Mailorder Gardening Association Garden Buyers Survey Spring 2006

1
Mailorder Gardening Association Garden Buyers
Survey Spring 2006

• Results and Conclusions
• Black Dog Direct
• July 19, 2006

2
Survey Design Goals Strategy

• To conduct primary research of active mailorder
  garden product buyers to provide current insights
  for use by MGA member companies.
• A postal survey was employed to ensure inclusion
  of buyers who are not online. A telephone survey
  was ruled out due to high cost.
• The survey was intentionally simple and limited
  to five questions in an effort to encourage
  response.
• Survey timing was designed to capture the most
  recent selling seasons data for incorporation
  into spring 2007 activities.

3
Survey Design Implementation

• Responses were gathered via brightly colored
  postcards distributed to current season buyers.
• Cartons containing 5,000 cards were shipped to
  each participating company last fall.
• Postcards were inserted into buyer shipments from
  Dec. 2005 through May 15, 2006. All 5,000 cards,
  or as many as possible, were distributed by each
  participating company during that window.
• Respondents did not need to affix postage the
  cards were postage paid.
• Cards were returned to, and results were hand
  tabulated by, Black Dog Direct, Denver, CO.

4
Survey Aggregate Results

• 30 MGA member companies participated.
• This was the largest primary, consumer-contact
  research project the MGA has conducted to date.
• 150,000 postcards were printed and 136,550 were
  distributed.
• A total of 9,945 postcards were completed and
  returned by buyers.
• Calculations for response were figured based on
  the number of respondents for each individual
  question. (Some respondents filled out only a
  portion of the questions.)

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Aggregate Results (cont.)

• An overall response rate of 7.3 was achieved,
  with significant variations by company. This is
  higher than was anticipated and supports good,
  reliable data.
• The highest responding customer base returned 15
  of the surveys distributed, the lowest returned
  2.3.
• Response rates by product line were as follows
• Seed companies (8) 9.9
• Plant companies (12) 5.2
• Bulb companies (3) 6.1
• Hardgoods, equipment supplies (7) 8.5

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Aggregate Results (cont.)

• Possible contributing factors to high response
  rates
• A large number of repeat buyers people who feel
  connected to the company
• Older, retired customers who have more time to
  participate
• Customers whose shipments arrived early in the
  season when being outdoors didnt compete for
  their free time
• Positive overall feelings towards the company by
  customers

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Aggregate Results (cont.)

• Possible contributing factors to low response
  rates
• Low levels of repeat buyership due to limited or
  one-time purchase product lines
• Younger customers who are busy with careers,
  families, etc.
• Lots of other paperwork in the package, making
  postcards easy to miss
• Customers who received shipments when outdoor
  activities competed for their time
• Customers who dont feel positively about the
  companys service and/or products

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Responses Question 1

• Question asks respondents to rank (1 through 5,
  with 1 being the most important) those factors
  that influence their purchase decision.
• This chart shows respondents 1st choice.

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Question 1 Responses

• When asked to rank the number one factor
  influencing purchase decisions, one third (33)
  of overall buyers chose Company Reputation/Past
  Experience with Company.
• Web-only shoppers chose this as their most
  important factor only 28 of the time. This may
  reflect the inclusion of online-only companies
  that havent been in business as long as most
  others.
• The second most popular response to this question
  was Product Description and a quarter (25) of
  respondents selected this factor.

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Question 1 Responses (cont.)

• Only 15 of total respondents ranked Product
  Price as the number one factor influencing
  purchase decisions. Web-only shoppers were
  somewhat more price sensitive, with 20 ranking
  this as their first choice.
• Overall, 14 ranked Product Picture as the
  number one factor. When buyers were segmented by
  order channel, Web-only shoppers ranked images as
  their first choice 16 of the time and Postal
  Mail/Fax buyers chose this as the most important
  factor just 13 of the time.

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Responses Question 1

• Question asks respondents to rank (1 through 5,
  with 1 being the most important) those factors
  that influence their purchase decision.
• This chart shows respondents choices with 1st
  and 2nd combined.

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Question 1 Responses (cont.)

