It may well be the calm before the Amazon retail apocalypse, but a new study by research firm Roy Morgan has revealed Kmart shoppers are the most satisfied of Aussies that shop at discount department stores.
According to the study, based on the responses of 9000 shoppers, customer satisfaction with Kmart in August 2017 was 87.6 per cent, which now places it ahead of its major competitors. This is an improvement from a year ago when it was ranked fifth, behind Target, Best&Less, Harris Scarfe and Costco.
Interestingly, the study also revealed Gen Z’s and Y’s penchant for discount stores (more on that below).
Over the last 12 months, Kmart improved its customer satisfaction rating by one percentage point, while its major competitors all showed declines, except for Big W which remained unchanged.
The biggest declines were for Best&Less (down 2.8 per cent points), Target and Target Country (both down 2.2 per cent points). These changes in satisfaction have now moved Kmart to the top satisfaction rating with 87.6 per cent of its customers satisfied, followed by Costco (87.1 per cent), Target (86.5 per cent), Harris Scarfe (85.9 per cent), Big W (85.3 per cent), Best&Less (84.7 per cent) and Target Country (81.2 per cent).
Discount Department Store Customer Satisfaction
Satisfaction levels are an indication of how well retailers meet the needs of their customers. The first step to achieving this for discount department stores is to understand some of the top level differences in customer profiles between the majors. There are for example some major generational differences that need to be considered. The following chart highlights that around half of Harris Scarfe’s customers belong to the ‘pre-boomer’ and ‘Baby Boomer’ generations, much higher than all their competitors. Kmart and Costco have similar profiles to each other, with major strengths in ‘Millennials’ and ‘Generation Z’ that make up around half of their customers. Target Country has a strength with ‘baby boomers’, while Target, Big W and Best&Less have broad appeal across all generations.
Discount Department Store Generational Customer Profiles
Commenting on the study, Roy Morgan’s communications director, Norman Morris, said: “Discount department stores are facing increasing competition in a difficult retail market. They have many competitors, not only from other discount department stores but from the big two department stores, specialist retailers and new online players such as Amazon.
“Because discount department stores are generally aiming at serving a wide range of consumers, it is important for them to understand how they are performing in terms of satisfaction across segments within their customer base. We have seen here that there are considerable generational differences in the customer profile of the major discount department stores which must be taken into account when assessing needs and as a result, improve customer satisfaction,” he said.
ING Australia has taken on a new tagline, ‘Do your thing’, with the new brand direction articulating the bank’s approach to being there, alongside its customers, as they go about doing the things that matter most to them. ING’s head of brand Carly Yanco said: “We’ve just lived through a year where the everyday things […]
Australia’s media agency market has reported softer advertising demand in January as the delayed Australian Open and the continued impact of COVID 19 briefly interrupted the market’s COVID recovery. Total media agency ad spend was back 7.3 per cent in January as the Metropolitan TV market – our largest media sector – reported a 5.3per […]
Media strategy specialist Slingshot has won the strategy, planning and buying account for Masterpet, and Endeavour Consumer Health. Masterpet owns pet care brands Black Hawk, VitaPet and Aristopet, while Endeavour Consumer Health includes brands like Red Seal, Pharmacy Choice and Faulding. Slingshot CIO and Partner Simon Corbett (pictured) said that winning the two businesses was […]
Leading South Australian ageing care provider ECH (Enabling Confidence at Home) is shining a light on the need for Australians to talk openly about death with their family members and loved ones to ensure any specific wishes or choices can be fulfilled. Australia faces a significant societal challenge as death continues to be a subject […]
You might have noticed a colourful scoreboard sitting on the B&T homepage this month. Well, allow us to formally introduce ourselves – and it. We’re Zavy. And we believe in the promise of social media: brand building by two-way engagement and rich communication. What does this have to do with a scoreboard? We all […]
Full service agency Apparent has expanded its dedicated media division with the appointment of Phoebe Chan as head of media and advertising operations and Jaclyn Ely as client partner, media. Headed by former Naked Communications and Ikon executive John Halpin, Apparent’s media division has seen 88 per cent growth over the past 12 months across […]
Identity Graphs have emerged as a way to bring customer data together in a centralised place. But when it comes to marketing and discovering new audiences, this technology is about so much more than collating data, explains smrtr’s co-founder and CTO Boris Guennewig. Identity on the internet is a multi-faceted phenomenon. It might exist in […]
In this opinion piece, Jess Miles, Country Manager ANZ of Integral Ad Science, reflects on the questions surrounding consumer data. The ability to collect consumer data online has revolutionised digital advertising by enabling customised targeting strategies and data collection. This reliance on data has been the cornerstone of many audience targeted strategies enabling marketers to […]