Customized approach helps dinnerware company keep existing customers while gaining new converts

BY: CHRISTINE HANSEN For nearly 200 years, hostesses have relied on The Pfaltzgraff Co. for quality casual dinnerware and stylish home accessories. The company, now part of Lifetime Brands Co., was founded in 1811 by a family of German immigrants in York, Penn. Pfaltzgraff sells its wares through 86 stores, an online store and a catalog. Like many established companies, Pfaltzgraff needed to keep pace with the changing tastes of younger consumers without alienating its loyal base of older customers. “We wanted to be where new customers are shopping today, while maintaining the brand’s integrity,” says Jaci Volles, Pfaltzgraff chief merchandising officer. The company had done extensive analytics on its customer base but needed more information about what drove purchase decisions. “Pfaltzgraff was looking for another lens through which to view their customers,” says Gayle Davey, a partner with Yankelovich, which helped Pfaltzgraff with its new research. “They wanted to know how to differentiate their customers in ways they hadn’t been able to.” MARKETING BASED ON ATTITUDES What Yankelovich found was that the way people view themselves affects how they want to be marketed to. The data helped Pfaltzgraff identify eight different groups of customers, differentiated by values, world perspective and motivations. Distinct groups of women in different life stages emerged as very important to Pfaltzgraff’s business: the Renaissance Masters, typically in their 60s, and the New Traditionalists, who were in their early 40s. “Renaissance Masters value personalized service, and though pricing is a driver, it’s less important than quality, style, brand reputation and service,” says Volles. On the other hand, New Traditionalists are more in tune with discounts and incentives, without sacrificing quality. A third segment, labeled Up & Comers, is made up primarily of young people inquiring about dinnerware patterns for bridal registries – a large share of the dinnerware business. This group is interested in traditional value but not necessarily in traditional products, says Volles. Shopping is a leisure activity for them, and selection and ease of finding items is important. FINDING A NEW WAY TO COMMUNICATE With its target segments defined, Pfaltzgraff focused on determining which patterns and pieces most interested each group. This guided the company’s marketing strategy and the development of new products. To ensure a clear understanding of who the Pfaltzgraff customers are, the company shared the findings with all its employees, from accounting and retail to product design and catalog development. The first marketing step was to revamp the Pfaltzgraff catalog – which serves as the company’s main communication with customers, supported by its retail and online channels. “We customized the catalog covers, using the same art concept, but with different dinnerware patterns chosen specifically to appeal to each customer group,” says Volles. The company also added an eight-page insert featuring lifestyle imagery, recipes and ideas for contemporary uses of Pfaltzgraff’s products. The retailer also modified its store designs to be more in line with its customer preferences and upgraded its online presence. “We also revised the Up & Comers catalog page layout and completely updated the bridal catalog,” says Volles. While Pfaltzgraff continues to measure the outcome, initial results suggest the changes are positive. “By taking a closer look at our customers, their values and their motivations,” says Volles, “we’ve discovered our core customer groups and their preferences. We’ve gained valuable insights into everything from product development and store layout to communications with our customers. This helps us give our core customers the information and products they’re looking for and, consequently, build stronger relationships with them.” Large Business, Segmentation