While the stock market was taking yet another nosedive on Wednesday, I happened to be reviewing an Internet Retailer survey about expectations for holiday sales, and how companies were modifying their strategies as a result. I was especially interested in the two questions that involved marketing strategies:
Question #1: What methods are you using to combat the current economic climate’s impact on holiday sales? (Check all that apply)
Answers ran the gamut:
Including more lower priced items in your assortment – 37.6%
Beginning your holiday promotions earlier than last year – 36.7%
Reducing prices, either selectively or across the board – 29.4%
Free gifts with purchases – 21.6%
Increasing advertising spending-19.7%
Working more closely with affiliates – 17.4%
Conducting invitation-only sales – 15.6%
Working more closely with comparison shopping sites – 13.3%
Adding alternative payment methods – 11.5%
Offering pay-later options-6.0%
None of the methods were a surprise, but the distribution of the answers were. For instance, rather than offering sales and carrying lower-priced products, many of the best-performing companies I know are working their customer base harder, getting higher sales from a smaller number of customers.
Question #2: In what areas will you increase marketing this holiday season? (Choose all that apply)
Here are those responses:
E-mail campaigns – 56.4%
Paid search – 44.5%
Social media (e.g., blogs, social networking) – 30.7%
Affiliate marketing – 25.7%
Direct mail – 20.6%
None – 13.8%
Newspapers and magazines – 12.8%
TV and radio – 6.9%
It’s no big surprise that email tops the list, and newspapers, magazines, TV and radio are at the bottom. The extent of the increase in some of the other categories was a pleasant discovery. It confirms my sense that things are not as dire as the news would suggest for companies willing to adapt their marketing methods.
How about you? How are your strategies changing as a result of today’s economic climate?
