The deeper meaning of Labor Day has sort of gotten lost. Now the holiday is more of a signal of the end of the swim club season; the last holiday before we send kids back to school or time go check out a sale if you're thinking of buying living room furniture.

Observe Labor Day in a new way this year. Now is a good time to say thanks to the staff members who keep your business (and perhaps you personally!) going. Something tangible is a good idea- a brief note with the regular paycheck or maybe a gift card for a coffee shop or favorite fast food restaurant. Or maybe you will buy lunch for the team. A little surprise will make their day.

For most people, a fabulous salary is not the reason they stay at a job. The way an employee is treated factors in greatly. So especially for those employers who won't be able to offer bonuses or raises this year or companies that are forced to cut back on benefits, taking the time to say thank you- and show heartfelt appreciation will mean something.

Labor Day can also be the day you take a few moments to stop and focus on your accomplishments instead of your to do list. Make a list of things - big and small- that you've done over the last year and treat yourself to a milkshake or sweet tea and toast yourself.

When you honor the contributions of all members of the team, it encourages them to treat your business with the same care as if it were their own. That is something we all strive for.

Be well and have a safe holiday--Beth

With all of the reporting on how the economy is affecting businesses, the one item we aren't taking much about, and should be, is customer retention.Customer retention is the business school term for "Keeping the customers we've got."

I'm frequently asked for ideas on getting new customers, but equal time should be given to retaining customers. Why?

1. You've heard it before. It costs more to get a new customer than to keep an existing one. It may be hard to put pen to pencil and figure out to the penny how much it costs you to get a new client vs keeping and existing one, but trust me, smart people have researched this and I think we should take their word for it.

2. As a customer becomes  experienced in her craft, she becomes more aware of a wider array of resources available to her. If you do not bond yourself to this customer and help her see that your business is more than a vending machine for product it will be easier for her to take her business to another "vending machine.

3. Customers are a third party public relations arm. If they love you and are enthusiastic about your business, they will tell their friends about you and
bring you more business. If you've disappointed them in some way, they'll tell anyone who will listen. That could cost you even more customers.

4. Loyal customers will keep your business alive when times are tough. Retailers have told me that their strong club membership has kept them afloat by providing a dependable source of monthly funds (free meeting fees.)

More than ever, shoppers are selecting retail stores based on price and/or convenience. If you do not make every effort to create compelling reasons for customers to come into the store now they may forget they ever really needed you in the first place.

Some ideas for you...

Get together with your staff and identify your top 25 (or 50 or 100) spending customers. Write each one of those customers a personal note or postcard telling them how much you appreciate their business. You don't have to do this all in one day or even a week- commit to doing three a day and you're off to a good start.

Empower your staff to do Random Acts of Appreciation. You can give them RAA  coupons to give out in the store. Or you can allow them to give the customer an extra piece of paper or paint to sample. take a customers order over the phone and deliver it or run it out to the car so she doesn't have to wake a sleeping baby. Just make sure they keep track of what and to whom they give so you track the response.

Look for some candies that you can customize with your store's name and tuck into a purchase as a little surprise.

Ask your vendors to see if they have any deeply discounted promotional items such as discontinued pieces of paper, embellishment packs or stickers and tuck them into the bag as a little thank you. Everybody likes free stuff even if they'll never use it.

Create grab bags from odds and ends or broken up packs and give that as  a freebie.

When you focus on customer retention you are making a strategic effort to maintain and build your business. As you look at the issue and brainstorm with your staff, you are sure to come up with some great competitive ideas!-- Beth

Just in case as an independent retailer you feel like you're the only one big box and discount stores are taking business away from...I'm here to tell you, every retailer - even big ones with big buying power- are feeling the pinch.

Dutch-owned Stop & Shop and Giant Supermarkets launched some new initiatives this weekend designed  to woo customers to come back or try them out. Seems supermarkets are impacted by Target and WalMart selling food and other grocery items just as you are when the same  stores sell scrapbooking supplies.

