Do Multichannel consumers spend more because they are more engaged through multiple channels?

Via: Multichannel Marketing by Akin Arikan

Studies have shown that multichannel shoppers are more valuable because they are more likely to respond to cross-selling and up-selling. These shoppers have more frequent interactions with the vendor making them more likely to be exposed to such offers. There is also a psychological effect of reinforcement when a brand, message, or offer that is seen on one channel is repeated on other channels.

One study in particular conducted by Shop.org, found that Cross-Channnel shoppers spend 50% more -and visit stores 70% more frequently – than the average shopper.

However, Multichannel customers may defect more easily when price competition arises. This makes intuitive sense because price sensitivity is among the biggest reasons why customers research their buying decision on multiple channels in the first place.

Where can I read more about MultiChannel Marketing?

You can read WiseGeeks post about MultiChannel Marketing here. DbMarketing describes what your goals should be when doing MultiChannel marketing.

Cross Channel (also know as multichannel) refers to the act of beginning a communication, or buying cycle, on one channel and crossing into another channel to continue it there.

Here is an example:

You are shopping for a new car and narrow down your choice of car make and model while looking on the internet. However, the exact car and financing was still sold to you the old-fashioned way – offline or rather by a salesperson at the dealership.

This is an example of a multichannel business – a business that interacts with its customers through multiple media like a telephone, store, and website.

Source: Multichannel Marketing by Akin Arikan

Branding vs Direct Response Channels

Traditional branding channels are non-addressable, meaning that the message is delivered to whoever happens to be listening or watching, and those people are not identifiable. Below is a list of tradition channels:

• TV
• Radio
• Print
• Out-of-home
• Events
• Product Placement
• In-store display ads

DR channels speak to individual prospects. The advertiser has the opportunity to create a message to each individual and measure the response. Here aer some examples of DR channels:

• Cell Center
• Direct Mail
• Sales teams
• Mobile Phones
• Email
• Web display ads
• search engines
• website