According to the September 30, 2010 article Giving Affluents the Luxury Treatment Online from eMarketer.com, affluent customers (defined as people who make more money than I ever will) make up a disproportionately large share of online retail spending growth compared to their more numerous proletariat counterparts.
Further along in the article it brings up the point that “Few online retailers are taking advantage of personalized product recommendations and other online tools that would reflect their understanding of their customers’ wants and needs” and that affluent shoppers “expect retailers’ websites to replicate the same shopping experience they offer in their stores”.
While Target is not necessarily considered a luxury retailer it is definitely perceived as a step above its direct competitors and wealthier patrons do seem to shop there. (Last I checked you don't get rich by spending more than you have to.) Target's web site seems to be doing a good job of meeting or exceeding the experience demanded by theses discerning customers.
Target.com takes excellent advantage of many internet commerce strategies that have shown success at improving the customer experience which can woo these moneyed shoppers. On each item page are recommendations regarding what other people who looked at the same item bought (gotta keep up with the Joneses) as well as product reviews from other customers. This is further enhanced when an item is added to your cart as a confirmation window pops up which also contains items bought by similar customers.
In terms of replicating the shopping experience offered in the store I'd say the website improves upon it in several ways. First of all there are no lines, as is true of all online shopping so the wealthy do not need to mingle with the “help”. And detailed information on all products is fully available on each products page. An affluent shopper used to dealing with professional and knowledgeable employees at a high end shop are not likely to find that experience in a retailer like Target, so having all the info they need online is a definite improvement.
Dare I say it? Target seems to be on target with their website!
Keith:
ReplyDeleteI enjoyed reading your blog post this week. Building upon your assessment of the Minnesota based Mega Retailer, I thought you'd appreciate the assessment of another blogger, who labels Target Corporation as, "the purveyor of all things cheap, yet chic."
http://www.dailyfinance.com/quotes/target-corporation/tgt/nys
Target has created its own marketing space by positioning away from the competiton and in the minds of customers as a "high-end/low price retailer." They operate the the #1 wedding registry in the U.S.
ReplyDeleteVery well put together post. It is interesting to note that the majority of online purchases are made by the more affluent sector of society. It does make sense…they have more money to spend. With that in mind, customization and personalization should be key elements of every website as the wealthy have a tendency to enjoy being catered to.
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