Saturday, December 26, 2009

Ask Customers Where They Get Pre-Purchase Info

Research at University of Alabama and Brigham Young University identified five major sources that shoppers use to gather information to help them make purchase decisions. The list is time-tested, but you'll want to update it and see what is true for your shoppers. By knowing where your shoppers are getting their information, you'll be better able to allocate advertising and publicity resources. Have your sales staff ask customers where they're getting their information. Also, if you conduct consumer attitude surveys, regularly include items asking about these five sources.
     Visiting stores and retailers' websites. The shoppers' trend here is to compare a small set of items and/or a small set of stores for possibly purchasing a certain item.
     Advertisements. Looking at and listening to advertising and manufacturers' websites. Although this has historically been the second most popular source, its use is decreasing.
     Sampling. Another popular source that has a decreasing frequency of use. One reason for the decline is that consumers want to take less time making decisions. Another reason is that retailers and suppliers have been ambivalent about how much sampling to allow.
     Friends. Advice from other consumers. Face-to-face word-of-mouth has historically been the single most influential source, even when not the most popular. The trend is toward exchanging information with social media friends.
     Independent reviews. Consumer Reports magazine. Review websites—such as Yelp.com—that claim objectivity and accuracy. The clear trend here is toward consumers substituting online resources in place of advertisements for advice.
     Researchers at San Francisco State University, University of California-Berkeley, and University of Alberta found that most shoppers use at least two sources of information. Therefore, in your data gathering, be looking for which of the two of the set of five your customers use most often. It might be different for different product categories.

For your profitability: Sell Well: What Really Moves Your Shoppers

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