NFIB

Simple Ways to Collect Key Demographic Information
05/ 31/ 2002

Many retail storeowners grow green with envy when reading about the sophisticated techniques that larger companies use to gather information about customers. It's true that gathering demographic information takes a little effort, but when you have knowledge about your customers--ages, addresses, buying habits--you can meet their needs more accurately and maximize your advertising dollars by targeting your marketing. In today's Workshop, Jeffrey Moses provides a number of simple and inexpensive ways to learn more about your customers.

One of the most important items of information for retail stores--and all companies, really--is learning where your customers live. You may be surprised to learn, for example, that a large percentage of your customers live in a certain area across town, or even in a nearby town. This information can help you target your advertising by using local newspapers, flyers or direct mail.

To find out where your customers live, try the following:

1. During each sales transaction, ask for the customer's zip code. Most people will readily give this out.

2. Always ask if customers would like to receive special mailings about new items or sales. If so, take down their names and addresses. Be sure to record what the customer bought, so you can mail them information about specific types of products you think may interest them.

3. When customers pay by check, insert their addresses and phone numbers into your database. Again, record what they purchased and coordinate it with the customer's name. Do the same when you ship products.

4. Install caller-ID on your phones and record the area codes from which your customers are calling.

5. Have a weekly or monthly drawing offering free products or services. Place a large vase or bowl near your cash register and invite customers to drop in their business card or name and home address/phone. The more valuable the prizes, the more names you'll get.

Another important demographic is the age of customers. It's usually not appropriate to ask someone how old they are, so have your sales staff estimate the following age ranges: under 18; 19-25; 26-35; 36-50; 51-65; 66 and above.

Also instruct your staff take note of the following:

1. How long do customers spend shopping? Is there any way to encourage them to stay longer?

2. Are the majority of your shoppers men or women? Do men and women shop together as couples? When men and women shop together, who seems to make the buying decision?

3. Are there certain areas of your store that attract more attention? Are there some areas that no one seems to notice?

4. How are customers dressed? Casually? Dressy? In business attire? (This can help determine your best type of customer, especially when combining this information with actual purchasing records.)

5. Do your customers seem to know the store or are most first-timers? (This can show if you need to put more marketing attention on your previous customers.)

6. Do customers stop only at the bargain racks, then walk out? Or do they browse through the entire store?

7. Do customers ask questions or walk in, browse, then leave without saying a word? (This can help you know if your store has a friendly, relaxed feeling, or if it is too formal. It can also indicate if your sales staff is actively involved with customers.)

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