Today's Female Customer - Loyal or Not?

I need help! That's the way the phone conversation began when an owner of a small repair shop called our office a few months ago. He told us that 75 percent of the customers on the other side of his service counter were women and he had never related very well with female customers. Being able to relate with women hadn't mattered so much in the past but now that his customer base had shifted to primarily female, he was concerned about the future of his business. Rightly so- who wouldn't be concerned if they felt like they weren't relating well with 75 percent of their customers!

At first, it seemed like this gentleman must be doing fairly well to have brought in that many female customers in the first place. Why not just keep doing what he has always done? Why would there be any risk of losing customers at this point? The truth is, a business like the one described above may not have done anything to attract female customers other than just being in the right place at the right time with products and services that are in high demand. The huge increase in female customers in the automotive industry has more to do with shifts in the overall marketplace and in the larger economy than it does with how we conduct business.

Most of the clients we work with and people who attend our AMI seminars tell us that women make up anywhere from 60 percent to 80 percent of their customers. Most of them report that this shift in their customer base has happened within the past five years. That's big change! They realize that the future success of their businesses depends on how well they adjust to the unique needs and customer expectations of female customers.

One of the things we talk about in our seminars is how female customers tend to be very loyal. Women have historically scored quite high on the loyalty scale in consumer research studies. More recent research, however, indicates that today women are more likely to "walk" if they aren't recognized and respected as decision-makers. If they don't get the customer service they expect from your business, they'll go elsewhere. They are increasingly likely to shop around to find services, products and respect. They are less likely than ever before to put up with high-pressure sales or mediocre service.

What's up with this? Are women becoming less loyal? Was the research wrong in the first place? No, women are still loyal customers, but not just for the sake of loyalty. What has changed is that they have more choices as consumers today. Women have an incredible amount of purchasing power- and businesses and industries are beginning to catch on as they take action to attract female consumers.

We're on the leading edge of a huge trend in marketing to women that will impact all of us in one way or another. Every day it gets easier for a woman to find another business that will meet- and perhaps exceed- her expectations. The businesses that actively improve their understanding of the female consumer and how to meet her consumer needs will stay on the competitive edge by keeping their female customers. No, the loyalty factor of female customers hasn't changed. What's changing is the number of choices she has about where she'll place that loyalty.

The shop owner in the opening story realized that although he hadn't done anything in particular to bring those customers in, he would have to take action to assure that they came back. What about you? Has your business seen a huge increase in female customers? How well are you serving those customers? Do you know what keeps them coming back? What if your biggest competitor were to begin to actively market to women? Would your customers stay with you- or would they be lured away?

It's certainly not new to think of customer retention as a key factor for staying in business. The gentleman in the opening story didn't need a marketing plan. What he needed was a plan for keeping the customers that were already there. How was he going to do that?

The adjustments you need to make could be as simple as cleaning up the waiting area (that's one we hear a lot!). It could be as complex as educating your customer service people or improving the attitude of your technicians. Whatever it takes, learning how to keep female customers may be key to the future success of your business.

Generally speaking, we don't have to second guess to find out what female consumers want. Because women are responsible for 85 percent of consumer spending in the United States, there's a tremendous amount of research already available about female consumers. Search the Internet, watch the newspapers, attend sessions at your association events, read trade publications and talk with colleagues. The information is out there. Find it and use it before your competitor does.

As helpful as it is to have all that information at our fingertips, don't overlook your most valuable resource- your current female customers. What do they like about doing business with you? What keeps them coming back? What's missing? What could improve? Consumer research indicates that women like to respond to surveys and questionnaires. If you want information about your current customers, ask them! If you have the resources, conduct a focus group made up of current customers. You'll be amazed at the usefulness of the information.

We can advertise and market and get in front of all the strangers we want to, but it's always our current customers who keep our businesses afloat. Ask them for feedback and be willing to implement change in response to what they tell you.

Sounds simple, doesn't it? Yet, it isn't as simple as it sounds. This market shift is very significant. Most businesses don't understand what a huge long-term impact it will have on all of us. Women are driving the marketplace- and yet are still seen as "non-traditional" customers in the automotive industry. Most of our customer service, sales and other business strategies were designed with a traditional male customer in mind. Today we are serving a new customer. This means change in every aspect of our businesses.

Have you made some changes? How have you adjusted your business practices to incorporate and welcome the growing influence of your female customers? What are you doing to assure that they remain your customers? Now is the time to stop and ask yourself these questions. We are still at the beginning of the market shift. If you've already experienced an increase in female customers, you have probably been fortunate to get these customers without even trying. If you can gain their loyalty and give them good reason to stay with you, you will have a strong competitive advantage in the new millennium.