Refine Appeals to High- and Low-Income Shoppers: NGA

Retailers that market to the great middle ground of their shopper base believe they appeal to a maximum number of targets and maximize results. By segmenting, however, stores can sharpen their offers to particular groups of shoppers.

Retailers that market to the great middle ground of their shopper base believe they appeal to a maximum number of targets and maximize results. By segmenting, however, stores can sharpen their offers to particular groups of shoppers.

To court high- or low-income shoppers, for example, retailers can use insights contained within the National Grocers Association 2010 Consumer Survey Report to better understand their expectations of food stores, which they feel strongly about.

Here’s a sampler of key points:
HIGH-INCOME SHOPPERS/$105,001 or more annually

• Two of the upper-income groups want items on sale or money-saving specials almost as much as the low-income groups do. The economic pinch affects everyone, and the thrill of savings gives shoppers a rush.
• Less patient at the front-end, they account for 28% who think fast checkout is ‘very important.’
• Although fewer than one in 10 respondents overall (6%) have downloaded a food or beverage app, there’s an upscale skew to this behavior. Ten percent who’ve done so earn $205,001 or more per year, and 23% who’ve done so are in the $85,001-$125,000 range.

LOW-INCOME SHOPPERS/ $65,000 or less annually

• Account for 62% of mass channel shoppers for food, in order to save money.
• Comprise the largest plurality (44%) that calls high-quality fruits and vegetables ‘very important.’ This could reflect their limited access to stores making this a priority, and their desire to shop at retailers that do.  Related, 42% (the highest plurality) rate their primary store only ‘fair’ on having nutrition and health information available for shoppers.
• Account for 56% of survey respondents who say price is ‘very important.’ Although these low-income shoppers lead respondents who rate their primary store ‘excellent’ on this measure (49%, down from 52% a year ago), they also account for half (50%) who cite price/cost savings as the most desired improvement they want from their primary food stores.
• Make up 47% who call convenient location ‘very important,’ because cars and fuel money may be less available.
• Form the majority (52%) who think items on sale or money-saving specials are ‘very important.’ These same shoppers account for 48% of survey respondents who rate their primary grocery store ‘excellent’ on these savings mechanisms.
• Comprise half (49%) who say a frequent shopper program or savings club is ‘very important.’