Should All Customers Be Multichannel? Investigating the Moderating Role of Brand and Loyalty Tier – MSI

Working Paper

Should All Customers Be Multichannel? Investigating the Moderating Role of Brand and Loyalty Tier

Lisan Lesscher

University of Groningen

Lara Lobschat

Maastricht University

Katherine N. Lemon

Boston College

Peter C. Verhoef

University of Groningen

Jan 24, 2021

Examines the effectiveness of a multichannel sales strategy by assessing the moderating effects of brand tier and customer loyalty tier on the relation between multichannel behavior and purchase outcomes. In contrast to conventional wisdom and prior literature, customers who engage with a company across multiple channels are not always more valuable.

Topics

Consumer Behavior & Insights Omnichannels & Customer Journey

research recap

Should All Customers Be Multi-channel?

In contrast to conventional wisdom and prior literature, customers who engage with a company across multiple channels are not always more valuable. While new customers may initially prefer multiple channels, with increasing loyalty they adopt a preferred single channel. Single-channel customers in the highest-level loyalty and brand tiers generate the most revenue.

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