How to Profit from Parties
Retail experts tell us that it costs five times as much to attract a new customer as it does to retain an old customer. Retail storewowners consistently list “attracting new customers” as a top concern and priority.
Yes, it’s true: New customers are the lifeblood of a business—after all, we need to maintain a constant influx of new customers to grow our businesses. Yet between managing inventory, staffing issues and traveling to trade shows, attracting new customers often takes a back seat to the everyday issues of running a store.
One creative way to attract new consumers is to throw a party. That’s right—a party! Bridal and baby shower scrapbook parties are a terrific way to attract new customers—there’s a consumer interest and immediate profit potential. A shower or party will bring you new customers: done well, it will lead to repeat sales and regular customers.
One Consumer’s Experience
Last month I attended a baby shower held at a local scrapbook store, along with fourteen of my friends. The shower was designed to give the mom-to-be an album full of layouts that only needed photos. Our assignment was for each attendee to complete a themed page (“Baby’s First Christmas”, for example), giving the mom-to-be pages for each month of the year plus a few everyday layouts.
Of the 15 of us, only three had scrapbooked; the rest were familiar with the idea but never tried it. We each paid a table fee of $2.50 and purchased our project supplies at the store. In addition, the shower hostess paid $80.00 for the two-hour event.
To my surprise—and the shower hostess’ dismay—the store provided only the worktables. No paper cutter, no scissors, no adhesive, no pens and most of all, no assistance.
I watched as fourteen prime potential scrapbook customers—women in their 30’s with jobs, kids and disposable income—struggled with layout, paper choice, embellishments and journaling even as they chattered about how much fun they thought scrapbooking was.
I wondered just how much this store was missing out. After all, if getting new customers into the store is a big challenge for retailers, this little group was a gold mine! Here were 15 customers, ready, willing and excited to scrapbook. Here were 15 customers required to spend money in this store (even if it was just enough to make one page). Here were 15 customers who, with the right kind of treatment, might come back to the store.
Two months after the baby shower I attended, I asked how many of my friends had continued scrapbooking. The result? Only one of the 12 beginner scrappers had continued—and she shopped at another store. The overwhelming reason they weren’t scrapbooking? “I had fun being with my friends but I don’t think I could do this on my own—it’s too confusing,” they said.
What could have been done to turn this party of one-time shoppers into repeat customers? Try these tactics for profitable parties:
Hostess the party. Yes, it will cost you an employee’s time in the short term—but think about the results: A hostess will keep the party on track time-wise; she’ll be able to assist party-goers with product choices and she’ll be able to guide the novice scrappers. There’s another benefit: Customers get to know an employee, making them more likely to choose your store over the competition next time they’re shopping for scrapbook supplies.
Tell attendees how to shop. The hostess should start the party with an introduction to the store’s products. With 12 scrapbooking newbies in our group, we could have used some information about the general layout of the store before wandering out to shop. Is your store divided by theme? Manufacturer? Product type? Let your customers know!
Tell the beginners how to scrap. The 12 newcomers to the craft had questions any new scrapper has: “What do I need to buy to make a page?”. A brief explanation of how to create a page, including information on what the “must-have” supplies are (background paper, matting paper, alphabet stickers, pen, embellishments) would have made the event much less frustrating!
With an introduction and a few pointers, the scrapbooking party should be low-maintenance. After she’s done with the introductions, the hostess can leave the group on it’s own, perhaps checking in every 20 minutes to see how things are progressing. Check-in time is the perfect opportunity to admire customers’ layouts, chat with them, and make sure everyone is having fun.
Share your tools. Paper cutters, scissors, glue, punches, stamps, idea books and magazines… you have these on hand for classes and crops, right? Make them available to your parties too.
Treat them right. For an $80.00 flat fee plus $37.50 in table time fees, the store could certainly afford to spring for a selection of pop and water. As it was, one party-goer walked the four blocks to a nearby convenience store to get some water for our 8-month pregnant friend.
Invite them back. Now that you’ve successfully piqued their interest and got them started, why not tempt them back into your store? Make sure every attendee leaves with a copy of your newsletter, a flyer listing upcoming classes, and a coupon for 10% off their next purchase.
Getting new customers is expensive—it requires energy, creativity and a little capital outlay. Yet if you’re serious about growing your business, you can’t afford to let 15 potential customers slip out your door without marketing to them. A shower or party will bring you new customers: done well, it will lead to repeat sales and regular customers.
