Stores offer freebies, perks to lure in shoppers; HOT DOG!

Business Week March 24, 2009

In these tough economic times, what's a store to do to make sure it's still in business a year from now?

...When 200 customers crowded into Portland, Maine's Longfellow Books for a book launch party for a local author, co-owner Chris Bowe was thrilled that 100 copies of that author's books were sold; that more than made up for all the free hot dogs he gave away.

Bowe believes that developing a personal connection with his customers is good for business. That's why the shop sends out personalized birthday cards, which include a 25 percent discount certificate, and offer Longfellow Dollars, a rewards program that gives 6 percent back on every five items bought.

Ellen Murphy, a retired lawyer who recently moved to Portland from New York City, said even in a tough economy, she was willing to skip discounts at big chain stores in favor of local shops like Bowe's.

"I don't want to live in a Walmart world and I want to preserve neighborhood identity," she said.

Bowe's worried about that, too, but more pressingly he wants to be sure he can give health insurance to his employees.

"There's a sense of community here, a sense that we're in this recession together," Bowe said.

Jim's comment: Books sold, customer loyalty, and a free article in Business Week ! Thinking outside the box pays off in many ways.

FMI