The team at Stratus Ag Research divided farmers into three groups based on how they interact with their ag retailer:
- Cost-conscious self-sufficient: 37%
- Traditional retailer reliant: 23%
- Data-driven solutions seeker: 40%
The 40% of the pie chart—the data-driven solutions seeker—stands separate from the other two groups, which are a bit more alike.
And Mike Weddel of Stratus says there are 5 key things retailers should know about this important segment:
- They want more services from their retailer.
- They want a retailer who can provide tech technology support.
- They’re less concerned about getting the lowest price
- They’re out looking for information from a broader range of sources, and they’re less likely to rely just on their own experience.
- They get more value from online customer portals. And they would view retail support on field data management software to be more useful.
Weddel says this group is particularly important to retailers who pride themselves on high level of service.
“Particular to the data-driven solutions seeker, the farmers in that group find a whole range of services more useful or important to them than the other farmer groups we’ve identified,” he says.
Examples include:
- Data comparing product performance across multiple brands
- Advice on products to prevent resistance
- Field scouting to identify problems and product selection for spray application
- Field-level record keeping
- Grower information meetings or training sessions
Regarding technology, the data-driven solutions seeker, wants a retailer who is on the leading edge of technology including precision ag along with assistance on interpretation of field-level data.
While the other two farming segments may be more transactional in nature in their business relationship, this 40% of the market—the data-driven solutions seeker—is looking for extra boots on the ground and expertise in areas where they otherwise don’t have.
“This key group does depend on what may be considered more traditional services of ag retail. They want advice and recommendations. The want to deal with people they know. And they want reliable custom application,” Weddel says.
You can download the Status Ag Report on this customer segment here.
