Surely at some point during a shopping experience, you have walked into a store, only to be ignored by the sales staff. In these situations, you can’t help but wonder, “Does this person want my business?”
There are three areas in which businesses compete; people, product and place. Investing in one area takes pressure off the other two. If you pay your nutrition staff well, for example, you can spend less on your physical space. Here’s a story about Frances, one retailer who—even though she leases her space—decided to invest in her store and reaped record sales.
I can remember 12 years ago, there was a buzz about the coming of an “information highway” that would change how we do business. Then, all of a sudden, a line listing was added to my budget for Internet and web services.
Tesco is the world leader in customer loyalty programs, with its Clubcard, and owns dunnhumby, the world’s largest customer-loyalty analyst. For example, dunnhumby provides customer-loyalty analysis to Kroger, the second-largest U.S. grocer (after Wal-Mart), with 2,500 supermarkets.
If this economic downturn is like previous ones, the weak will get weaker while the strong get stronger.In recessions, companies with lots of cash tend to do better than companies with lots of debt, because they can step up to the plate to take advantage of fire-sale opportunities on undervalued assets like real estate.