Multi-Channel Shoppers: Good Spenders; Less Loyal

06/30/2008

According to a recent study by Opinion Research Corp, online shoppers who use multiple channels to buy spend almost two times as much as those who use a single channel.

This is good news for online marketers. The bad news though is that this bunch is not the most loyal. Online marketing experts attribute this to the fact that they may be savvier online shoppers who are more likely to price shop.

Experts behind the survey say that the takeaway for online marketers is trying to understand what motivates these shoppers so that they can be turned into loyal customers.

In order to do this, the survey asked consumers about their spending habits with one, unnamed retailer. Over the previous six months, the survey revealed that single channel shoppers averaged $44 with the merchant; those who used two channels or more spent $52; and those who used three or more channels spent $61.

Interestingly, those who used all types of channels, eg, catalog, web, etc., spent the most -- $82. Multi-channel shoppers accounted for two-thirds of sales (66%). Of these, almost three-quarters (70%) admitted to being likely to comparison shop when purchasing online.

Jill Glathar, a vice president and director of the market planning and development practice at Opinions Research cautioned that retailers should not look to simply convert more consumers to multi-channel shoppers, but really delve into why these shoppers do what they do.

Ms. Glathar states, “These figures raise the concern that if companies look only at the percentage of customers compared to the percentage of contribution to revenue . . . Specifically, they should focus on understanding why these shoppers are so likely to switch and taking steps to increase customer loyalty, rather than just attempting to convert more customers into multi-channel customers.”

The survey also found that multi-channel usage by consumers varied according to industry. Seventeen percent of consumers who shopped at big-box retailers reported networking with the e-tailer using multiple channels. Approximately the same number (16%) of those who shopped at mass merchants did so and 11% did so for restaurants. Only 6% of those who shopped at specialty retailers reported using multiple channels.

There were no major surprises in other findings of the survey, eg, that Internet shopping is probably going to continue to grow. Almost two-thirds of those surveyed expected to buy something online soon. Forty-two percent had already done so.

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