YOU ARE GETTING OLD. RECIPES TO ATTRACT YOUNG CUSTOMERS.
YOU ARE GETTING OLD. RECIPES TO ATTRACT YOUNG CUSTOMERS.
The average age of most hardware store customers in Spain is very high.. The average age of ironmongers, too, is possibly older. Just last week, Alfredo Díaz of COMAFE shared the same concern with me. They had carried out a market survey in many of their associated hardware stores which had confirmed that their majority customer base is over 50 and that very few young people enter the hardware store. Any surprises?
Fear of the unknown, not trying new things, rejection of new trends, not knowing or not wanting to adapt to the tastes of young people, lack of training, mistrust of the profitability of actions aimed at connecting with the end user, or lapidary phrases such as ‘things have always been done this way’, are widespread illnesses in the sector. I have good news. There are remedies.
Surviving into retirement or investing for the future?
First of all, you must decide whether your goal is to survive the last years until you retire without complications, or whether you want your business to thrive and evolve to live better for many years to come. you will have to train, listen to young people and help them with their needs and expectations around improving their homes.. I can't help you figure out which group you are in, it's a very personal decision. There is no right answer. Only one requirement if you belong to the first group: you must have a good income because your business will inevitably go down. If you belong to the second group, I have good news and bad news. The bad news is that I cannot assure you that you will do better or worse than you are doing now. The good news is that you will have a good chance of making a name for yourself in the sector, consolidating and growing.
Here are some solutions to incorporate in your hardware store or business to attract young people. Whatever age you are, you need them, because they also have to deal with home repairs and because they have shown that they are also interested in DIY. Here we go.
1. Be excellent in your customer service. Inspire them.
At Handfie we recently conducted a survey of people between 25 and 50 years old. 78% of the 100 respondents confirmed that they do not have a trusted hardware store. By contrast, you will agree with me that IKEA is a company that appeals massively to young couples. Well, on their new website, they have incorporated a new specific section called DIY. Here I show it:
I know, it's a very poor selection and they are low quality products. You'd better put it to me! What I can assure you is that the young customer comes out shopping much more informed than they did years ago. There will be some young people who come into the hardware store for the first time looking for a top of the range electric screwdriver and if you sell them one that exceeds what they were prepared to pay, they may not come back. However, if you give them exquisite, well-informed attention, taking an interest in their needs, asking them about other issues you can help them with, They don't do that at IKEA. One thing IKEA does great, possibly the best, is to inspire, to inspire through the eyes. Do you see that among the product offering there is a video? It explains how to put pads on chair legs so they don't scratch. Simple, but effective. Use video to inspire.
2. Technology at the point of sale.
I'm sure you are familiar with the photo on the left. The photograph was taken in 1945 and captures the passionate kiss of a sailor and a nurse in Times Square, an hour before US President Truman declared Japan's surrender in World War II. I'm sure you've seen it many times.
On the other hand, you may not be familiar with the drawing on the right. It belongs to Banksy, a British artist who has become famous for depicting scenes representative of the 21st century on walls around the world. This drawing, made in 2014, shows a couple embracing in a romantic position while paying attention to each other. smartphones. You may not have seen the drawing, but you probably see similar scenes every day.
Young people are regular and massive users of technology. And they are no better or worse than older people who don't use it. Is that clear? I regularly hear people criticising those who walk into their hardware store and start looking at their mobile phone for information on Google or prices on Amazon. Do we despise ALL young people? Because these are the new habits of your customers. Young people writing on Whatsapp looking at their mobile phones while crossing a pedestrian crossing; sitting on the sofa watching the latest episode of Game of Thrones while searching on Google who is that character they can't remember; in the hardware store in front of a shelf with their mobile phone in their hand doing a search on Amazon.
If you don't adapt to their behaviour, you are giving up their buying power. Understand and use their technologies and incorporate them into your point of sale..
3. The beautiful and experiential sells (much) more.
Last week a new flower shop opened in my neighbourhood. But not just any flower shop, but the most beautiful one I have seen in a long time. Before, I used to buy flowers in other flower shops in the neighbourhood, I have at least 4 within 5 minutes walking distance from home. Do you know which one I will go to from now on? Look at the pictures and tell me what you would do. At least, you will recognise that first impressions are crucial and from there, you can continue to win over your customers with everything else.
On my way home from the office, I have to drive past the new flower shop. There are always people inside and looking in the window and I can assure you that the average age is no more than 40. To the young people we like beautiful shops, which take care of their appearance inside and out.. I also know some very nice hardware stores, for example, Leonesa in Madrid and Keerl in Barcelona. There need to be many more.
4. Product and design innovation.
Last week I was reading an article in CdeComunicación about the company Elektro3, where they explained their philosophy when it comes to innovation, which seemed to me to be very accurate. They said the following: ‘if something doesn't work, we kill it immediately by selling it at an opportunity price and invest the money and time in new lines of business’.’. In Spain it is very typical to criticise failure and make firewood out of the fallen tree: ‘it was coming’, ‘I said so’, ‘this had no future’. This is the opposite of what happens in the United States, where the concept of trial and error is part of their idiosyncrasy in life and in business.
When I go into hardware stores, I am rarely surprised by new products that are trending among young people. Wi-Fi sockets and locks, pallets, desk-top grilles, cute little appliances, a range of top of the range kitchenware... I recommend you visit the home automation section from Amazon, I'm sure you can copy their ideas.
Another way to innovate is in shop windows. As I said before, you have to be presentable inside and out. To get the window display right, showcase seasonal products.. Google Trends is a free web application that shows users' search trends on Google. Look at what is happening with LED bulbs. People search for LED bulbs mainly in January. Did you know that?
5. Hyperservice.
As I wrote in an article in March, on hyperservice is to do what you used to do as usual but in an improved format. or even exaggerated, usually without charging more for it. At the weekend I went to the new Carrefour on Conde de Peñalver street in Madrid, a success story in omnichannel and new shop formats. On the left hand side as soon as you enter, the following sign stood out.
Packed with new services not provided by other shops -including other Carrefour stores-, where most of them are free. Free Wi-Fi, free parking for 2 hours if you shop, mobile phone chargers, home delivery service, single queue, shopping help screens, displays with suggestions, etc. And a handful of new services which, although at a cost - it couldn't be otherwise - are very interesting and relevant for Carrefour customers. Dry-cleaning service, dog care, repair service - locksmith, plumbing, electricity... Yes, you read that right! If you don't offer them yet, Carrefour has also overtaken you on the right. You don't offer yet professional services? I have listed other possible value-added services in other posts: workshops, digital catalogues, inspirational videos, home delivery service, Whatsapp customer service channel, etcetera.
Don't waste time criticising young people. Assume that times are changing and that you need them to grow your business. And maybe if you can attract them to your hardware store, you might get younger too. Attracting young customers is a win-win situation - don't stop innovating!
English