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Consumer Research Training

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Consumer Research Training

  1. 1. Consumer Research for Furniture Retailers How Your Selling Strategy is Developed
  2. 2. Furniture Today Annual Buying Survey <ul><li>Aimed at determining what categories consumers are shopping for </li></ul><ul><li>Performed each January, reported each February </li></ul><ul><li>Forget the categories … </li></ul><ul><li>40% of people polled reported they shopped for furniture in the past year, but did not buy </li></ul>
  3. 3. What This Means to You <ul><li>If you greeted 100 customers per month last year – 1,200 total, 480 of them may not yet have purchased. </li></ul><ul><li>Do you know who they are? </li></ul><ul><li>Could you get them back? </li></ul><ul><li>These numbers have been consistent for 8 years in a row! </li></ul>
  4. 4. New Research From the NHFA and HGTV <ul><li>This was done in August 2007 by the research firm OTX Inc. </li></ul><ul><li>This was a huge study on a national basis with a high degree of statistical accuracy </li></ul><ul><li>HGTV is highly watched by women who are thinking about, or involved in, room decorating projects </li></ul>
  5. 5. When Asked About Shopping for Furniture <ul><li>42% (4 out of 10) said there are too many options </li></ul><ul><li>Both in items and stores </li></ul><ul><li>In other research from Furniture /Today magazine – 40% said they shopped in the past year but did not buy! </li></ul><ul><li>Could there be a connection? </li></ul>
  6. 6. Design Issues <ul><li>41% said they have too much uncertainty about design </li></ul><ul><li>Not just of the furniture, but of the room! </li></ul><ul><li>There’s that 40% again… </li></ul>
  7. 7. Making The Selection Decision <ul><li>30% said there is too little information around how to make a selection </li></ul><ul><li>This is a product knowledge and design issue </li></ul><ul><li>You need to understand your customer’s expectations around quality, price and value AND, for the whole room, not just this piece they’re looking at </li></ul>
  8. 8. What Consumers Want From Us <ul><li>75% of respondents said they would use a resource that provided simple, easy-to-understand information prior to buying furniture </li></ul>
  9. 9. For the Future <ul><li>40% said they would buy furniture more often if they had confidence in their buying decisions </li></ul><ul><li>You have to give them this confidence through the way you deal with every customer, every time </li></ul>
  10. 10. More Research From Lexington Home Brands ® <ul><li>Consumers, mostly women, go through a series of mental processes when planning a change in their homes </li></ul><ul><li>The decision making processes apply directly to how they plan and execute a change to a room </li></ul><ul><li>There are 5 stages to the process </li></ul>
  11. 11. DREAMING <ul><li>Some mental image of the outcome begins the process </li></ul><ul><li>They’ll watch HGTV, go on line, read shelter magazines and visit some stores </li></ul><ul><li>“ I’m just looking for ideas” </li></ul><ul><li>“ I’m just looking” </li></ul><ul><li>They really mean just that </li></ul><ul><li>You disconnect if you try to sell them at this point – or get too “pushy” </li></ul>
  12. 12. EXPLORING <ul><li>Now they really begin shopping in earnest, but they still aren’t ready to be pushed into something </li></ul><ul><li>You can be taken off the shopping list by making a mistake at this stage </li></ul><ul><li>They still need some space and some advice – but not from a “salesperson” </li></ul><ul><li>How do you connect to them? </li></ul>
  13. 13. PLANNING <ul><li>Now they’re getting serious, and this is when the things you do can turn them on, or turn them off </li></ul><ul><li>The help you provide in helping them properly plan a change (a room) is EVERYTHING at this point </li></ul>
  14. 14. SELECTION <ul><li>If you’re disconnected, or they’ve taken you off their shopping list because of what happened before, you won’t even see them now </li></ul><ul><li>If you’ve connected to the person and the project , this now becomes a partnership around solving a decorating problem – and you’re in. </li></ul>
  15. 15. ENJOYMENT <ul><li>This is an actual definable phase of the process – this is when the satisfaction takes place </li></ul><ul><li>And, it’s when doors open for the future </li></ul>
  16. 16. Bad News, Good News <ul><li>Bad news : 75% of buyers who are satisfied with their product purchase will make their next purchase at another store </li></ul><ul><li>Good news : You have a strategy to change this statistic, ensure high customer loyalty, and bring them back to you . </li></ul>
  17. 17. Our Own Stats <ul><li>80% or MORE of all customer visits, don’t result in a purchase being made </li></ul><ul><li>First-time shoppers (on a specific project) buy less than 10% of the time </li></ul><ul><li>Return customers on a project (be-backs) buy 70% of the time </li></ul><ul><li>Getting them back is the major purpose of your customer engagement strategy </li></ul>

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