Are The Next 30 Days More Important Than “Black Friday?”

Contrary to the hype, the next 30 days may be far more important in retailing than “Black Friday.” This is when shoppers and their recipients will decide if they want to continue doing business with you. Common sense and research tells us it’s far more costly to find new customers than it is to keep the ones we’ve already got.

Whether your store is online or in a physical location, you have visitors you’ve never seen before. People are stumbling onto you because they’re looking for something special and you’ve got it. Are you interested in only one sale? Or do you want them to fall in love with your products and services and come back again and again?

How about those people they are buying for? Those recipients can become new shoppers for the future. That’s what makes the holiday season such a boon to savvy retailers. They know each sale is connected to more than one person, and can lead to many more sales in the future.

I found many of my favorite resources through gifts from friends and clients. Years ago, someone bought me a gift from TravelSmith. I’ve spent thousands of dollars there since. Another gave me a gift certificate to the Yard House, a great restaurant in North Phoenix. It has become one of my regular business lunch places.

Why? It wasn’t just that the gifts were wonderful, the service was Terrific! That Matters! That’s what brought me back again and again.

People are frazzled during the holidays. Traffic sucks the life out of us. Bad weather causes what could have been quick errands into long ordeals. If customers find your physical store, they may be stressed, tired, and hoping for a decent shopping experience. Are you set to take care of them? Are you employees trained to handle difficult and stressed-out shoppers?

What about the online experience? Is it easy to use? Easy to navigate? Fast loading? Secure shopping? Multiple shipping options? Are your 1-800 operators cheerful and equipped with all the answers?

In short – is shopping with you a reassuring and simple process? Or are you adding to the stress of the holidays and shooting yourself in the foot for future purchases?

How you and your employees interact with these customers may very well determine the success of your business for the next 12 months and beyond.

So what makes the month from December 20 to January 20 so all important? Two things:

1. Gift cards are being bought. Last January, the New York Times reported a survey by the financial-services research firm TowerGroup. They said $80 billion was spent on gift cards in 2006!

2. Things will be returned. Clothing, jewelry, toys, gadgets, electronics, appliances — the stuff you sell — will be wrapped and placed lovingly under the tree. Once they are opened, according to a survey by National Consumer, 35.7% of the recipients will try to return them.

When gift cards are used, or items are returned, it may be that customer’s first time interacting with you.

The Good News? Returns and Gift cards can become your newest marketing weapon: they lead brand new customers to your door.

Are YOU ready for them? How about your team? Will this be a great experience for your new-found friends, or will it be a nightmare to be told and retold to at parties and around the water cooler for decades?

What can you do? Have you trained your employees to handle gift cards and returns? We’ve all seen this: employees who act like we’re robbing them when we tried to use our gift card. We’ve seen gift cards with hidden charges on them every time we shopped. We’ve run into employees who didn’t know how to ring up a gift card or return.

Before you send those employees home to enjoy their Holidays with family, set down some guidelines and do a little pro-active training:

• What is our return policy? (How many days, receipt required? Condition of the item? Any restocking charge? Who is authorized to process returns? Do we give cash or store credit? IS OUR RETURN POLICY POSTED PROMINENTLY BEHIND THE REGISTER?)
• How do we process Gift Cards? (Same as cash? Same as credit card? Require ID? Expiration date? Any surcharges?)
• What do we do if we aren’t sure the Gift card/ return is legit? (How do we check? Who is authorized to make the final decision? How do we treat the customer?)
• Is our gift card “refillable?”
• Does our credit card machine have the capability to ‘read’ the cards? If not, how do we know the total left on the card?
• What do we do with expired cards?
• What do we do in case of credit theft? (Note: some thieves are copying the numbers down while the card hangs in the store. They are then waiting for the card to be activated and using the amount online before the legitimate recipient has had a chance. Know what you will do in that case. Protect the cards you sell from that kind of access.)
• What are the applicable laws in your state? Federal laws?

Finally – talk with your staff about the importance of treating these new shoppers with respect and appreciation. Emphasize the importance of the customer experience when they come into your store, especially for the first time. Keep your word. Remember your mission and vision.

Your goal:

Create a new friend who goes out and tells their friends: “Wow, I’ve never been in that store before, but I [got a gift card / returned an item] and they are a GREAT place to shop!”

Happy Holidays!

Many Happy Returns ;-}

Beth

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Beth Terry, CSP, is a Professional Speaker, Author, and Trainer. She focuses on Customer Service, Managing Change and Stress, and Managing People. She has Executive and Management experience in Retail, Insurance, Tourism, and Hospitality Industries.

©2007 Beth Terry Seminars, Inc.