By Tony DeMasi, editor
ou may not realize it, but you are in show business. You have the merchandise
and want to show it to an audience, the right audience.
What’s your bait? Your come on? Your special touch to get the crowds
to your store? Prices? Big deal, you and everyone else. “Suggested retail
price” has become a joke. The SRP is whatever amount is on the sticker.
Convenience is still important. Make it as easy as possible for shoppers to visit
your store and Web site. Convenience means service in addition to location and
merchandise. Watch your “convenience” though. What seems convenient to you
might not be to the customer.
At the California Gift Show in Los Angeles, I held a discussion group with
retailers about what is working or not working for them. One retailer told me her
store was still “the best in town” but was losing foot traffic because of the deteriorating
condition of the shopping center in which she is a tenant. It seems that
a lot of the “good shops” around her have either closed or been replaced with
less than attractive shops and service providers. As such, many of her regular customers
now shop elsewhere or don’t visit as often as in the past. I told her to confront
the landlords and to have a lawyer go through her lease.
Geography is an important part of retailing. Remember the old adage, “location,
location, location.” If your once pleasant and pristine shopping center is
going down the tubes because of an uncaring landlord, do something about it -
even if it means moving. You have no other choice but to protect your personal
and professional safety.
Work with the local chamber of commerce and/or business persons’ association.
There is no reason why you have to watch your business dwindle because
of a greedy landlord.
Another retailer at the table said she ran into a similar situation a year or so
ago and turned it around by expanding her Web site and making it a point to keep
in touch with as many customers as possible via a newsletter and e-mails twice a
month. She knows her customers and they know her. She keeps a list of customers’
birthdays and anniversaries and sends them cards with 10 percent discount
coupons. She also sells a lot of merchandise over the phone by taking orders
from customers. She laughed that to many of her customers, she has become the
“gift godmother.” They call her and say they need a gift for whatever person and
reason, and she takes care of it from here. To me that’s great service!
She laughed that she has not seen some of her best customers for months but
they are still her best customers due to volume. To her customers, time and convenience
are the most important factors. Another retailer at the table thought
this woman’s “unseen customers” business approach was too impersonal. I didn’t
understand that at all. If the customer is happy, that’s the jackpot. Remember,
you are there to merchandise, not criticize.
In-store special events seem to work well, too. While they may take time planning
and executing, just about everyone at the table agreed they are enjoyable for
shoppers and staff - plus usually get good press coverage.
An in-store event starts with your vendors’ list. Contact them for ideas. It can
be a special display, a contest, a new line, etc. Ask vendors what they have to help.
After all, the more merchandise you sell, the more merchandise you buy.
Your special events will get a lot of “tire kickers” -
people just out for a good time or to kill time and have
free refreshments, but it’s a small price to pay for the
long-term good will the event will produce.
A survey by the Advertising Research Foundation
shows in-person events can boost purchase intent as
high as 52 percent.
The study found that “purchase intent” — a customer’s
stated interest in buying a product — rose from
11 percent to 52 percent among consumers who
attended brand-sponsored events, including sports
championships, walkathons and theme parks. Such
purchase intent translated directly to sales about 50
percent of the time, the report stated.
Timing, of course, is very important. Plan the event
for a day and time when customers will be available.
Not all events are for all customers. Instead of having a
general public event, consider holding a series of small
events for selected groups of customers, such as senior
citizens; scrap bookers, children, etc.
A retailer at the table said she learned the hard way
never to hold an event on the same night as “American
Idol.” Early morning events seem to work well for most
of the retailers, Saturdays from 9 to noon, or Sunday
afternoons. For seniors and retirees, mornings during
the week brought in top numbers.
Although she was not at the discussion table, I came
across a quote by marketing expert TJ Reid on this
topic and it perfectly concludes this piece: “In the fashion
industry, event marketing can be a fabulous way to
present your product and services to the customers.
Going as far back as simple old fashion shows to
today’s more upscale events including demonstrations,
parties, and charity tie-ins, this has become a very profitable,
usually affordable and effective way to get the
message out.”
“With everybody in the world marking down merchandise
and trying to have price wars, this is one place
that price means nothing. Customers are drawn to the
excitement of the ‘Event’ and the party atmosphere of
companionship and socializing. They are willing to pay
more for the experience, and small stores and individually
owned retailers are reaping the rewards.”
|
SGN Newsletter
