NPS differences between Peak and Regular shoppers

In January, retail commentators turn their attention to the Christmas sales results and at FSP, we are no different – Christmas Sales Report 2011

However at FSP, it is not just the sales figures that we are interested in but also the perceptions and attitudes of those most vital to the Christmas sales – the shoppers.

One measure of customer satisfaction FSP employs The Net Promoter Score (NPS). This is a measure of customer loyalty, where respondents to a shopper survey are asked how likely they are to recommend a Shopping Destination to a friend on a scale of 0 to 10. The Net Promoter Score is the percentage of Promoters (scoring 9 or 10) minus the percentage of Detractors (scoring 0-6). Those scoring 7 or 8 are classed as Passive and are excluded from the calculation. The resultant score indicates the level of satisfaction a shopper has with a centre.

At a time of year on which many retailers and shopping centres depend, it is as vital as ever to understand not only the wants and needs of the core (Regular) shopper, but also those of the less frequent Christmas (Peak) shopper.

The term “Christmas shopper” creates various stereotypes, each with a different attitude to shopping. Be it the hard core shopper given an even better excuse to exercise the credit card, the male shopper doing the last minute dash for presents or the grandparent stocking up on presents to treat the grandchildren. All will have different reasons to be shopping and all are likely to spend more than at any other time of year.

Analysis of shoppers at larger centres in Peak periods compared to Off Peak periods, throws up a few common trends; the average spend is higher, whilst visit frequency is lower. Shoppers are prepared to travel further to destination centres, whether for the big Christmas shopping celebration or more reluctant shoppers anxious to get the shopping over and done in one fell swoop.

However, not all trends are universal, most notably the levels of satisfaction amongst Peak shoppers. FSP has used the Net Promoter Score to analyse the satisfaction levels of Peak shoppers who live outside the Off Peak catchment area. In some Centres, levels of satisfaction amongst these Peak shoppers has gone through the roof, whilst in others it has sunk to new depths.

The opinions of Peak shoppers are as diverse as the shoppers themselves (and a lot more varied than the stereotypes outlined above). However, one trend is clear - a satisfied shopper at Christmas spends an average of 50% more than a dissatisfied shopper. Given that average spend of Christmas shoppers is almost double that of Off Peak shoppers, the rewards for satisfying Christmas-only shoppers is great.

By comparing Christmas and Off Peak shopper surveys, you can better understand your customers and how they change at different times of year. Knowing to whom and when to target your marketing effort will ensure that next year you, or more comfortably your centre, will stand at the top of the Christmas sales tree