Eliminating the hassle factor

The debate of artificial vs. real Christmas tree is still going strong, but two business professors are getting to the bottom of it.

Dr. Lauren Hearit and Dr. Kevin Chastagner, associate professors of management at Hope College in Holland, MI, recently discussed the results of a two-year grant funded by the Michigan Christmas Tree Association. The research was aimed at discovering improvements in business practices and marketing Christmas trees.

“What we found in our research is that 36% of artificial tree households are actually open to a real tree,” Chastagner said. “But only 6% of them were planning to act on that and get a real tree this season. This is core – not just who are the customers we have now, but what does it look like to reach out to those who are not purchasing a real tree, and what might incentivize them?”

While some artificial tree customers are open to purchasing a real tree, Chastagner said it’s a matter of providing an easy way for them to carry through. The research found that 47% of consumers are finding a tree via word-of-mouth.

Chastagner listed factors that play a role in the purchase of real trees: ambience, family tradition, childhood memories and aroma. However, the hassle factor is one of the main reasons consumers bypass real trees.

“Cost matters,” Chastagner said, “but it isn’t separating real tree buyers from artificial tree buyers. How do we build messaging that reaches those customers about the experience on-site, getting the tree home and setting it up that helps them become more interested in a real tree?”

Consumers over age 60, who Chastagner refers to as those at “the 60+ age cliff,” are less likely to purchase a real tree, primarily due to the hassle factor.

“The hassle with set-up is strong,” Chastagner said. “What might draw them toward a real tree is the ‘local’ factor, which is a personal value, believing a real tree matters and warm memories of past seasons.”

Hearit said focus group participants said they might know a friend who liked a U-cut operation or had a great experience at a retail lot, but they often referred to reviews on Google or social media. These platforms can increase credibility for potential customers and reduce uncertainty when they’re planning a tree purchase.

When it comes to spending money during the holiday season, Hearit said if someone tells a friend that they had an amazing experience and encourages someone else to go, positivity spreads and results in a low-cost experience for the grower that can drive engagement and sales.

“You want happy customers who will talk about what they like,” Hearit said. “Find a happy customer and they will talk to anyone who will listen.”

Hearit outlined some ways to incentivize word-of-mouth, including asking repeat customers to bring a friend for a discount coupon. An online photo contest in which someone shares a picture of their tree to their own social media and tags the U-cut operation where they purchased the tree might be effective.

“It isn’t just about getting new people to the farm or retail lot,” Hearit said. “It gets them thinking about their experience on-site. Clear signage, parking and employees in branded hats or sweats or coats so they’re easy to identify by customers [help].”

Leading with the message “Nothing compares to the real thing” or similar verbiage is helpful. It can be tempting to focus on nostalgia, which is important, but the idea that nothing compares to the quality and experience of a real Christmas tree is highly effective.

Customers appreciate extras such as harvest date tags for trees on a retail lot. Identifying tree varieties and clearly marking them are efforts consumers relate to and rate highly.

One couple in the focus group spoke extensively about how they already patronize the local farmers market. They found a local Christmas tree farmer and pay a premium to have a live tree delivered to their home and set up in the stand, then the grower comes in after Christmas to remove the tree.

“They were willing to pay a premium for that,” Hearit said. “Not every operation should do that, but think about who you serve, the target demographic and what you already do well. If delivery and set-up and removal make sense for your choose-and-cut operation or retail lot, it might be worthwhile.”

Farms can offer support to eliminate the perceived set-up barriers with a real tree by offering pre-fitted stands and/or stand fit help or pre-drilled trunks.

Consider how to make a consumer’s visit to a tree farm feel unhurried, and whether offering extras makes sense. Add-ons at the point of sale make it feel like a farm with a real tree experience, which results an experience people are excited to tell friends about.

Hearit said 71% of Michigan consumers reported they traveled less than 30 minutes to a U-cut operation. “Ninety percent reported spending 11 minutes or more onsite,” she said. “Some grab a pre-cut tree by the checkout register but many folks are spending more time onsite. Fifty-nine percent shop with a partner and 39% shop with their children. Families buy roughly twice the add-ons compared to an individual shopping at a choose-and-cut. Extras such as ornaments, wreaths, garlands can have nice returns.”

For those who are willing to purchase a real tree but haven’t yet, consider a first-time visitor offer, a date to pre-tag and reserved time slots on the day of cutting so people aren’t dealing with what they may perceive as “too crowded.”

With empty nesters, some of the motivators remain the same. Farms may want to open sooner to serve families whose kids are coming home from college. Some tree farms open prior to Thanksgiving to offer the option of selecting a tree for gatherings where more family members are present.

To target customers who are already interested in purchasing locally, try promotion through farmers markets, local shops, weekend venues and partnering with local businesses. Consider working with a local realtor to distribute discount coupons for new residents.

Be aware of customers’ life stages. Customers who return year after year need different things at different points, but one farm can’t always be everything to everyone.

“Make the first visit easy,” Hearit said. “Is it a positive, easy experience and do they feel welcome? Offering delivery and set-up may help retain a customer longer and give more time to attract a younger demographic. Watch customers’ ages as they come in. If it’s skewing older, how do you begin to bring in replacements? If family is important, are you serving the entire family? Can older adults get on the wagon with grandchildren for a trip to the field?”

by Sally Colby