Who Still Spends? Hint: Here's How To Market To Him

By Matt Pillar, Editor In Chief, Retail Solutions Online/Integrated Solutions For Retailers

I find the "what recession?" mentality ignorant and irresponsible, but according to new research, I'm still 10% more likely to keep spending than a woman is.

A full 72% of women cut their spending "moderately to significantly" in 2009, compared to 62% of men. These figures are according to new data from customer experience management solutions provider Empathica. In a survey of more than 7,200 consumers, the company found that only 5% of the population spent more in 2009 than they did in 2008.

Empathica EVP Gary Edwards says there's more intelligence to be gained by understanding the nuances of spending motivation by gender. "Knowing the demographics of your top promoters, and your top detractors, can be key in establishing a better customer experience, and ultimately catering to what the customer desires from your business," he says.

To that end, a 2007 study by researchers at Wharton's Jay H. Baker Retail Initiative and the Verde Group, a Toronto consulting firm, found that men respond positively to the utilitarian aspects of the shopping experience. Most important to men are the availability of parking, in-stock positioning, and the length of the checkout line. According to the report, titled Men Buy, Women Shop, "The problem most likely to result in lost business from men is if the product they came to buy is out of stock; about 5% of all male shoppers could be lost to stores for this reason."

Women, on the other hand, react to personal interaction with sales associates. For them, "lack of help when needed" is the number one shopping problem (29%) and the likeliest reason for stores to lose their business. According to the report, lack of sales help could result in the loss of about 6% of female shoppers.

Which segments are most troubled by recession-related reductions in spending? The Empathica study found that the overall sectors most impacted by a reduction in spending were hotels, bars, airlines, dining establishments, electronics stores, and furniture stores. Pharmacies, supermarkets, gas stations, and other staple goods and services were the least affected by those who cut back on spending.

In-stock positioning and customer service appear to be two areas you can't afford to compromise due to slow sales. In fact, according to this research, you should seek to improve these areas because of slow sales. Join the discussion by joining our LinkedIn group here: http://www.linkedin.com/groups?gid=2264725