What Drives Repeat Business?
1. Consumers expect a 15-minute service level at an Independent; conversely, they expect to have wasted time in Home Depot!
2. Hassle free returns are needed. In the eyes of today's consumer, 48% equate a "reputable" store as a function of a hassle free return policy.
3. "If you can't explain the benefit, price rules."
4. "If you went out of business tomorrow, would anyone miss you?"
5. Americans are more visually oriented that any other group in the world.
6. Only 6% of consumers equate longevity with a good reputation.
7. Today's perception of service is what happens after the customer leaves the store.
8. 55% of a consumer's marketing image is formed based on the outside of your building.
9. 52% of a consumer's selection image is formed based on the outside appearance of the store.
10. Circuit City creates a two-story fa�ade with a three-story entrance pillar to create the illusion of a 60,000 square feet store (when they are actually 28,000 square feet).
11. 91% of Americans say the front of a store is equal to a "front yard". Thus, the neatness of the front of a store determines the perception of whether it is a good place to shop.
12. Consumers over $50,000 annual income are two to three times more driven by outside/entrance perception.
13. Consumers under the age of 35 are two to three times more driven by outside/entrance perception.
14. 80% of consumers think the main differentiation factor of hardware stores is proximity/location.
15. Wal-Mart's price image is "unassailable" because of their strength in snack food, health & beauty, small appliances, and drugs. [Low prices on selected items in these categories has fostered the consumer perception that Wal-Mart is low across the board.]
16. Wal-Mart achieves 38% of its sales in 6% of its square footage by using endcaps, dumpbins, power aisle displays, clearance tables, etc.
17. A big 99� is perceived to be a better value than a small 99�. When you make your signage, be sure to make the sign large!
18. Wal-Mart and Home Depot have the largest endcap signage in America.
19. Consumers shop in half the stores they used to (due to time constraints).
20. Half the impact of a circular is on the front page; as a newspaper insert, the front page should be selection driven. A newspaper ad should be price driven.
21. Consumers are looking at 4.5 ads before shopping anywhere. "This reflects a trend that consumers now place a higher value on their time. They want to get very well educated on the front end of their shopping experience." There is a need for a common identity for store design. Common identity pays off. Blockbuster Video had two markets where they were not permitted to have their complete exterior store design executed-their business was down by 40% in those two markets!
CONTACTS:
Barbara Burns (212) 486 1140
Britt Beemer (800) 723 3253
Copyright © 1998 by America's Research Group