Giant and Stop & Shop have a very interesting strategy- focusing on what they do, and can do that the big competitors cannot. Smart, huh? These retail stores aren't just paying lip service to their busy customer, they are taking steps to help her.

1. Do you hate to wait in line at the deli counter for a half pound of orange American cheese? Now you can go into these stores, punch your deli order in on a screen and shop while they make up your order. In my own experience that will definitely save time (and add-on purchases from the nearby bakery counter)!  If you've ever experienced the anarchy that is one hour pre-Eagles game and they're off the ticket counter, you know what I mean.

2. More focuse on fresh prepared foods. Run in pick up a rotisserie chicken , a hot side and a cold side and you are set to go.I don't know any mom who wouldn't welcome an alternative to a fast food chain for a quick dinner.

3. Hand-held scanning devices add up purchases and generate coupons based on the shoppers purchases AS she shops. This doesn't just help coupon shoppers. If you've run into a store with a $20 bill and are trying to do high math after a tough day at work, it's a helpful little tool. I wonder if the scanners tell them if a customer puts an item back for a different item ie: I'll take the Kraft, no store brand is cheaper, will take that instead.

When you read the scrapbooking study results conducted by CHA, you will see that quite a few scrapbooking products are purchased at  big stores. The question I pose is this- have you ever bought a gallon of milk at Target?

I know I have, but not because I went there to buy groceries, it was because I was already there, saw the refrigerator case and remembered I needed milk- one less stop.

Convenience.

What can we learn from these grocery stores? We can learn that while some customers want a leisurely shopping experience, the bulk of them want to come in, shop and get out. If a customer knows you have built in systems to help them, they will opt to shop in your store because you have a better  selection.

I would imagine that if Stop & Shop and Giant get these prepared food & deli counter folks in more often they will sell other things- flowers, gift cards, OTC medications.

My local Genuardi's (Safeway) has been running a $5 promo all summer on fridays Friday- 7 piece fried chicken rotisserie chicken or half a turkey for $5. Why cook? They'll even take your order ahead of time to make sure you aren't closed out. But I have yet to see a single rotisserie chicken purchase that did not include a few other items....

What's the scrapbook store's version of the rotisserie chicken? Share your ideas by replying to this blog entry--Beth

I saw an item today that Citizens Bank Park, home to the Philadelphia Phillies, ranks the highest in vegetarian food offerings of all U.S. baseball stadiums. I welled up with pride, that my city, which is best known  for cheesesteaks, scrapple and Tastykakes is now taking the lead on healthier food options on the sacred stadium ground. Go figure, hon.

Now I am not a particularly avid Phan-atic and I am married to a Yankee fan so our trips to the South Philly stadium are limited to one or two a year. But I must confess, that this has intrigued me. Now those of us who make loved ones happy by sitting through live sporting events can look forward to some new culinary delights. Prior to this our vegetarian options were limited to soft pretzels (a must), peanuts and popcorn.

Furthermore-I'm looking forward to seeing how this designation will be used as a marketing tool. It takes more than love for the home team to fill up stadium seats. Otherwise, why would stadiums be so eager to partner with Food and Travel channels to create shows around eating at ballparks? Vegetarian offerings are now another draw to potential stadium visitors.

What is it that you do that sets  you apart from other businesses? Do you have the largest selection of cardstock colors? The deepest selection of acrylic stamps? The most classes? Knowing that piece of information can open the door to a new promotional initiative and at the very least, be one piece of information that you regularly cite that proves why your store is special and merits a business.

We know people will drive distances to visit stores that have the widest selection of a product they desire. So if you are the scrapbooking version of "most vegetarian options" you need to get the word out. Include it in your ads, promotional materials, website, newsletters, email boilerplates. After a while you'll hear people saying, "Hey did you hear that the Memories Store has the widest color selection of Core' dinations cardstock?" Yet another building block to strengthen your reputation.

