Reeling Them In
Nov 1, 2007 12:00 PM, By Patricia L. Kirk
Although mall marketing managers may be doing all they can to prolong the holiday shopping season and pulling out all the stops to keep consumers at their properties as long as possible (see “Creating a Big Bang,” p. 118), when it comes to reaching out to communities, most are still sticking to tried-and-true methods.
Marketing managers are combining the traditional blend of advertising media — print, radio, television and direct mail — to market discounts and promote special events. The Internet will play a larger role then ever, as managers turn to e-mail, special microsites and other online widgets in efforts to inform shoppers about seasonal promotions and provide tips to ease shopping stress as a way to complement the in-mall experience.
The strategy stems from expectations for the holiday season. In spite of some bleak projections calling for it to be the worst holiday shopping season in several years, at least some retailers remain bullish and mall managers are following that lead.
“Retailers are confident about this holiday season,” says John Bacon, communications director for Kansas City, Mo.-based RED Development LLC. He points to major tenants like Best Buy, who aren't doing anything different marketing-wise than in the past, except extending store hours and offering deeper-than-normal discounts on Black Friday. “That's why we feel confident in doing what we're doing, which is just to strengthen [existing] programs.”
The National Retail Federation published a study of shoppers showing that consumers planned to spend an average of $923.26 on holiday gifts, up 3.5 percent from last year (about half the 7 percent gain recorded between 2005 and 2006). Overall it is projecting a 4 percent gain in total sales, down from 7 percent last year. Projections from other analysts are also in that range.
But in many mall managers' books any growth is good growth and as long as shoppers aren't pulling back and spending less than they did in years past, it should be a solid season. “At the end of the day, this is America and Christmas is Christmas,” says Cheryl Dougherty, vice president of marketing for Pennsylvania REIT. She points out that studies indicate that higher gas prices are causing people to shop less often, but longer stays at centers balance that out. In the end, shoppers end up spending less on gas while keeping retail spending high through making more purchases in fewer trips.
Reaching out
When it comes to luring customers to properties, the biggest change between this year and holidays past is that mall companies are putting more and more effort and creativity into online campaigns.
“The Internet has been a cost-effective way to promote what's going on in centers,” says Kim Jones, marketing director at RED Development's Village Pointe shopping center in Omaha, Neb. “We've been real pleased with e-mail,” she adds, noting a 30 percent to 40 percent increase over last year in opened e-mail blasts.
Moreover, marketing managers can use information collected when consumers register for e-mail lists and respond to promotions to build a database for future campaigns. This year, Jones is using e-mail blasts to advertise RED's annual ornament giveaway program. (The center gives free imported, hand-blown Kugel ornaments to customers that spend more than $200 at the property.)
Managers at Cleveland-based Forest City Enterprises' Victoria Gardens, a 1.3-million-square-foot open-air shopping center in Rancho Cucamonga, Calif., also capture information about shoppers from e-mail registrations and Internet promotions to expand a direct database used for an annual gift-card giveaway. The program targets households fitting certain demographic criteria to receive a holiday greeting card that offers the recipient a gift card worth between $10 and $1,000.
“It's a fun game of chance,” says Paulette Caputo, director of marketing for Forest City, explaining that no one knows the value of the gift card until the barcode on the greeting card is scanned. The high value of many gift cards makes the program popular with shoppers. It also enables Forest City to track how customers spend money and where they shop. Caputo says it generates sales for a minimal investment because the cost of the program is divided among tenants. And, shoppers with gift cards typically end up spending over and above the card's value. A survey of last year's buyers found that typical shoppers spent 2.5 times as much as the cards they redeemed.
