23 Jul How to Sell to Spendsetters: 1/3 of All Consumers
Spendsetters represent a third of all shoppers, and 52% of millennials. Unlike millennials though, the term Spendsetter isn’t age-specific, rather it reflects lifestyles and shopping habits. Spendsetters are early adopters, rather than change resistors. They embrace, and sometimes demand, new solutions driven by emerging technology. Retailers simply cannot afford to ignore this growing 33% of the market.
Spendsetter Preferences and Defining Characteristics
According to a survey by Adyen:
- 42% of Spendsetters would rather not walk into your store
- 45% of Spendsetters want to believe in your brand’s value proposition, and will pay more for premium experiences
- 80% of Spendsetters aren’t afraid of using digital wallets to pay you
- 86% of Spendsetters will leave your store if the line up is too long
Who Are Spendsetters?
Based on the numbers, Spendsetters are a mixed bunch. They want to engage with retailers and embrace their purchasing experiences, but it has to be on their terms. That’s what makes selling to Spendsetters tricky.
Understanding the Spendsetter Mindset
Spendsetters place heavy emphasis on three core values, and retailers who don’t “get it” won’t be successful in selling to this group.
- Convenience: Spendsetters want fulfillment options that work for them.
- 75% would shop more at a store that supports “just walk out” payments.
- 69% would shop more in-store if line-ups were shorter.
- Context: Spendsetters want two-way interactions and relationships with brands before they even arrive in stores.
- 57% want to be able to check inventory levels online.
- 61% want personalised experiences based on their purchase history and preferences.
- 72% would shop more if they had personalised product suggestions and promotions.
- Control: Spendsetters aren’t afraid of giving their money to retailers who understand and appreciate their core values of Convenience and Context.
- 80% use digital wallets and 59% of Spendsetters would use a store’s own app to pay
- 53% would shop more if a chat bot gave them personalized recommendations
How to Sell to Spendsetters
There are a few key steps you can take to cater specifically to Spendsetters, and take advantage of this huge share of the market. At a high level, you’ll need to take a truly omni-channel approach in order to reach Spendsetters, because they want consistent visibility and accessibility across all channels to so many different parts of your business. So what strategies and tactics should retailers take?
If you want to sell to Spendsetters, you have to meet them where they want you to be, instead of making them come to you. You need to offer them the control to choose their preferred payment and delivery methods, and provide them a personalized and/or exclusive experience. In short, your retail business needs to embrace technology just like they do, but how? By leveraging Retail Predictive Analytics for your business optimization and new technology for improving your customer experience.
Retail Predictive Analytics to Optimize Your Business
A well-designed Predictive Analytics Engine like Retalon is built on a unified platform, able to see data from all lines of your business, build a highly-accurate demand-based forecast, and proactively give you recommendations on how to maximize your ROI. Benefits include:
- Price Optimization: Price Optimization solutions help retailers set and maintain optimal prices and handle new product introductions, perfect for reaching the early-adopter Spendsetter who will pay a premium on a new and exclusive item.
- Smart Allocation: Retail localization that automatically account for existing stock, assortment distribution, and drills down to SKU performance at a channel/location level, essential for the flexible fulfillment options that Spendsetters want.
- Personalization: AI and Predictive Analytics can uncover behavior-based shopping patterns far more efficiently than humans. These systems apply learned behaviors to create product recommendations and personalization for Spendsetters, motivating them to shop 72% more.
New Technology to Optimize Your Customer Experience
There are many other excellent tactics available for reaching Spendsetters, depending on your industry.
- For Automotive Parts/Service: Amazon has aligned with Sears to sell tires online, and then have them delivered to Sears automotive retail locations near customers for installation. It’s a marriage of an established retail chain with new technology and channels.
- For Beauty: Coty uses blended reality beauty magic mirrors to simulate how different lipsticks and make ups would look on customers when they stand in front of a mirror, allowing customers to have a rich, immersive experience, and try before they buy.
- For Furniture: IKEA uses showroom space in their retail stores to let shoppers experience fully-furnished IKEA rooms look like. Now Wal-Mart is bringing the same showroom concept to virtual reality headsets, allowing Spendsetters to experience their showroom displays from anywhere.
Spendsetters are too big of a market to ignore. Luckily, Retailers have a wide variety of tools and options available to them when it comes to selling to Spendsetters. The golden rule is to give them the convenience, context, and control, that they’re after. Retailers who do this while embracing new technologies will build great relationships with customers who are willing to pay more for a premium experience. Leveraging retail Predictive Analytics will make sure that your business is optimized and prepared to maximize profitability.
Adrian Silipo is the Marketing Manager at Retalon, an award-winning provider of retail Predictive Analytics solutions for planning, inventory management, merchandising, pricing, and promotions. Retalon’s solutions are built one unified platform to account for all factors influencing your business. Learn more at www.retalon.com.
- 30 August, 2019