Like most retailers, you are probably well aware of the 80/20 principle which states that 80 percent of your sales are generated from just 20 percent of your total customer base. This well-known theory highlights the 20 percent of returning customers
The "Other" 80/20 Principle: Insights on Selling to Women By Valerie Otto Like most retailers, you are probably well aware of the 80/20 principle which states that 80 percent of your sales are generated from just 20 percent of your total customer base. This well-known theory highlights the 20 percent of returning customers, the very customers towards whom you want to focus your marketing efforts. What you may not be aware of, however, is another very important 80/20 principle — as much as 80 percent of your sales are purchases made by women. That also means that 16 of your 20 returning customers are women. According to Judy Hoyt Pettigrew, author of Women Mean Business: The Secret to Selling to Women, the economic power of women is substantial. Some of the statistics include: · Women purchase 80 percent of consumer goods (that includes 75 percent of OTC drugs and 80 percent of health care decisions). · Eighty percent of all checks written in the U.S. are signed by women; · Forty-seven percent of all stock holders are women. · Forty percent of households with assets more than $600,000 are headed by women. · By 2005, approximately 70 million women will work, compromising 55 percent of the workforce. In addition, 50 percent of all businesses will be owned by women and 4.7 million women will be self-employed. WOMEN AND NATURAL PRODUCTS A woman in the household is especially influential when it comes to buying natural products; let's not forget it was woman who drove the organic produce resurgence. Further, she will make more of these purchases for herself as she gets older, as she has different nutritional needs than a man. In 1998, the U.S. Surgeon General predicted that gender will be the most important factor affecting people's health in the 21st century. According to Dr. A. Elizabeth Sloan, president of Sloan Trends & Solutions, women become more active in their health and nutrition as they increase in age, education, income, and health conditions. Baby boomer demographic projections support this market, as the number of women older than 40 will grow to 73 million by 2010 and 80 million by 2020. Women are less confident that their daily intakes of food satisfy their nutritional requirements, and a very high percentage of women want to learn about food that addresses health concerns, including those that help boost the immune system (79 percent), improve cardiovascular health (73 percent), and nurture skin (69 percent). In addition, 62 percent of women want more information about herbal remedies, and 68 percent want to know more about vitamins and minerals. This means a great opportunity for both manufacturers and retailers in the Natural Products Industry. It is vital that we respect a woman's needs and intelligence or we will lose her interest as a customer quickly.

SELLING TO WOMEN

There are five basic factors to keep in mind when selling to a woman: 1. A woman buys with both her head and her heart. She wants detailed information about product benefits and ingredients, and she is also looking for a pleasurable experience. 2. Women respond to convenience. The biggest complaint women have is that they never have enough time. Their responsibilities leave them feeling rushed and pressured a lot of their day. If you save them five minutes, they'll be singing your praise all day. 3. Women can see right through any standard sales pitch. In general, they respond to a Dale Carnegie rule that says, "People want to know how much you care before they care about how much you know." 4. Women often buy from the periphery. Starbucks is a perfect example of how to take advantage of this. Notice how their stores have CDs on the counter; the coffee company knows women like music but won't usually take the time to actively purchase any. 5. Women care about whom they buy from. They will pay up to 20 percent more for a product or visit a store if they feel that the business owner is trying to make the world or the community a better place. If you sell to these characteristics and attend to a woman's style of buying, she will return more frequently to your store as opposed

SMOOTH TIPS ON SATISFYING WOMEN (AS CUSTOMERS) What follows are some suggestions to help bring more women in the local community to your place of business.

Recognize your role in this industry and be committed to developing this market. This is not about a "woman's sale," or about a promotion or discount coupon in the local paper. It is about paying attention to what works for her and continually adapting what your store has to offer, how it is organized, and the degree to which your staff is trained. Recognize that women look to store owners and managers as the "gate keepers" of the Natural Products Industry. All the confusing press surrounding natural products and supplements in particular makes this role very important. A woman will seek your advice as to what's new, what works, and what to avoid. If she trusts your honest opinion, even if it doesn't result in a sale that day, she'll return regularly.

Work at making her shopping experience convenient. Pay close attention to her entire buying experience. Is there plenty of parking? If your store is in a city, do you offer to help carry the packages to a cab or bus? Is there enough room in the aisles for a baby stroller and another person to get by? Is the bathroom cleaned regularly? If she needs to, can she sit down for a minute? Is your staff trained to ask her if she needs help to carry a heavy cart or take her other packages where she can easily pick them up later? Does she have to wait on line longer than a few minutes when there is clearly another register that can be used? These are the types of everyday experiences that are important to women. Sell to her peripheral vision. This includes everything from requiring her to walk down the children's and women's aisles to installing a literature rack near the ladies room. If your store has a deli counter or juice bar, have different items in front of her while she waits, such as power bars and other snacks. Information about all of your products should be readily available. In general, it's a good idea to have a reliable book or two in the supplement section for the sole purpose of reference. It will sell more supplements.

Be where she is going. Be more than just brick and mortar. Sponsor "lunch break" talks on health topics at some of the larger companies in your area. Do partnerships with schools or little leagues, and provide refreshments for kids as well as discounts for adults. Consider partnering with local gyms, spas, and family practices to offer discounts at certain times of the year on related merchandise. This also let's her know that you are visible and care about the community.

Appreciate her business. Slip a postcard in her bag to let her know of your gratitude, along with an added discount on her next purchase. Offer a birthday special, where a woman gets a free gift with a purchase in the month of her birthday. Send her a birthday card to remind her of this special offer.

Find your own voice. This is not solely about catering to women — it's also about what you are passionate about. If it's organic foods, then make that your area of expertise. If you identify what motivates you and what your focus is, women will be attracted to your business, and you will have a better chance of becoming a regular destination. This way, not only do you get more repeat customers (and more sales), but you also get to do more of what makes you happy.

About the Author

Valerie Otto has long been involved in issues of women’s health and well-being. Oöna, her new venture, offers an effective, natural alternative to hormonal replacement therapy for women experiencing menopause. For more information about Oöna or founder Valerie Otto, please call Oona Health Inc. at 1-888-596-5154 or visit us on the web at www.oonausa.com.