Here is a classic example of a large corporation’s failure to effectively take the customer’s psychology into account.

While I’m certain Macy’s spent a lot of money on marketing before they made all the changes described in the New York Times article, they only concentrated on the proper things with the proper scientific testing after they had lost billions of dollars and run off some valuable customers forever! And this doesn’t even count a dramatic drop in Macy’s stock price!

This is an excellent example of corporate arrogance that often pervades business planning.  What do “we” think, what do “we” want, or what do “we” want to do while ignoring what the customer wants and will tolerate.

The customers will simply vote with their feet if they sense that this is the company’s policy no matter what size the company is!  If there is a competitor, they may even pay more, settle for more inconvenience, or go to more effort when they sense that the company is merely trying to “force” them to pay more or settle for fewer benefits.

Notice that in the article that Macy’s CEO, Terry J. Lundgren, acknowledges the mistakes, BUT Mr. Lundgren figured it all out AFTER the fact.  If his attention had been truly on the Macy’s customer, it would have been so simple to have avoided the billions of dollars lost.

Small businesses can just as easily make the same marketing mistakes.  Though they are neither as dramatic nor as visible, they may more disastrous for the company.  Macy’s will probably survive, though Mr. Lundgren should be summarily fired for his incompetence.  Smaller companies might not survive.

It will take Macy’s a long time to woo back disgruntled customers or replace those who resist wooing.

Solution?  Truly put the customer and his or her interests first! AND never lose sight of that preeminent requirement!

To your business success!

Paul Elliott

paul @ marketingsuccessblueprint.com

Marketing With Unbelievable Guarantees!™
http://www.MarketingSuccessBlueprint.com/blog

© 2009, Paul Elliott, All rights reserved world wide.