Furniture Retailers Are Missing Key Opportunities With Younger Consumers:

Furniture World Magazine

New ADVO Survey Shows Younger Consumers Buy More Often, But are Less Satisfied Than Their Older Peers Younger consumers buy furniture more frequently than their elders, but are less satisfied with their store experience and less likely to return, according to a new consumer survey by ADVO, Inc. The survey found that 63 percent of consumers aged 18-34 buy furniture every 3 years or less, compared to 53 percent of those aged 35-54, and only 33 percent of consumers aged 55 and over. At the same time, only 67 percent of consumers in the 18-34 year-old category were satisfied with the salesperson who sold them their furniture, compared to 80 percent of consumers aged 35 and over. And, only 62 percent of 18-34 year-olds plan to return to the store where they made their purchase, compared to 75 percent in the 35 and over age group. "Our new study shows that younger consumers are a highly attractive group whose needs are apparently being overlooked by many furniture retailers," said Sheila McCusker, ADVO's Director of Strategic Business Planning. "These consumers are more likely to be repeat furniture buyers and to have a high lifetime customer value. Thus, they should be a key target market. Our findings suggest, however, that furniture retailers are not doing enough to satisfy and retain younger consumers." The consumer survey was conducted for ADVO by the NPD Group, Inc. among their Home Testing Institute (HTI) Consumer Panel. It included questionnaires completed by over 1,000 purchase decision makers in households that had made a major ($ 100 or more) furniture purchase in the previous six months at a furniture, department or discount store. The study was developed to help furniture retailers understand how and why key decisions are made in the furniture buying process. ADVO, the nation's largest targeted direct mail marketer, distributes advertising for many major furniture retailers across the country. ADVO's findings also showed that younger consumers are more price sensitive than their older counterparts. In the 18-34 age group, 58 percent cited "best price" as a key factor in selecting a store, versus only 45 percent of the 55-plus age group. Among these younger consumers, 47 percent listed "low price" as a primary reason for making a purchase, compared to 31 percent in the 35-54 age group and only 20 percent of those 55 and older. The new survey also focused on how long consumers shop for furniture, the extent of their research, and what factors ultimately influence their buying decision. Findings include: The average time spent shopping for furniture is 5.5 weeks; the average length of time between purchases is 4 years. Sixty-four (64) percent of consumers have "no idea" what brand of furniture they want and 42 percent have no idea what model they want when they start searching. The average consumer shops at 3.4 stores before making a furniture purchase. The top way consumers learned about the store where they made their purchase was because they "had purchased items there previously" (57 percent), followed by "have known about the store for some time" (53 percent). Fifty-five (55) percent of consumers compared advertised prices to help determine where they will shop for furniture. Eighty-four (84) percent of consumers visited the store in which they made their purchase at least two times - I I percent of consumers visited five times or more. The number one reason consumers selected the store in which they made their final purchase was because the store "had the item I wanted" (74 percent), followed by "offered the best price" (53 percent). "Generally has good prices" and "has large selection" tied for third place with 46 percent each. "There are clear advertising implications in our research for furniture retailers," said McCusker. "Since prior knowledge of the store is important for the majority of consumers, furniture retailers should focus their advertising on awareness campaigns targeted to new customers as well as on retention programs for existing customers. In addition, it is important to communicate price information -- specifically, general price ranges -- in advertising. In contrast, focusing on specific furniture brands and models should be a lower advertising priority. Finally, as the purchase process is relatively long and infrequent, frequent communication with consumers is critical to maintain top of mind awareness." ADVO is the nation's largest full-service targeted direct mail marketing services company with annual revenues of over $1 billion. ADVO specializes in shared and solo direct mail services and provides customized Microtargeting@ solutions at an affordable price for its clients' print advertising needs. The Company's Mailbox Values@ branded shared mail program is distributed nationally to approximately 60 million households weekly. An additional 16 million households can be reached on a shared mail basis through ADVO's National Network Extension (ANNE). ADVO has 19 mail processing facilities and 65 sales offices nationwide. ADVO's corporate headquarters are located at One Univac Lane, Windsor, Connecticut, 06095. The Company can be visited at its Web site at www.advo.com. 9 # # For More Information on ADVO's The Furniture Purchase Process: Key Drivers of Consumers Decisions, Retailers Should Contact Sheila McCusker of ADVO at 860/285-6145.