Yo, youse guys, have a great weekend, I'm thinking I should get myself down to the stadium for a little quesadilla, tofu pup or veggie burger.-- Beth

Here's an interesting piece by Sarah Mahoney of MediaPost: Study: Downturn Gives Rise to New Consumer Beliefs.

She suggests that Americans are shifting their beliefs when it comes to money managing. They are not just making changes for the short-term fix, they are making life changes ... going on a "financial diet" according to the report she cites.

She quotes, "Sixty-two percent of people reported making some kind of sacrifice because of the economy. " The stat that hit me hard is that "Only 14% say their leisure time has not been affected." That means 86% of the survey's respondents have dialed back on leisure time expenses. Oof. Even though we all know folks are cutting back on leisure spending it is really hard to see that number in print.

Your customers are cutting back and studies seem to indicate that this is not a temporary thing, it is strategic thinking to live simpler with less.

Now for the good news. How many crafters do you know who think less is more when it comes to craft supplies? None that I know.

Ok, to so what to do? Give them permission to spend.

1. Understand that customers are super price conscious. They will be doing comparison shopping and looking for store brands. Check out the competitors and see where you stand on pricing and adjust - if you can. At the very least highlight the value of two-sided papers and the new seasonal papers that transcend the season. Promote paper stacks. Check out companies like GCD Studios who have great looking papers at value prices.

2.  If you are looking to sell a costly piece of equipment- what can you give that customer to add to value of that purchase. Careful, don't give the farm away here. Try to do services rather than products because with services,  you are only out of pocket if you deliver the services. So say you sell that super cool die-cutting system. Do a club for system owners or include 10 hours of training. You get to schedule the training on your time...clubs bring people back into the store for repeat business.

3. Find some neat and inexpensive treats. This is the scrapbook retailer's version of "I can't buy the cashmere sweater I love but I can afford cashmere socks." Customer gets the treat and you get a sale, a smaller one but it's still a sale.  Paper by the piece or pound. Or single seasonal stamps. Contact your vendors and ask what they have that you could use as a cheap and cheerful promo item.

4. Show multiple uses for a single product. Yes, you've heard me say this before. Not just tools but think in terms of inks, stamps, ribbons and other embellishments. Just last week I bought a bunch of those American Craft ribbon rolls to embellish the handles of little tin lunchboxes that I had filled with treats for my son's preschool teachers. Then I got giddy and loaded up on Prima flowers.... the flowers just made me happy at the time, but I've already used them in a gift package, card and a jaunty hairstyle!

5. Love your product. If you are excited about it, your customers won't be able to resist!

I'm all for the "simplify" concept of life but when you think about it, it doesn't always jive with our capitalist upbringing. So we need to find a middle ground for our customers who love our products.

Stuff is good for temporary gratification but how I feel when I use the stuff is what is ultimately going to make the sale.--Beth

P.S. About that last comment. Before you go there, I do not advise coating your entire inventory in dark chocolate. It's a happy thought but too messy.

Hi,

Back in the saddle after a few days R&R in the PA Dutch Country, home to lots of independent fabric and craft stores.

Lancaster as a business community is a great example of how independents and chains can coexist and thrive. It may seem hard to believe but all retailers share some common challenges. The size of the challenge is a matter of scale but also in agility to adapt. The economy has hit all retail businesses hard. It's good to see that craft retailers seem to be keeping pace with other lifestyle retailers, and in some cases doing better.

First, congrats to Jane Aggers and my friends at Hancock. The company has just emerged from bankruptcy and I wish them well. JoAnn's  and AC Moore are hanging in there too- after you read what the stock pundits are saying, compare the chain against similar size businesses and you'll see they are remaining competitive.

Interesting that Hobby Lobby is opening a store in New York this fall. Years ago when I profiled the company for C.N.A. there were no plans to set up locations outside of a day's drive from their headquarters. A lot can change in 10 years.

One thing that savvy independents and chains both will be doing is keeping a close eye on inventory management. If you have a lot of old stock taking up space and getting dusty waiting to sell- move it out!

