Loyalty Formation for Different Customer Journey Segments

• Published in: Journal of retailing 2019-09, Vol.95 (3), p.9-29
• Main Authors: Herhausen, Dennis, Kleinlercher, Kristina, Verhoef, Peter C., Emrich, Oliver, Rudolph, Thomas
• Format: Article
• Language: English
• Subjects: Brand loyalty; Customer inspiration; Customer journey; Customer satisfaction; Customer segmentation; Omnichannel management; Touchpoints
• ISSN: 0022-4359; 1873-3271
• DOI: 10.1016/j.jretai.2019.05.001

•We identify five robust customer journey segments and their covariates.•Each segment represents a unique combination of different touchpoints.•We confirm these segments over time even though mobile usage increased.•Our findings reveal different sources of customer loyalty for different segments. The proliferation of new touchpoints empowers today’s customers to design their own journey from search to purchase. To address this new complexity, we segment customers by their use of specific touchpoints in the customer journey, investigate the association of several covariates with segment membership, consider the rise of mobile devices as potential “game changers” of existing segments, and explore how the relationships among product satisfaction, journey satisfaction, customer inspiration, and customer loyalty differ across segments. Based on anticipated utility theory and using latent class analyses on large-scale data from two samples of 2,443 and 2,649 journeys, we identify five time-consistent segments―store-focused shoppers, pragmatic online shoppers, extensive online shoppers, multiple touchpoint shoppers, and online-to-offline shoppers―that differ considerably in their touchpoint and mobile device usage, their segment-specific covariates, and their search and purchase patterns. The five segments remain unchanged in the two data sets even though the usage of mobile devices has increased substantially. Furthermore, we find that the relationships between various loyalty antecedents and customer loyalty differ between the segments. The insights from this paper help retailers develop segment-specific customer journey strategies.