Understanding Your Customers
Understanding the meat department’s customers and their buying and eating habits will assist the meat manager in making the best decisions in all aspects of managing the department – competitive positioning, assortment review, marketing, activity planning etc.
Information for better understanding your customers can be gathered from population demographics and customer research. However this type of data is no substitute for simply talking to customers and getting to know who is in your department and what they’re shopping for. Both meat managers and staff should regularly be on the floor speaking with customers.
Demographics
Demographics are the science of vital statistics and social statistics of populations. A wealth of demographic information is available on-line from Statistics Canada. A number of subscription-based services also analyze population demographics and predict what they will mean for the retail industry.
Following are some examples of population demographics and what they might mean for beef sales:
Canada’s population is aging
Seniors aged 65 and over will outnumber children in Canada by around 2015, the first time this has ever happened.
What this means for beef sales: Seniors eat smaller portions themselves and are usually cooking for only one or two people. Smaller cuts of beef such as quick roasts and medallions will be in demand.
Immigration exceeds natural population growth.
Since the late 1990s, more immigrants have arrived in Canada each year than the number of babies born minus the number of deaths of Canadians (natural population growth).
What this means for beef sales: Immigrants often introduce their native cuisine to their new country. The largest portion of the immigrant population is of Asian descent. Cuts that lend themselves to Asian cooking methods will likely be a growth category.
Canada’s Population Growth by Source – 1956 to 2001
Source: Citizenship and Immigration Canada
The Ethnic Shopper
Since the late 1990s, immigration has exceeded natural population growth in Canada. Statistics Canada forecasts that by the year 2016, the Canadian ethnic population of visible minorities will reach 22% of the total Canadian population. This segment of consumers will spend about $15 Billion on food each year.
What’s more, ethnically diverse communities and growing expenditures on travel expose all Canadians to ethnic foods, which they are increasingly enjoying both at food service and in their own homes.
Meat managers are well advised to understand the ethnic makeup of the community from which they draw their customers when planning their product assortments. Get to know the community. Visit and talk to those who are active in the community, such as community centres, local politicians and community leaders.
Once you’ve identified the ethnic groups in your community, talk to their representatives to find out how your department and your store can serve them better. Find out the types of products they want to purchase. Inquire if there are specialty products that they buy at certain times of the year, such as during festivals or religious events.
Once you have decided to carry ethnic products, display them prominently. Cross-merchandise with ethnic products from other departments to further enhance the store’s image with the ethnic community. Consider advertising in local ethnic media to draw attention to your products.
Ensure that your products are priced competitively. Find out what other retailers are marketing to the same community and check their product assortment and prices.
Research the cultural, social and religious events of the ethnic communities you serve, and ensure that you can provide any special products required for these events. Prominently display and promote ethnic products during these events.
The percentage of the population that is employed continues to grow.
The percentage of the population working reached its highest level in 31 years (63.5% of the population working full or part time) in March, 2007.
What this means for beef sales: Time for meal preparation will remain at a premium. Value-added heat and serve and ready-meals will continue to be growth categories.
Population demographics provide valuable information on general trends. However your customers may or may not fit with average demographics – for example, a store located near a college or university may have a clientele that is younger than the average demographic. Talking to and observing your own customers is still the best tactic.
Customer Research
The more in-depth your customer research, the better you will understand who it is that is shopping in your department and how they make their buying decisions. Market research companies can be hired to determine detailed information about your customers through surveys, interviews and focus groups.
Market research companies can likely give you the most detailed results. However whether you hire market research specialists or design your own customer survey, here is an idea of the type of information you will want to find out:
From your existing customers –
- What they think about your products and your product assortment.
- Why they buy from you and not one of your competitors.
- What they think of your prices.
- How they rate your customer service.
- How they think you could refine or improve your products, product assortment, or service.
From those in your service area who aren’t your customers –
- When and where they prefer to buy products like yours.
- What is preventing them from buying from you.
- What it would take to get them to buy from you.
The benefit of a formalized customer research study is to measure and record responses from a clearly defined customer demographic, giving you an assessment of your average performance.
Talking to Your Customers
Management and staff should look for opportunities to talk to customers as often as possible. As well as being an opportunity to gather information, being visible and available to answer questions is good customer service.
Beyond just asking if they’ve found everything they’re looking for, look for opportunities to ask customers what they think of your products and your displays. Ask them what their considerations are when choosing meat. And ask them how you could be doing a better job.
Develop a formal process for employees to report customer comments, so that they may be assessed and acted upon if required.
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