Omni-channel customer segmentation: A personalized customer journey perspective

Abstract

As switching behaviors become more prevalent in omni-channel retailing, businesses face the challenge of crafting customer journeys that are not only seamless and integrated but also personalized. Personalization at the customer journey level requires a deep understanding of varied customer needs and behaviors. This research segments and profiles omni-channel customers based on their perceptions, values, channel choices, and switching behaviors. We employed a mixed-method approach, including 23 in-depth interviews, four focus groups, and an online survey of 345 omni-channel customers from electronic goods retailers. Our study identifies four distinct segments–digital switchers, webroomers, showroomers, and offline switchers–each requiring different experiences during their shopping journey. Theoretically, it confirms that customers with varying experience needs interact differently with channels, making the customer journey dynamic and individualistic in an omni-channel context. Practically, our research suggests segment-specific features for different channels, enabling managers and retailers to optimize and personalize omni-channel shopping experiences.