Pubs, bars and restaurants need to understand the behaviours of their consumers and not just their demographics, CGA’s retail Business Unit Director Jamie Campbell told the Casual Dining show—and CGA’s segmentation tools can help.
The new service can help brands to target their core markets—the 30% of people who account for 70% of all eating and drinking out visits—and is particularly helpful when trying to appeal to millennials. With 18 to 34 year-olds accounting for 55% of all eating occasions and 61% of drinking occasions, their importance to brands is obvious.
But it is too easy to pigeonhole this group, Campbell said. Some millennials fit the popular image of early adopters and heavy spenders—but others are risk-averse and prefer mainstream brands. “The perception of a millennial as one particular type of person is false… Looking at things from a behaviour perspective is very important.”
CGA’s segmentation tools help by breaking down brand use, visit frequency and opinions to create ten different consumer types. They include ‘Trending Tastemakers’—people who are busy but like to be the first to visit new and trendy places. CGA data suggests they are driven by factors including recommendations, value for experience and choice of drinks, and the quality of vegetarian, vegan and healthy food is an important consideration.
Another group is ‘Confident Conformists’—comfortably-off people who eat out regularly but tend to follow trends rather than set them. These people are more driven by convenience, ambience and value for money, and have high expectations. They spend an average of £11.79 at a brand—compared to the £14.88 average of ‘Trending Tastemakers’.
Understanding the differences between consumer types like these can help to drive loyalty in a fickle marketplace, Campbell said. With ‘Trending Tastemakers’ having an average of 15 different brands in their repertoire—and ten that have lapsed in the last six months—it is essential to properly understand their motivations. “This churn of brands is really significant… it shows how quickly people change their opinions of brands, and how important it is to deliver against their expectations,” Campbell said. “The biggest challenge is ensuring you remain part of their repertoires.”
For groups like ‘Trending Tastemakers’, the trick is to offer something fresh without compromising other brand users. “You need to make sure you’re delivering something new and relevant—without chasing every trend under the sun,” Campbell said.
For more information about CGA’s consumer segmentation tools, contact Jamie Campbell at jamie.campbell@cga.co.uk.
