When former Apple SVP of Retail Operations, Ron Johnson, took over as the CEO of American retail giant J.C. Penney, he had hoped to do for his new employer what he had done for Apple, where he led the development of the Apple Store and its Genius Bar.
Unfortunately for Johnson, the revolutionary tactic of ditching discounts and offering consumers straightforward low prices every single day of the year, turned out to be more disastrous than revolutionary.
Mobile couponing has been gaining more and more speed over the last year. According to a recent eMarketer study, rising food and gas prices in the United States has lead 74% of US consumers to use more coupons this year.
In particular, the use of mobile coupon is on the rise: mobile coupons or app usage increased by over 100% in 2011, and 100% again in 2012. Furthermore, 79% of US internet users were using more mobile coupons this year—on par with print coupons and circulars.
Mobile coupling is great, but wouldn't it be even better if you could poll your mobile audience? Ask users 'how many times have you purchased this product?' and 'how did you first hear of this product?', etc. Want to have the consumer watch a video about your brand? For many brands, awareness is key - couponing is only one piece of the puzzle.
Apple's iPhone may be the smartphone, and the latest iteration of it, the iPhone 5, which was unveiled Wednesday, looks set to sell like hotcakes, even if some are disappointed that Apple hasn't done more.
But while Apple may not have made any bold strides this week with the iPhone 5 itself, one new application in iOS 6, Passbook, could represent an important step for Apple as it looks to taking its dominance in the smartphone arena and extending it to other mobile opportunities, such as commerce and advertising.
Deals have always been popular, but thanks in large part to the Great Recession, many consumers have rediscovered their love for coupons.
Technology, of course, is playing an increasingly prominent role in the coupon ecosystem, but what does that really look like? How many consumers have upped their use of coupons? What digital channels are most popular for coupon-seekers? And what actions would consumers take for a 25% off coupon?
Before Ron Johnson joined department store giant J.C. Penney as CEO in 2011, he was the SVP of Retail Operations at Apple Inc., where he was responsible for developing the Apple Store and its Genius Bar.
Apple's retail strategy was a major contributor to Appl'e's mind-bending success over the past decade, and for his seven-plus years of work, Johnson was handsomly rewarded.
Needless to say, given Johnson's accomplishments at Apple, J.C. Penney shareholders had high hopes for what he might do for the century-old retailer.
Earlier this year, Johnson unveiled his bold vision: radically alter J.C. Penney's pricing strategy.
Instead of using coupons and discounts, something the department store had done extensively for years, J.C. Penney would offer "Every Day", "Monthly Value" and "Best Price" prices on its merchandise. And instead of selling items for $x.99, it would use round numbers.
Thanks to supportive venture capitalists with deep pockets, some of the most prominent startups in recent years have been able to put off the 'making money' part of creating a new business.
But no business can survive forever without a revenue model, and for Foursquare, it looks like it's time to make money.
It's well-established that the second screen phenomenon is real, and there's plenty of reason to believe that social media and television are a perfect match.
But just how well do social media-oriented calls to action on television actually work? According to consulting firm Accenture, they work pretty well.
Marketers know that smart phones and tablets are increasingly part of the "path to purchase" for many consumers, but how big a role did they play in purchasing decisions this past holiday season?
According to Google, a big one.
Q: Why have there been so many cataclysmic stories over the past year about digital discounts-gone-haywire?
A: Because too many people had no idea what they were doing.
Marketers are almost guaranteed to get discounting campaigns wrong if they don’t understand a few underlying strategic concepts about what a discount is – and isn’t. Aiming to forestall any repetition of this maladaptive behavior, Econsultancy is pleased to share a few points from our latest Smart Pack, The Fundamentals of Digital Discounting.
Businesses may be tiring of services like Groupon, and overaggressive retailers may have bargained themselves into a less profitable holiday shopping season, but one thing is for sure: consumers love discounts.
Who can blame them? The global economy nearly collapsed in 2008, and it's been tough since then. Companies eager to separate consumers from their hard-earned dollars have often had little choice but to lure customers in with prices too hard to pass up.