discounts

Is your customer acquisition (and retention) strategy based on discount pricing? How's that working for you? 

Discounts might be working well to bring customers in the door, but do they stay after they're in? Can you keep those that you acquire? Are you creating a precedence that is not sustainable?

I’m concerned about the retail industry. Earlier this month, a Federal Reserve survey reported that retail sales had weakened in many areas because of winter storms. As retailers report their first quarter results over the next few weeks, I’m sure we’ll see the fallout from the bad weather. We’re already seeing the aggressive price promotions that retailers have bowed in order to make up for the losses. 

Chances are you've come across a bundled services offer from your friendly neighborhood phone or cable companies lately. It's actually the primary slant of their marketing strategies, so you really can't avoid them. The pitch is simple: buy more of the things we sell and you'll get a better up-front discount.

With the launch of Facebook Deals in the US in November and its imminent launch in the UK, the opportunities for brands to engage in location-based marketing are growing and set to grow more in 2011.

Bob Phipps, writing over on The Retail Doctor, has an 11 piece post on Groupon (and similar sites) and their impact on retail.

He makes a pretty strong final argument on his post:

Stand for something or you’ll fall for anything.

by: Roger Dooley

by: Roger Dooley