on Thursday, April 4th, 2013
Wondering what we have been up to lately?
Zavee has partnered with a firm called RewardsNOW to bring the Zavee platform to merchant networks sponsored by banks and credit unions. RewardsNOW is a leader in providing loyalty and rewards programs to mid-market financial institutions – over 200 of them.
Zavee is integrating its social loyalty platform with RewardsNOW’s existing loyalty suite to create an advanced loyalty program called Shop Main Street. Shop Main Street will provide marketing solutions to local merchants, valuable offers to local shoppers that are integrated with their current loyalty program, and a range of benefits to local financial institutions.
The first two markets for Shop Main Street are in suburban Boston and Metro Detroit. Detroit in particular is a great opportunity, because RewardsNOW has a dozen clients in that market which represent more than 250,000 registered cards! Integrating the two platforms has required extensive new development, much of which has improved the existing Zavee platform. Look for more great news from Zavee and Shop Main Street during 2013.
And thank you for your continued support.
on Thursday, June 7th, 2012
Discount retailer J.C. Penney announced in January something they call “fair and square” pricing. It is supposed to do away with discounting in favor of everyday low prices. Penney did not invent the everyday low price (EDLP) strategy but it is a pivot for a company that in the past was very discount-oriented.
Fair and square?
Several media outlets
are now reporting that, six months later, Penney has pivoted again. According to Retail Wire
CEO Ron Johnson told attendees at a Piper Jaffray investor conference that substituting terms such as “month long values” in place of “sale” was “kind of confusing” to the chain’s regular shoppers. So, from this point forward, Penney will call a sale “a sale” and nothing else.
It takes a certain amount of size, margin and brand equity to be able to make significant changes to pricing strategy. Penney has been positioned as a value retailer just about forever, so a change in pricing strategy doesn’t necessarily affect their brand.
But what about local retailers? Does it ever make sense for them to adopt an EDLP strategy? My guess is: rarely. Local retailers often charge higher prices than mass market chains. They justify these prices with more personalized service and a more carefully curated assortment. This “boutique” positioning makes sense for many consumers, even in categories which would never use that term.
My take is that local retailers would lose more than they gain if they tried to sacrifice the boutique factor for the higher volumes that EDLP can sometimes bring. Better for them to (1) make judicious use of sales and (2) find ways to incentivize and reward customer loyalty at prices that produce the margins they need.
on Wednesday, February 8th, 2012
Over the years I’ve generally been much more impressed by the quality of the Super Bowl spots than the quality of the game itself. I remember the Super Bowl pioneers, such as Master Lock’s famous Super Bowl spot, which was said to absorb the company’s entire TV budget for the year. But I don’t remember the game. I do remember the game when the E-Trade Baby first ran, because that was Super Bowl XLII, the first Giants-Patriots game. And then there was this, which said it all.
via Maxim34874 (Creative Commons)
But I do remember Sunday’s game, and not just because I’m a Giants fan (I actually grew up with the Jets). No, I remember Sunday’s game because it was one of the most exciting football games I’ve ever seen. Even my non-fan teenager was watching.
And with few exceptions, I don’t really remember the ads. I remember Matthew Broderick for Honda, a spot I really dislike (Ferris grew up to drive a Honda?) despite its 14 million YouTube views. I remember the Fiat Abarth spot, because it shows that good execution can sometimes overcome a predictable strategy. I remember a couple of others, including the user-created Chevy spot. But mostly, I remember the game.
And isn’t that how it should be?