Small retailers advised to use personal touch to lure customers

A survey conducted by Microsoft found that 22 per cent of consumers shopped in new stores over the festive period, with over half claiming that the personalised service that small firms offer would tempt them to visit again.

Retaining customers from the Christmas period will be particularly important to small retailers this year, after a rise in online shopping and a tendency for consumers to buy gifts at the last moment led to fairly flat Yuletide sales on the high street.

The Microsoft research found that retailers should be able to capitalise on new customers, with a third of shoppers happy to give their details for marketing purposes, while 71 per cent said that they would return to a store if they were sent regular updates of special offers.

As reported by Startups.co.uk on Tuesday, new research revealed that customers were surprisingly keen on Christmas cards from companies, with many stating that festive greetings made them feel valued and more likely to return to the sender’s business.

John Coulthard, head of small business at Microsoft, said that consumers are tired of being continuously pestered to buy more, even if the products are vaguely relevant to them.

“With the run-up to Christmas and the January sales, retailers and especially local small businesses, have had a great opportunity to attract new customers.

“Now they have the opportunity to build an ongoing relationship with them based on understanding their likes, dislikes and what they may be interested in purchasing in the future.

“For most of us it is actually the little things that count – we want to feel that people have thought about if something is relevant or helpful to us and targeted on that basis. The businesses that take up this challenge will be the ones that win the business.

“Most small businesses have an average of 165 customers. It is impossible to remember personal details of each and every one – yet they would be willing to but from you if you could.

“All you need to do is create a tool within your business to capture this data so that future marketing can be tailored and thought through,” he said.

Microsoft offered the following tips to retailers attempting to retain new customers:

• Don’t forget holiday cards – you can create personalised, attractive holiday greeting cards using software programmes. Customers will appreciate the personal touch.
• Plan special events – reward long-time customers with a personalised party or event that lets them know how much you appreciate their loyalty.
• Power sales with gift certificates – Create and offer branded gift certificates to entice customers into your store.