The recently-released “2008 Customer Focus” study conducted by marketing firm Vertis shows that amongst women who are “chief shoppers” (responsible for more than 60 percent of household grocery shopping), nearly half (48 percent) say that low prices, advertised specials, and store coupons are the most important thing when it comes to choosing a grocery store.
By contrast, only 30 percent of men consider low prices to be a top reason – convenience and proximity rate higher, at 41 percent.
In the past, I would have found these statistics on women a little hard to swallow. If we’re talking about marketing to women, isn’t creating a relationship the most important thing? Aren’t you supposed to work hard to connect with the right side of the female brain, which is all about bonding? Shouldn’t it be all about the “experience” you’re giving your customer?
Well… yes and no.
With headlines that shout the latest news on failing mortgage companies, record-setting oil prices and the dreaded R-Word, it’s obvious that we’re settling in for a bumpy ride on the big yellow economy bus. People have less money to spend, but more choices than ever about where to spend it (thank you, Internet!). So, when push comes to shove and people are tightening their belts, low prices are going be in the driver’s seat.
Roy H. Williams would tell you that this next era in business will be about efficiency – running the tightest, most cost-efficient show around, ridding yourself of extraneous materials, programs, and even staff. Doing whatever you need to do in order to keep your prices as low as possible without giving up those values that are the core of your company.
But here’s what I believe (and I’m willing to bet that Roy agrees): you can advertise the lowest prices in town and offer coupons up the ying-yang. But your customer is still subconsciously looking for more because she has a need to plant that seed of loyalty somewhere. If your parking lot is too small, if your staff isn’t on their toes (not to mention helpful), and you run out of advertised items once too often, she’ll go elsewhere – even if it means she has to pay a few pennies more for that gallon of milk.
These next couple of years will definitely be about getting the most value for your shrinking dollar. There’s no doubt that female consumers will shift slightly toward “transactional” mode, and now is the time for you to take a long, hard look at your operational structure to determine how to streamline. But don’t neglect building a relationship for the sake of low prices. After all, it’s still only 48% of women who said that price and coupons were the most important to them (and that’s for a commodity like groceries). Those businesses that succeed in the long run will be the forward-thinkers who walk the tightrope of low prices and excellent customer experience.
Think it can’t be done? There’s a company that’s been doing it for years.
Its name is Costco.
Hop in your car later this week and check them out. Thirty focused minutes in a Costco could be some of the best business homework you’ll ever do, and could place you in the driver’s seat of your industry’s big yellow bus.
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