Kansas City Small Business Monthly November 2007 By John Landsberg
GIVE WAL-MART CREDIT FOR KNOWING ITS CUSTOMERS Love ‘em or hate ‘em, you have to give the Wal-Mart folks credit for knowing their customers and what they want in a retail outlet. That might be the reason why 90% of the population in the United States at some point in their lives shop at the mega-retailer. Each week 138 million of us shop there. As a loyal reader of Kansas City Small Business Monthly and probably a small business owner yourself, you are probably asking, “What does that mean to me and my small business?” Good question. The answer: plenty! A recent article by ABC News pointed out exactly how much Wal-Mart knows about its customers: * Frozen pizza sales have increased 12 times in the past 10 years as Americans find themselves with less time to prepare meals. * Sales of healthier low-fat meals are on the rise and Wal-Mart shoppers prefer fresh vegetables and fruit. * The No. 1 selling item in the store remarkably is bananas. That’s enough to circle the earth 16 times. * One of our favorite comfort foods is Pop-Tarts and most Americans wash them down with 2% milk. * Saturday is the most popular day to shop at Wal-Mart; the first of the month after the paycheck’s cashed is the most popular time to shop. * The day after Thanksgiving is still the top shopping day of the year. However, the second-most is December 23 followed by Dec. 22. * The average female at Wal-Mart is a size 14 and she wears a size 8 ½ shoe. * Our kids continue to get larger. Wal-Mart says that fully 30% of boys and girls age 9-12 shop in the men’s and women’s departments. Interesting information. But, again, what does that have to do with my small business? Lots. How well do you know your customers? What are your busiest times of the day/month/year? Why do your customers do business with you rather than your competitors? What are the trends in your industry? What are possible threats? Small business folks can gain much of this information simply by talking to your customers and asking for their feedback. It sounds simple and it is because customers appreciate being asked how you can serve them better. Did you know your best and most lucrative customers for new items you’re your existing customers? It is easier to upsell a current customer than it is to try and go out and acquire a new customer. However, many businesses spend more trying to acquire new customers than they do trying to sell to their loyal current customers. That means if you have the names, addresses, email, etc. information about current customers you can easily contact them to let them know about your new product offerings, sales, services, etc. People will provide you that information if you ask for it. They will gladly provide it if you give them a discount. Wal-Mart may have a ton of professional market researchers at its disposal, but small business people can acquire much of the same important demographic information about its customers if they are willing to simply take the time to ask for their feedback. It will be time well-spent.
John Landsberg operates Bottom Line Communications, a Leawood-based marketing communications firm (www.bottomlinecom.com). He is also an adjunct professor of marketing, consumer behavior and public relations at Baker University. You can reach him at jlandsberg@bottomlinecom.com or (913) 338-5760.