Geoff's View - October 2007

18.10.2007

October 2007 - Customer Segmentation

All animals are equal, but some animals are more equal than others.   Animal Farm

Do you regularly identify your most valuable shoppers? Do you understand who they are and why they spend more than average in your centre? Which decisions are influenced by this information – marketing, leasing, tenant mix strategy?

Of course all shoppers deserve courteous respect but some are undoubtedly worth more than others. Over the last nine months, FSP Shopper Surveys have included a question that identifies the most valuable shoppers.  The difference between the most and least valuable shopper group averages 50% - over a year, expenditure by three of the “least valuable” group is required to match the spend of just two “most valuable” shoppers.

The question used by FSP for this analysis measures shopper loyalty. The most loyal consistently spend more than shoppers who are least committed.   Armed with this information, centre management can identify the factors that create, and those that destroy, loyalty.

It is a marketing truism that to get existing customers to increase their expenditure is much more effective than to recruit new ones. So in established shopping centres – it makes better sense to understand what turns on existing shoppers, and what turns them off, than constantly to seek new shoppers.

If you are struggling to make more effective use of your marketing budget, let me know – FSP can identify the factors that are critical for your shoppers.

I look forward to hearing from you

With kind regards

 

Geoff

e-mail:

Tel:       01494 474740

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A very useful way of keeping up to date with what's going on in retail.

Charles Denton
Property Director