Today’s marketing environment has become increasingly complex for retailers. The days when brick-and-mortar businesses were the only option are long gone. Nowadays, you are far more likely to find a company that is exclusively online rather than exclusively brick-and-mortar.
While the rise of online-only businesses would lead many to believe that customers are increasingly shifting to an exclusively digital shopping approach, Marie C. Lee, a Hong Kong-based marketing consultant and an adjunct lecturer at the City University of Hong Kong, notes that most are actually “split” or hybrid customers.
By understanding who these customers are, why they matter, and how to focus on them, businesses can strengthen their competitive position.
What Are Split Customers?
“Split customers are those who shop both in-store and online in roughly equal measure,” Lee explains. “They may be primarily in-store shoppers for one type of good and primarily online for another, or they might shop equally in-store and online with a particular retailer. The decision may vary based on the product they shop for during a specific trip or what best fits their schedule. This group is also highly likely to buy online and pick up in-store or use digital resources while conducting an in-store shopping trip.”
According to research from Capital One, split customers (also known as hybrid shoppers) make up a sizable group, representing 27% of consumers in the United States. Notably, the proportion of shoppers who qualify as split customers can vary based on the product category, ranging from just 20% for groceries to 40% for home goods.
Why They Matter
Split customers are a rapidly growing group, with the line between physical and online shopping experiences increasingly blurred. As an example of this, one survey found that 87% of consumers research a product on their smartphone while shopping in-store, with 61% also reporting that their in-store shopping trips begin online.
Digital research, backed by a quality in-person shopping experience, has become the new standard for these split customers. Their omni-channel approach can help them feel more confident in their purchasing decisions, which plays a key role in generating consistent sales.
Notably, research suggests that omni-channel customers deliver a 30% greater lifetime value than those who only interact with a brand through a single channel.
“The COVID-19 pandemic dramatically changed how people shop, helping a broader range of customers become more comfortable with the idea of using digital as part of their shopping experience for practically everything,” Lee says. “Even after in-store shopping returned, that initial surge of the hybrid shopping experience has drastically changed preferences in retail shopping. Brands catering to split customers’ desires can gain a loyal following by providing a more consistent and streamlined experience that will deliver greater long-term value.”
Effectively Focusing On Split Customers
With this in mind, how should businesses approach focusing on split customers? Lee recommends that brands focus on delivering an omnichannel approach that is tailored to their specific audiences.
“Hybrid shopping experiences should always consider how they can deliver value to split customers,” she explains. “Whether that entails offering a more personalized shopping experience, improving accessibility, or another goal, focusing on the unique needs of your audience should guide your omnichannel strategy. As part of this, businesses should ensure that the experience is consistent regardless of how a customer interacts with the brand for a particular shopping trip.”
A case study from Deloitte highlights this principle in action. The UK supermarket Sainsbury’s launched an app to help customers self-checkout. However, the brand quickly learned that many customers still preferred in-person checkouts, so it used customer-specific research to pivot the app to focus on providing personalized shopping lists and integrating with the store’s loyalty program.
By using a digital solution to enhance rather than supplant a core part of the in-person shopping experience, Sainsbury’s was able to improve the shopping experience for its tech-savvy split customers and deliver greater value. As this example illustrates, ensuring that digital solutions align with the preferences of split customers is essential.
Of course, the omnichannel experience doesn’t have to be limited to an app. Lee notes that many brands also successfully incorporate social media, live chat, or even in-store QR codes that take customers to a digital product page to create a more cohesive shopping experience from start to finish. By offering convenient digital solutions for those needing them, the in-store and online shopping experience can significantly improve.
Lift All Customers By Focusing On Split Customers
As Lee’s insights reveal, adopting an omnichannel approach should be essential to any business strategy. By improving the experience of split customers, businesses can also enhance the experience for customers who continue to primarily engage with the company through a single channel.
“When businesses consider the needs and desires of their split customers, they’ll ultimately become better able to serve their primarily in-store and primarily online customer segments as well,” Lee concludes. “Elevating the customer experience across the board to deliver a streamlined, cohesive experience will drive repeat sales and improve satisfaction and retention in both online and physical spaces.”
