by Steve Fodor
That’s a balancing act marketers struggle with. Marketers struggle even more given today’s economy when discounting has become a means of survival to generate sales traffic. “If we discount, will we ever be able to raise prices (and our margins) again without sacrificing brand loyalty?”
If you’re wrestling with this question, think about this: Forget about price and think about your customer relationships. I’m of the belief that if you manage customer relationships…and your brand…responsibly, price becomes far less relevant.
I just saw something from Coldwater Creek that reaffirmed this belief. I got a mailer from Coldwater Creek announcing a discount. But instead of the usual “great deals to be had now” tone so many retailers are taking, Coldwater Creek did something different. Their mailer was a simple card with a personal message from the CEO, Dan Griesemer. The message simply said, “We know things aren’t easy. But they can get better when we all pull together. Since you’ve always been a good friend to us, we’ve just reduced many of our regular prices. Thank you.”
In that very simple and understated card, my perception of Coldwater Creek as a brand elevated to new heights. Instead of talking in terms of price, they talked in terms of empathy, understanding and like a real friend. The Coldwater Creek brand took on an even more likable personality in my mind.
I’ll miss this recession when it’s over. I’ve managed to get a lot of great buys on brands that I normally would not have considered because of price. And when the recession ends, so will my temporary relationships with those brands that chose to differentiate themselves on price rather than on brand relationships.
That’s a balancing act marketers struggle with. Marketers struggle even more given today’s economy when discounting has become a means of survival to generate sales traffic. “If we discount, will we ever be able to raise prices (and our margins) again without sacrificing brand loyalty?”
If you’re wrestling with this question, think about this: Forget about price and think about your customer relationships. I’m of the belief that if you manage customer relationships…and your brand…responsibly, price becomes far less relevant.
I just saw something from Coldwater Creek that reaffirmed this belief. I got a mailer from Coldwater Creek announcing a discount. But instead of the usual “great deals to be had now” tone so many retailers are taking, Coldwater Creek did something different. Their mailer was a simple card with a personal message from the CEO, Dan Griesemer. The message simply said, “We know things aren’t easy. But they can get better when we all pull together. Since you’ve always been a good friend to us, we’ve just reduced many of our regular prices. Thank you.”
In that very simple and understated card, my perception of Coldwater Creek as a brand elevated to new heights. Instead of talking in terms of price, they talked in terms of empathy, understanding and like a real friend. The Coldwater Creek brand took on an even more likable personality in my mind.
I’ll miss this recession when it’s over. I’ve managed to get a lot of great buys on brands that I normally would not have considered because of price. And when the recession ends, so will my temporary relationships with those brands that chose to differentiate themselves on price rather than on brand relationships.
Flickr Photo Credit: http://www.flickr.com/photos/rwp-roger/3186643427/
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