Bot banker demand is blistering the economy

The Robin Report looks at the Macy's CEO and his comments on retail sales.  Near the end the Macy  CEO talks about promotions, discounts, loyalty points.  This is all banker bot food.  In otherwords, the CEO of Macy's is screaming, 'I need those smart cards and support for Macy Points.' 

Unfortunately, most major retailers seem to have focused primarily on the “cheaper” option, luring customers into the store where 50% off seems to be the new 30% off on most items, and creeping up. Retailers have failed to figure out how to give customers the other two options of newer and better. They are so panicked about the declines in traffic and prices that they’ve all but given up on how to provide an irresistible customer experience.
However, since it costs twice as much to steal a new customer from a competitor than it does to increase your own loyal customer’s spend; and since your current loyal customer is two to three times more profitable; it’s a no-brainer to focus on your best customers in a share war environment.
And by now you have hopefully mastered some kind of big data analytics that profile those loyalists in minute detail. If you have not, that train is leaving the station, so you better hop on while you still can.
Therefore, since the strategy for winning share is to give priority to your loyal customers; and since you should know precisely who they are and what they are dreaming for, the tactics are pretty obvious. You focus all of your marketing on each and every one of these core customers: engaging them through virtual and real world advertising and communications; providing new, better and differentiated products; personalizing the in-store service, presentation and experience, including exclusive events. And you encourage them to include their friends and spread the word through social media.
And by the way, this strategy will also work to cross the street and steal customers away from your competitors because these shoppers will also want what your loyalists love you for.
My final point, of course, is that if you implement this integrated strategy it will make discounting-as-a –weapon-of-necessity into a weapon-of-choice … and may do away with discounting altogether. And not soon enough.
I know I’m preaching to the choir for many retailers and brands who have, and continue to operate with this strategy for their loyalty programs etc. However, it’s not only a good reminder, it’s good to never be happy with what you might consider “best” when you can always do better.
As for Terry’s comments about the consumer, I think the projection for flat spending is more about opportunism than a lack of confidence. With coupons, discounts, loyalty points and gifts-with-purchase more the rule than the exception today, consumers are spending less because they can. Retailers are giving them such incredible deals to win market share that consumers could not spend more if they wanted to. And Macy’s, as many of my shopping experts tell me, is one of the most promotional retailers out there.