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Monday, May 12, 2008
Time to Inspire Customer Loyalty
Posted by Beth
It is a dreary Monday here in the Northeast thanks to a Nor'easter that is blowing through. So I thought I'd better knuckle down before that rainy day snooze feeling washed over me!
I've been thinking alot about the nature of the craft industry in that when the economy goes down, participation tends to go up.
I spent some time at a consumer show over the weekend and was heartened to see a packed parking lot and good attendance. We're all worried about how the economy will impact our business so this was a good place to do a little research.
Vendors reported that unlike past years where customers bought in a frenzy they were more discerning about purchases this year. They had a planned spending budget and rather than go from booth to booth buying along the way, they reconnoitered the floor and then bought strategically. One vendor commented it was more like a trade show that way. Customers may have spent a bit less but they were still very enthusiastic about scrapbooking.
If we benefit from the spendy nature of our customers during good times we need to accept that when things get a bit stretched, folks will go back to their stashes of accumulated supplies. So even if our customers are not spending lots of money in our stores, they are still scrapbooking. That is a good thing.
Consider that each time a customer now makes a purchase she is putting more thought into the process so be sure to welcome that customer with open arms and give her time to make a decision.
Highlight products that have multiple uses- tools, double-sided papers, adhesives. It's always easier to make a sale if the customer sees more possibilities.
Think how you can reward customers for frequenting your store despite rising costs of gas and groceries. Consider a Paper Purchaser punch card- for every 10 or 20 sheets purchased she gets to choose a sheet of paper for free. It's a little thing but it works.
Designate a specific time of the week that is free workshop time where customers can come in and use your space and tools. You may currently charge for this time, but a few hours one day a week won't break the bank and you may be rewarded with some added sales.
Build some classes around using odds and ends of supplies- card making classes are good for that. Choose a theme for your card classes: Birthday Greetings, Camp hellos (it's that time) and thank you notes. Focus on topics that are broader in theme to engage more customers.
If nothing else, continue to provide a haven for your customers. You want them to come in your store even if they aren't buying anything. If they don't feel welcome when they are spending less, when times get better, they won't be back.
One vendor described that her father was in the construction business and when times were bad a few suppliers extended a little extra credit or worked more on the price. She said her dad never forgot those folks who stuck by him. Twenty plus years later dad is still in construction and now the son carries on with loyalty to those companies that stuck by his dad.
Customer loyalty is something that has to be earned. And a company that shows it cares about customers even when times are bad is a business that inspires loyalty. Stay warm--Beth
5/12/2008 9:19:04 AM (Eastern Daylight Time, UTC-04:00)
Comments [3]
5/12/2008 11:46:37 AM (Eastern Daylight Time, UTC-04:00)
Great blog, Beth. Excellent build on the 'fatal flaws' one.
I like all your suggestions--especially based on the premise that when money's tight 'crafting' benefits. As you point out, however, a tight economy can tend to send crafters into their stashes rather than generating an increase in purchasing. That's why I like your suggestions for the 'regulars' so much!
But... This is also the best time to get the non-crafter into your store--the ones with little or no previous experience & very little in the form of 'stashes'.
Smart retailers know how to use 'climate change' to its best advantage. When they don't, there are people & places...
Daniel
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DEBOOONEAT NOSPAMaol dot com
5/12/2008 3:44:11 PM (Eastern Daylight Time, UTC-04:00)
I was at the memories expo here in NJ, this weekend. I was one of those shoppers who, had a budget, and was looking for things I can not get here or things with multi uses. I agree with your post 100%. I am sad I was not able to buy more, there were several booths I passed up. I can tell you that those are the booths, that I find people are there to make money not teach the customer. Great blog....Dawn
Dawn
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ladybrysonAT NOSPAMhotmail dot com
5/13/2008 12:43:35 AM (Eastern Daylight Time, UTC-04:00)
Excellent article Beth! I appreciate you taking the time to spell it out. Customer service is the most important thing. If there is something wrong with a product but the customer service is excellent, the customer will come back again. No matter how good the product is, bad customer service will ultimately put you out of business!
Gina K.
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ginakdesignsAT NOSPAMyahoo dot com
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