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When the Discount Craze is Done

With Black Friday over and Cyber Monday done, can holiday merchants keep up the momentum? For small retailers, especially, the real work of bringing in holiday shoppers starts when the sales frenzy is over. 

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For retailers, the real work of bringing in holiday shoppers starts when the sales frenzy of Black Friday and Cyber Monday is over. And while the bigger retailers benefit from the big sales, the small merchants have a chance to shine when those discount offers are done.

Laurie Brown, a sales training expert who founded The Difference and wrote The Greet Your Customer Manual, says shoppers simply have come to expect discounts when the shopping season kicks off in earnest after Thanksgiving. And the record sales seen over Black Friday and Thanksgiving weekend, and again on Cyber Monday prove that those customers weren't disappointed. But in the long run, do deep discounts really help retailers develop a customer base?

“The thing that worries me about these events is that they’re short-term thinking in general,” Brown says. “The person who shops for the lowest price is never the loyal customer. That isn’t to say that you shouldn’t discount. But if it’s not matched with a reason to come back, they won’t.”

For big-box stores such as Target, the game plan for getting customers back after the big Black Friday sales is to …well, run another big sale. Target will reportedly have a new "Almost Last Minute" sale to reach out to the shoppers who have held off on buying. The December 8-10 sale will encompass a range of items including televisions, a camera, some video games and cookware, Reuters reported.

Similarly, Banana Republic just sent out a 30 percent off coupon for this weekend for full-priced items purchased online and in-store.

For small independent retailers who might have participated in Small Business Saturday, and might or might not have seen a bump in sales as a result, the time is ripe to communicate, Brown says. For Main Street-type merchants that means using social media and taking advantage of the ability to offer personalized customer service.

“You need a Facebook page [and to be on] Twitter and GooglePlus, and you need to have your business listed on Google Places,” Brown says. Social media is a great way not only to get the message out about the retail business—like if you just got more Xboxes in stock or added a new item to your food menu—but also to listen to what customers are saying and respond to their concerns.

“It’s more personal,” Brown says. “I have a restaurant in my neighborhood that posts the soup that they have that day on Facebook. I might not have thought about going there for soup, but that can make me change my mind.”

Merchants might consider giving a discount to those who “like” their business on Facebook. Another great way that a small merchant can provide great customer service is to keep a gift registry or a list of what particular customers like. Amazon does it online, but for a small brick and mortar store, it might be as easy as creating a Google Documents spreadsheet. Another perk: offering valet parking or an easy way to park outside the store and convenient hours. Even stores that offer normal rather than discounted prices will benefit from perks like these, says Brown.

Then, for smaller retailers there is always the ability to chat customers up about what their children are up to or how their spouse is doing as they shop.

“There are two things that people want these days,” Brown says. “People who are nice and things that are easy.”


Teresa Novellino writes for Portfolio.com

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