I've written previously about footfall and concluded it's a useful but erratic tool for monitoring mall performance. Erratic, in that falls in shopper numbers can mask increases in sales revenues, as has been the case since November. Conversion, frequency and spend are more valuable measures to get behind crude shopper data to focus on real shopper behaviour.
To make these more meaningful, we analyse a centre against our benchmark which is based on over 120,000 shopper interviews. This allows managers to develop a marketing mix linked to clear objectives. The marketing mix is that combination of inputs that affect shopper behaviour. These traditionally encompass seven variables "the 7 P's": product, price, promotion, place, people, process and physical evidence.
The fly in the ointment is that shoppers are not a homogenous grouping. A marketing initiative for fashion and cosmetics which appeals to a 24-year old pre-family woman is unlikely to appeal to her 45-year old mother as each has distinct needs in terms of product, price and promotion.
Brand owners understand the distinction and behave accordingly but shopping centre marketeers have been slow to grasp or apply the concept. In future we will see more segmenting of shoppers into distinct groups, each characterised by particular tastes and requiring a specific marketing mix.
We have been applying a survey based algorithmic model called Sesame to quantify the incidence and value of shopper segments which are classified by gender, life-stage and motivation. Inevitably, such modelling carries a price tag which budget conscious managers might baulk at.
So, a suggestion. Get a team together of people whose views are relevant and informed and brainstorm the segments. Narrow them down to two or three and then apply the 7 P's. It won't be very scientific but it will be a good starting point and hopefully very illuminating.
Stephen Logue, chairman,
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