Also from Bob Phibbs...
The Retail Doctor
Bricks and Mortar Retailing at Risk in the Digital Age
A manifesto (URL)
November 29, 2012
A RetailWire story back in July of 2011 looked at plans by consumers to use daily deal offers to save money on their holiday purchases. Now comes a report that small retailers have decided to take a pass on offering Groupons this holiday season. Is there a place in the daily deal space for special offers that satisfy customers while making business sense for merchants? [more...]
Gratifying to hear that finally retailers are waking up to a phenomenon I warned against over two years ago here.
It seems fitting that the day after Zig Ziglar, who taught me 30 years ago that customers forget price after the sale, but remember how it made them feel forever, that we are discussing discounting.
Retailers have never had a clearer choice—if you are big enough to be on Wall St. and can use their shareholder money to buy customers—you will because its not really your money. And if you've given up on having compelling merchandise and enough employees who are well trained to goose sales, you'll still use discounts to pay customers to come to a less than exceptional experience.
If it is just you and you try to buy customers with your own money, you'll have less of it which could render you out of business. The hard work, the gratifying work, and the work that makes most retailers profitable is continually looking to see how they can brand their customers' butt using exceptional service so they will drive past competitors screaming 40% off 24/7.
Stay the course and be profitable as 97% of those surveyed businesses have found. Any promotion has to be a win-win, not you win, customer wins, I lose.