• For those who didnt select Product Description
  as their first choice, 25 sited it as their
  second choice.
• Product Cost was the second choice for 22 of
  buyers surveyed.
• Write-in answers included
• Uniqueness of product
• Inability to buy products locally
• Individual need for specific items
• Product quality (not sure how is determined if
  not by prior experience, product description or
  photo, etc.)

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Responses Question 1

• Question asks respondents to rank (1 through 5,
  with 1 being the most important) those factors
  that influence their purchase decision.
• This chart shows respondents choices with 1st,
  2nd and 3rd combined.

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Question 1 Conclusions

• Gardening consumers place the highest level of
  importance on trust when they make purchase
  decisions. Company reputation and individuals
  prior experiences weigh heavily in future buying
  decisions.
• While product pictures are important, detailed
  descriptions are even more so. Respondents
  requested information such as scientific names,
  growing zones and cultural information, as well
  as special needs attributes such as drought
  hardiness and deer resistance.

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Question 1 Conclusions (cont.)

• Web-only shoppers weigh images a few percentage
  point more heavily than do their off-line
  counterparts. Online picture size, clarity and
  color are marketing variables that will drive
  sales for this group.
• Product price and delivery price, together,
  account for the top factor for 18 of buyers.
  Many people noted that they compare the sum of
  these two with competitors options. As you
  review your price position in the marketplace,
  look at this with and without your shipping
  costs.
• When comparing the total of respondents top
  three factors Product Description rules.

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Responses Question 2

• This question asks respondents what type of
  gardening they do.
• Most respondents engage in a variety of
  activities so the percentages sum to more than
  100.

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Question 2 Responses

• Flower gardening is the most popular activity
  among survey respondents, with 89 participating.
• Vegetable gardening ranks a close second with 77
  choosing this activity. Many people noted that
  they grow a few or tomatoes only.
• Container gardening is an activity enjoyed by 71
  of respondents or almost 3 out of every 4.
• More than half (53) of those surveyed grow
  herbs.

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Question 2 Conclusions

• Only a small percentage of respondents (7)
  concentrate on a single type of gardening. Most
  grow a variety of plants in several types of
  settings.
• Two thirds (67) of flower gardeners, the largest
  group in our survey, do at least some gardening
  in containers. These people are good candidates
  for sales of useful and/or decorative related
  items pots, soils, fertilizers, watering
  devices, brackets, hanging basket hardware,
  container feet/casters, trellises and other
  supports, etc.

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Question 2 Conclusions (cont.)

• More than half (53) of responding vegetable
  gardeners plant in containers. Consider
  illustrating vegetables and not just tomatoes -
  growing in large pots, troughs, window boxes and
  even hanging baskets. Good candidates for photos
  include richly hued leafy greens, decorative
  peppers, radishes, bush cucumbers/squash/beans,
  scallions, and anything else thats colorful. Use
  your imagination and help your customers envision
  new possibilities.

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Question 2 Conclusions (cont.)

• Among our survey respondents, half (50) of the
  flower gardeners and almost half (46) of the
  vegetable gardeners grow herbs. Encourage
  experimentation by photographing
• Garden mixtures that include bright flowers and
  beautifully shaded/textured herbs
• Bouquets of cut flowers mixed with colorful herb
  stems
• Vegetable plots with herb borders or center
  medallions
• Salads with purple chive blossoms, brilliant blue
  borage stars, chartreuse dill foliage or flower
  heads, etc.
• Borrowed ideas from gardening magazines shoot
  images that have a romantic feel or are enhanced
  by early day/ sunset/other mood-evoking lighting,
  dew or raindrops, etc. We sell product that fall
  more into the want than need category, so
  play to your customers emotions.

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Responses Question 3

• This question asks respondents what product
  guarantee they expect suppliers to provide.
• Respondents were required to choose just one
  answer.

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Question 3 Responses

• A little more than a quarter (27) of respondents
  expect products that will sprout and grow through
  the first season.
• Just under a quarter (22) believe that suppliers
  should provide a 12 month guarantee with a
  replacement option.
• 19 of those surveyed simply expect that the
  goods shipped will be the variety and size
  originally described.
• A lifetime guarantee with either a refund or
  replacement is expected by 16 of respondents.
  This applies to both green goods and hardgoods.

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Question 3 Responses (Cont.)

