Exactly how do women approach the entire tire buying experience? What are they looking for?? What do they expect? And how important are brands and pricing?
Over the years, a lot of people have been most happy to share their ideas on the subject. But for the very first time, thanks to market research firm Market-place Insights, we now have quantifiable data that allows us to draw an accurate picture of today’s female tire and service customer.
For this project, Marketplace Insights (which produces the monthly Business Barometer that appears in Tire Review, as well as other research for the magazine) conducted online interviews with a total of 6,500 recent female tire buyers from 26 metro markets. A broad range of questions were asked concerning their buying attitudes; only a portion of those results are presented here for this story. And those interviewed may have made their purchases at a tire dealer, a mass merchant, a car dealer, a chain store or an auto service center.
We also asked Jody DeVere, president and CEO of
AskPatty.com, to review the findings and add her thoughts on the data. AskPatty.com provides an extensive training, certification and marketing
program to help tire dealers improve their sales to and retention of female customers.
For more information on this study, contact John Montgomery of Marketplace Insights at
john@mpinsights.com.
Tire Purchase Triggers
Women tire buyers were asked what made them first realize that they needed new tires. One in five said they learned of their need for tires while their car was in for other service. This indicates that dealers have an opportunity to educate their female customers on spotting tire troubles and how to deal with them – information they will be able to use in the future.
“Women do rely on their trusted service professionals to make needed recommendations for tires and service,” says DeVere. “Doing a tire inspection at every service interval and informing women in a timely manner when they will need new tires can lead to a sale.”
Retailer Shopping Behavior
When they found out that they needed tires, 30% of women surveyed said they went out and did some research before making a buying decision. They used the Internet to look at tire options, spoke with friends and family to gather tire information and considered retailer options. This is where a dealer’s prior customer service efforts pay off; good recommendations from others will go a long way with women customers.
“Women are doing their homework by reading your third-party online reviews, asking friends and family, visiting your website, visiting the tire manufacturer’s website, reading blogs and comparing coupon offers and tire specs before they pick up the phone and call to get a price or ask if the tires they want are in stock,” says DeVere. “Don’t assume she is uninformed when she calls.”
While some women are doing their homework, 70% are either buying tires right when they are informed that they need them, or they are deferring the purchase all together. Neither of those are good scenarios – unless they are buying from an independent dealer. Again, taking the time to build a relationship with women customers will help keep them as customers, and the next time they discover they need tires, your dealership will be top of mind.
Reasons for Selecting a Tire Retailer
When it comes to choosing a tire retailer, women are pretty straight-forward in their responses: They want to deal with “friendly, trustworthy personnel.” That was the top point for 34% of those polled, far and away the top reason.
“Creating an overall experience that ‘wows’ women,” notes DeVere, “will increase your share of the most influential demographic of tire buyers in the U.S. and Canada – and that is women.”
New vs. Repeat Customers
The good news for tire retailers is that they are generating repeat business. Some 63% of those surveyed reported making multiple past tire and service purchases from the same location. At the same time, 37% were either making their very first tire/service purchase or had switched loyalties to another store.
“Women process information and make purchasing decisions differently than men and 74% feel misunderstood by automotive marketers,” says DeVere. “Effective marketing to women and developing deeper relationships with women in your local community before they need tires or service is an important part of why she will choose your location for her next purchase.”
Tire Purchase Destination
So at the end of the day, where did women make their tire purchases? Well, the news is not so good for independent tire dealers, who received the call only 27% of the time. While one out of four is not too bad, “tire chains” were selected by women customers in 46% of the cases. Mass merchandisers were the destination of choice for 12% of female buyers, followed by wholesale clubs (8%), car dealers (5%), and “other” (2%).
Could there be some confusion between “tire dealers” and “tire chains?” According to Marketplace Insights, the names of the businesses were gathered during the survey, and putting together the report, Marketplace Insights assigned them to the proper category.
What this means is that women tire buyers are looking for expertise and convenience, and expect to find it at those locations they have heard of. This likely means that dealers need to do a better job advertising to female customers – or even getting their name out in the market all together.
This factor is borne out when you consider most women had their cars serviced at locations that clearly stated they did service: independent garages (25%), car dealers (20%), quick lubes (12%), mass merchants (10%) and muffler shops (4%). “Tire retailers” were selected by 19% of women as the place to get their cars serviced.
“One-stop shopping for auto repair, regular maintenance and tire needs makes it very convenient for women who are often multi-tasking, juggling careers, kids and community obligations,” says DeVere of the findings. “Servicing all her needs at one location prevents her from ‘shopping around.’”
Dealers, too, have to make an effort to be noticed as the go-to place for all tire and service needs. “Positioning your independent tire store with women who are civic-minded can increase marketshare – support your local Chamber of Commerce, women’s civic organizations and schools,” DeVere reminds.
Retailer Intent For Next Tire Purchase
Having just been through the retail tire buying experience, women were then asked if there was a particular retailer that they would most likely buy from the next time they needed tires.
Surprisingly, 46% said they were undecided on future purchases. That means there was nothing special about their most recent purchase experience; the retailer hadn’t made a connection or created a reason for which women customers wanted to come back.
It also means that almost half of women are undecided as to their next tire retailer, leaving them open to a dealer’s advertising messages.
“A 2010 study by the marketing firm Maritz determined that consumers who are enrolled in customer loyalty programs are more likely to spend more money than non-members,” DeVere reports. “Another interesting comparison was that 62% of the women surveyed carried loyalty cards, as did 54% of the men.
“Although coupon programs and marketing initiatives that resonate with women are important, rewarding loyalty with a customer rewards program can ensure she does not go elsewhere for her next tire purchase.”
What Drives the Purchase Decision?
When asked what drove their final tire buying decision, women overwhelmingly said: Price, Price and Price. And that is not a big surprise, especially these days. Buyers of all types and genders are trying to save money, but consider, too, that perhaps the safety message is not getting through as well as some marketers might think. Female buyers with families would think safety more, while brand and convenience might resonate more strongly with single women.
Price was named as the top purchase consideration by 47% of those surveyed, while tire brand was key to only 20% of female buyers and the type of store was important to 33%.
“Today’s economy has definitely changed the way women spend their money and if one thing continues to ring true, it’s the power of a good bargain,” says DeVere. “With budgets getting tighter, couponing has seen substantial growth. There is even a hot cable show about it, and that only punctuates the need for tire dealers to use more effective offers to better compete for women’s purchasing power.”
Number of Tires Purchased
Budget issues also ring through the survey question about how many tires the female buyers purchased. Forty-one percent said they bought just two tires; as a comparison, only 35% of male customers bought two tires.
“Education is a key to tire buying and tire care with women,” DeVere observes. “Holding educational tire and car care clinics to teach women how tires can affect fuel economy and vehicle performance will help women make more educated choices. Plus, making more financing options available can also increase the number of tires sold – to either sex.”
As we stated, more details are available from the full study, but it is obvious that independent tire dealers have tremendous opportunities to strike the right chord with women buyers. As expert after expert has stated, it begins with the right attitude and respect and continues with education and exemplary customer service.
Like all drivers, women need tires, too. But they cannot be simply lumped together and treated like all tire buyers. Women’s information processing and buying process are entirely different from those of men. The tire dealers who succeed the most are those who understand how to create customers for life.