Omni-channel users and omni-channel customers: a segmentation analysis using distribution services

Abstract

Purpose: Consumers are increasingly combining distribution channels, thus displaying so-called omni-channel behavior, both to complete a given purchase and between purchases. The authors make a distinction between omni-channel customers, who make use of distribution services in both channels and omni-channel users, who make partial use of the distribution services of one channel to support purchases in another. This paper aims to identify the omni-channel behavior among the customers of a global fast fashion retailer dealing in a wide range of apparel and clothing accessories. Design/methodology/approach: Using a multinomial logit model, the authors perform a customer segmentation based on observed omni-channel behavior, considering the explanatory roles of demographics, distribution service features and customer service policies across the different retail channels. Findings: The authors observe that the key retail channel features for explaining omni-channel customer behavior are product accessibility, both in store and online; the assurance that goods purchased online will satisfy the customer’s needs and expectations; and the option to return goods found unsatisfactory. Practical implications: The results clearly show that the nature of the visits and purchases made by customers is determined by various components of the companýs customer service policy, which can, therefore, be used to guide the retailer’s segmentation strategy. Originality/value: Future lines of research should explore the economic implications of this customer segmentation. The price perception data emerging from our findings suggest a greater sensitivity to prices in the mono-channel segment, which might be worth exploring in future research. Future research: Future lines of research should explore the economic implications of this customer segmentation. The price perception data emerging from our findings suggest a greater sensitivity to prices in the mono-channel segment which might be worth exploring in future research.