12 Tips to Help Small Retailers Thrive in a Recession

"Let's start with understanding the consumer mindset," say Steve O'Leary and Kim Sheehan, authors of a new book, Building Buzz to Beat the Big Boys: Word of Mouth Marketing for Small Businesses (ISBN-13: 978-0-313-34598-2; Praeger Publishers, $39.95 hardcover, http://www.grabbinggreen.com) "In a tight economy, consumers will be less apt to make impulse purchases and more likely to spend time researching purchases in order to find the best value."

So, how do you, the small retailer, make sure your customers continue shopping at your store during tough economic times? Here are 12 ideas to consider:

    1.  Continue advertising. History shows that marketers who stop
        advertising during a recession lose market share.

    2.  Focus on existing customers. You know your customers better than
        anyone. You know what types of product mixes are most appropriate for
        them. Use this information to create offers that are most valuable to
        them.

    3.  Listen. Collect customer feedback. Use either formal (surveys) or
        informal (asking people in store) feedback instruments to find out how
        your customers are dealing with the recession and how your store could
        help them. Ask them what types of specials they would like to see.

    4.  Focus on the neighborhood. With record high gas prices, people are
        likely to drive less. Allocate some of your marketing budget to
        current and potential customers who live close to your store (also
        known as your retail trading area).  Print media is great for this
        effort, especially flyers and/or direct mail.

    5.  Value messages are critical. Think about the prices you can offer as
        well as the discounts that might be available. Make both prices clear
        in your messages.

    6.  Politeness counts, more than ever. Greet customers when they enter
        your store. Thank them when they leave.

    7.  Consider a loyalty program. If you don't have one in place, think
        about a punch card-type loyalty program that is quick and easy to
        implement.

    8.  Create benefit offers. Select specific products or services and
        package them into a value offer that you can advertise in store and
        through traditional channels.

    9.  Dial up the service. Make sure your employees understand the value of
        exceptional customer service during this time when customers may be
        looking for reasons to switch.

    10. Think treats. Even though customers are cutting back, according to
        Money Magazine, they plan to spend a small amount of their tax refund,
        or rebate check, on a small treat for themselves. Think about what you
        might offer your customers as a special, one-time discount on a treat
        to get people in your store.

    11. Partner with a local cause. During a recession, many of your customers
        may cut back on philanthropic giving. Partnering with a charitable
        cause reflects well on you, and can somewhat assuage your customer's
        guilt about not donating more to charity.

    12. Evaluate advertising messages and response. If you are promoting sales
        and discounts in different vehicles (such as in the local newspaper,
        in ADVO, and online), track your response from each vehicle.

SOURCE Steve O'Leary and Kim Sheehan

Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze, Daily News

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