“We’ve already established what you are, now we’re just haggling over price.”
– A less than PC old joke
It’s hardly news that the retail industry is responsible for too many self-inflicted wounds. At the top of this list, perhaps, is many retailers’ long-term reliance on aggressive discounting to drive top-line sales. This has taught many consumers that the regular price is “the sucker price” in turn addicting them to various former of discounts. Retailers are addicted too, unable to wean themselves off various forms of price promotions.
With Kohl’s announcing plans to increase its Rewards program earn rate to 7.5% we take on the potential risks of this type of strategy and unpack the differences between loyalty and bribery. We delve into what Steve calls “promiscuous shoppers” and why working too hard to seduce them can backfire. Lastly, if customers just aren’t that into you and promiscuous shoppers make up too large a portion of your customer base, what should retailers actually do?
But first we open up with the retail news that caught our attention this week, including the continuing slow down in online shopping and disappointing results from Shopify, Etsy and eBay, among others. We go deep on Wayfair’s (or is it Waywork? Or Wefair?) disastrous earnings report and wonder whether the emperor has any clothes and/or could become an acquisition target. We also touch on whether the biggest mall to open in North America in a long time is turning into an American nightmare and what to make of the divergence between increases in shipping rates and the increase in online ordering.
Don’t forget that Steve’s book has been selected as a Kindle Monthly Deal, which means that for a limited time the ebook version of Remarkable Retail: How to Win & Keep Customers in the Age of Disruption is just $1.99 in both the United States and Canada.
Photo by Artem Beliaikin on Unsplash
***************************************
Steve Recent Forbes Relevant Articles
Retailer’s Pointless Pursuit of the Promiscuous Shopper
Wayfair’s Earnings Disaster Portends More Trouble For ‘Disruptor’ Brands
Wayfair, Stich Fix and Pure-Play E-commerce’s Scaling Problem
The Myth of the Great E-Commerce Acceleration
Past Podcast Episodes We Reference
Understanding Customer-Based Valuation with Dan McCarthy
The Store As Brand Hub with Target’s Nancy King
About Us
Steve Dennis is an advisor, keynote speaker and author on strategic growth and business innovation. You can learn more about Steve on his website. The expanded and revised edition of his bestselling book Remarkable Retail: How To Win & Keep Customers in the Age of Disruption is now available at Amazon or just about anywhere else books are sold. Steve regularly shares his insights in his role as a Forbes senior contributor and on Twitter and LinkedIn. You can also check out his speaker “sizzle” reel here.
Michael LeBlanc is the Founder & President of M.E. LeBlanc & Company Inc and a Senior Advisor to Retail Council of Canada as part of his advisory and consulting practice. He brings 25+ years of brand/retail/marketing & eCommerce leadership experience, and has been on the front lines of retail industry change for his entire career. Michael is the producer and host of a network of leading podcasts including Canada’s top retail industry podcast, The Voice of Retail, plus Global E-Commerce Tech Talks , The Food Professor with Dr. Sylvain Charlebois and now in its second season, Conversations with CommerceNext! You can learn more about Michael here or on LinkedIn.
Be sure and check out Michael’s latest venture for fun and influencer riches – Last Request Barbecue, his YouTube BBQ cooking channel!
