“Promotions - Promoted to Death?”
In the September 24, 2010 issue of Retail Week, Booz & Company Principal Jason Gordon (Europe) said in a continued difficult environment for retailers, a real differentiator for retailers is to distinguish themselves from rivals and ensure shoppers feel they are getting value. “Make customers happier, their lives easier and interaction with the retailer more fulfilling,” said Gordon. “That’s the difference between a high value, lifetime customer and one that deals with you on a one-off transactional basis.” But relentless focus on price alone is simply not sustainable for many retailers, he said, turning the real issue into how to change the consumer mindset so that price is not the “be all and end all.” Deep customer understanding among retailers is key to achieving that goal, Gordon added. “Understand and maintain the customer relationship,” he said. “John Lewis is a great example of the fact that people will pay more if they are getting great service.”