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All customers are not created equal.
During Lowe's annual conference Tuesday, senior VP marketing and advertising Tom Lamb defined the company's target customer by first breaking down home improvement consumers into four distinct groups.
Lowe's target, he said, is on the two largest spending groups, together called "creators."
Understanding the target customer is a key to the company's strategy of using the best combination of support and value, wherever and whenever customers choose to engage. Based on market analysis, Lamb pointed to four groups of customers, each with primary shopping motivation that influences their habits.
• "Diligent maintainers" are those who get the project done and move on. They represent 15% of households and 10% of home improvement spending;
• "Opportunistic diehards" are those who relentlessly search for the best deals. They represent 20% of households and about 20% of spend;
• "Inquisitive curators" are those who seek out expert opinion and innovation for their home as a retreat. They represent 30% of households and 30% of spend; and
• Finally, the "trendsetting upgraders" are those who love exploring and experimenting with their homes. These consumers represent 30% of households and 40% of spend.
Lamb described the target customer as a combination of "inquisitive curators" and "trendsetting upgraders." Together these two groups are described as "creators," and they represent more than 70% of home improvement dollars. Creators value reputation, customer experience, product range, availability and good value, he said.
"By meeting the home improvement expectations of the creator customer, we will exceed the expectations of all customers," Lamb said.
The creator mind-set also applies to the commercial business customer, who makes up about 25% of Lowe's sales today, he added.