First, Happy Halloween!

OK, that’s out of the way. To me, the best part about Halloween is that it marks the unofficial beginning of the holiday shopping season. At Macy’s in Herald Square, just a quick jaunt around the corner from CRM magazine’s office in Midtown Manhattan, you can already see Christmas lights being strewn up in preparation.

Not only are people getting a head start on hanging lights to spread holiday cheer, but they are also shopping earlier. With an economy that make many say “no, no, no” instead of “ho, ho, ho,” consumers are looking for the best prices as early as possible as their budgets for discretionary purchases continue to shrink.

With less than two months left until floors are littered with torn wrapping paper with images of sleighs, Charlie Brown, snowmen, and other images of holiday yore, many small businesses looking to cash in during this usually prime shopping season seem to be increasingly focused on shoring up the customer experience it provides to those poring through their shelves — or online catalogs. As my fellow CRMer Lauren McKay points out in an earlier blog post, the stakes are even higher this year for businesses because of the economic downturn.

A study conducted by RatePoint, a Needham, Mass.-based customer feedback solution provider for small-to-midsize businesses (SMB) finds companies are getting the message loud and clear:

• more than 80 percent said business reputation and solid customer support impacts their ability to attract and retain consumers;
• forty percent report they are hiring up to five new employees for customer support over the holidays to help manage inquiries, orders, and returns; and
• most will spend an average of 10 hours monitoring their reputation to safeguard against any possible early warning signs of customer issues.

To Richard Turcott, chief marketing officer or RatePoint, this shows him many in the SMB segment are realizing the importance of forging quality customer relationships, as he says this is directly correlated with company reputation. He was particularly shocked by the second survey nugget, the fact that almost half of SMB owners say they’re hiring up to five new employees despite the economic environment.

While he admits the new hires may not all be full time, it is the principle that matters most. “The SMBs are sticking their necks out, providing exemplary support, and demonstrating they are customer-centric businesses,” he says. “These [new additions] are primarily part-time employees, but [nonetheless] provide a great view in which the small business community sees feedback and service as an important driver to helping them stay strong through this tough economic climate. These [organizations] are building equity rather than short-term hits.”

In a time when Web 2.0 technology is the soapbox du jour for many consumers sounding off about a company’s products or services, having a strategy to proactively cull and act upon customer feedback is even more important. “The prevalence of social media perpetuates the ease in which competitors and disgruntled employees can say negative things about a business,” Turcott says. “For small businesses, it’s more a necessity than a luxury to actively manage its online reputation. If they don’t know it now, they will very soon.”

For the SMBs — and also larger enterprises — out there gearing up for the holiday season, what strategies are you using to manage customer feedback and consequently improve the experience your shoppers have?