How to win over the 'no-preference shoppers.' - winning customers who have no preferences for any particular store format

How to Win Over the `No-Preference Shoppers'

Retailers generally assume that to win new customers they must take them away from someone else. That's not totally true. There is a vast pool of shoppers out there who do not "belong" to any retailer. They show loyalty to no store and explicitly have no preference for where they buy their goods.

Your job, then, should be easier to make these "no-preference" shoppers your customers, because you do not have to win them away from anyone, but simply to guide them your way.

For example, research done by Impact Resources, in an exclusive arrangement with Touche Ross, shows that in Los Angeles, 37 percent of almost 10,000 shoppers surveyed said they have no preference for a first-choice department store. More than half (50.2 percent) have no store preference when shopping for women's clothes or for shoes. When the item is a television or VCR, the no-preference response jumps to 59 percent. And 68 percent of all shoppers in the market with the highest sales figures in the country said they have no store preference when shopping for major appliances.

We checked this no-preference concept in a number of other major markets and found that, while the percentages vary a few points either way from market to market, there is a remarkable consistency across the United States. Many consumers are not tied to particular stores. Maybe you can change that.

No-Preference Shoppers

Who are these no-preference shoppers and how do they differ from the "average" shopper? In looking at the demographics, we find that ethnically there is little difference among them, as whites, blacks and Hispanics are well represented among the no-preference shoppers.

Generally, there are more single people in this category than in the shopping population as a whole. For instance, while 34 percent of all Los Angeles shoppers are single, 42 percent of the men and 38 percent of the women who have no first-choice department store are single. When buying clothes, 37 percent of the men and 30 percent of the women who have no preference for a store are single.

But do not rule out the married folks, 40 percent of who indicated no preference when shopping for shoes and almost as many married persons have no department store preference, or store preference when buying TV/VCRs and appliances.

In age, the no-preference shoppers outnumber the preference shoppers at both ends of the scale - 14- to 17-year-olds and 65 plus. One may surmise that the teens go from store to store until they see something that strikes their fancy or until they find the latest fad. On the other hand, the 65 plus segment, many of whom are on fixed incomes and have less money to spend and less energy to burn, may just follow the sales. We find these teens and seniors citing no store preference regardless of the type of merchandise they are buying.

But even in the in-between age groups, shoppers seem reluctant to commit themselves. For example, in the 25- to 35-year-old group, 25 percent of those surveyed have no preference for a department store or for shoe appliance stores.

In terms of occupation, more no-preference shoppers than preference shoppers identified their status as "student" or "retired." But the actual working force also shows up as no preference in significant numbers. For example, when it comes to buying men's shoes, TV/VCRs and major appliances, there are more no-preference shoppers than preference shoppers among professionals, clerical workers and homemakers.

In terms of income, there are more no-preference shoppers than preference shoppers in the $10,000-to-$20,000 range. Yet, the average income of people citing no first choice for a department store and no preference for the store in which they purchase clothes, shoes, televisions, or appliances is approximately $33,000.

As you can see to this point, the data on the no-preference shopper are closely tied to merchandise. TV/VCR and major appliances, for example, show up as items for which large numbers of shoppers at all socio-economic levels have no store preference. One might conclude that for these big-ticket items, people shop brand rather than store. But that theory probably does not explain the general lack of store loyalty when shopping for shoes.

The patterns and exceptions continue when we look at education. Only among people withan eighth-grade education do no-preference shoppers outnumber the preference shoppers across most merchandise categories. But, in the largest population group - the high school graduates - no-preference outnumbers preference when buying women's shoes, men's clothes, TV/VCR, major appliances, as well as when naming a first-choice department store.

The look of store preference when buying TVs and VCRs and such made us look at what these no-preference shoppers own. We found that good numbers of the no-preference shoppers own these items, though not in as large numbers as the preference shoppers. But in terms of home personal computer ownership, the no-preference shoppers outnumber the others. The high numbers of teens in this group may account for that fact.

Finding Viable Means

Phone and direct mail solicitations do not seem to be a viable means to these no-preference shoppers, as most indicate they do not respond to such calls or read this mail. Billboards and transit ads are met with the same level of disinterest.

The newspaper, however, may be the vehicle through which you can reach the no-preference shoppers. They spend about 40 minutes a day reading the paper, about the same amount of time as the preference shopper. The sections they are most likely to read are local news and entertainment/TV. And they say they read approximately 39 percent of the circulars included in the newspapers.

Radio and television are other marketing options, as the no-preference shoppers spend about 160 minutes a day with them.

Making the Decision

The no-preference shoppers in your locations may differ slightly from those in Los Angeles, but finding those difference is not the hard part. What is critical is first making the decision that it's your company's mission to attract and offer a "home" to the no-preference shoppers.

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