Demographics Are Out; Purchase Data Is In
By John Hennessy
When building and fine-tuning loyalty marketing initiatives, consumer demographics should take a back seat to actual shopper purchase data.
That's the conclusion that can be drawn from a shopper analysis recently conducted by BIGresearch. The analysis reviewed shopping and media usage habits of various ethnic groups. When comparing the shopping behaviors of over 12,000 White, Black and Hispanic respondents, the research found more similarities than differences.
"Marketers must first be aware of behavior, tastes and preferences of various consumer groups then how cultural differences show themselves. Marketers who automatically place consumers in silos run the risk of 'minoritizing' certain ethnic groups and may miss the continuous changes in tastes that are occurring," says Joe Pillotta, Ph.D., CP of Research at BIGresearch.
Pillotta further states, "When marketers address Blacks or Hispanics strictly by demographics or socio-economic indicators, they automatically view them as being different from the norm. However, actual shopping behaviors are better indicators because they show that similarities and differences are two sides of the same coin, not opposites."
Moderator's Comment: What are some ways to expand use of purchase data to increase message relevance and impact?
Shoppers are exposed to lots of influences, regardless of ethnicity. These influences lead to tastes that are diverse and constantly changing. Targeted Loyalty Marketing programs based on demographic data are less and less likely to result in messages that connect with shoppers or deliver the business benefits you seek.
Collecting shopper data on the web, surveys and partnering with retailers who collect shopper purchase data are ways to go beyond demographics and get closer to individual shopper preferences. Individual shopper purchase data is the strongest indicator of ever-changing shopper preferences.
What barriers prevent more widespread use of shopper purchase data? Is the benefit of using shopper purchase data offset by the cost to employ it, or are old habits just slow to die? If the barrier is the cost, what are the largest of those costs? - John Hennessy - Moderator
- New Study Identifies Similarities and Differences Among Black, Hispanic and White Consumers - Retail Merchandiser
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