Shoptalk: Neil Portnoy, Assistant Vice President of Consumer Durables, CLARITAS (a market research firm)
“It’s time for photospecialty stores to think a bit differently about how they go to market. For example, if dealers don’t have the ability to rank ZIP Codes by propensity to purchase a SLR or compact camera then they end up going to market believing all ZIP Codes deliver the same value to the organization, which is not true.
Here’s a real-life example: I was consulting with a particular retailer that has 50 locations. I asked them what was their main advertising vehicle, and they said free standing newspaper inserts. I then asked how they determined which ZIP Codes to target? They said they didn’t have a process; they just delivered as many as their budget allowed. However, if their process was to rank ZIP Codes around each of their stores by propensity to purchase a SLR or compact camera, then they would be able to eliminate at least 25 percent of the households receiving those inserts.
We’d rather increase the frequency to ZIP Codes with the greatest propensity to purchase because that drives customers to stores and gives the dealer a greater ROI.”