• This question prompted a number of write-in and
  combination answers including
• Plant guarantees of 15 months so gardeners can
  really determine if perennial plants grow the
  second spring
• Options for refund or replacement in every
  situation
• Some buyers expect no guarantees
• If seeds/plants dont grow they assume
  responsibility
• If seeds/plants dont grow they will take future
  business elsewhere

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Question 3 Conclusions

• Buyers guarantee expectations span the full
  range from the most basic - goods as advertised
  and plants that grow - to lifetime. Look
  carefully at the feedback from your customers and
  review if, and how, you might choose to address
  their desires.
• Providing a 15 month guarantee for perennials
  might offer businesses a competitive advantage
  without incurring significant additional cost.

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Responses Question 4

• This question asks respondents what they expect
  for order and customer service coverage.
• Respondents could only choose one option.

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Question 4 Responses

• The largest portion of respondents (40) are
  satisfied with standard business hours for order
  and customer service assistance.
• About a quarter (28) expect at least some
  Saturday and Sunday coverage. A number of survey
  participants wrote in that standard weekdays plus
  partial day Saturday hours are sufficient
  staffing on Sunday is not necessary.
• Approximately one in five respondents (21)
  prefer 24 hour telephone and email coverage, but
  for many extended email service, but not
  telephone, is sufficient.

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Question 4 Conclusions

• To satisfy the lions share of customers (75),
  businesses should consider customer service/order
  staffing for regular workdays plus a partial day
  on Saturday and email-only coverage for early to
  mid evenings during busy seasons.
• After hours email coverage can often be handled
  by a very small staff (1 person) working from
  home. This approach contains costs and does not
  require business facilities to be open at night.
• Customers expect responses to email queries
  within 24 hours. Faster response time is better.
  Slow/no response is sure to anger customers.
  (There were lots of write-in notes to that
  effect.)

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Responses Question 5

• This question asks respondents what channel they
  used to place their order.
• Respondents could only choose one option.

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Question 5 Responses

• One third of survey respondents (33) ordered via
  postal mail or fax, another third (34) via
  telephone, and the final third were split between
  those who shopped and ordered online (14) and
  those who shopped the catalog and then place
  their order online (18).
• This question was added primarily to facilitate
  data slicing by order channel so questions like
  Do web-only shopper have different
  behaviors/expectations than other types of
  shoppers? could be answered. Where significant,
  order channel variances have been noted.

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Summary Recommended Actions

• Review the survey data from your own customers to
  see where opportunities exist to serve better.
  Make it easy for buyers to choose to purchase
  from you.
• Recognize that older customers must be replaced
  as they eventually stop gardening. Younger buyers
  may have different behaviors and preferences.
  Plan now for that now by seeking products that
  make gardening easier for busy and less
  knowledgeable enthusiasts
• Low maintenance containers
• Easy use watering systems
• Small space garden options compact plants, cut
  and come again varieties, vertical growing
  arrangements, etc.

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Summary Recommended Actions (cont.)

• Consider what would be required to offer weekday
  plus Saturday customer service and order hours
  for next spring
• Be there when your current customers need you
• Court new customers who have different service
  needs
• Look at the ways you present products in your
  catalog and online. Are there opportunities to
• Improve tired, lifeless photography
• Tailor your product imagery to the type of
  gardening your customers do
• Include more complete product information
• Show combinations of flowers and herbs, flowers
  and vegetables, vegetables and herbs, etc.
• Use photos to create a desire for products

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Summary Recommended Actions (cont.)

• Review your current guarantee wording align it
  with what you actually do and what your customers
  expect. Make sure you arent leaving money on the
  table by understating current actions (and
  failing to reap the full benefit of these) or by
  falling short of customer expectations.
  Naturally, there needs to be a costs/benefit
  balance.
• Consider the survey response rate achieved by
  your company. If it is low, recognize that this
  could be a flag that your customers are not
  content or dont feel much connection/loyalty.
  Investigate possible reasons and corrective
  actions. Seek customer feedback.

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Summary Recommended Actions (cont.)

• If your companys response rate is high, review
  current practices with an eye towards determining
  what has influenced this. Guard against making
  policy changes that will alienate buyers.
• Share the results of this survey with your staff.
  They cant respond to what they dont know.

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Questions?

• Survey set up
• Reading aggregate and individual company results
• Conclusions
• Other