008/10/081009072712.htm>.
BI Norwegian School of Management. (2008, October 9). Tracing The Premium Customers. ScienceDaily. Retrieved April 23, 2014 from www.sciencedaily.com/releases/2008/10/081009072712.htm
BI Norwegian School of Management. "Tracing The Premium Customers." ScienceDaily. www.sciencedaily.com/releases/2008/10/081009072712.htm (accessed April 23, 2014).

Share This



More Mind & Brain News

Wednesday, April 23, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

How Smaller Plates And Cutlery Could Make You Feel Fuller

How Smaller Plates And Cutlery Could Make You Feel Fuller

Newsy (Apr. 22, 2014) NBC's "Today" conducted an experiment to see if changing the size of plates and utensils affects the amount individuals eat. Video provided by Newsy
Powered by NewsLook.com
Do We Get Nicer With Age?

Do We Get Nicer With Age?

Newsy (Apr. 22, 2014) A recent report claims personality can change over time as we age, and usually that means becoming nicer and more emotionally stable. Video provided by Newsy
Powered by NewsLook.com
How to Master Motherhood With the Best Work/Life Balance

How to Master Motherhood With the Best Work/Life Balance

TheStreet (Apr. 22, 2014) In the U.S., there are more than 11 million couples trying to conceive at any given time. From helping celebrity moms like Bethanny Frankel to ordinary soon-to-be-moms, TV personality and parenting expert, Rosie Pope, gives you the inside scoop on mastering motherhood. London-born entrepreneur Pope is the creative force behind Rosie Pope Maternity and MomPrep. She explains why being an entrepreneur offers the best life balance for her and tips for all types of moms. Video provided by TheStreet
Powered by NewsLook.com
Sorry, Guys, Only Women Can Make Their Voices Sound Sexier

Sorry, Guys, Only Women Can Make Their Voices Sound Sexier

Newsy (Apr. 21, 2014) According to researchers at Albright College, women have the ability to make their voices sound sexier, but men don't. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins