Second To None

No Two-Bit Cup of Joe

By Kerry Colligan

A lasting effect of the current recession may be a predisposition toward saving. Like the generation that emerged from the Great Depression, many consumers are expected to be cautious about spending.

Many brands are already feeling the pinch; reference the current battle for latte supremacy. Deutsche estimates McDonald's new-coffee sales at about $500M, 6-6.5% the size of Starbucks' total coffee sales.

The potential for high-margin sales drew McDonald's in to a 1,300 location latte... Continue Reading

‘S’ Word Revival

By Kerry Colligan

Throwing tradition to the wind, Ad Age recently published an article stating segmentation is dead. It seems one-to-one techniques are pushing segmentation to the fringes of marketing strategy.

Well, not really.

To arrive at a one-to-one relationship with a customer, companies need to understand customer perceptions, behaviors, demographics and psychographics; the stuff of segmentation. Once a baseline understanding is in place, it is possible to begin to address an individual customer on... Continue Reading

Consumer satisfaction uptick reflects focus on service

By Kerry Colligan

The Q4 American Consumer Satisfaction Index (ACSI) was recently published. According to Claes Fornell, head of the ACSI, the 1.3% gain in the retail sector and the 0.9% uptick overall speaks to a commitment to customer service but does not signal an end to the recession. The reason, he says, is that this recession has had a profound effect on consumer spending, largely because of access to cash/credit.

For the short-term, Fornell acknowledges that "the power of ACSI alone to predict... Continue Reading

Sr. Consumer Centricity Consultant Needed

By Kerry Colligan

Most retailers see consumer-centricity as a top three success factor, according to a recent "Being Consumer Centric" study. (More here.)

Surprise.

What's new in this study is that consumer-centricity now has C-level support. Fully 84% of respondents believe executive level support is no longer an impediment; 3 out of 4 companies have appointed a senior-level employee to the consumer-centricity role.

Set that aside for a moment.

Pundits, practitioners and academics agree that today's... Continue Reading

Seize advantage in a downturn

By Kerry Colligan

From Harvard Business Review: Seize advantage in a downturn.

Summary

By first stabilizing their business, retailers can take advantage of "less savvy" competitors during a downturn. To do this:

• Know your cash flow and manage for the top line.
• Manage operational inefficiencies and costs.
• Consider the impact of the downturn on your merchandising strategy.
• Form a cross-functional team to carry out your plans.