This is Part III of a three part blog. In Part I (July 11, 2011), I addressed reasons for consumers’ loyalty when shopping for women’s clothing. Part II (July 18, 2011) addressed loyalty of shopping for men’s clothing. Part III (August 1, 2011) addresses five essential points to understanding loyalty of shopping.
Money matters – The economy continues to beat up consumers and rip apart the family budget. The BIGresarch Consumer Intentions and Actions (CIA) Survey (April-June 2011) of more than 8,000 consumers demonstrate that it doesn’t matter what product is being considered, price is always an important factor when contemplating a purchase. I’m a firm believer that the ticket price isn’t what matters. It’s how consumers view the value of how their money is being spent. The $64,000 question: “is the price worth it? Retailers need to make sure customers always understand that the price of the merchandise is justified. This means the retailer must demonstrate, explain and/or promote the product’s quality, attributes and value.
Consumers shop differently depending on the product or service – Products, even in the same category such as apparel, aren’t evaluated the same. In Part I, we learned that the top three criteria mentioned in households earning $100,000+ when shopping for women’s clothing were Selection (58.6%), Price (57.8%), and Quality (48.5%). Adults 18+ regardless of income called out these criteria, as well – Price (60.7%), Selection (48.8%), Quality (39.0%), and Location (36.9%). Part II of this series revealed that Price, Selection and Quality were the top three criteria when shopping for men’s clothing. In households earning $100,000+ Price was mentioned by 69.8% (67.0% of Total Adults) respondents, Selection by 67.4% (50.2% of Total Adults), and Quality by 61.2% (43.2% of Total Adults. These statistics demonstrate that consumers use different criteria when shopping for different products. Retailers must (not should, could or are suggested) understand and tap into consumers’ criteria when marketing and promoting the products. Standardized marketing campaigns will not be successful across men’s’ and women’s apparel categories. Adaptations of promotional messages are required.
Many consumers need guidance - The “no preference” group of shoppers provides an excellent group for increasing market share. This group however, needs guidance, assurance and persuasion. Possible reasons for no preference include: (a) little desire in shopping, (b) low interest in apparel, (c) haven’t found a retailer they prefer or (d) concerns in the economy give rise to apathy in shopping. Promotional messages should center on ease of shopping experience, convenience, products available and of course our friend – price.
Store type may provide a competitive advantage – The number one store preferred by customers for women’s and men’s clothing is department stores. Attention all entrepreneurs! America is Land of the Free, Home of the Free, Land of Entrepreneurs-- or something along that line. Depending on the product category, 20.9% - 23.2% of the more than 8,000 respondents have no preference where they shop for women’s and men’s clothing. This translates into a prime opportunity to grab consumers and develop them into a loyal consumer. Entrepreneurs, small businesses and specialty stores have the ability to learn the needs, preferences and nuances required for a loyal customer. You have a wonderful opportunity to seize the day (and the loyal consumer)! To accomplish this task, build a relationship. This relationship is through discussions, service and satisfying customers’ product and service needs – one customer at a time.
Customer service matters – There is a saying that “you can lie with statistics.” This statement is based on how the analyst interprets the statistics. Part I and Part II revealed that customer service was not as high of a priority as other attributes when shopping for women’s and men’s clothing. Normally I would interpret the data and move on. Today, I am going to “lie with statistics” - - but at least I’m being honest about it. Customer service matters even if the customers say it doesn’t matter!! Just ask someone if they shopped at a store where she experienced (a) bad service, (b) a rude clerk (c) a long checkout line or (d) couldn’t find any sales assistance.
So how does all this blend into customer loyalty?
True story – last week a man bought a used car. He brought the car home and believed it to be a lemon. When he tried to return it to the car dealer, the dealer told him there was nothing he could do. Later that night, the man drove back to the car lot and drove his car into six cars on the lot; damage is estimated to be over $20,000. The driver handed himself over to the police. The man now has a police record and a hefty fine to pay. The car dealer is being highly publicized on the news as an “unfriendly” dealer.
Another true story – I bought my first Ford in 1980. It was a beautiful tawny brown Mustang. Since then I have owned a Focus, two Taurus sedans, a Taurus wagon and an Expedition. Some of my friends ask me why I don’t “trade up” to a luxury model. Simple – For the past 31 years Ford has given me commendable service (not excellent - -commendable). My cars have always been reliable; granted I take care of them. Only once in 31 years have I had car problems. In the early 90s my new car was having problems. After six months I called the owner of the car dealer and told him about the difficulties. He traded in the car. The real customer service aspect about his story – the car was a lease. I lost no money on the exchange. The owner of the car dealer assumed all expenses. In 31 years – this was the only problem I ever had with my Ford cars. Ask me what I’ll be driving until I am no longer able to drive - - Ford. FYI: The Mustang will always be my favorite car. The only reason I don’t drive it now is that I drive a mighty sweet Expedition – charcoal grey.
Moral of this three part series:
- Loyal customers can be developed in any product or service segment
- Loyalty does not happen overnight
- Loyalty requires a commitment by the company
- Once the company obtains a loyal consumer – the rewards are innumerable
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