*Have an unscheduled sale or "preferred customers only" sale.

*Create new samples, classes and demos around product that isn't moving. Take a look at that product to see how it can be cut up, distressed, painted or otherwise altered to take on a fresh look.

*Package it up into "Secret gift packages" in brown paper bags that the customer cannot open to see it inside. Promote the bags as a $25 value for $7.99  or some other deeply discounted price and be sure to include some fresh stuff in there as well. I saw this done at a recent consumer show and I cannot believe how many of those packets blew out.

You can stay deeper in core products like cardstock and tools but the trendy collections have to remain refreshed. That doesn't mean tossing out a great selling line-but perhaps you can add some other coordinates to make it feel new.

I'm curious as to what retailers are doing to manage inventory at this time. Any great advice to share with others? Respond to this blog entry!--Beth

Happy Friday!

First I want to direct you to the comments made by Sudie to my previous blog post. Thanks for the great ideas Sudie and for taking the time to respond! To read them just click on responses underneath the blog entry.

Customer service. Broken record, I know. The Marketing Profs offer some great ideas in this "three steps" article- check it out. The address "uncustomary customer service."

It starts with leaving the customer alone. I'm with them. Yes, I like to be greeted and invited to ask questions. Maybe you can drop by if I am dumbly looking at a product trying to figure something out. Sometimes I'm in a chatty mood, sometimes I have two minutes to get to my son's daycare before I get billed for overtime and I need to get outta there. I will depend on you to sense which kind of mood I'm in and act accordingly. Read my mind!

It's interesting that in our efforts to provide customer service training we tend to write down our list of rules or commandments that all employees should follow. I think this is a good idea but should be treated as a starting point.

If you've ever called the phone company or insurance company, you know what I mean. As a consumer, I'm not into following someone else's script. The kicker is when you just ranted and still didn't get satisfaction and the operator says- "Did we answer all of your questions/take care of your issues/ solve your problem today?" The operator's ears were just singed off and she still has to eat crow and and ask the question. Not such good customer service, I'd say. Not so good for employee morale either, I'd wager.

Even as a retail buyer,  you can be "turned on" or "turned off" by a person in a booth who is following the script for the show. You will choose to do business with an independent rep because you can see that they are generally interested in you. Goodness knows I've been sucked in by a sales pitch for a product that I couldn't cover in a million years but the person is so darn likeable I can't resist giving them a shot.

I have frequently been told by company owners whom I greatly respect- "Hire people for their customer service abilities. Hire friendly "people persons." you can teach them about craft supplies but you can't teach them how to be good with people." So true.

Enjoy your weekend, can September really be right around the corner?--Beth

I want to share this terrific article from Knowledge@Wharton
called A Precarious Road: How Retailers can Navigate Inflation's Hazards.

It's written with multi-store retailers in mind but certainly independents can learn from it as well. Some of the advice many be counter-intuitive (inflationary times call for some new thinking) but certainly a little advice from Ivy League researchers is worth consideration. In fact, much of this same advice has been offered up by Scrapbook Retailer contributors and folks who have commented to this blog...

I really, really encourage you to read the article in its entirety but here are a few highlights.

1. Scaling back on inventory may not be the solution, especially if price increases are ahead. Instead, you may want to beef up on core inventory - basic tools & adhesives. If you have to scale back do it on the "fashion-oriented" trendy merchandise- wide and shallow in papers so that you can still maintain an assortment.

2.Raise prices a bit here and there where you can, little dribs and drabs- all those pennies will add up.

3. Everybody is promoting value & price. It's not enought to just have good prices, you will need to step out with superior customer service.

4. Do not cut back on marketing and promotion but you may want to rethink how you are investing those dollars. The Penn folks say cutting back on marketing is the first instinct and it is often wrong. More than ever you need to remind folks you're around and create excitement in your store. It's said those businesses who do not cut back on marketing and promotion do better than their competitors.


