An upscale restaurant chain CEO called and asked me to speak to their franchisees about discounting. He felt it was destroying the perception of their brand in customers’ minds. He knew I’d written the book blasting Groupon as one of the worst ways to market a retail business, so I seemed like a natural fit to him.
Even though he had read my book, Groupon: You Can’t Afford It–Why Deep Discounts are Bad for Business, some franchisees kept offering Groupons, which was reducing profits and affecting other locations. I told him in order to kick the habit of offering Groupons, they had to do the hard work of creating a better customer experience in each location.
“No.” he said, “ I need you to show empirical data showing why discounting is so bad.”
“And you think that will stop it?” I asked.
“Yes, you’re the retail expert; they’ll listen to you.” Continue reading Retailers, Can Coupons Mask The Lack Of A Great Experience? »