I read today that consumers saved over $2 Billion in the first half of 2011. Wow! Although it’s a decrease from 2010, it’s still an increase from 2009 when we (marketers) started reacting to the economy by making people feel better about spending their precious dollars with us by sending out coupons rather than improving our relationships with them.
I can’t help thinking how easy it was (and still is) to fall into the trap of couponing. It’s easily tracked. I can see my exact return on investment, unlike that messy thing called advertising. Looking back, we all see that we discounted our business rather than adding value to it.
So now what? How do we ween our customers off of the discounts we created and so generously gave to them? How do we create an anchor price for our services that is equal to the actual value of them rather than less than the true value.
How do we get back to L’Oreal’s Preference hair color taught a generation so long ago and let customers know that we’re “worth it”?
The classic commercial from the 70’s.
Read more about the coupon craze here and tell me what you’re doing to reduce the amount of discounting you’re doing.