I'll add this bit...please remember we are in the business of promoting personally rewarding hobbies and memory keeping activities. We just don't sell supplies, we sell possibilities. If you continue to inspire your consumer and give her reasons to scrapbook and make cards she will stick with you.--Beth

This weekend we attended a pool party at the home of one my son's preschool friends. As the party wound down, we found ourselves inside saying our goodbyes and there was a scrapbook being passed round.

My son's friend is a foster child who is being adopted into this big warm family. This album was the boy's story to the extent that the child services folks could provide. For each child adopted out, a member of the staff creates a scrapbook-on her own time- to provide to the family.

As I think about it now, what made the album so special is that it didn't tell a story of what was but what was to be. The album showed photos of the boy and all of the members of his new family. It was filled with messages of love and welcome. Years from now when he becomes a teenager and starts learning more about adoption, this album will tell the story of how much he was truly wanted by this family.

I was wondering how this "First day of Your Future" scrapbook idea could be translated on a larger scale. You might be able to reach out to your county child services office or children's home to offer supplies for the family scrapbooks. Or maybe you could create  a volunteer group that meets to scrap these albums for a family. These non-profit or state- run groups rarely have the time and financial resources to make this type of memento so any help would be welcome.

An album about the future.Just goes to prove that scrapbooking isn't always about looking back.--Beth

If you are one of those folks who has been eagerly awaiting the crush of customers with tax rebate checks in hand ready to spend...you may be  a little disappointed.

Unfortunately you're not alone, as research by the National Retail Federation shows that those tax rebate checks didn't provide the lift the industry was hoping for. Seems folks are spending their rebate checks on other luxuries... such as food, gas and back to school supplies. Oh, and paying off debt for things they bought last year.

This is from the NRF Press release:
"Bernstein cited polling conducted June 3-10 that found consumers who had received their rebate checks had spent 42.9 percent of the money, but that nearly half of the money spent had gone to gasoline (9.7 percent) or necessities such as groceries (10.4 percent). The total of those two categories exceeded all other spending categories combined, with the next-largest category – clothing and apparel – amounting to only 3.3 percent. Consumers said 25.2 percent of the money went to pay off debt and 17.1 percent went into savings. The polling was conducted by BIGresearch, an Ohio-based firm that conducts regular consumer surveys for NRF.

This just underscores the need for scrapbook and for that matter, all, craft retailers to highlight other qualities that make them a more compelling spending environment. I keep talking about community and education because when folks have fewer greenbacks in their wallets they are going to be picky about where to spend them. It ain't just about good product. (am I sounding like a broken record?)

If you have some time over the next few weeks give some thought to how you can brand your store as a destination- not just a seller of goods. It may make the difference between whether you merely survive or thrive in the next coming months.

And if anyone out there has some suggestions, we welcome your comments to this blog entry. Have a great weekend!--Beth

Check out this interesting blog entry by Loren McDonald of Silverpop. Seeing as Silverpop is a big expert in business to consumer email it's worth a read.

There are two urban myths about email that I was particularly interested in. One was about FREE being an instant SPAM blocker magnet. The other was the  question of whether one day of the week is better than another if you want your email opened.

Even folks who willingly give you their email will not open your messages occasionally. And of course, that assumes that your messages are actually dropping into inboxes and not getting caught by nets designed to capture bogus offers for discounted Vicodin or other products not mentionable in polite company. Honing your email delivery practices when you can is advisable.

I was glad to read that you can use the word free, because let's face it, isn't that the word that we consumers love the best? Just avoid putting it all in CAPS.

No one day seems to be better for email than others- instead there seems to be more weight placed on consistency in your delivery.

Check out Mr. McDonald's blog- it's great advice from an expert. We'll keep sharing these little nuggets of "smartness" as we come across them so that we can help you work smart as well as hard.

If you have any favorite smartness sources, please share by responding to this blog. Also be sure to read the comments to these blog entries, there may not be that many yet but some of them offer great ideas and food for thought.-- Beth