Holiday Retailing 2008 Surviving the Toughest Holiday Retailing Season in 25 Years



If the last few weeks have taught us anything at all, it's that no industry giant or business is recession-proof. Not even the last bastion of Wall Street's banking elite. In this time of economic uncertainty, recession fears have become self-fulfilling prophesies. Strategies have edged over from prudence into phobia, and the consumer conga line has slowed to a crawl. Grim economic reports continue daily, playing on the deep fears of retailers and consumers alike, magnifying market ebbs into tidal waves.

These are the realities of today's marketplace. Welcome to the 2008 Holiday Retailing Season.

For retailers especially, the announcement by the NRF (National Retail Federation), has confirmed their worst nightmare - Holiday 2008 is going to be a tough one. Two forecasts last week pointed to the weakest holiday sales growth since 1991. Both Deloitte Research and TNS Retail Forward, who used different metrics, confirmed that 2008 holiday sales will be much weaker than last year and the worst performance in over 25 years.

NRF's initial forecast echoes their findings. The trade organization announced that 2008 holiday sales are expected to grow at the slowest pace since 2002, as shoppers worry about jobs, the housing and stock markets and high gas and food prices. Holiday hiring is down and anxiety is high - even luxury retailers are concerned about the ripple-effect.

So with all the doom and gloom, what can retailers do to stay ahead of the curve and thrive this season

"They need to put their marketing dollars to work smarter and harder, for starters," says Eric Holmen, president of SmartReply (www.smartreply.com), the largest voice, mobile and loyalty solutions provider to US retail and consumer products industries. The most urgent and immediate need is for cost-effective solutions that can be implemented with speed and precision. Marketers don't have the luxury of time or experimentation right now. They must engage customers and create loyalty in a precarious environment, where consumers are less receptive to traditional forms of advertising than ever before.

With retailers counting heavily on this season to tide them over through next year, it has become critical to make it a successful trading period. Many retailers have already incorporated mobile and voice campaigns into their holiday marketing mix, recognizing that these medium are increasingly accepted by US consumers as welcome and preference-based communications. For retailers, the ability to deliver welcomed messages that provide value at a time when consumers need it most - is key. And for the company's clients, who make up many of the country's major retailers, speed to market and significantly low advertising costs is what they want right now.

To support retailers and existing clients, SmartReply has released an industry guide called How to Survive and Thrive the 2008 Holiday Marketing Season, outlining steps that businesses should action right now to make it a successful holiday season;

SmartReply's Must Do List for Surviving the 2008 Holiday Retailing Crisis

1. Know your customers ' media habits and maximize them. Be sure you have a clear understanding of how, when and where your customers use media. Then create an integrated marketing campaign that will engage them through the channels of their choice at a time when it is most relevant for them.

2. Speak their lingo. You have more than one type of customer and you will generate increased effectiveness and revenue if you speak directly to their individual needs. Understand your customers ' attitudes, lifestyle and behaviors and maximize them in your message and in the channels you use.

3. Prep your program. Sixty days prior to your campaign launch is a good time to start cleansing your data, reactivating inactive customers, soliciting new opt-ins, and testing. By the time the launch date arrives, your campaign -- and your database -- will be polished and ready.

4. Permission granted. Get on it. Don't wait. When a customer opts in to receive communications from you, don't wait. Respond immediately in the same channel they opted in from.

5. Engage, but don't push. Today's customers want to feel that they are a part of the relationship and the product choices they make. Get them involved with surveys, viral campaigns, and social media that helps them connect with their friends and family.

6. Help them manage their lives. Your customers are the ultimate multitaskers. You can ensure you're one of the few brands they enjoy interacting with by helping them organize their lives with alerts, early bird wake-up calls, store locators, and more.

7. Customize, localize and make it relevant. To conquer media fragmentation, you must ensure that you're message stands out enough to capture your customer's undivided attention. Target your customers ' emotional hot button; aim to solve a problem they're struggling with; or feed a need.

8. Make it viral. Coupons, surveys, mobile blogs, text games, even photos of the latest fashions...if it's important or fun to them, your customers will share it. And there's nothing more trusted than a message from a friend. Encourage and incentivize your customers to share your message.

9. Come full circle. Use each medium to drive business in another medium. Customers active via multiple channels result in longer brand engagement, deeper interaction, higher spending and higher customer lifetime value.

10. Keep the relationship burning strong long after the holiday rush is over. The holidays may be gone, but the valuable relationship you have with your customers is ongoing. Since your brand is fresh in their mind, continue to keep them engaged.

So while there is no simple way to recession-proof the holiday season, there are some business and marketing practices that just make better sense. And cents.

For a copy of SmartReply's guide How to Survive and Thrive the 2008 Holiday Marketing Season, please contact media liaison Vanessa Horwell at 786.206.7883 or vanessahorwell @ strategicvantage.com. Visit www.smartreply.com for more information.

About SmartReply

Creating Environments for Respectful and Engaging Communications

Founded in 2001, SmartReply offers companies a powerful combination of new media communication channels including voice marketing, mobile marketing, email and interactive voice response. With over 120 major retailers, financial services organizations and healthcare companies as clients, SmartReply is the largest and most trusted provider of voice messaging and mobile marketing solutions across the US and Canada. As the only mobile and voice services provider that is Payment Card Industry (PCI) Certified, SmartReply's clients and partners are uniquely positioned to utilize the latest in marketing technologies combined with added protection of the industry's highest data security and compliance standards. The company leverages innovative marketing technologies to drive down overall marketing costs while optimizing response rates, dramatically increasing revenues and strengthening brand affinity for its clients. Headquartered in Irvine, California, information for partners and clients can be found at www.SmartReply.com or by calling (800)-785-6769.





Holiday Retailing 2008 Surviving the Toughest Holiday Retailing Season in 25 Years