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Why Baby Boomer Luxury Purchases Are In Danger

I’m a child of the sixties.

I was fascinated every week by the Apollo pictures in the oversize Life magazine. I watched the death tolls at the end of every CBS Evening News with the man who represented unbiased reporting, Walter Cronkite.

I saw the Beatles premiere on Ed Sullivan. The day John Kennedy was assassinated – when my mom invited the Fuller Brush door-to-door salesman to come in and watch the TV coverage. The riots in LA, Detroit and the rest after MLK was murdered. The summer of love. Anti-war demonstrations. Woodstock. Kent State. The moon landing.

We baby boomers grew up on a steady diet of black and white commercials that included these questions:

  • How about a nice Hawaiian punch?
  • Aren’t you glad you use Dial (don’t you wish everybody did?)
  • Wouldn’t you like to be a Pepper too?
  • Is it live, or is it Memorex?

People really did believe that Sears had the best Kenmore appliances and Craftsman tools. Levi’s held up better than the rest and Keds sneakers allowed you to go farther.  It’s back when brands meant something.

It’s back when a box fan was made in America to last, not to meet a $20 price point.

Since there was no Internet, it was when we delivered the day-old news on our Schwinn bikes around the neighborhood.

When my mom shopped for fabric and McCall’s dress patterns. When my dad was the gardener using Scott’s Turf Builder.

Again, it was back when brands meant something.

Baby Boomers were the generation who built Procter & Gamble, Best Foods, Unilever, Macy’s and the rest. And we are still hard-wired to want to see shopping in those terms because we are the generation driving the retail engine.

Spending by the 116 million U.S. consumers age 50 and older was $2.9 trillion last year — up 45% in the past 10 years. Meanwhile, the 182 million people younger than 50 spent $3.3 trillion last year — up just 6% during the same decade, according to an analysis for USA TODAY of U.S. Bureau of Labor Statistics data by The Boomer Project.

Photo by Kim Stiglitz verticalResponse

Nowadays CMOs have abandoned the very foundations of a brand.  Twitter is filled with stories about how marketers are paying people to “like” them on Facebook and getting tablet computers into employees hands.

But nothing prepared me for this pathetic example at left provided by Kim Stiglitz at VerticalResponse of GAP paying for people to just say they provided a 10 on their experience – to receive a 20% off coupon!

With all the talk about “transparency” when dealing with the younger generation, GAP is demonstrating they don’t really care about your experience, just lie and get your 20% off.

What an insult to such a once-great retail brand (coincidentally started in the sixties) now reduced to a click to receive yet another discount coupon.

They aren’t asking for what you really think or value, just kidding themselves people really believe this stuff bullshit.

Branding, it was how Boomers were made into the powerhouse shoppers we still are today.

The Retail Generation Gap – Why Premium Brands are Stuck, my new free special report for retailers, can show you that this new generation is being taught its more about appreciating clicking “like” than purchasing premium brands.  I show you the disconnect quickly and easily and ways to get them past that.  Snag your copy now, before your competitors do.

snag-your-special-report-now



 

A Preview of Retail Hell

The old adage, “The path to hell is paved with good intentions” is not relevant anymore. The path to hell is found at an airport. 

I had enjoyed an exciting couple days with my luxury client’s best ambassadors. Lots of leading, learning, and laughs. Got it? I was jammin’, juiced, joyful. Continue reading A Preview of Retail Hell »

Tablets Not Table Servers – What’s Lost With Technology Is More Than Tips

It’s coming at you from a bunch of MIT engineers.  It’s called Presto.

Slate covered this product in an article called, This Waiter Doesn’t Need A Tip that said in part ,  ”It works like this. You select what you want to eat on their souped up tablet computer and add items to a cart. You can make special requests, like “dressing on the side” or “extra bacon.”

When you’re done, the order goes directly to the kitchen, and the Presto tells you how long it will take for your items to come out. If you want a drink? Just add it on the console, and wait for the waiter to bring it. Bored with your companions? Play games on the machine.

When you’re through with your meal, you pay on the console, splitting the bill item by item if you wish and paying however you want. And you can have your receipt emailed to you.”

This is another example of how people are racing to embrace cold technology in a misguided idea that bringing the Internet to retail or in this case the restaurant is a good thing.

It’s not… Continue reading Tablets Not Table Servers – What’s Lost With Technology Is More Than Tips »

Retail Expert Tells How To Scare Off Customers

I was on the MSNBC Your Business program for their Halloween show. Yes, that’s me in the devil cap with trident below.

They wanted me to take a few principles from my book, The Retail Doctor’s Guide to Growing Your Business (Wiley) and give advice to do the opposite.

It was a bit hard at first to get my head around since four of the points are:

Do You Have a Lunatic Working At Your Retail Store?

I’ve been thinking about this whole Steve Slater phenomenon. For those of you in back –to-school mode or hidden under a rock, this is the JetBlue guy who allegedly was abused by a customer, grabbed two beers and exited down an emergency landing slide at JFK last week.

I was contacted about being on TV to talk about it. They wanted me to represent the side he should not be in jail. Here were the points I was prepared to make:

  • What would drive a veteran employee to do this?
  • Employees are feeling more disempowered every day
  • Rude customers feel no compunction about swearing or hitting employees. Why do they feel they have that right? Because they are usually rewarded with their discount, return or other special favor due to their bad behavior. Employees are disposable as long as they get their way.  That goes for how they treat teachers in the classroom to servers in a restaurant.
  • This story is the canary in the mine; a wake up call to management feeling they can “get more from less employees.” Reality is, less is still less. While your employee might seem ok, it may take its toll on their home life, school or their workplace.
  • Management’s goal should be to ask the questions like, “Tell me what frustrates you about your job.” Then listen and work to correct.
  • Only by having the dialogue can you short circuit the “I’m mad as hell and not going to take it any more.”

Within 2 hrs the appearance was canceled due to the stock market dropping 200+ points. That afternoon people were calling Slater a “hero,” wishing “I could do that,” and lifting him up as an “everyman.”

He got a Facebook fan page; his 15 minutes of fame spread.

His actions allowed a bunch of people who feel stuck and trapped in their lives feel better about the fact they are doing nothing to change. That’s when I decided to start digging further; something just didn’t ring true.

Slater was called a name by a passenger and then over the loud speaker demanded an apology? She didn’t. That’s why he snapped?

As I saw video interviews with him, I heard him say that “I’d been thinking about doing something like this for 20 years.”

Hmmm. Continue reading Do You Have a Lunatic Working At Your Retail Store? »

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