| Holiday Sales Slump Forecasted |
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Banking on some big holiday sales this winter? You may want to take a closer look at what your customers are doing. Instead of just "spending more" this winter to increase sales, you might want to think about "spending more wisely". Keep reading to find out September Consumer Survey highlights and three ideas to implement for $30 or less in 30 minutes or less. The holiday season accounts for 50% or more of revenue for one in five retailers, according to the Internet Retailer. National disasters, gas prices, and record high debt are swaying consumers to travel less, eat home more, and focus on paying off debt rather than drive it up. Consumers seem to have left their big spending habits behind for the time being, and are looking for ways to conserve. The "big spender" consumer who focused more on satisfying wants instead of needs seems to have disappeared. In their place is a more cautious consumer that would rather stay home than building more debt. What does that mean for the average business? Less available expendable dollars and tighter competition for new dollars. So instead of just "spending more" this winter to increase sales, you might want to think about "spending more wisely". Some key findings of the recent release of BIGresearch's Consumer Intentions & Actions Survey for September includes:
In the "advance Holiday '05 Outlook," it appears that the devastation in the Gulf, rising pump prices, and forecasted increases in home heating costs this winter have consumers thinking more conservatively about their spending this season. Conserving is in this winter. The first time in many, many years.
In another survey by The University of Michigan, they found that consumer optimism sinks as gasoline prices rise. Richard Curtin, the Director of the University of Michigan's Surveys of Consumers, noted that the unusually large August decline was widespread among all demographic groups and across all regions of the country. He said "Consumers anticipated higher inflation, higher interest rates, higher unemployment and a slower pace of economic growth during the year ahead." Slower economic growth means businesses need to find more intelligent ways to get and keep customers. With less dollars to spend, people become more choosy. Using new technology and the web is one of the most effective ways to market and sell. Organization's that are more adept at using new marketing methods not only are more flexible in volatile markets but gain a competitive edge. Interestingly enough, the one place that spending has not seen a marked decrease in spending over the web. This channel continues to grow. Why? No gas involved and a perceived value in lower priced offerings. Hint-- if you haven't started using the web to sell your products and services you are missing out. I equate it to locking the doors or shutting off the phones on one of your busier work days. Smart Moves Ready for some "smart" suggestions to increasing sales this winter without increasing your budget? Then check out these three ideas that would take less than 30 minutes and $30 to implement. 1. Targeted Marketing Promotions. What have you done for your most loyal customers lately? You know the one's that consistently buy from you. Why not offer them a special "preferred customer bonus" of a one-time free item or discount? Referral "rewards" are always a welcome gift that customers appreciate. Just pick a promotion that does not cost you much but that your customers would value highly. Maybe it's an extended month of your services. Whatever you pick, write it down, grab your customer list, and send a quick email or post card. TIP: Don't forget to put an expiration date and a big "thanks for your business". 2. On-Site Merchandising. You see those walls around you? Why not make them work for you. If you have a business that customers visit, make sure to tell them a story about what's new and exciting. Post signs that suggest items, gift ideas, and best sellers. First, figure out what those items are, then grab a computer and put those creative juices to work. TIP: Keep it simple and keep it consistent. Don't "junk" up an area with too many odd colors or text no one will read. 3. Media Planning. Decide where your advertising dollars are going before they are gone and you have nothing to show for it. Believe it or not, most small businesses buy advertising without a clear plan of who they are trying to target and what results they will get from the ads. That's the perfect way to overpay for radio, TV, and print media. Those advertising rep's actually prefer you don't plan. Then, they can raise their prices. Whether you realize it or not, media buying is similar to buying airline tickets. Where you buy the ads, when you buy them, and how many spots you buy will all affect what you pay. Show up at the last minute either for a flight or a radio spot and you will pay dearly for it. Taking a few minutes to build a plan will not only make your sales and marketing campaigns more effective it could also save you a bundle in ads. TIP: Media buyers exist to build media plans and negotiate the lowest possible rates. Picture something akin to the travel agents of the past. Consider one if you spend a few thousand dollars or more a year. Looking for one you can trust? Why not contact me for more info. This article was written by Samantha Rufo, President of nxtConcepts. Need help implementing a new sales or marketing program? We've got two suggestions: |
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